Money Tips

Budget:

• Have a budget. Plan your budget with care and make sure you adhere to your financial goals.

Savings:

• 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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