For those who enjoy shopping or are generally oblivious of their spending habits, a first step would be to set up automatic transfers to a separate bank account specifically for savings.
Having different spending accounts is also recommended – one for routine expenses such as meals, transport, and utilities, and another for occasional spending like gifts and travel. Doing so can help spending more visible and manageable.
If you still struggle to stay disciplined, limit yourself to no more than two credit cards or request a lower credit limit.
It is also advisable to create spending plans, especially during periods when expenses are likely to rise such as Chinese New Year that is round the corner. If you do overspend and chalk up larger-than-usual credit card bills, rectify it by cutting down on expenses in the following months and prioritise repayments.
Credit cards are convenient but use them in a responsible manner. Be the master of your credit card and don’t let it drag you into a debt pit that steals your financial stability and peace of mind.
Tan Huey Min is general manager at Credit Counselling Singapore, a registered charity helping people address unsecured debt problems.
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Having different spending accounts is also recommended – one for routine expenses such as meals, transport, and utilities, and another for occasional spending like gifts and travel. Doing so can help spending more visible and manageable.
If you still struggle to stay disciplined, limit yourself to no more than two credit cards or request a lower credit limit.
It is also advisable to create spending plans, especially during periods when expenses are likely to rise such as Chinese New Year that is round the corner. If you do overspend and chalk up larger-than-usual credit card bills, rectify it by cutting down on expenses in the following months and prioritise repayments.
Credit cards are convenient but use them in a responsible manner. Be the master of your credit card and don’t let it drag you into a debt pit that steals your financial stability and peace of mind.
Tan Huey Min is general manager at Credit Counselling Singapore, a registered charity helping people address unsecured debt problems.
Continue reading...