If you are living in Singapore in the year 2018, you will REALLY appreciate how tough these times are compared to just 3-4 years ago.
Despite being one of the highest per capita economies in the world, Singapore is also renowned for a high cost of living. In fact, this is the most expensive city. Whether you are in the upper or lower earning brackets, you will still feel the pinch. This is the main reason your financial advisor will recommend cost-saving measures to ease cash flow issues.
Of course, there are many online experts who promise quick-fix financial solutions but most consumers end up suffering financially. These unscrupulous exploit unsuspecting consumers by promising them easy techniques to survive and handle their ballooning debts.
It is important to appreciate that when it comes to your finances, you are the only person in control. Nevertheless, there are some generally accepted strategies that can help you overcome high cost of living. Take a look here at the best cost saving hacks that every Singapore household should try in 2017:
Get Rid of the Cable and Landline, Today
If you are still relying on your expensive cable and landline, it is highly likely your monthly bills are piling up. It is now cheaper to stream programs online and this is more effective as you only pay for what you need. There are cheaper internet TV options and even the latest series and movies are readily available on channels such as Netflix at affordable prices.
Use Energy Saving Options, like switching to use LED instead for florescent
You should install energy saving bulbs around the house. LED lighting is more affordable and there are outdoor lighting fixtures that will reduce the total electricity cost. Water-saving fixtures also reduce the total cost of your PUB bill. Other simple strategies to cut maintenance costs include air drying your clothes, using natural light, opening windows to let in cool air, and using an automatic thermostat.
Leverage on Tax Benefits
There are many benefits a household owner can enjoy but most people are not aware about them. It is important to talk to a financial advisor who will guide you on the tax benefits applicable to your situation. For instance, energy saving home remodels can lead to tax deductions while your job situation can qualify you for some benefits.
HDB Home and Condo Refinancing
This is one of the best options for homeowners who are seeking to improve cash flow. It is possible to refinance after every lock-in period allowing you to enjoy better interest rates in the market. The fact that mortgage financing takes up a big chunk of your monthly income means any chance to save on the interest fees should be grabbed quickly. You can also opt for a lock-in rate if there are expectations that interest rates will go up.
Buy from Online Shopping Portals, such as Qoo10, Taobao or AliExpress
Online shopping is a Godsend to consumers and you can shop for everything under the sun. Whether you are looking for the latest smartphone, internet service package, new or used car, plumbing services or anything else, shopping online enables you to make more savings. You can also negotiate a better deal because the internet market is highly competitive. It is also easier to find the best rates through comparison websites.
Get rid of your Car and use the Public Transport, like SMRT and SBS Transit instead
Gone are the days when a personal car was a social status symbol. Today, your car is mostly for convenience and in most cases, you can even switch to public transport and save a lot of money. Daily commute using your car is expensive considering the cost of gas and maintenance. In fact, most financial advisors advise against buying a car because of the high cost of Certificate of Entitlement (COE) and maintenance.
Still struggling with your household expenses? Try these simple yet highly effective cost cutting strategies now and let us know if you need more personal finance tips.