On Being Singaporean

COVID-19 Is Taking A Toll On Our Finances – Here Are 6 Ways To Better Manage Your Money

tips to manage money

For the majority of us, the COVID-19 situation is a major inconvenience, largely because of the CB measures. However, considering the many uncertainties ahead, it is also important for us to pay a little more attention to our finances during this period. 

For those whose income has been affected especially, it’s time to take a step back and look at ways to improve your finances. So here are some practical tips to help you get started amid the current global crisis.

1. Revisit Your Spending Habits & Emergency Reserves

Think of the CB as a pause button for you to revisit how you use your money. The best way to start is to list down all your estimated monthly expenses. 

Look at how much you’re spending in categories like food, clothing, travel, entertainment, monthly subscriptions, loan repayments, or even the allowance you give your parents. And yes, while this may seem like what an insurance agent would tell you to do, it’s a handy way to break down your expenses and it gives you a better understanding of where you can cut back on. 

Image credit: Dreamstime

At the same time, make sure that you have a ‘rainy day fund’ that you can access easily. Most financial planners would advise to have at least 6 to 12 months worth of your salary in your emergency fund. This is particularly apt in the current situation, as some of us may have lost our source of income because of COVID-19. Having this pool of funds ensures that we have enough money to survive through such situations. 

2. Defer Your Debt Obligations

Once you’ve detailed your monthly expenditures, you will find yourself with several fixed expenses which may take a significant chunk off of your income. These include any loans and insurance policies you may have.

To help free up your cash flow, the Monetary Authority of Singapore (MAS) has launched measures that allows you to defer debt obligations. You can apply to defer premium payments on your life and health insurance for up to six months. If you are paying off your housing loans, you can also apply to defer your mortgage loans until the end of the year.

Many banks have also rolled out initiatives to further help their customers tide through this challenging period. For example, CIMB Singapore is offering deferments on its renovation and education loans, and OCBC is automatically reducing the minimum payments for its credit card to 1% of their statement balance.

If you are still struggling to juggle your daily expenses, find out if you qualify for any government relief and assistance here

You may also want to consider a personal loan just to tide you through this period. There are several options available in the market, each with its range of benefits. For example, Standard Chartered offers a CashOne Personal Loan starting from an interest rate of 3.88% (EIR 7.67% p.a), and you also get a 50% off your first month’s instalment amount. (Terms and conditions apply.)

Benefits of Standard Chartered CashOne Personal Loan

3. Protect Yourself And Know The Perks You’re Eligible For

Besides keeping tabs on your spending, review your health and medical policies. This is prime time to ensure that you are sufficiently protected as you wouldn’t want your savings wiped out from a medical bill. 

Know what you are covered for. This includes the extended protection you may be getting from your insurers. Many insurance providers and banks are offering complimentary protection plans for their customers. Be aware of these benefits as it will be a tremendous help should you contract the virus. 

SingSaver has very succinctly compiled the list of extended and complimentary coverage from all the insurance companies in Singapore, which you can find here

4. Minimise your spending

This CB period is the best time for accumulating your savings. Staying home would mean that you are already going to be saving the money you would have spent on travel or night outs. 

Many brands are also running attractive discounts and promotions, but remember to spend wisely. Do you really need a new pair of sneakers during this #StayHome period or do you need groceries?

Chances are, food is the main aspect that you will be spending on this period, followed by other household necessities like toilet paper. All the supermarket chains in Singapore and smaller online grocers offer free delivery with a minimum order. 

There’s even a comparison of the different online grocers available in Singapore, which will satisfy the Singaporean in you to find the ‘cheapest and good-est’ deals for your necessities.

Taken from SingSaver article here

Take this chance to bank on the best deals, bulk order your groceries online and have them delivered for free, and start saving on food by prepping your own meals. 

Here is a list of over 30 budget-friendly meal prep recipes you can get started on.

Alternatively, if you need to order food, you can find a list of ongoing food delivery promos here!

5. Take advantage of free online classes 

Being forced to stay home frees up extra pockets of time, which is a golden opportunity to pursue all those things you have been wanting to do but could never find the time to. 

Work on your fitness goals: Gyms are closed and fitness classes are all halted, but there is now an influx of online fitness classes which you can follow at home. This also means that you can save on gym membership or the usual paid fitness classes.

For example, Nike and Adidas have launched free fitness videos which you can follow at home. Gyms like Evolve MMA have also been holding live classes on their Facebook and Youtube channel.

Adidas #HOMETEAM features several playlists to help you stay fit at home
Image: Adidas website

Here’s more online exercise classes you can try!

Or perhaps you have always wanted to learn Korean, or improve on your photography skills, there’s no better time to pursue all those goals. 

My progress on learning Korean free on Duolingo

Pick up a new language with Duolingo, or take advantage of free online courses to learn a new skill. If you haven’t got around to using your SkillsFuture credits (which is $500 sitting there, waiting for you), take this chance to sign up for a course here.

6. #StayHome Entertainment That Doesn’t Cost A Buck

Being at home 24/7 can get really stifling and dreary, but as with free online classes, there are many ways to keep yourself entertained (and sane).

Stay connected with your friends and family with Zoom, or play games together with social apps like Houseparty and Psych!. You can even get the KTV experience with this Chinese karaoke app, 全民 Party.

Remote karaoke party I had with friends

For existing Netflix subscribers, there’s a Netflix Party Chrome extension that allows you to watch Netflix remotely with friends. The tool synchronises video playback and there’s even a chat bar for you to chat as you watch!

You can even explore the Great Barrier Reef with David Attenborough if you want. There’s really an abundance of entertainment resources available online, and the best part is, all of these are completely free. 

For Those Who Need More Financial Help

To help those who may need immediate help with their cash flow, SingSaver is also running an exclusive promotion with Standard Chartered regarding their CashOne Personal Loan. Each approved applicant will stand a chance to win a #cashcushion of up to S$10,000! 

Simply apply for the Standard Chartered CashOne Personal Loan for a chance to win the cash cushion. The campaign runs from 6 Apr till 30 Jun and 3 winners will be picked every month.

Find out more about how you can win yourself a #cashcushion here!

(This article was written in collaboration with SingSaver.)

(Header Image Credit: Sam Dan Truong on Unsplash)

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