Mastering Money with Smart Habits
Insights on Planning and Pruning Expenses
Hey there, friend! I’m back with a new Alex's Weekly Insights for July 21st, and this week it’s all about mastering money with habits that have worked for me here in Singapore. We’ve explored saving and investing before, and now I’m sharing five more insights that blend preparation with practical cuts—drawn from my life and thoughts for the future. Whether you’re handling daily finances or planning big moves, these tips feel like steps anyone can take. This week, I’m talking about preparing for windfalls, building a solid credit score, tracking your net worth, learning from mentors, and ditching extra subscriptions. Let’s get into it and learn together!
1. Manage windfalls with a clear plan.
I haven’t faced a windfall yet, but I think about it, especially with the possibility of my parents passing and leaving behind real estate, equities, or other assets. It’s a tough topic, but planning feels necessary. I’d keep a few meaningful mementos without hoarding and use the rest to either clear high-interest credit card debt or invest in ETFs for better returns. For most, paying off debt first avoids the stress of managing too much at once, a choice many find sensible.
Key Takeaway: Plan to use windfalls to clear debts or invest, starting with the easiest option.
2. Build a credit score wisely.
Credit scores aren’t a big deal in Singapore for me since I use Housing Development Board (HDB, a government housing organisation in Singapore) loans based on income, not credit history, but I know it matters elsewhere. In other countries, a good score can snag better loan rates for mortgages or big purchases. I’ve kept a card for small, paid-off buys to build mine slowly, avoiding debt traps—a tip widely recommended to boost loan favorability without overcomplicating things.
Key Takeaway: Use credit cards lightly to build a score, especially if loans are in your future.
3. Track net worth growth regularly.
Keeping an eye on my net worth feels essential, though I don’t check daily—just month to month or year to year. It ties to my S$2 million FIRE goal, showing if I’m on track as my investments grow. It’s like weighing yourself for a fitness goal; obsessing isn’t healthy, but occasional checks confirm progress, a habit many suggest for staying motivated.
Key Takeaway: Check your net worth periodically to ensure you’re hitting your goals.
4. Learn from financial mentors.
I’ve picked up most, if not all of my financial know-how from YouTubers and online influencers, not real-life mentors, learning to spot the good ones—those who teach evaluation over quick stock tips. Coming from a computer science background, I lean on metrics and results to pick quality companies, ensuring my thesis holds up. This focus on fundamentals is something many wise voices recommend for solid investing.
Key Takeaway: Seek out mentors, be it online or offline, who teach proper evaluation, using unbiased data to guide your choices.
5. Reduce subscription overload.
I used to juggle multiple subscriptions—streaming, apps I barely touched—until I canceled most, keeping only music and a VPN. It’s an easy way to cut expenses if you’re unsure where to start, and many agree that ditching unused services frees up cash for savings or investments. A quick check of your bills can reveal quick wins.
Key Takeaway: Cancel unused subscriptions to trim costs and boost your savings.
Final Thoughts
These habits have started steering my financial journey, friend, and I’m excited to share them with you. Planning for a windfall, building a credit score slowly, tracking my net worth, learning from online mentors, and cutting those extra subscriptions have given me a clearer path. Maybe you’ll set up a windfall plan or audit your subscriptions—let’s see what resonates!
Next week, I’ll explore more ideas, like handling travel costs or setting up passive income. We can brainstorm further—perhaps managing student loans or planning for pets? For now, let’s keep building these smart habits and growing our money smarts together. Thanks for being on this ride with me—see you next week!
Alex
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