Money Tips & Strategies for 2024

Marketing experts know how to target your weaknesses, but with the right strategies, you can flip the script! Start by recognising the marketing tactics that lure you into impulsive spending in this new episode.

We're back with another round of debating daily budget strategies! 

We assembled an eclectic panel of guests to candidly discuss budget tips and investment strategies. The relaxed, free-flowing conversation brought together perspectives from diverse backgrounds - Dave, author of "Minimalist in the City" and a financial coach; Darren, real estate veteran and founder of Team Property Partners; and Andy Schmidt, a German entrepreneur known as "The Beekeeper."

I. Mastering Daily Expenses: Practical Tips for Everyday Savings

1. Know Your "Enough": The Key to Financial Contentment

Andy Schmidt, a solopreneur and former corporate professional, emphasised the importance of understanding one's "enough." He explained:
"It's really important to know what is our own enough and understand what matters to us, what are the priorities in our life."

Andy suggests:

1. Define your own goalposts for financial satisfaction
2. Avoid constantly shifting these goalposts
3. Differentiate between wants and needs
4. Practice visualizing how you'll feel about a purchase in the future

1. For significant purchases, wait 48 hours before buying
2. Imagine how you'll feel about the item next Monday
3. Teach children to consider the long-term value of their desired purchases

2. Strategic Grocery Shopping: Timing is Everything

Darren, a real estate expert, shared an unconventional yet effective tip for managing grocery expenses:

"My number one pro tip when it comes to budgeting is that I only go grocery shopping super late at night, and after when I'm very, very full."

This strategy works on multiple levels:

1. Shorter queues reduce impulse purchases
2. Shopping when tired encourages focus on essentials
3. Being full minimises unnecessary food purchases

Darren's approach tackles common pitfalls in grocery shopping, such as overbuying due to hunger or succumbing to strategically placed impulse items near checkout counters.

Listen to the full episode:

3. Expense Tracking and Cross-Border Shopping

Dave, a financial coach and author, shared his experiences with expense tracking and cross-border shopping:

1. Use spreadsheets to monitor family expenses
2. Identify major expense categories (e.g., childcare)
3. Consider the time value of money when seeking deals
4. Explore cross-border shopping opportunities (e.g., Johor Bahru for Singaporeans)

Dave emphasised the importance of balancing cost savings with time investment, suggesting that cross-border trips can be combined with other activities to maximize value.

Leveraging Financial Products for Daily Savings

Reggie, the host, shared his tip for managing expenses, especially for frequent travelers:

"I actually use the Trust card... I'm a very big beneficiary of this FX, you know, this like, free FX, no charge, really no charge!"

Key benefits of using appropriate financial products:

1. Significant savings on foreign exchange fees
2. Integration with various services for ease of use
3. Particularly beneficial for frequent travelers or those living between countries
   
   

Daily Budgeting Hacks:

1. Know the Difference Between Wants and Needs
   "Very often, we have wants that one week later, we realise there's no need," one expert advised. Always ask yourself: "Imagine yourself next Monday. How do you feel having that item? Does it make a difference to your happiness?" If not, don't impulse buy. For bigger purchases, sleep on it for 48 hours minimum before deciding.

2. Do Grocery Runs When You're Stuffed and Sleepy
   Go grocery shopping super late at night when you're exhausted and have already eaten a big meal. Why? You're far less tempted to make impulse purchases on snacks and nonessentials when your belly is full and you're tired. Plus, stores are less crowded late at night so you can zip through and stick to your list.

3. Use a Card with No FX Fees When Traveling
   If you're frequently on the move, use a credit card with no foreign exchange fees to maximize savings. The FX savings can be "quite serious" for frequent travelers.

II. Smart Investment Strategies: Beyond the Stock Market

While the episode focused primarily on daily expenses, the panelists hinted at broader investment strategies to be discussed in future rounds. These may include:

1. Investing in personal career development
2. Exploring business opportunities
3. Real estate investments
4. Traditional stock market strategies

Smart Investing Strategies:

• Invest in Your Kids' Values and Character
  While most define "investing" as financial vehicles, one expert took it literally: "In my world, kids are the biggest investment...if you invest wisely in the early years, get the work done then, the returns in the future and the happiness that come from that compounded over decades is just amazing." Prioritize instilling strong values and character.

• Be a Slumlord (Kind Of) 
  "My investment tip is...go for the cheap properties." While pricier real estate seems alluring, buying very affordable properties in decent areas and renting them out can generate amazing cash flow with little capital outlay. The potential upside is huge if the area gentrifies later.

• Invest in Personal Branding
  "Put out content, put out thoughts, establish your expertise...it builds credibility. Over time, people start to listen to you and opportunities just come," advised one entrepreneur. Building a strong personal brand through content, blogging, etc. can open career and business doors.

• Pay Attention to Tax Optimisation Strategies
  One guest emphasized the importance of maximizing tax optimization and efficiency as part of an investing strategy:"You want your money to work as hard for you as possible with as little being shaved off the top."

III. Leveraging Public Resources for Financial Benefits

An additional tip emerged during the discussion:

• Utilise public facilities like libraries or community centers for workspace and internet access
• Example: Tampines Hub in Singapore offers 24-hour facilities and amenities

Conclusion

Managing daily expenses effectively is a crucial step towards overall financial health. The experts on Budget Royale shared diverse strategies, from psychological tricks to practical shopping tips and smart use of financial products. By implementing these ideas and staying mindful of your spending, you can significantly improve your financial situation and work towards your long-term financial goals.

Remember, the key to successful budgeting lies in finding strategies that work for your unique situation and sticking to them consistently. Whether it's late-night grocery runs or leveraging cross-border shopping opportunities, the most effective budget tips are those you can maintain in the long run.

You can check their full interview on  Chills with TFC, Episode 190 on Spotify, YouTube, Apple podcast for insights into one of Singapore’s most talked-about retirement schemes.