Money Tips

  • Have a budget. Plan your budget with care and make sure you adhere to your financial goals.
  • Pay yourself first! Every month, set aside at least 10% of your income as savings. Place these savings in a separate bank account and choose not to have the ATM card facility.
  • Make savings a way of life: Begin saving TODAY. Know the concept of compound interest.
  • Make savings a way of life: Provide an emergency fund, ideally at 6 times of monthly expenses.
  • Make savings a way of life: Allocate your savings for retirement fund, but most importantly – Live Within Your Means.
Loans & Credits:
  • Loans & Credits: Know the purpose of your loan and repayment capabilities; and, be aware of the terms and conditions of the loans.
  • Loans & Credits: Know the effective interest rate on your loans; and, keep payments within 40% of gross monthly salary.
  • Loans & Credits: Always be a good paymaster so you have a positive credit report; and, NEVER borrow from unlicensed money lenders.
Signs that you need financial advice:
  • You only pay the minimum amount every month for your credit card.
  • You take frequent cash advances.
  • You have little or no savings.
  • You depend on overtime or bonuses to pay your living expenses.
  • You consistently pay your bills late.
  • You borrow money from family or friends to pay your debts.
Financial Basics:
  • Make and stick to a budget.
  • Save at least 10% of your monthly salary.
  • Track your expenses and cash flow.
  • Live within your means.
  • Spend wisely, learn to differentiate between needs and wants.
  • Delay gratification.
  • Have an emergency buffer fund of 6 months of your total expenses.
Managing debt better:
  • Borrow or take loans only for productive purposes.
  • Ensure that you can pay the installments comfortably.
  • As a guide, your monthly loan repayments should not exceed 40% of your gross monthly income.
  • Adhere to the repayment schedule to avoid unnecessary charges.
  • Use surplus fund or extra income to reduce your total debts.
Building Wealth:
  • In order to build wealth, start saving early.
  • You need to ensure you have a positive net worth (asset – liabilities).
  • Diversify your investments in order to spread your risks.
  • The higher the return you get from an, investment, the greater the risk.
  • Be wary of get-rich-quick schemes.
Tips on using credit cards:
  • Limit the number of credit cards you have to just two.
  • Do not use a credit card if you cannot make the monthly payments.
  • Avoid using credit card to get cash advances.
  • Always check your credit card monthly statement to ensure there are no irregularities.

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