7 Smart Financial Tips Every Singaporean Woman Should Know, Whether You’re A Savvy Girlboss Or A Devoted Homemaker
Chances are, you’re going to outlive the men in your life, based on studies that have shown a woman’s life span is almost 8% longer on average than a man’s. But that’s just one small reason why financial freedom matters for women, among many others.
While we’re seeing more women in managerial roles with greater income potential, we also face reduced opportunities and lower lifetime earnings compared to male counterparts due to career breaks. Whether it’s entering motherhood or becoming the caretaker for the elderly in your family, these can lead to a slow down in career opportunities.
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If you’re aiming to build a solid financial future for yourself, here are seven smart tips to know.
#1 Create multiple streams of income
Your day job might not be the iron rice bowl you were expecting, especially with unpredictable situations like the ongoing pandemic and the global recession. Set yourself up for financial success by having multiple streams of income to fallback on in case one source fails. Some ways to generate passive income in Singapore without much disruption to your full-time job include buying dividend stocks, teaching yoga on the side, and even earning royalties from creative pursuits like selling photos you’ve taken or illustrations you’ve drawn.
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#2 Stick to a budget
Your budgeting priorities should be as unique as you are, depending on your lifestyle needs—for instance, a single working woman vs a married couple with duo incomes.
- Set measurable financial goals
- Split up your income into different bank accounts
- Spend no more than 50% of your income on necessities
- Spend no more than 20% on your hobbies, shopping, and entertainment
- Keep at least 30% for long-term savings and investments
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#3 Use the right credit cards
When it comes to credit cards, do your research and sign up for the ones that best align with your lifestyle. For instance, the UOB Delight Credit Card is great for grocery shopping as it offers up to 8% rebate at Cold Storage, Market Place, Jasons, Giant, and Guardian; as well as 10% off at Cold Storage, Giant, and Guardian. Meanwhile, the Citi Rewards Card is designed for online shoppers as it allows you to snag 10x rewards points when ordering food deliveries or booking rides.
Love going out for theatre performances and art events? The OCBC Arts Platinum Card gives you priority access to shows by Singapore Dance Theatre, Singapore Lyric Opera, and T.H.E Dance Company. Meanwhile, the DBS Woman’s card, which gives you miles for online and overseas purchases, is perfect for globetrotters.
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#4 Prioritise your debts
Take charge of your financial well-being by paying as much of your debt as possible. Whether it’s a student loan or accumulated debt from overspending, the faster you’re able to reach a settlement, the better your future cash flow. Prioritise paying off high-interest loans and credit facilities first—if you have trouble paying the full amount, pay in parts and save again. In the unfortunate event that your debt is more than 12 times your monthly income, go for a debt consolidation plan, which allows a long repayment period of up to 10 years. Even if you’re only able to pay the minimum owed on all your cards, be sure to focus any extra cash on the debt with the highest interest rate.
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#5 Learn to invest
If the thought of setting aside money to invest sounds daunting, start building confidence by assessing your risk portfolio with a trusted financial advisor. Once you’ve defined your short-term and long-term financial goals, set aside an emergency fund before you delve into investing. Whether you’re a rookie or seasoned investor, play your cards right by ensuring your portfolio is diversified; for instance, a mix of equities and fixed income.
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#6 Prepare for rainy days
Learn to expect the unexpected by ensuring that you’ve got adequate insurance plans covering female-related cancers like breast and cervical cancer, as well as other common illnesses. In the long run, maintain health coverage for long-term care in case of terminal illnesses. Once a year, set up a review with your financial advisor to adjust coverage in accordance with the rising cost of disability and retirement care.
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#7 Take part in your family’s financial planning
Even if your partner claims to have the family’s finances down pat, it’s worth being involved in the planning process. To avoid getting a rude shock when your partner passes on, make the effort to understand both financial and estate planning. For instance, sit down with your partner and discuss will making, Central Provident Fund (CPF) nominations, insurance nominations, as well as the Lasting Power of Attorney—which allows a donee to act in areas of personal welfare, as well as property and affairs.
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