As an expat living in Singapore, understanding costs in the country is crucial. The island city-state has a globally top-ranking cost of living that has led to it accommodating one of the most competitive banking sectors in the world. While Singapore is certainly the best place for business and for placing employees on international assignments, continued monitoring is an absolute necessity. People who are able to plan their periodic expenses and have budgets as a way forward can help manage their monthly finances. This essay discusses customized budgeting tips for expatriates in Singapore, providing advice on personal budgeting apps to use, the kinds of expenses to expect and budget for, and some personalized tips to help you adapt to a high cost of living.
Wherever you are with your spending, approach making your budget with the aim of understanding what the necessary spending and the one-off spending everyone has are. It’s not about automating all the dull stuff away; it’s about figuring out what that means for you. Whether you’re in thousands of dollars of credit card debt, countless thousands of dollars in student loans, or starting from scratch, you can only start with the state of your finances right now. So the first step is to face your own finances and get a clear picture of where you are. The moment you begin to construct the roadmap to your greater independence, you’re also going to start saving money to enable you to remain above water in the turbulent financial moments that happen when you live in an exorbitantly expensive city like Singapore. Review your own finances: how much do you spend each month? Where does the money go? Are a lot of your expenses one-off or irregular, like credit card bills, high insurance premiums, or periodic payments for family? Knowing this helps.
Budgeting Strategies for Expats in Singapore
When it comes to the cost of living in Singapore, critical issues faced by most expats include the costs of a car, school fees, and rental or buying a property. These require substantial planning. Step one is setting a realistic financial goal based on a deep understanding of your own circumstances. It might be saving a percentage of your Singapore income for the down payment for a new property, or budgeting your home leave salary to afford your holiday back in the UK. Then, make a comprehensive budget plan. A budget will help you keep track of what’s coming in (your salary) and what’s going out (housing, lending, credits, and debits). A financial tool can help you organize and categorize your expenses quickly and easily, simplifying and speeding up the budgeting process. Successful monitoring of budgeting entails revisiting and updating expenses based on changes in your personal and business landscape. Over time, you become fluent in your spending habits and gain insights into how to allocate your resources more strategically. Keep removing expenses that are no longer necessary and invest in building up an emergency fund. Most expats experience increased job security, health, and life satisfaction by living long-term in an international destination like Singapore. By saving a small amount per month, interest highly compounds over time, making a major difference to the gravitational pull of any financial liabilities. Aim to save 6–12 months’ worth of your basic monthly living expenses and, if possible, incrementally invest this to further enhance your financial situation. Make a very small goal: “I will save a percentage of my salary this month” and see the ease of accomplishing it! The game changer to becoming successful in budgeting is not found by cutting down on your grocery budget this month but in reframing your perspective on the values you assign to your life as well as what your money can do for you.
Setting Realistic Financial Goals
First, let’s set some realistic financial goals. This starts with an honest look at your current circumstances. How much are you earning? What are your fixed and variable expenses? What are your long-term and short-term aspirations? Long-term goals are important, but it can be hard to stay motivated when the rewards are years away. Create both kinds of goals, then work them into your budget. Prioritize them so you know where to spend your money first. If you have a partner, ensure you’re both reading from the same page before committing to your goals. The cost of living can be a shock for an expatriate playing in the big league. However, it’s best to know what you’re in for before you jump by setting your own personal spending goals.
And when you set goals, be specific. ‘Saving for a rainy day’ is a good idea, but it’s a notion, not a specific, measurable goal. Do you want at least $30,000 in an emergency fund? Do you want to save $200 this month for travel, or will you save $2,400 for a holiday in 12 months’ time? You also need to regularly review your goals. Are they still realistic? Do you need to make any changes? How close are you to achieving them? Finally, there’s no point in setting personal financial goals if you’re not going to scrutinize your progress. Make sure you celebrate or reward yourself when you reach your milestones!
Creating a Budget Plan
Budgeting cannot be emphasized enough, especially for expats who are residing in Singapore on a temporary basis. Prior to coming to Singapore, budgeting will help you realize a more extensive cost of living. Besides, for those who are already there, budgeting can help you save money in line with your earnings. The process of making a budget is not difficult; all you have to do are the following steps. Creating a budget is essential to analyze your spending patterns. Try to look back at all the costs incurred in the past to get a bigger picture and estimate the costs that you need to spend each month. Your budget must break down the two biggest spending categories: fixed expenses and variable expenses. Fixed expenses are regularly due, and these prices are identical each month. These costs consist of scheduled bills for housing, utilities, transport, installments or loans, groceries or personal expenses, insurance, childcare, medication or health care, and education. Meanwhile, variable expenses fluctuate from one month to another. This category comprises social or entertainment bills, restaurant dining, and leisure activities. While it is important for a budget not to make you live a strict life, it is better to make a realistic plan where you can live comfortably, save, and invest at the same time. Furthermore, create a plan together with anyone else who is living in the same house to communicate with each person involved regarding the allocation of expenses. Additionally, use one of the available budgeting tools. There are many applications that you can easily get or you can make your own copy in a spreadsheet to make it easier for you to track your progress. Everything you need for your budget is a total of your income, your total variable expenses, and a projected outcome. Involving others in the planning process gives some accountability for the budget agreement, helping to prevent any expense surplus that could affect budget performance. The budget must be reviewed regularly; this approach is introduced to adapt the budget to maintain consistency with any discrepancies in material.
Tracking Expenses and Adjusting Budgets
The second most important step in ensuring that expenses are affordable in Singapore is to track them and regularly adjust living costs. The 50/30/20 budgeting method is a simple way to get a snapshot of what residents are spending their money on and assess the affordability of the expenses. There are many ways to keep track of expenditures, and technology has made it easier than ever to do so. Dedicated apps do an excellent job of tracking daily expenditures. Some of these apps allow users to categorize expenditures, making it easier to see where cuts can be made. For those who prefer an “analogue” method, spreadsheets or simple notebooks can be used to keep track of expenses daily or weekly. Results should be checked regularly, say, every two weeks, for patterns and inconsistencies.
Expenses must be differentiated between essential and non-essential. Discretionary and luxury spending should be targeted first when cutting costs in order to ensure essential expenses such as rental, student loans, and children’s school fees are met. In doing so, this can help reinforce frugal habits to meet financial goals. Furthermore, it is a good idea to regularly reassess a budget to make regular adjustments. This can help people adapt to a new lifestyle and foreseeable future, possibly after a change of job giving an increase in income or upon receiving a promotion. Emergency or unplanned expenses should also be built into the budget by having the funds set aside and designed to be versatile, unlike the rental and consumption segments. Regular reassessment is a good way to regain discipline and a greater awareness of personal finance.
Saving and Investing Tips
An emergency fund is essential because it can cover unplanned expenses without putting a major dent in your budget. Additionally, it can prevent having to accrue debt if something pops up. Aim for at least three to six months’ worth of living expenses, should you find yourself in a predicament such as an unexpected medical bill or home repair. While you may need to return to the drawing board temporarily and cut back on funds for your nonessential expenses, such as holidays and entertainment, you will have at least three months of living expenses to fall back on.
Once you have your emergency fund all squared away, you are ready to consider investing. While some may decide to invest in stocks, mutual funds, or bonds, others will opt to keep their money in interest-bearing savings accounts. If you want to avoid the risks of investing in stocks and bonds, there are savings accounts that offer competitive interest rates. Furthermore, these savings accounts don’t require you to make monthly payments. Should you be able to make monthly contributions, consider accounts that offer higher interest rates when you credit your monthly salary and spend with their credit card. If you are a more aggressive investor, it might be in your best interest to open up a brokerage account and invest in stocks, bonds, ETFs, and mutual funds to make your savings work for you. Keep in mind, however, that you should do your due diligence and possibly even obtain advice from a certified financial advisor. Look up companies that may interest you and read about local stocks and ETFs that are available. Most people opt to invest in familiar companies or industries with which they are involved. Keep in mind that bonds aren’t low-risk. However, investors that are more aggressive might consider stocks, growth stocks, or mutual funds to make more interest. Just remember that these are riskier investing options and require more due diligence on the part of the investor.
No matter how small, every little bit helps when it comes to saving. For example, even if you can only contribute a small amount per month to your high-yield savings account, you’ll have a significant amount in your emergency fund by the end of the year. If your employer offers a retirement plan, max out your contributions if possible. Moreover, if your employer matches contributions, take advantage of the opportunity to increase your retirement funds at no extra cost. If your employer doesn’t offer a match, consider banding together with friends and family and investing in a co-op retirement program. If you are self-employed, consider contributing to a retirement account that allows you to contribute more in reductions. Keep in mind that when it comes to using a nearly tax-free account, the earlier you start, the better. If you are an expat or a U.S. green card holder, it is important to maximize other small tax-free pots of money. A Health Savings Account allows taxpayers to continue to contribute even when they are retired.
Utilizing Cost-Saving Strategies
Plan your expenses. Maximize your money without breaking the bank using useful budgeting tactics. To avoid expenses, find out what items are more difficult to consume in regards to both time and cost and steer clear of them. Research brands and prices to find the promotions and discounts that are applicable for expats. Singapore is brimming with marketing platforms. Look through various deals and groups on social media and local forums to quickly pinpoint where these deals are located. Don’t be afraid to purchase some elbow-length rubber gloves and stretch to snag extra savings if you want to save a substantial amount before your three years of sacrifice.
Finding groups of foreigners who post certain deals is a fantastic approach to leveraging methods used by other expatriates. Many of these expats, for instance, may have discovered a great price for a recent smartphone contract or were able to negotiate a special price, post it in a local forum, and immediately allow other expats to use it. Expats can do the same thing by using cash-saving blogs, local forums, or foreigner social groups. In order to maximize the dollars and cents, you’ll need to determine how other expats saved money in Singapore by researching several other methods as well as being proactive. Specifically, buying items in large quantities, performing searches for articles that suggest cash-saving tips, navigating price comparison websites to discover generic brands that are significantly cheaper than leading brands, seeking a DIY solution or renting out required equipment to make a product rather than purchasing finished items, and posting requests for donations, ideas, and suggestions to locals in local forums for a service that can be performed by the entire community or neighborhood. Why not give negotiating a try while you are out and about or seeking a room rental? Say it and see how it goes. If it doesn’t go the way you want, try, try again. Some items just are not negotiable, but on your rent, it could save you a few hundred if offered the right rates. Be brazen and bold, even if you are a cheapskate; then put that extra thousand dollars in the bank. Fill your calendar with free local community functions as it will enrich your expat experience. Check out the various free museums and cultural places in Singapore, take in some free music concerts, and window shop the day away at VivoCity mall, some new areas of Singapore.
Tips for Stretching Your Dollar in Singapore
When making your budget, you may be feeling a bit overwhelmed and are unsure of how to deal with the cost of living in Singapore. One consideration is the commute. Singapore is pretty small, so getting around via public transport is a no-brainer. Yes, cars are safer and more convenient, but you’re not making a two-year plan; you’re making a one-year one. Take public transportation. It’s much less expensive. For meals, go local. Singapore is teeming with local delights from food courts to hawker stalls, and enjoying these dishes for a meal can save you a lot of money. When you’re working from the office, invite coworkers to join you. When everyone is together, they can trade and try more dishes for everyone to enjoy.
Get involved in promotions and discounts when and where possible. When you go to a store, look for a “Buy one, get one free” offer or a super discount card. When you go out for a night on the town, search for the best happy hours in your area, and find out when you and your friends can get the best bang for your buck on drinks or appetizers. There are plenty of cheap movies at the theater and on-air screenings, and often, local activities are free for expats, so take advantage. Most of our city sights can be seen at a low cost or even for free. There are cheap activities and places to visit all over Singapore that are suitable for any budget. Orchard Road, a shopping paradise, is always having a sale, as are shops worldwide, so keep an eye out for great deals on items that you need. It’s understandable to want to stay in shape, but a low-cost gym can be found on the island, so you’re not forced to eat cooked salads every day. By following these budgeting tips, you can confidently tackle the cost of living in Singapore and enjoy your days.
Making Use of Public Transportation
Improvisation can often lead to ideas you may not have considered otherwise. You can also find you’re especially drawn to topics that make you think differently about the world. Making use of public transportation is definitely a viable strategy for expats to minimize the costs associated with getting around Singapore. The island-state has an extensive subway system known as the MRT, as well as an extensive network of bus routes. Together, these two methods of public transportation offer convenience that makes it possible to get around without a vehicle.
For people who will be using the MRT or buses extensively, travel passes are one effective cost-saving option. For those who plan mainly to use the MRT but not as intensively, single and multi-day MRT passes are the best choice. As one of the most eco-friendly public transportation systems in the world, traveling via bus or MRT is a far greener approach to exploring the country than by car. Using the MRT can also minimize travel time on shorter distances, which is useful considering the high cost of both vehicle transfer and petrol in Singapore. Rush hour commutes may vary by a few minutes for regular MRT routes with multiple transfers. Since buying and maintaining a vehicle in Singapore is expensive for everyone, a rash decision to buy a private vehicle should not be made, especially since public transportation options abound. If after moving to Singapore you decide you do need a car, second-hand cars will be much cheaper than buying one new and more affordable to own for a short period of time when a job ends. In summary, for the majority of Singapore residents and long-term visitors who need to take public transportation, public buses and the MRT are by far the most sensible approach. The MRT is safe, reliable, convenient, and generally effective in terms of minimizing travel time. Plan your public transportation routes carefully – by minimizing travel time and route changes, you can add significantly to your quality of life in Singapore.
Exploring Affordable Dining Options
Food is a major expense for expatriates and locals alike. However, dining out is an unmissable part of the Singaporean experience. Diverse eateries are a major aspect of Singapore’s pride. To make the city-state a memorable destination for a foodie getaway, Singapore invested substantially in a cafe area. Many world-renowned chefs come here to establish their hospitality ventures, reasoning that if it works in Singapore, it will work anywhere.
Choosing a place with value in mind may help lessen the pressures on one’s pocket. Hawker centers are the best area for seeking a budget meal. It is nearly impossible for someone not to come across inexpensive, satisfying food from around the world in these close-knit eating bazaars found in nearly every neighborhood. Let’s start with the kind of food available at these food courts — nearly all major Asian culinary varieties, from Japanese to Indian to Malaysian, are represented. Above all, the costs are kept low to attract the general public. Each rice or noodle meal generally costs 3.50 to 7.50. Nevertheless, you are not confined to eating solely in food courts in Singapore. Many restaurants in Singapore offer significantly reduced midday dishes known as lunch sets and group meals. If someone can postpone hunger until 10 p.m., for instance, they can also take advantage of large discounts on snacks, mostly from fast food outlets. The significant impact on individuals’ budgets, however, is their usage of supermarkets. In a country like this, eating at home generally guarantees the most reasonable cost.
Taking Advantage of Discounts and Promotions
Expatriates can sign up for and frequently take advantage of the benefits of loyalty programs, which offer cash vouchers or discounts based on accumulated spending, to further stretch their budget. Singapore has a wide array of e-commerce coupon offers that consolidate various products and services, which aggregate promotions and recommendations for a mix of financial products and lifestyle deals. Expatriates can use their phones to tap into local discount sites wherever they are. Apps offer online reservations and booking services for various types of Singapore-based establishments. The app often sends promotions that can be used at petrol stations, and there are locations in Singapore where using the app can give users an e-wallet cashback. While there are good examples of local insurance and bank account offers, some platforms offer more research-based advice, although it is not focused on the needs of expatriates. Expatriates can sign up for newsletters of their favorite shops, restaurants, and attractions in Singapore to receive email-only promotions. Some platforms are useful for finding seasonal discounts and special offers offered by Singaporean home bakers and gourmet dining providers. Challenging oneself to find the best budget ways to enjoy locally popular things, as well as engage with one’s local community to get the best-connected discounts, is a habit that will live on even as one becomes more familiar with Singapore. Buying when things are at a regular price one can accept, and research reveals them to be good deals, will maximize the value of the expatriate’s dollar. Expatriates can plan major personal or family upgrades or purchases during conventional sale times, since retailers often offer the best prices and product variety at those times. Expatriates can plan personal indulgences near significant official promotional seasons and public holidays to take advantage of themed offers.
Engaging in Free or Low-Cost Activities
Singapore’s status as the world’s most expensive city may dissuade expatriates from embracing it fully. While it is unrealistic to believe you can visit popular tourist destinations and engage in tourist activities every single weekend, it is possible to enjoy Singapore on a budget. Aside from the suggestions given earlier on how to save, we offer several tips to fully enjoy the city. We begin our list with free or low-cost activities.
Take a look at the performance and events section to discover community events and free or low-cost workshops, performances, and activities. We love visiting the ethnic quarters during their monthly open house when residences and museums offer free entry, performances, and walking tours. Examples of this include open houses and festivals that provide a fantastic lineup of workshops, musical performances, and storytelling for less than $10 per person. To learn the date of the monthly festivals, check the relevant section. There have also been collaborations on heritage outdoor performances and free movie screenings. Many traditional venues offer free admission days (excluding special exhibition admission). While it does result in larger crowds, it is a good way to experience the museum if budget is a concern. You should participate in local events as soon as you arrive. Not only can you immerse yourself in the local culture more, but you will also meet people eager to assist newcomers, establish connections, and offer trial classes. If nothing else, it provides you with something to do during your first few days in the new country. Jurong never seemed like the funnest place on the island for us, but we discovered rapid-fire basketball and inline skating when we visited a Community Center Open House.
Shopping Wisely
Shopping in Singapore is a unique experience catering to a melting pot of cultures, and it is especially thrilling if you love to shop. But with the plethora of products and extensive range of brands, it is easy to overspend. Sold at hefty price tags, living expenses are not at all budget-friendly, so it is essential to be a smart shopper. Before you make your final decision to purchase an expensive bag or the latest gadget, check out the prices at various retailers and also do the same online. It is also worth checking prices on local websites as well as shipping from your home country, which sometimes can work out to be more cost-effective. It is also possible to obtain discounts on your purchases if you choose to open a membership account with major retailers.
Never shop on impulse – it is a surefire way of blowing your budget. Always make a list of items you need and shop during the sales periods or look out for clearance offers. For items like children’s clothing, home furnishings, or sportswear, it might be worth visiting traditional local markets to find the best offers. Come prepared to still be able to compare and judge quality. A popular marketplace for used items is also a good source to buy reasonably priced secondhand items that are still in good condition. Hunt for vintage or sought-after clothing, including new and stylish items that are still in their original packaging, at pawnshops here in Singapore too. Consider sharing items such as kitchen gadgets or even cooking club memberships with similarly minded friends. Good op-shops are harder to come by in Singapore, but thrifting your furniture, bags and shoes, vases, decorations, clothing, or accessories through groups or gatherings are also viable options to get your hands on inexpensive goodies. You can join groups of fellow expats in order to exchange or sell items while you’re living here.
In conclusion, budgeting for expatriates can require a 360-degree awareness of their own financial situations as well as the rates correlated with half a dozen industries. It is important to know how housing and utilities, as well as transportation and food, will factor into one’s monthly or annual budget while living in Singapore, as well as the high tax rates and potential medical costs should an individual require hospitalization for health concerns. Budgeting includes four key pieces that will help keep a person focused on their financial goals while living in Singapore: setting realistic, personalized, and achievable goals; creating pathways to reach those goals; and persisting with savings, using a variety of tips and tricks to stretch one’s income, saving money to invest, and setting goals to beat performance records. Finally, budgeting means that expatriates need to take an active role in researching various services, asking about discounts, and doing comparison shopping for several goods and services.
Singapore is a key destination for many expatriates, yet many of these individuals approach the move without an overall game plan for their personal finances. If these individuals fail to plan appropriately for budgeting, then they may find themselves in financial straits as a result of the high cost of living there. By paying attention to a few details before and after the move, expatriates can thrive economically in this cosmopolitan city-state. In short, budgets help individuals see where their money is today and are a tool to help people meet a range of financial planning goals. A budget can determine if individuals have enough money saved to pay taxes, invest in the stock market or real estate, minimize credit card debt or avoid it, save for higher education costs, and also save for vacations, cars, weddings, a house, and medical bills. A budget is a clear roadmap of one’s goals.