Look at the small salary in a different perspective: it’s a good financial teacher as it trains you to be smart, disciplined, and more mature to handle bigger money-related responsibilities and privileges.
2. Fresh graduates, here’s a reality check: just
because you have a degree or finished school
with honours doesn’t mean you’ll land a
managerial position immediately. Almost
everyone begins as entry level.
Entry-level workers earn around $2,600 for those
with a degree and $1,600 for ones with a
diploma. Either way, it’s small. The good news
is there are ways to live big:
3. Make a budget.
Being entry level is one of the best times to
make and follow your budget. Here’s a
guide in making one.
4. Build and grow your
emergency fund.
Save at least three months’ worth of gross income. This can
be helpful if you want to quit your job and take time looking
for a new one, you suddenly lose your job, or there are
emergencies that need huge money.
5. Automate repayments.
Sign up for automatic repayments of loans, credit cards,
and utilities to avoid spending money on late charges.
Prompt repayments also boost your credit score.
6. Limit eating out.
More than 30% of food expenditure goes to restaurants!
Just think how much you can save if you limit it to at just
once or twice a month.
7. Cook your meals.
Home-cooked meals don’t have to be complicated or take
an hour to make. Career Contessa has awesome tips for
you.
8. Take advantage of
company benefits.
Companies offer health insurance, paid leaves, allowances,
bonuses, and trainings, to name a few—for free—even if
you’re still entry level.
9. Skip the beer binge.
A beer binge would probably be at least 3 cans of Anchor or
Godfather, which costs around $3.50 each. This means
every binge is worth $10.50. If you do it at least once a
week, you’re spending $42 on beers alone. Wouldn’t it be
better if you add it to your CPF or retirement account
through retirement sum topping-up scheme? Your body will
love it too.
10. Reward yourself first.
Make savings or investments your first priority once salary
comes in. So you won’t forget, automate the process. Banks
can autodebit your desired savings straight from payroll.
11. Pay your debt.
Mind your debt and pay it promptly and religiously. If
necessary, channel a part of savings to repayments if it
means paying less interest and shortening terms.
12. Use public transport.
MRTs and buses can get pretty crowded, but they’re your
best bets if you want to save costs on transport.
13. Go to work early.
This way, you don’t have to fight for a place in the train or
bus, and you avoid spending on a taxi. Best of all, you have
more time to accomplish your tasks for the day.
15. Join training sessions.
Training is a good way to get new or upgrade old skills,
determine the best career path, and display your talent and
knowledge. Some companies offer subsidised or free
education, so don’t forget to take it.
16. Be smart with credit
cards.
Understand and maximise reward points, cash backs, and
rebates of your credit cards.