Personal finance management is when people manage money as well as financial decision for themselves or family that is retirement planning or investment. On the other hand, personal loan is money borrowed from different lenders such as banks to assist consumer with short-term shortage in personal finance. A personal loan is usually charged a flat interest rate, this interest rate is based on the loan tenure. Taking charge of planning and managing personal finances and loans, and putting it into implementation is very important. This article covers how personal finance and loans are managed in Singapore as well as their advantages to individual development.
In Singapore people enjoy various benefits provided by the government such as medical benefit among other incentives, even with the benefits household debts keep on increasing. Therefore, Singapore has come out with tips on how individual can manage their personal finance and loan. Fist tip is to set one's financial goals, this helps one to plan ahead on how to spend their money. These goals should be specific, measurable, achievable as well as realistic, and net worth.
The second tip is having a budget. The budget doesn't only help you to save but stay on track on your expenditures. The budget determines important things, that you can do with or without. One can budget their money by listing all categories of expenditure so as to have a clear picture of what you doing. Make plans ahead to make your budget successful, scientist have come up with software to assist in budgeting such as an application on your phone.
The third tip is saving. One should save 10% or 15% of their income, this is just the minimum amount as it is advisable to save more. It's crucial to save for emergencies and future investments. Secret to saving is paying yourself first and others later in order to avoid spending extra money. Basically, it's best to save first then spend later.
The forth tip is opening multiple accounts. This will keep your discipline by ensuring long term savings and not spending unnecessarily. Have an account for saving (saving purposes only) and no ATM card for this account.An account for monthly expenses(this covers necessities like rent).Have an account for daily expenses such as transport, food and shopping,this account should be accessible with ease.
Personal loans are good for personal interest and investments as it is easily acceptable by lenders compared to business loans. Therefore, when one applies for a loan is guaranteed. One gets into an agreement with the lenders on how to pay back the loan it can be in monthly installments which are Paid until the end of the tenure. A personal loan has zero collateral if you maintain a good relationship with the lender. But some penalties are set if one fails pay the loan but this aspect helps individual to develop themselves and one is in a position to save and fund their interests and investments.