We recently talked about domestic workers in Singapore now having a minimum salary of SGD 550. That’s a good thing, of course but too many of us don’t know what to do with even an extra SGD 50 or SGD 100. Meron pa nga diyang nakapulot lang ng Php 20, di na alam ang gagawin.
The main idea is this: Continue to live like you were still earning your old salary. Yes, treat yourself to something good or special. Movies are expensive in Singapore so you may want to choose that. Have a nice pepper or salted egg crab dinner with cereal prawn and some satay on the side. What about a day in Sentosa, Jurong Bird Park, Singapore Zoo, or Universal Studios? You deserve that.
However, after the little treat to yourself, go back to living frugally. This is actually your best chance to save. You do this effectively by revising that budget you started making as suggested in a previous blog post. (Find it here.) Don’t think about this money as a bonus. Think of it as an opportunity.
An opportunity for what? Marami.
There are many choices but here are some:
1) Send at least 30% of that extra to your mother and father. If you are now getting SGD 100 more, 30% is SGD 30 or Php 1,000. That’s Php 12,000 for a whole year! Hindi na masama iyon. To make things more secure, go to BeamAndGo.com and send them a gift pack they didn’t expect. Next is to make this a regular thing they can count on month on month. Get started here.
2) Put at least 30% in the bank. If you don’t have a bank account yet, open one but take note of the minimum monthly balance. DBS, POSB and OCBC are excellent banks and though SGD 30 may not seem much now but when you have SGD 360 more in your account at the end of the year, that’s definitely something to smile about. Be careful with the minimum maintaining balance. For example, you may need to have at least SGD 1000 in your account every monthly. If you can’t maintain that amount, you may get hit with a penalty resulting in your losing money little by little.
3) What about the remaining 40%? Find an investment plan. The banks in Singapore or the local insurance companies in the Philippines offer various investment products. The younger you are, the better to start because the benefits are bigger for much less money.
That 40% not enough for an investment plan you want? You can also redirect a little from your present budget to get that investment plan. Don’t think about this will result in more money leaving your pocket now. It will be a better future for you if you invest while you can.
4) One other option is just splitting the extra funds into half or a 40%-60% split. One part for your parents and one part for your investment into the future.
5) Look into medical insurance for your parents or your kids. There are different options, of course, but consult with your family doctor to determine what is the minimum needed. Need some options? You have PhilCare and Standard Insurance to choose from. Try looking here.
Also, make sure they are already enrolled properly with PhilHealth.
6) Send your parents or your spouse and kids a goody bag using BeamAndGo. Yes, you can’t go to the supermarket with them but with a BeamAndGo digital gift certificates (GC), it’s almost the same thing. Have you gone to Gaisano Mall or Iloilo Supermart with them? Get a GC at one of the participating supermarkets and make sure to have them send you photos. It’s not only for memories, it’s also a way to bond with them. Do that here.
The bottom line here is that regardless of how much money you make, you really have to have a budget and you need to stick to that budget. Though you should be happy with this new reported increase, you should also realise that on the whole, it’s not a whole lot of money and you have to make the best use of it as possible.
Many times, helping your family with the everyday necessities is part of what you can do best. BeamAndGo makes that happen and you start doing that by clicking here.