< Back to Main Blog

Founders Of These Local Start-ups Spend Less Than $250 Weekly. Here’s How They Budget And What Financial Freedom Looks Like To Them.

Not all start-ups have the luxury to kick off with plenty of finances right off the bat. Founders who started a business on a shoestring is adept at stretching their resources and yet produce results. Bootstrapping a business is a lesson in hard work and flexibility, but ultimately it can help accelerate a company’s success. Many times, founders end up adopting this virtue of frugality in their day to day expenses.

In this article, we look to founders of 4 local start-ups on their take on budgeting and personal finance. We went on to realise that they share the same characteristic of spending less than what most average Singaporeans each week.

Jacky Yap
Founder, Vulcan Post

How much do you spend monthly?

Less than $200 a week.

$10 per day for food, that’s $70 each week and expenses on some misc stuff. $200 is actually more than enough.

How do you manage your monthly expenses and is there any rule you follow to make sure you stay within your planned budget?

I don’t, which is bad. I just try to spend less and within my “budget” and make sure my bank balance increases every month.

I do, however, try to spend less and within my “budget” and make sure my bank balance increases every month.

What does financial freedom look like to you?

Multiple streams of passive income, being able to say “hey! I want to travel to this country” and be able to just book the ticket and fly there now.

What are some of the financial goals you set for yourself and how are you working towards it?

Buy a house in Malaysia and Singapore. For now – just make sure my disposable cash is enough for a downpayment and that I am liquid – other than that, working hard to increase profits multiple for our company so that we can all get a huge bonus.

For now, just make sure my disposable cash is enough for a downpayment and that I am liquid. Other than that, working hard to increase profits multiple for our company so that we can all get a huge bonus.

Erik Cheong
Co-founder, Park N Parcel

How much do you spend monthly?

I spend around $250 each week.

How do you manage your monthly expenses and is there any rule you follow to make sure you stay within your planned budget?
I keep track of my monthly expenses by keeping all my receipts, make a simple statement of how much cash I have (in terms of salary) versus how much expense (such as transport, food, insurance etc) and figure out how much money I have left for saving at the end of each month. My rule of thumb is to set aside at least 10% – 15% of my total earnings for savings. At the same time, I set a strict threshold of $X amount for my saving, if fall below my threshold I will start looking how can maintain it above either by spending less or saving more for the month.

It’s important to only spend money that you have, not money that you expect to make. You may think of yourself as a high earner, but if your money doesn’t back up that statement, you’re shooting yourself in the foot. Unless it’s an emergency, if not you should always keep yourself out of debt/credit card.

 

What does financial freedom look like to you?
In short, being financial freedom is to be who you really are and do what you really want in life. I hope to run my startup (Park N Parcel) while I am travelling around the world without having to worry about my financials. An example will be to wake up at Maldives with my flip flops, shorts, laptop. The first half of my day will be spent, enjoying my breakfast and replying work email/ having a meeting via Skype. This will be followed by spending the rest of the day, chilling at the beach with the perfect view and a book.
What are some of the financial goals you set for yourself and how are you working towards it?
For 2017, I set my financials goals into 3 portions, which I hope to achieve by end of the year.
Short term: Invest in yourself. Leverage on the Skills Future Credit (SFC) given by government! Think about what new skills and learning opportunities that could help my startup move forward. 
Medium Term: Set personal goal can help me spend money on what actually matters to me and avoid debt while pursuing my dreams. Planning my Japan trip with my fiancee for 3 weeks in November! 
Long Term: Save for rainy day. Unexpected things happen to anyone, and establishing an emergency fund can help ease the pain of hard times or uncertainty.

Felix Tan Hong Ming
Co-founder, Anywhr   

How much do you spend monthly?

I just set my budget at $700 per month.

How do you manage your monthly expenses and is there any rule you follow to make sure you stay within your planned budget?

I manage it with the Seedly app!

I basically update it every week to see how much more am I allowed to spend in the following weeks of the month. My rule is simply strict adherence, if I overspent then I’ll just eat bread the following week…

What does financial freedom look like to you?

Financial freedom to me is simply being able to live comfortably without having to worry about a monthly budget, where my income is able to sustain my natural spending habits.

What are some of the financial goals you set for yourself and how are you working towards it?

My financial goal is simply to achieve financial freedom so I can work on what interests me without having to worry about putting food on the table.

I’m experimenting with bitcoin now and I also trade on the stock market.

Jeremy Foo
Co-founder, 6.0 Shot

 

How do you manage your monthly expenses and is there any rule you follow to make sure you stay within your planned budget?

I use the Seedly app to help me manage my monthly expenses.

With the app, I can monitor where did I spend the bulk of my money on. Small little “wants” tends to go unnoticed but you will be surprised how huge it can get. With the app, it helps me keep in check on my spending. If I spend more on “wants” than “needs” I will definitely take note and tighten my belt. My rule is simple I am only allowed to spend 25% of my needs on wants.

My rule is simple I am only allowed to spend 25% of my needs on wants.

What does financial freedom look like to you?

Financial freedom to me is where ur yearly or monthly debt and expenses are less than the interest you gain from your investments. Outflow less than Inflow. Because the greatest freedom is knowing you are net positive and you have the freedom to take the risk.

What are some of the financial goals you set for yourself and how are you working towards it?

In a start-up, we tend not to think so much about achieving short-term financial goals but our aim for the first few years is to earn enough so that we can survive. Our focus is more towards the company’s growth and so having a successful company, 5 years down the road, to us is a financial goal itself.

Be part of our personal finance Facebook Group today! Share your knowledge and learn from the closely-knitted Seedly family as we look to bring each other on a more meaningful personal finance journey.
Comments

Start Your Personal Finance Journey Today!

Download free app: