Singapore is a country with one of the highest standards of living in the world. It is also among the world’s most expensive places. Salaries in Singapore tend to reflect these facts, and expats and locals can expect a fair remuneration. However, thanks to everything being so expensive, it can be very easy to fall into a lifestyle trap where you’re basically spending everything you earn just to live the high life. For this reason, it is a good idea for locals as well as expats to consciously deploy money-saving strategies so they can leverage their high remuneration package to create a tidy retirement fund. Here are eight tips to save money in Singapore.
Refinance Your Loan
You can expect to enjoy sizable savings once you research and opt for the most suitable home loan refinancing solution for your needs. Since this can be a complex although ultimately beneficial task, look for a refinance home loan from reputed organizations such as Property Guru. Property Guru offers a one-stop shop for finding your dream property as well as financing it. They have experienced and expert staff that can advise you on whether you should or shouldn’t try to refinance, and the costs and benefits involved if you decide to.
Singapore has a lot to offer. It is one of the most modern and cosmopolitan cities in the world. For this reason, it can be the easiest thing in the world to save nothing by the end of the month since everything is so alluring and so expensive. You can sidestep this trap by deciding to live mindfully. Simply knowing about this type of pitfall isn’t enough. You need to consciously keep this in mind and live a bit more conservatively, financially-speaking, than you might be tempted to. You can still have a very good life. Just not to the entire extent you might want to!
Avoid Renting in the City Center
Accommodation is likely going to be your biggest expense. You can save a great deal quickly by simply avoiding the most expensive areas such as the City Center. Things get more affordable farther away from here. Decide if you really want to rent one of the high-end luxury waterfront apartments, as tempting as that can be. There are plenty of really good but affordable options. So, do your research.
Leverage the Excellent Public Transport
Singapore is a tiny city-state with excellent public transport. You won’t need to drive everywhere or ride a cab every time if you plan your journey in advance. Public transport usually also has air conditioning, so you’re covered where the heat is concerned. Furthermore, the Singaporean government levies huge government taxes on cars with the goal to prevent traffic congestion and air pollution.
Keep Track of Your Dining Expenses
Singapore has a huge range of restaurants and dining options. This includes upscale restaurants as well as food courts that offer a more affordable yet wide variety of cuisines. The upscale restaurants can be extremely addictive! They’re also very expensive. Decide how often you want to splurge on eating out at a cool, expensive place per month, and then stick to it.
Understand the Tax System
At first glance, the Singaporean tax system is fairly simple. There is no capital gains tax, inheritance tax, etc. There are still other ways taxes can come back to bite you. When purchasing a house, for example, expats have to pay a 15% higher stamp duty, meaning if you’re only looking at spending a decade or so in the country, buying a property might not be as worth it as it seems. Additionally, if you receive stock options from your employer and choose to exercise them, then the gains are taxable since the stock options are a part of your remuneration.
Sort Out Your Bank
Ideally, you should have bank accounts with two separate banks in Singapore – one local Singaporean bank, the other an international bank that you can use to send and receive money from back home. Your international bank is far less expensive than using a non-bank remittance service. Similarly, local banks have a wider network of ATMs and branches. It is also easier to handle transactions at a local branch.
Avoid the Posh, Expat-friendly Supermarkets
These grocery stores offer products that are much more expensive than the ones found at the smaller local stores. The former might be good for the brands you are familiar with, but the high mark-up adds up eventually. On a related note, organic food is extremely expensive in Singapore.
Living a life of luxury in Singapore need not mean you will be broke by the end of the month. With these money-saving tips, you can experience the high life Singapore has to offer, while also being able to save for a fabulous nest egg.