hoolah | 4 Simple Personal Finance Habits To Keep You Financially Healthy

With the pandemic and an economic downturn of sorts in the midst, it’s safe to proclaim that the past year and a half have been crazy. At a time of economic uncertainty, learning how to manage your personal finance is especially important these days.

From investing in REITS or ETFs, and even cryptocurrencies to juggling multiple side-hustles, there are many strategies one can employ to increase their financial security and wealth. Here, you’d see a non-conclusive list of tips that you can

1. Break the Silence, Be Willing To Ask & Talk About Money

The term “personal finance” is both daunting and intimidating. It’s not difficult to see why.

Growing up, many of us are taught that discussing one’s wealth in most public and social settings is unacceptable. We are taught not to share our salary with our co-workers. We avoid bragging our job promotions excessively. And we try not to ask our close friends about their rent or debt. We sometimes steer clear of these talks about money because they can be triggering or sensitive for others.

In a 2018 news story, The New York Times journalist Kristin Wong explains how the social taboo of discussing money in polite company prevents us from putting our budget in perspective.

“We’re discouraged from talking about money at every turn, but if you want to fix your financial situation, talking about it is necessary,” she explains. “Further still, we look at poor money skills as something to be ashamed and embarrassed of, which can keep us from being honest about money and seeking out the right kind of help.”

2. Figure Out Your Non-Essentials & Track Them

Sometimes when life gives you lemons, you may go on a retail therapy and splurge on a thing or two to make yourself feel better. But having said that, excessive splurging on non-essentials can burn a hole in the pocket and impact your financial security in the future.

What’s Essentials? In short, these are the things that you need to survive and live comfortably. Every individual’s needs are different, and it depends on your lifestyle. The examples run the gamut from housing mortgages, utility bills, mobile phone bills, transportation, food costs, and your child’s education! Consider ranking your essentials in order of importance.

What’s Non-Essentials? Non-essentials are mostly defined as the things that you don’t need. They can include your daily dose of bubble tea, a new car upgrade, clothing, video games, dining out at expensive restaurants to list a few. Tracking your monthly non-essentials expenditure is thus valuable because you would then have an idea of what to work with.

How to Purchase Responsibly? Figuring out essentials and non-essentials can help you figure out the best way to manage your money. The general rule of thumb is to be thrifty and avoid splurging on your non-essentials excessively – and yes, this means no daily bubble tea or unnecessary GRAB food delivery. Even so, there may be times when you may need to get your hands on a big-ticket item, such as a brand-new sofa or bed. You can choose to get them with “Buy Now, Pay Later” service methods, such as hoolah (which allows you to afford the things you need at 0% interest over 3 installments).

3. Build an Emergency Cash Fund

There are those who live paycheck by paycheck. And many of them don’t have an emergency cash fund. If this sounds familiar, you should pay heed to what’s going on here.

What’s an emergency cash fund? They are funds that are meant to be used on a rainy day, providing a cushion of sorts to unexpected pitfalls. You’ll never know when you would incur an unexpectedly huge expense, be retrenched, or have a family emergency.

So how much is enough? For starters, financial experts advocate having savings that can cover at least three months of essential expenses. This includes your debt, credit loans, rent, transport, food, and more. That said, you should look into increasing this pool of emergency cash funds over the years. This means looking to have more than just three months of savings tucked away in your bank.

4. Pay Your Credit Card Bills On Time

To avoid incurring additional debt, you should make sure to pay your credit card bills in a timely fashion and have your account in good standing. As an adult, it’s likely you may have multiple credit cards and loans to manage. Juggling all these can be difficult. It would be wise to automate the processes and have the bank automate the monthly payment payout. You can do so with these links:

Set Up GIRO Payment for DBS/POSB Banks Credit Cards here.
Set Up GIRO Payment for OCBC Bank Credit Cards here.
Set Up GIRO Payment for UOB Credit Cards here.
Set Up GIRO Payment for Standard Chartered Credit Cards here.

With the vast amounts of information on how to keep financially healthy made readily available on the internet, achieving financial awareness is sat conveniently in your hands and is just a click of a button away. Make sure to do your due diligence in ensuring your wallet and accounts fat and healthy!