Ways To Repay Your Loans While Maintaining Your Lifestyle
Managing loans while still enjoying life is easier said than done. Singapore is not exactly the cheapest place to live. In fact, it is one of the 10 most expensive countries in terms of cost of living. That said, we need a little financial boost to achieve our goals, even if that means taking out a loan.
Still, how do we balance repayment with maintaining our lifestyle once we receive our loan? This is another case of easier said than done.
1. The 50/30/20 rule with a Singaporean twist
You have probably heard of the 50/30/20 budgeting rule, right? We will give it a little local spin. Allocate 50% of your income to necessities (like your HDB loan or rent, utilities and groceries), 30% to wants (hello, weekend brunches at Tiong Bahru Bakery!) and 20% to savings and debt repayment.
Here is the twist: try to bump up that last 20% a bit. Maybe aim for 25% or even 30% if you can. It may sound tough, but the faster you repay your loans to a money lender Singapore, the less interest you will pay in the long run.
2. Refinance like a pro
Given that Singaporeans love a good deal, do not forget to apply that bargain-hunting spirit to your loans! Keep an eye out for refinancing options. Banks are always competing for customers, so you might be able to snag a lower interest rate. Any amount you save over the life of your loan could go to your favorite hawker center treats!
3. Side hustle, Singapore style
As a nation of go-getters, it is only fitting to channel that energy into a side hustle. Perhaps you could try your hand at being a private-hire driver during peak hours or maybe sell your crafts on Carousell. Regardless of whatever you pick, your main budget will be grateful to you because the extra income can go straight to your loan repayments.
4. Trim the fat, not the fun
There is no need to give up your weekly kopi session with friends, your Netflix subscription or even your weekend massage trips. We all know that those little pleasures, while sometimes unfriendly to our wallet, are what make life enjoyable!
Where can you cut back without feeling the pinch? Have you considered swapping some taxi rides for MRT trips? Perhaps you can cook at home a bit more often (with plenty of YouTube tutorials, you will be unstoppable). You would be surprised how much you can save without drastically changing your lifestyle.
5. Automate your payments
Who has time to remember loan payments? Trust us, no one can blame you if you forget to pay your monthly dues after spending so much time between work, family and trying to beat the queue at the latest hyped-up restaurant. To protect that precious credit score of yours, consider setting up automatic payments. This way, you never miss a due date.
Conclusion
Ultimately, you do not need to let go of the things that make life sweet here in our beautiful city-state just so you could manage your debts. After all, what is the point of living in the world’s most expensive city if we cannot enjoy it a little, right?
