Learn to Manage Your Financial Future as a Couple in Singapore

happy couple with pink piggy bank and calculator

Single people are often perceived to be financial freebirds with minimal liabilities and maximum cash flow at their disposal. Marriage on the other hand, is looked upon as a financial leash that rains on the parade of their larger-than-life singlehood. Although managing your money as a single individual is a tad bit easier due to the conflicted opinions shared by couples, the truth is there are a host of financial benefits couples are entitled to that will leave your single friends green with envy. In an outrageously pricey economy as Singapore, every dollar saved is one step forward towards a financially secure future. Hence, prioritizing and streamlining your collective expenditure and investments with your partner’s help can help you eliminate a ton of costly redundancies in your savings. The leeway for miscellaneous expenses shrinks drastically once you jump into the committed life and start running your own household as a couple. Family planning is the next big challenge on the plate of couples; hence, hardcore budgeting must be of utmost precedence if they wish to attain guaranteed financial prosperity in the future. Today, we will dispense a few invaluable financial tips aimed at Singaporean couples who are looking for a reinvigorated, foolproof money management strategy to address their expenditure. Opting for Joint Accounts Opening a joint account is the cornerstone to managing household expenditure for couples. By fixing a certain amount to be deposited per month from their individual earnings into this account, couples can easily take care of major shared expenses like utility bills, loan payments, child expenses, etc. By engaging in this form of financial management, couples learn to optimize their household budget to tackle all the common expenses they encounter and ensure they also have a handsome amount in individual savings to support them in case of an emergency. Couples who are comfortable with this strategy can also take their financial commitments a step further by opening another joint account dedicated to building their retirement savings. Housing Loan Payment Strategy Those who’ve read my blog earlier would know that I have a blog post on the estimated cost of buying a 4 room HDB flat in Singapore. For convenience sake, I will just list down the upfront cost which you may need for your new house. The CPF ordinary account has the potential to be a game-changer when it comes to the process of acquiring a home loan. Let us suppose a Singaporean couple is looking for a decent 4-bedroom HDB flat in the city. Now if your CPF ordinary account has enough savings to fund your 10% home downpayment, then you can utilize it without coughing up any additional money. The average down payment sum for a 4 room HDB flat in Singapore is close to $30,000. Even after taking care of the down payment, the remaining sum needed to complete the purchase of your new home will range from $23,000 to $35,000. Dealing with the Debt Dilemma Debt management happens to be one of the prime financial priorities for Singaporean couples because of how much credit holds the key to preserving their present and future. Newlyweds can take advantage of a number of 2 years 0% interest free credit card installment plans for their wedding. They can even use similar plans for fulfilling their home furnishing expenses. This is a tremendous shot in the arm for their savings when they are already involved in heavy duty expenditure and investments, and are a little too cash-strapped to fulfill miscellaneous obligations. However, you need to lay out an organized budget making room for costly monthly repayments for these services apart from your home loan repayments in order to maintain your credit integrity and avoid sinking into the debt pool below your neck. The Monetary Authority of Singapore has already established a clear debt cut-off policy that restricts the total debt you can accumulate to 60% of your gross monthly income. For more financial tips and tricks to optimize your financial lifestyle, visit imoney.sg and learn all the best moves to make with your money.

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