With a national savings rate of 48%, Singapore is listed as the country that saves the most money. Largely, this is thanks to the country's rapid industrialisation since the 1960s on the back of a thriving manufacturing sector, complemented by a modern service sector and top-notch infrastructure today.

 

While this may be the case, many Singaporeans also face the realities of increasing cost of living, as well as allowing lifestyle inflation to creep into their way of life, as they earn more and want to keep up with their peers.

There is no one-size-fits-all savings scheme that everyone should adhere too.

 

While some may have more commitments, with elderly parents or younger children, others may be free of financial responsibilities. This also means everyone saves money in a different and personal way.

As Singaporeans, we have systems in place like our CPF. As a compulsory scheme, you will be able to fall back on these savings during retirement. Beyond this, you also need to put aside what you can afford.

 

To keep your finances healthy, and provide more avenues of income you can tap on when you need it the most, here are some money-saving tips and tricks that you can use to save more especially when you're on a tight budget:

Paying with physical cash is more "painful" than simply swiping or tapping your credit card.

 

While using credit cards can give you access to miles, cashback and other rewards, it may not be worth it if you aren't able to control your spending and pay your bills in full at the end of each month.

 

Forcing yourself to use cash for your purchases instead of a credit card puts you in greater control of your money. Have you ever received your credit card bill at the end of the month and wonder how you spent so much, and worse, second guess certain items on your bill only to realise it was indeed you who made that purchase?

 

The problem with using a credit card is that you often do not know what the final tally is until your statement comes in. Cash, on the other hand, helps you monitor your expenditures better. You can physically see how much cash you have left in your wallet and make better spending decisions. This way, you save better by sticking your monthly budget and not overindulging.

Keep separate accounts for your savings and expenses. Consider signing up for a new account with limited facilities to make transactions so you can't withdraw money from your savings account easily. Remember to keep your ATM card at home too, so you don't get tempted to withdraw from the account.

 

Restricting access to your savings account doesn't mean locking it away and never looking at it again. Find solutions that can help your money grow while you stash it away. For instance, choose the best savings account with a good interest rate.

 

To grow your money even more, you can also contribute steadily to investments, via regular shares saving plan or on your own. There are also options like AIA Pro Lifetime Protector (II) which can help you protect you and your family's standard of living should something unforeseen happen to you while accumulating your savings over time for your retirement as well.

Walking into a supermarket with a large trolley can be very dangerous. You tend to fill up your trolley and pick out things impulsively to satiate your cravings. Always visit the supermarket with a grocery shopping list, and stick to it. This way, you're sticking to your needs and budget instead of buying unnecessary (and usually high calorie) foods.

 

You can also do the bulk of your grocery shopping online, with a list, and only "add to cart" foods that are already on your grocery list. Typically, if you spend above a certain amount, you will also get free delivery. This can save you time and money of having to drive or taking a cab or Grab ride home due to the heavy haul.

 

Similarly, to save even more, you can go online to do some simple research to find the best deals. Supermarkets and department stores sometimes promote their clearance stocks. Look out for these sales to get you the most bang out of your buck.

 

You can also sign up for money saving apps that can alert you for the best deals in town.

Eating out is a very Singaporean trait – a research by Nielsen reveals that we don't only do it on special occasions.

 

While there are many affordable options like hawker centres and food courts in Singapore, eating out as a family can pinch into your potential savings. By meal prepping and buying the right ingredients at the supermarket, you can start saving money and improving your health by cooking at home.

 

Instead of going out for meals with friends, have a little gathering at home over a home-cooked meal. Rather than trying out a new restaurant, check out new recipes online and spend quality time with your spouse cooking that meal.

Are you sharing your savings goals with anyone? If you aren't, you probably should consider finding a buddy – whether your parent, spouse, child or trusted friend – as having an accountability partner, makes you more likely to succeed. 

 

You can also speak to a financial services consultant to set you on the path to making prudent financial decisions and stay on track. Our AIA Financial Services Consultants are ever ready to discuss your concerns and plans.