15 Practical Budgeting Tips You Should Know on How To Save Money in Singapore

Do you want to know how to save money in Singapore and reach your financial goals? You’re in the right place! Budgeting is super important, especially in a costly city like Singapore.

It’s said that the average person in Singapore saves about 31.5% of their income.

But don’t stress if you’re not saving that much.

Saving that big chunk of your money can be tough for many people, and that’s okay!

But if you want to try to save more, here are 15 tips for budgeting in Singapore that you should know how to save money in Singapore.

Budgeting Methods To Practise

1. 50-20-30 Rule

With approximately 41% of Generation Z and Millennials consistently saving money each month, one proven budgeting approach that is rather effective is the 50-20-30 rule.

This method helps you establish a systematic framework for managing your finances by dividing your income into three categories:

50% for essential needs, 30% for discretionary spending to sustain your lifestyle without compromising your long-term goals, and 20% for savings.

While the 50-20-30 budgeting rule provides a handy guide, it may only suit some due to individual financial differences.

Variations in income, unexpected expenses, and differing financial goals may require adjustments to the allocation percentages.

Thus, customising the budgeting approach according to personal circumstances is crucial to achieving saving goals effectively.

A few apps that you can use for your budgeting in Singapore, especially for beginners that would be helpful are :

• DBS NAV Planner
• Monny
• Wally
• Spendee
• YNAB
• Money Manager
• Zenmoney

2. Zero-based Budgeting Technique

In a zero-based budget, you assign every dollar you earn to a particular expense or savings goal until you’ve used up all your income, ensuring that every dollar is accounted for.

This method requires careful planning to allocate funds effectively and achieve a balanced budget with no leftover money.

It is great if you love tracking expenses and knowing where every cent goes. It’s also suited for those who can predict their monthly income.

The pros of the zero-based budget include providing a detailed overview of spending habits, facilitating adjustments to meet financial goals, and offering flexibility in reallocating funds.

However, the downside of this money savings tip in Singapore is that it requires meticulous tracking, which can be time-consuming.

Besides, it can be challenging for those with irregular incomes to predict and allocate funds accurately.

3. The Pay-Yourself-First Method

Another money-saving tip in Singapore is the pay-yourself-first method, which prioritises saving money before covering monthly expenses, essentially investing in one’s future self.

A portion of your income or allowance is set aside for savings, and then the remaining amount is allocated for regular expenses and discretionary spending.

This method is ideal for those who want a simple way to prioritise savings, especially freelancers or students with irregular incomes.

While it establishes a consistent savings routine, unexpected expenses may require tapping into savings, emphasising the need for an emergency fund. Additionally, relying on credit cards without careful oversight can lead to overspending and financial instability.

Budgeting Tips For Individuals

4. Have Different Bank Account

One effective financial management strategy involves dividing your income across multiple bank accounts. Each account specifically aims to streamline your financial activities and savings goals.

Here is how you do it:

Step 1: Designate an account for daily expenses.

This account is your primary tool for bill payments and everyday transactions, promoting efficient money management. It should allow you to have convenient access to all your ATM accounts.

Step 2: Establish an account dedicated solely to your monthly salary.

This account serves as a safeguard for your savings aspirations.

By transferring a portion of your income into this account, you proactively reinforce your commitment to saving. Moreover, automating this process through standing instructions enhances convenience and consistency in building your savings.

Step 3: Create separate accounts for distinct savings goals

You may save towards purchasing a home, buying a car, or funding your children’s education. This allows you to secure a particular fund towards your long-term goals.

5. Take Advantage of CPF Savings

Start with small, regular contributions to make the most of your CPF savings.

Through consistent contributions, you can benefit from compounding interest, which helps your CPF savings grow substantially.

Example:

A monthly top-up of $50 into your Special Account (SA) or Retirement Account (RA) can lead to significant growth over time without overwhelming you with large sums.

Over 15 years, a $50 monthly top-up can accumulate over $12,000.

The timing of your cash top-ups also plays an important role. If you contribute in January instead of December, you can increase your CPF savings’ interest by up to 20% over ten years, maximising your long-term savings potential.

While this method offers a practical way to gradually build your retirement fund, it’s essential to be mindful of your financial capacity.

My advice is to commit to a comfortable amount and remain flexible to address unexpected expenses.

Start planning this into your budgeting in Singapore!

6. Start Using Money-Saving Apps

You can start saving money in Singapore on shopping, dining and groceries by downloading these money-saving apps through discounts and cash rebates.

There are apps such as ShopBack that offer you the chance to earn cash back based on your purchases from a wide array of merchants in dining & groceries, travel, health & beauty, electronics, and more!

How?

Just sign up and shop through the ShopBack website.

You can receive up to 50% cash back on transactions when you spend money on Subway, The Daily Cut, Simply Wrapps, Pho Street, and Texas Chicken.

A portion of the amount spent is then credited to your ShopBack account for future redemption.

7. Choose A Credit Card with Benefits

One effective method to maximise benefits while spending is by signing up for credit cards with enticing perks.

In Singapore, many credit card options are available, ranging from DBS Bank to UOB. Each offers attractive rewards such as shopping vouchers, cashback, air miles, dining discounts, or groceries.

These credit cards often establish partnerships with merchants to provide exclusive promotions, enhancing the value of cardholder benefits.

For instance, they may offer enticing deals like 1-for-1 buffet deals or exclusive discounts at dining establishments.

You may find the best credit cards for online shopping, the best credit card for petrol and many more for groceries and dining.

There are also credit cards with no annual fee which allows you to build your credit score while spending as well.

Remember to consider the benefits of choosing the right credit card which could greatly contribute to your plan in saving money in Singapore and rewards on your everyday expenses.

Budgeting Tips Through Lifestyles

8. Plan your meals

Another money-saving tip in Singapore is to consider limiting dining out to once a week to curb unnecessary spending.

By embracing home cooking, you can explore various cost-effective and enjoyable culinary experiences, ranging from simple recipes to creative instant noodle hacks and baking endeavours.

By reducing the frequency of restaurant visits, individuals may notice surplus cash accumulating in their accounts, contributing to overall financial stability.

Here are some meal-planning apps with minimal to no charges:

• Big Oven (Free)
• Yummly (Free)
• YoRipe Asian Recipes (Free)
• KitchenPal (Free)
• SuperCook (S$2.99 per month)

9. Shop Out-of-hours

Want to save money in Singapore but still be able to enjoy good meals?

Check out out-of-hours deals! Before closing, many places offer great discounts or even freebies to clear their remaining stock. It’s a bargain hunter’s dream

Find out these spots where you can enjoy delicious meals at nearly 50% off:

• &SONS Italian bar and bistro (Starts from 9 PM)
• Da Paolo Pizza Bar (Starts from 9:30 PM)
• Cafe Swiss @ Swissotel The Stamford (Starts from 8:30 PM)
• Som Tam (Starts from 8 PM)
• Spizza @ Balmoral Plaza (Starts from 9 PM)
• Lime Restaurant @ PARKROYAL (Starts from 9 PM)

10. Look Out For Cinema Deals

While cinema tickets in Singapore are relatively affordable, you can never say no to saving more money!

You can keep an eye on various websites for special promotions and discounts through websites like Shaw Theatres.

11. Sign Up For Memberships

Another way to save money in Singapore over time is to sign up for memberships at various retail outlets.

Most of the sign-up memberships are free or charge a small amount; however, you can unlock exclusive perks and discounts!

Here are some memberships you can look into:

1. Passion Card:

For just S$12, enjoy five years of discounts at over 1000 merchants, including Gardens by the Bay. Plus, it doubles as an EZ-link card and earns KrisFlyer miles.

1. CapitaStar

Shop at CapitaLand Malls, earn Star$ for every S$1 spent and redeem them for CapitaVouchers.

Here’s how you can sign up:

• Self-service kiosks at select CapitaLand Malls.
• Visit the website at www.capitastar.com.sg.
• Download the CapitaStar mobile app from the App Store or Google Play.
• Metrocard

Get a 10% discount year-round and become an Elite cardholder by spending S$5,000 in 12 months for even more benefits.

1. Sephora

Sephora members enjoy a S$10 birthday month reward, complimentary beauty services, and points accumulation for redeemable rewards, making it a lucrative option for beauty enthusiasts.

12. Have A Cup of Local Kopi Instead

Swap your usual barista-made coffee for a cup of local kopi. Priced at approximately S$1.20 per cup, it’s a budget-friendly alternative to expensive lattes.

Time to pay attention to your local kopitiams near you. Not only can you save over time, you are also supporting the local hawkers.

Remember to grab some kaya toast to complement your drink!

13. Save on Utility Bills

We agree that utility bills are a fixed cost and could consume a large amount of your monthly salary, so it is time for you to consider saving money in Singapore by adjusting your lifestyle.

While air conditioning is a staple in Singapore’s climate, it can significantly impact your energy expenses.

Consider turning it off, especially at night, and use fans or natural ventilation instead.

Keeping curtains and blinds closed during hot days also helps maintain cooler indoor temperatures.

To reduce water consumption, opt for eco-friendly water heaters.

Do your research for the best water heaters in Singapore so you can save some costs on your next water bill.

14. Take advantage of the free early-bird MRT ride before 7:45 am.

If you’re heading to the city or starting work early, hop on the free ride to downtown areas. Ensure you tap in at any of the 18 designated stations before 7:45 am on weekdays.

Don’t worry if you’re a few minutes late – there’s still a 50-cent discount on MRT fares before 8 am.

Hop onto any of these stations:

• Raffles Place
• Telok Ayer
• Tanjong Pagar
• Somerset
• Promenade
• Outram Park
• Marina Bay
• Orchard
• Lavender
• Esplanade
• Downtown
• Dhoby Ghaut
• Clarke Quay
• Chinatown
• City Hall
• Bayfront
• Bugis

15. Check Out for Employee Discounts

Another money-saving tip in Singapore is to take advantage of the company discounts.

Check with your company on what employee discounts you could obtain and if there are certain benefits, such as optics insurance, offered by your company.

Many companies provide special deals for their employees, such as discounts on products or services.

They may also offer discounts for employees of affiliated or sister companies.

Conclusion

In summary, saving money in Singapore is possible with the proper strategies.

After reading these 15 budgeting tips, you can efficiently start budgeting in Singapore and progress toward your savings objectives.

Remember these guidelines as you tackle the city’s expenses, and witness a steady growth in your savings over time!

Frequently Asked Questions (FAQs)