Let’s face it—saving money can feel daunting, especially in a high-cost city like Singapore. You might think, “I don’t earn enough,” or “It’s too complicated.” But here’s the truth: saving money isn’t about being rich or financially savvy—it’s about being intentional.
Singapore, with its stable economy, competitive banking environment, and a plethora of government support schemes, offers an ideal environment to grow your savings. Whether you’re a student, fresh graduate, or working adult, you don’t need a finance degree to take control of your money.
This guide is tailored for you—the everyday person who wants to get their finances in shape but doesn’t know where to start. Let’s walk through the basics in a friendly, fuss-free way.
The Absolute Basics – Understanding Your Money (and Where It Goes)
Budgeting 101 for Dummies
What is a budget?
Think of a budget as a roadmap for your money. It helps you understand where your money is going, where it should be going, and how to reach your financial goals without stumbling.
Why bother with one?
Without a budget, it’s easy to overspend and wonder why your bank balance is mysteriously shrinking. A budget helps you make informed choices, track progress, and ultimately, feel less stressed.
How to Create a Super Simple Budget
- Track your income: Include your salary, side hustles, allowances—anything that counts as cash in.
- Track your expenses: Split them into:
- Fixed: Rent, utilities, insurance, phone bill.
- Variable: Hawker meals, bubble tea, shopping, Grab rides.
- Use tools to simplify: Apps like Seedly and Spendee, or good old Excel sheets or pen-and-paper, can help.
The 50/30/20 Rule (Simplified)
- 50% Needs: Rent, groceries, transport, bills.
- 30% Wants: Dining out, entertainment, shopping.
- 20% Savings/Debt Repayment: Emergency fund, investments, loan repayments.
The “Leaky Bucket” Syndrome
Small leaks sink big ships. In Singapore, these common culprits eat into your savings:
- Daily kopi or bubble tea ($3/day = $90/month!)
- Unused subscriptions (Netflix, gym, premium apps)
- Impulse buys during Lazada or Shopee sales
Patch those leaks and watch your savings grow.
Easy Wins – Quick Hacks to Boost Your Savings Today
Automate Your Savings
“Pay yourself first.” Set up an automatic transfer from your salary account to a savings account. Treat it like a non-negotiable bill. You won’t miss what you don’t see.
Food & Drink Hacks
- Eat at hawker centres: A plate of chicken rice for $3 beats a $15 café lunch.
- Bring your own lunch: Save $50–$100 weekly.
- DIY kopi/tea: A $1.50 kopi a day costs over $500 a year!
Transport Tricks
- Use public transport: An EZ-Link card is your best friend.
- Walk or cycle: Great for your wallet and health.
Shop Smarter
- Make grocery lists and stick to them.
- Compare prices between supermarkets and online platforms.
- Use cashback apps like ShopBack or FavePay.
- Say “no” to impulse purchases—sleep on it for 24 hours.
Review Subscriptions & Cut the Clutter
Unsubscribe from that $17.99 streaming service you barely use. Downgrade your mobile plan if you’re not using all the data. Every dollar counts.
Save on Utilities
- Turn off the aircon when not in use.
- Use fans where possible.
- Unplug electronics to reduce standby power drain.
Taking It Up a Notch – Smart Strategies for Long-Term Growth
Set Financial Goals
Whether it’s a new laptop, Bali trip, or a home deposit, goals give your savings purpose. Use the SMART method:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Emergency Fund 101
Aim for 3–6 months’ worth of expenses. It’s your safety net for job loss, medical emergencies, or sudden bills. Park it in a high-interest savings account—accessible but separate.
Good vs. Bad Debt
- Good debt builds your future (e.g., education, property).
- Bad debt drains your finances (e.g., high-interest credit cards).
Prioritise clearing credit card debts or personal loans with high interest rates.
Investing for Dummies
Once your emergency fund is sorted, it’s time to make your money work.
- Why invest? To beat inflation and grow wealth.
- Beginner options in Singapore:
- Fixed deposits: Low risk, low return.
- Singapore Savings Bonds (SSBs): Government-backed, flexible withdrawal. Learn more at MAS SSB page.
- Exchange-Traded Funds (ETFs): Diversified, low-cost, long-term growth.
Tip: Don’t go it alone—consider speaking to a licensed financial advisor before making big investment moves.
Singapore-Specific Super Savers – Leveraging Local Advantages
CPF (Central Provident Fund) Basics
CPF isn’t just for retirement—it’s also your savings ally.
- Ordinary Account (OA): Used for housing, insurance, education.
- Special Account (SA): Meant for retirement, earns higher interest.
- Medisave: For healthcare needs.
CPF pays up to 5% interest per annum, making it one of the best “savings” tools in Singapore. Contributions are automatic if you’re employed.
Tap Into Government Schemes & Grants
Singapore offers various schemes that support financial well-being:
- Housing Grants: For first-time HDB buyers.
- Baby Bonus & CDA: For parents.
- Workfare Income Supplement: For lower-income earners.
You can explore these schemes via LifeSG – a portal for government benefits.
Choose the Right Bank Account
Some banks offer promotional interest rates based on activity (e.g., salary credit, bill payments).
- UOB One, DBS Multiplier, and OCBC 360 accounts can offer 3–5% effective interest if conditions are met.
- Compare regularly—bank promos change often.
Conclusion: Your Journey to Financial Confidence Starts Now!
Saving money in Singapore isn’t some secret handshake only for financial wizards. Honestly, it’s about being a little smarter with your cash, building a few good habits, and sticking with them. You don’t need a massive salary to start, nor do you need to be a budgeting guru.
Think of it this way: every time you resist that extra kopi or hawker treat, you’re making a small win. And when you set up your bank account to automatically move some cash into savings the moment you get paid? That’s a huge win, happening without you even thinking about it! It’s these consistent, often small, actions that really add up. So, whether you’re just starting or looking to boost your savings game, remember that every little bit counts on your journey to financial freedom.
