Money Skills You Absolutely Need to Pick Up

Posted by on Oct 1st, 2019 in Money Matters | 0 comments

You recognize yourself as a hardworking Singaporean who loves to do his job and are pleased with your earnings. But, you find that there are times when you have to take some money from your savings just to get through the week. If this is the case, you’ll want to keep reading and see what you can do to become better with money.

Living according to your means

Truthfully speaking, there are a lot of people living way beyond their means. If you’re guilty of this, don’t worry! Simply put, we should try to stop putting on the illusion of being rich. Obtaining wealth is a long-term journey. If you spend a lot on clothes and food to maybe try and impress others, your wealth is short-lived. That simply does not make you “wealthy” at all. So, stick to the necessities and try not to give in to temptation.

Keeping your money away

 

This point ties directly with the one above, but what does this mean? Literally, just keep your money where it will be hard for you to reach them. You’ll hardly notice it but there’s a big difference if you have your money in your wallet and if you have it on a vault. With your wallet, it’s very easy to just reach out and get some cash. With a vault though, you’ll have a lot more things to do. That one significant difference can actually help you from spending more money than necessary.

Being strict about savings

Saving is obviously the most basic money skill, and you might even already be doing it by now. Even so, there are actually many people who have a hard time implementing this in their lives. A person might save up for a month but end up using all his savings for some other reason. If you are strict about saving, you might be surprised how valuable it’s going to be in the long-term.

Looking for ways to earn passive income

Having multiple sources of passive income basically allows you to earn money on auto-pilot. You can invest in stocks or real estate, rent out an apartment room in your building, or you can even write a book or a song to earn royalties. If you really try hard and look, you’ll find that there are actually many ways for you to earn money without working too hard for it.

Understanding financial literacy 

Everything written above can be done effectively if you have a good understanding of financial literacy. Simply put, being financially literate means you know how to manage your money, where to put it to make it grow, and etc. This is why, before anything else, you should make it a priority to learn about financial literacy. This doesn’t mean you have to earn a degree, just that you have to be aware of the principles that govern money.