This is what usually happens when you want to track your expenses:
Step 1: Download an expense tracking app
Step 2: Key in the cost of your lunch, dinner, and supper for the next 3 days
Step 3: Give up after the 4th day and continue spending money you don’t know if you have… *sigh*
The act of tracking your expenses does indeed take some diligence – we’re aware.
Opening a social app like Instagram every few hours takes little convincing. but to log in your spendings over days and weeks require much more effort than mindlessly scrolling through social media.
At times, you get that spurt of enthusiasm like, “YES! Today is finally the day I get my finances in check!” or “I’m starting now, better late than never!”
But the enthusiasm dies down after a while and the app languishes in a corner of your phone’s screen.
Let this guide show you how to track your expenses THE LAZY WAY using the Seedly app.
1. Set Budgets For Each Category
2. Set Financial Goals
Similar to OKRs (Objectives & Key Results) and KPIs (Key Performance Indicators) at the workplace, you should set an objective and list out the specific actions you need to take in order to attain each goal.
For example:
| Specific, Quantifiable Goals | Steps to take |
|---|---|
| I want to pay off my student loan within the next 1 year (max) | 1. GIRO money from monthly salary into savings a/c 2. --- 3. --- |
| I want to get my first 3-room BTO by age 30 | [steps] |
| I want to have 1 million in me and my partner's CPF by age 40 | [steps] |
| I want to have $10K savings by the end of 3 years to invest | [steps] |
3. Salary Allocation – Split Your Income Into Different Bank Accounts
It’s always nice to see your bank account balance jump a little at the end of every month. But instead of just enjoying the “feel good” factor, how can you best allocate your take-home salary?
- Expenses: Consists of fixed and variable expenses; pay off all bills and clear debts first
- Savings: Save a fixed amount from your income for a rainy day
- Wealth: Create long term income generating asset to grow your passive income and help you reach financial independence
| Bank Accounts | |||
|---|---|---|---|
| Daily Expenses Account | Savings Account | Joint Account/Specific Saving Goal | Others |
| For dail spendings, choose an account/bank that has ATMs readily available | Credit your salary here. This account should have a favourable rewards system (e.g. choose the DBS multiplier account if you can hit the higher tier interest rates) | This account would aid you and your partner in attainable specific financial goals and life milestones | Depending on your needs, you may opt for more accounts to reach more financial goals. |
If you’re having trouble choosing a savings account that best suits your needs, you might want to use this savings account cheatsheet as a guide.
There is a myriad of ways that people use to manage their finances, but the best way is to start with these 3 simple, actionable steps. Hopefully, this guide is easy enough to follow, even for those who have no clue what they are doing with their money.
Looking for even more in-depth ways to manage your finances? Check out this guide which teaches working adults the easiest ways to invest a monthly sum for beginners.
