Financial Management (Working Adults)
- jessicaaqian
- Nov 5, 2024
- 2 min read
Updated: 12 minutes ago
A guide on how to manage your finances as a working adult
Build the habit of saving

Predictability is important part of financial security
Having a robust emergency saving pool will give you time to response to unexpected circumstances
Start each month by saving a percentage of your salary (20 t0 30%) and set aside these funds in a bank account that is separate from our daily expenses. A recommended amount is equivalent to 6 months of your monthly expenses. Discipline is important here
Setting a budget
Formulate a spending plan on your monthly expenditures
Be detailed so you can see where the money is being spent
The goal of a budget is to ensure that you are spending only within your means
Following a budget may keep you from overspending and incurring potential debt
Set a monthly budget that work for you and stick to it
Needs vs Wants

A 'Want' is something you wish to have in your life (Eg. Luxury goods, vacation, etc).
A 'Need' is essential or vital in your life (Eg. Basic meals, daily necessities, etc.).
Differentiate between your needs and wants
Start by prioritising your needs before fulfilling your wants.
Purchasing of wants should be done within your spending ability and considered carefully
Spend Smart
Apply for credit card only when you can confidently manage your finances
Choose credit card tailored to your spending habits and have rebate schemes that can stretch your dollar
Rebates may seem insignificant but every little bit counts and will add up in the long run
Credit cards can encourage you to spend more due to the ability to spend more in advance
Remember to pay your credit card bills on time as penalty charge on late payment are extremely high
Invest

Investing allow you grow your wealth and generate additional income streams
Invest small of money on a regular basis. Compounded returns are extremely beneficial over the long run
A $1,000 investment at an interest rate of 3% p.a. would have grown by 12% to about $1,100 in 4 years
Invest early as time is an asset, and having a longer time horizon allows your investment to grow
There are investment products available in the market depending on your risk appetite, capital and the time you are willing to stay invested
There is no one-size-fits-all investment plan, so reach out to trustworthy friends or professionals to get advice
The golden rule in investment is to invest what you can afford to lose
Written by: Chia Miao Ting | Designed by: Chia Miao Ting | Edited by: Jonathan Kuek
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