Importance of Financial Habits
A follow up from the previous article on the Importance of Money Management. This article touches on financial habits, housekeeping and regular review of financial health. Our body does need an overhaul on a frequent basis, let alone machines and finances. It would, therefore, be wise to do your own self-check unless you think you need external help.
Having good financial habit is essentially important. It will be to have not 2 but 3 accounts. I am an advocate of having more than 2 bank accounts. Why? Becuase there is a need for emergency funds, investment and spending. You can group investment and savings into one or emergency with savings, it depends on what term you wish to call it. More importantly, do not put your loan accounts in the same bank as your emergency funds, this so that in the event you forgot to pay your loans and the banks decide to freeze your assets, you have somewhere to draw out cash and tie over – it is real life issues encountered by some people I know.
Financial Diet Plan
Make it a point to do a 6-month review of finances and have a “Financial Diet Plan” to cut away unnecessarily expenses. For example, subscription to Netflix, Internet, Mobile Phone plans, Loans, Gym membership, Shopping habits that need to be reviewed or curbed. Such are some activities that change as our life changes at each stage. Changing Insurance premium from monthly payment to annual payment can also result in substantial payment reduction and cost savings.
It is good to have a few bank account for various needs. Needless to say, do shop around for those with a low minimum balance or total relationship balance if you are someone who enjoys having everything under one roof with no debt loading. For myself, I would choose to have a minimum of 2 different banks and up to 4 different bank accounts to segregate the various purposes. It is up to each individual how they would like to manage their financial economy.
- Investment Account
- Savings Account
- Emergency Account
- Expenses Account
Some of the banks with zero balance requirement $0* / low minimum account balances of S$500# and comes with an ATM / Debit card are listed below (Excludes banks offering Basic Bank Account):
- CIMB StarSaver (Savings)*
- CIMB StarSaver (Current)*
- ICBC Current Account*
- Maybank iSavvy Account#
POSB eSavings Account#
- UOB One Account#
Do note that however that some banks will require an initial deposit of S$1,000 despite having no requirement to keep a minimum balance.