Smart Budgeting Tips and How to Get Started

Singapore is an expensive place to live in. Last year, Singapore topped the chart of costliest cities to live in, for the 9th time in a row, according to a survey by the Economic Intelligence Unit (EIU). This means budgeting and money-saving tips are critical for maintaining healthy finances on our little red dot. Thankfully, the Ministry of Social and Family Development (MSF) has developed a free budget sheet to help anyone struggling to balance their finances.

Gather all essential information  

Before you roll up your sleeves and download your free budget template, gather your key financial information. 

• Monthly income, after CPF deductions. Start collecting your pay slips and take a good look at how much your take-home pay is after employee and employer CPF contributions.

• Fixed monthly expenses. Paying off your housing loan to HDB? Credit card bill due? Keep those account statements and review them. Also monitor other fixed expenses like your groceries, utility bills, childcare and transportation costs.

• Variable monthly expenses. Variable expenses refer to products or services you may not always purchase, and can include entertainment options like streaming services or a hotpot dinner with friends at Haidilao. Don’t throw away those receipts!

• Saving goals. Maybe you’re eyeing a tour of the beautiful volcanic Jeju Island in South Korea, or looking to splurge on the latest Apple or Samsung tablet. Setting aside a small sum to go toward funding this goal can help you stay motivated, especially when you watch the amount grow.

Having all these details on hand will streamline your budgeting process and increase the accuracy of your budgeting.

Free template budget

Whether you’re a proponent of the 50/30/20 budget, or a fan of envelope budgeting, this free budget template will help you manage your cash flow effectively.

>>  Ready? Download your budget template now.

Try different budgeting tools on for size

Don’t worry if the above planner isn’t a good fit for you, you can always look out for other budget templates out there.

Of course, there are also budgeting apps, which might be a better fit for you thanks to their accessibility. You’ll be glad to know that we’ve already catalogued the best budgeting apps available in Singapore. 

Try other budgeting systems

There are plenty of budgeting systems that can help you organise your cash flow to meet your personal and financial goals.

• The 50/30/20 budget: Inflation hits hard—everybody has to start saving somewhere and the 50/30/20 is a great place to begin. This budget proposes that you allocate 50% of your income to your needs, 30% of your income to wants and 20% to savings and debt repayment. 

• Zero-based budgeting: The key concept of zero-based budgeting is to not waste a single dollar. This means all expenses must be justified. This makes it particularly suitable for people who are liable to blow their budget on impulse purchases, or those who want a tight handle on their cash flow.

• Envelope budget: The envelope budget is similar to zero-based budgeting in that you manage your spending by putting your money in different envelopes. For example, you might have an envelope for clothing expenses, another for credit card bills and so on. If there’s no more money in the envelope, you can’t spend it! Some people consider envelope budgets to be a type of zero-based budgeting.

• Pay-yourself-first budget: This form of budgeting heavily prioritises saving, or paying yourself. When payday comes around, your first duty is to set aside a sum for your savings account, instead of deciding what to do with all this money now. Though habit can help you build your savings, it may not be realistic for people with variable incomes. Gig workers or people who work commission-based jobs, for example, may not be able to save a significant portion of their income each month. 

You can’t control what you’re not aware of. Being cognisant of your spending habits and learning how to budget effectively is the first step on the long road to financial freedom! Take your time to take each budgeting system out for a test drive and ask your friends about their favourite budgeting apps. 

No matter which system or app you choose, consistent effort on your part is needed to sustain the momentum that will transform your financial situation, day by day. Remind yourself on what you’re saving up for and that you’re getting closer to snagging that new gadget or flying out for that Jeju Island trip.