Have you ever heard that by the age of 35 you should have at least a minimum of S$100,000.00 worth of savings under your belt? Assuming that you would have already completed your university education with a job that is paying you above what average people are earning. Many Millennials in Singapore have a strong tendency to fall back to their parents in terms of financial assistance and they are not capable of supporting themselves financially. This is a major problem that has been surfaced recently.
Gone are the days where you see people spending only on the essentials and necessities. Millennials are all about lifestyle and entertainment. As soon as their salary check comes in, they would splurge on luxurious goods, booking a vacation as they are always in need of a holiday or even hanging out at clubs and spending on overcharged alcoholic drinks. This is a result of being spoon-fed and pampered by their immediate family and they care too much about themselves and the image they would want people to perceive them as.
Here are some common and wrong perceptions that can be avoided (Especially to Singaporean Millennials):
- Monthly Salary is just sufficient to make ends meet, do not need any extra $$ to save
- I am still young, i need not make any retirement planning or savings
- I need to buy some more clothes for work, always wearing the same thing
- I can save when i am older, just let me tap into my savings for now
- I do not have much commitments hence my finances are simple and i do not need any planning
This is a wrong perception that many have and if not corrected, it will only become bad habits that are here to stay for good. This will not only harm you, but your future partner and the survivability of the family. What if the economy is bad and one of you got retrenched? Instantly, you will be able to feel the loss right away as your salary always make ends meet and there is no extra money set aside for rainy days. Savings is never too early or late to start. Even if you start saving 10% or even $100 of your monthly salary, you will have a decent amount end of the year. Savings are being used for rainy days, retrenchment, emergency uses, hospitalisation bills, unforeseen car repairs, or loss of handphone, laptop broke down. These is where your savings would be of use rather than taking a loan out from your families or friends, which is not healthy as it might harm the relationship between both parties as money is a sensitive and touchy issue.
Yes, no doubt looking and appearing good portrays a sign of success with the branded cufflinks, shirts, and belts. If you are not spending within your means, you would be splurging on these branded goods and this will only snowball over time. You will not be able to eat well or buy other stuff when people are buying as you have already spent most of your pay on that expensive branded wallet. You have to go for a budget lunch, no more taking uber or grab but only public transports, and no more dates for that particular month. Is this how you want to spend your life? Slogging for branded goods after branded goods which may never come to an end. You will feel miserable at the end of the day and not feel good when you see your other peers enjoying and having a good meal at some posh restaurant while you only have your wallet with not much money inside.
It is always good to sit down and make your own financial planning, you need not engage any financial planner to do so. Simple take a piece of paper, figure out and calculate how much for your daily meals, monthly public transports, any handphone bills or utility bills and how much is it roughly. After deducting the above, i am sure you would have excess cash. Set aside 10 to 20% of your total salary as savings and keep doing it month by month. If need be, open up another separate bank account for saving purposes, it may seem tough initially but over time it will only be built as a good habit. Start saving today as it is never too late.