Make Your Money Work Harder For You

Don’t let financial issues take over your life. Take these tips from financial experts on how to get rich faster, from saving quickly to investing cleverly.

- Davelle Lee and Priscilla Kham

INCREASE YOUR SAVINGS QUICKLY

Need to save a lump sum quickly to buy a new car? Or looking to accrue capital to start a business? Start by setting SMART goals for each of your big-ticket expenses, says Vincent Tey, executive director of Providend, an independent private wealth management firm. That means setting targets that are Specific, Measurable, Achievable, Realistic, and within a Timeline.

When estimating how much you need for a big-ticket expense, Vincent advises adding 10 per cent more to your total target amount as a buffer. This gives you a clearer picture of how much of your income you should apportion to each expense.

With your goals set, you should now work backwards from each lump sum and determine how much you need to set aside each month to save enough by the deadline. Then, use these clever saving strategies to achieve these goals.

1 TRACK YOUR SPENDING 

Create a detailed income and expenditure statement, says Vincent. Categorise your expenditure into fixed and variable expenses, and diligently record and review your finances. “Review your total expenditure pattern at the end of the month,” he says. This lets you see what you tend to spend the most on.

Michael Tan, senior account manager at GYC Financial Advisory, says an easy way to do this is to use an Excel spreadsheet.

2 CUT BACK

Study your finance statement and identify areas you can cut back on. Prioritise all expenses. “It’s all about choices,” says Michael. Always ask yourself whether you need something and what purpose it serves.