Ever since I started my new line of work, I have met enough people that shared similar stories but yet not wanting to listen to advice. Now, people don’t like to be forced to do something but a part of my job is to point out flaws before it is too late. This somehow aligns with me writing guides to benefit more people out there that I haven’t met. So here it is, another personal guide that I hope can benefit all of you readers!
Being smarter with money involves developing good financial habits and making thoughtful decisions that align with your long-term goals. It is not easy to develop a new habit, let alone sticking with it. Everybody also thinks that they are rational, or can be rational, but we know we are all irrational people, always following what the emotions say and this can affect making thoughtful decisions.
So does that mean we should stop and just give in and say “I can’t do this, I will just YOLO”?
Managing your money wisely is crucial for financial success and security. Whether you’re looking to build wealth, save for retirement, or achieve other financial goals, being smarter with your money is the key. At the same time, saving for retirement and building wealth are the two things that everybody cannot run away from to live and have a good life in this world at the very least. So, having the will and desire to do so is the first step to start, enjoying and trusting the progress is the second step.
A lot of people don’t see this and perhaps cannot see it clearly and that leads to procrastination. Then they regret it later on. However, that doesn’t mean all plans that have been planned will always turn out smooth. After all, life is unpredictable. I have met people who have told me about their plans, but didn’t go as planned and now they are doing something else. This doesn’t mean we should give up. It simply means you are detouring to reach your goals, which you will eventually reach.
In this article, let’s explore 6 ways to be smarter with your money. They are:
- Financial Goal Roadmapping
- Plan For Taxes
- Automation
- Seek Professional Advice
- Track Your Spending
- Invest Consistently and Unemotionally
Let’s start!
Financial Goal Roadmapping
Setting clear financial goals is the foundation of being smarter with your money. Start by identifying your short-term and long-term objectives. Are you saving for a down payment on a house, planning for retirement, or aiming to pay off debts? Once you’ve established your goals, break them down into smaller, actionable steps. Determine the timeline, the amount of money needed, and the strategies to achieve each goal. Regularly review your progress and make adjustments as necessary.
Now, to live your dream life, you need to have a dream in the first place. Else you are just drifting in life and this won’t potentially make you happy. It can be small or big but generally, human beings should or must have a purpose. Otherwise you are just lost. It is the same for your finances. You don’t have your a roadmap, you will just blindly spend and your future self won’t thank you.
Plan For Taxes
I noticed that tax planning is not often talked about. In Singapore, it is often said that there are 2 things we cannot run away from: death and tax. This is true.
We all also know that we don’t like taxes, but it’s good for building our country. That aside, we still can optimise our tax payment by doing tax planning.
Tax planning is a critical aspect of financial management. Stay informed about tax regulations and take advantage of available deductions and credits. Consider contributing to tax-advantaged retirement accounts like CPF in Singapore and 401(k)s or IRAs in the USA. This is just one of the ways.
So, do explore tax-saving opportunities such as deductions for educational expenses, medical costs, or business-related expenses. Consult with a tax professional or financial advisor to optimize your tax strategies based on your unique circumstances wherever you are.
Automation
When I talk about automation, it is basically something that you can automate to make your life easier and yet make you stay committed for your better future self. If you aren’t aware, no, it is not as complicated as having AI to automate your stuff.
When you set your finances on autopilot, it makes your life easier and also reduces errors. How this plays out is you can avoid late fees by automatically pay bills on time, you can also automate savings and investment contributions to ensure you are on track and also to avoid that feeling of wanting to use the money for spending.
Most importantly, by automating your finances, you free up time for yourself and avoid headaches!
Seek Professional Advice
A lot of people don’t want to seek professional advice because they think they can do everything themselves. Even in getting insurance, some people turn to self service as things are getting more digitalised and anything can be online these days. However, having professional advice can greatly help a lot as they can give a perspective that you might not know before. Now, in Singapore, such consultation can be obtained for free, but in the US, it has to be paid if I am not mistaken (please comment below if it is not right).
Financial decisions can be complex, and seeking professional advice can provide valuable insights and guidance. Consider consulting with a financial advisor who can offer personalized advice based on your financial situation and goals. They can help you create a comprehensive financial plan, review your investments, and provide recommendations for optimizing your financial strategy. A professional can also assist in navigating complicated financial matters such as estate planning or retirement planning.
Track Your Spending
Tracking your spending is crucial to gaining a clear understanding of where your money is going. Utilize budgeting tools, apps, or spreadsheets to categorize and monitor your expenses. Regularly review your spending patterns to identify areas where you can cut back or make adjustments. This awareness will help you make more informed decisions about your spending habits and allocate your money more effectively.
And yes, if you don’t know where your money is going, you are bound to keep on complaining about not having enough.
Invest Consistently and Unemotionally
Investing consistently and unemotionally is essential for long-term financial success. Develop an investment strategy aligned with your goals and risk tolerance. Establish a diversified portfolio and stick to your investment plan, even during market fluctuations. Avoid making impulsive investment decisions based on short-term market trends or emotions. Embrace a long-term perspective and focus on the fundamentals of investing rather than chasing quick gains.
Also, consider automating your investing to ensure your future is better. For example by doing bi-weekly.
Wrap-Up
Taking control of your financial future smarter requires discipline, knowledge, and careful decision-making. Remember, financial intelligence is an ongoing process, so continue to educate yourself, adapt your strategies, and stay committed to your long-term financial goals.
With that, thank you for reading. If you think this might be helpful to other people, feel free to share. This article is written based on my own research, opinion, and experiences. If you have any comments, feel free to comment below so that we all can learn together.
Thank you for reading.
If you plan to open up account for investing, you can use my referral to sign-up with free gifts (as of writing):
- WebullSG
- MooMoo
- Interactive Brokers
- StashAway
- Syfe (Referral code: SRPT38VH3)