Insight 1
Savings & Spendings
"Interviewees were asked about how they were currently saving , how their spending habits are like and what affects their spending behaviours."
How much percentage of the income do you set aside for savings?
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Daron: 70 to 80%
Yucheng: My allowance is $240 a month so I usually save around $180 to $200.
Owen: Um, uh, actually I don't set aside a percentage for my savings. But I do have an investment link product that I bought from Prudential la, which every month I just need to pay a hundred dollars. Yeah. That's my only savings actually.
Aiman: Uh, usually I plan to keep at least 50% in, uh, my savings.
Jeslyn: I do not set aside a specific amount, rather I keep $500 each month and set it aside in my savings account and spent carefully the rest of the amount and kept whatever is remaining in the savings account.
Leticia: I am not a spender, so I usually save up to 80% of my savings.
Kieron: I don't set aside one, but I am able to give you an estimate, so now I know I don't spend a lot, but last time I spent even lesser, last time i saved about 70% of my income, now since I go out alot more I save about 50-40% of my income. Gradually my savings were lesser but I probably should have a fixed amount moving forward.
Solihin: 20% of my income is set aside as my fiancée looks after my financial matters.
Sabrina: I set aside about 25% of my allowance for savings so that comes up to about $50 per month.
Loh Chuan Ren: Oh, actually I haven’t really considered that but if I were to think of one I would say maybe at least 50%.
Ryan Goh: Uh savings ah, I don’t save sia. I put in investment one. So most of my money I put it in investment. So I just save up to a comfortable amount and the rest of the money I just invest.
Clara: It’s only been like a month since I saved, and so far maybe around like 50%.
Have you successfully set aside this percentage?
Daron: Yes
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Yucheng: Right now, yes, it’s because I don't have to go out due to COVID and just have to study at home since I can’t go back to school except for practical sessions.
Aiman: So for example if I get $800, I will save $400. And, so far since the internship started, uhm so far so good ah. I've been spending, not spending too much.
Jeslyn: It has been successful as it is easy to manage. $500 set aside, it's a small amount and the remaining has been sufficient to spend
Leticia: Yes, as I am not a spender, i do not spend a lot unless its for going out with my friends for a meal , i only need to spend mostly topping up my ezlink card.
Kieron: I would say I was quite consistent in it so yes.
Solihin: So far so good from what I see. There are some hiccups here and there due to commitments. However, it is a good start.
Sabrina: It has been quite successful except for 1 of the months where I had an unexpected expense so I couldn’t save 25% but I didn’t touch the money which was already in the savings.
Ryan Goh: Since I just started this business ah, so I have saved slightly less than usual just so that I have some capital for my business. For maybe like a year or two in the past year or two before I made the business it has been quite successful ah. But now it has slightly dropped below 600
Clara: I think it’s too early to tell, so far I haven’t really been saving until the start of this year, so I wouldn’t say it’s that much to do anything with it right now
How do you come up with this percentage you want to set aside?
Daron: I gained the inspiration from the book “richest man in babylon”, and they gave an insight on saving 10% each month, but because I'm still a student so I can afford to save a higher percentage
Yucheng: Actually I saw something about this online, like how people started saving their money by doing this “50/30/20 %” method. But that's for working adults ah, but for me as a student I don't have to pay for any utilities bills or taxes so for the most of my money I save it lor
Aiman: Um, this one, I just thought of it, you know. I don’t know, I never really plan. So I just thought, oh, why not just spend half and just save the other half for, you know, maybe my future.
Jeslyn: I was thinking about the amount manageable and just came up with 500. I just think if it was a reasonable amount and just dont touch it, since it is a manageable amount i will add more at the end of the day.
Leticia: I don't have a minimum percentage to set aside, i just don't usually spend so i don't see a need to set a percentage restrictions. I'm a hoarder, so i like to just hoard all my stuff and money.
Kieron: It is normally impromptu and I can give an estimate because I don't really buy like other stuff, sometimes here and there I buy other clothes or maybe like some books, probably spend a bit in games as well. most of my stuff is spent on good food. Also, because last time I stayed at home more, last time I would be playing more video games, but now since I go out more you'll tend to spend more you know. Also, for now that 50% is enough for me to get by on what I really need, or you know small wants here are okay but then if I realised I spent more than 50%, it would mean that I probably bought stuff I didn't need and probably got influenced by external factors because I've been surviving this long at 50%, which is also thanks to allowance from my mother, but like I don't really need to buy a lot of stuff one, so if I suddenly start to spend more there must be something wrong, so I know I would just have to maintain self discipline.
Solihin: My fiancée works with a financial company, and she learns that it's Sabrina: important to set a small percentage for savings.
Loh Chuan Ren: I just find 50% a very safe number, I need to not spend too much on everything else, not that I spend on anything but I also don't know how to save, so there's no specific reason ah i guess I just feel like 50% is quite safe lor.
Ryan Goh: So actually I don't spend a lot of money one ah, on a day to day basis just for necessities only, so 500 to 600 dollars is sufficient for me ah. Of course I try to save some money on food. I meal prep and eat out less and for groceries I buy like $30 a week then I save the rest ah.
Clara: I usually do not calculate an amount or what. I just like see the number then like ok. I just see based on the total amount I earn, but if it’s money that I don’t need, like from some award or if my parents give them, then I will put it in my savings as well. But right now I shouldn’t put in my savings bank account because that bank account is very stagnant and because you know the bank's interest rate is not that good.
Do you actively track your expenses on a regular basis?
Daron: Yes
Yucheng: Now not really, because now I don't even use much money la, like most of the time I have been eating at home and have not really used much and do not really check lor, since I know that it won't really change much at all.
Owen: Definitely not la.
Aiman: Right now I do, like I say, 50/50, so I’ll take note on what I spend, especially bigger purchases. And I always try to keep it above that certain limit. Like if I get $800 in a month, I save $400. So I try to keep it to $800 for the next month, so on and so forth. So like the balance just keeps increasing.
Jeslyn: I do not track them actively now , but the first few months I track them on the things I buy and the amount people owe me when I help them buy stuff and make sure they pay me but after a while it's very tiring as I realise it's a bit tiring and difficult to track. I just make sure I don't spend this amount every month.
Leticia: No
Kieron: I dont track my expenses on a regular basis
Solihin: Of course.
Sabrina: No, I don't really track my expenses but however i do put aside that 25% of savings so the rest of the money is just like for me to spend on food or whatever I need to spend on.
Loh Chuan Ren: Yes, I check it, I would say 2-3 times a week.
Ryan Goh: Yes i do
Clara: I used to for a moment but then I didn’t really see like that much point of it because in the end I can see the total in my bank ah and that’s all matters to me. I know what I spend on though, like I can remember what i spend on. Like if I had an expensive meal the previous week I will spend lesser. The total number in my bank keeps me updated already, like how much you spend so far.
How do you track them? Do you know of a tool that can help you track them?
Daron: I have a spendings account. I would check everyday to check how much I am able to spend and how much I have left in my account so I actively check my spendings account to ensure I have enough. Nope, dont have a tool.
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Yucheng: Actually I just open my Digibank app ah and I just check the expenses on a per month/per week basis lor, so I can see all of the transactions I made during that time. Actually I did download one financial app, but I forget liao, but I remember finding it a hassle, because you have to manually key in what you spend so it's not really convenient, which I find it inconvenient when I can just look through my Digibank account and check everything through there
Owen: The only time I know how I spend on is when you go into POSB app right when you log in, they'll have these pie chart of your expenses.
Aiman: Yeah. I track my expenses as well. Like for example, I use Spotify like every month. So like every month, $5 or when I make purchases, I usually take note of what I spend in the day and try to remember where the money went, cause sometimes, if you lose track of that, it would be confusing ah, like eh where my money go. I don't use any tools. Sometimes write down in a notepad. I'll keep a mental reminder.
Jeslyn: Last time I used excel and my notepad. I use the DBS phone app to help track of the expenses.
Leticia: Not really, we don't talk about all this.
Kieron: I don't track, I don't think I need to track cause I don't really spend much. Unsure of any tools that can help me track my expenses.
Solihin: I use a phone app to key in my daily expenses. Like everything I eat do or buy I will key in. so I know what I spend and how much balance I have. If not, I will spend like there is no tomorrow. But my fiancé tracks on excel, so she can add and subtract whenever necessary for the bigger bills or payments.
Sabrina: No, I don't really track my expenses but however i do put aside that 25% of savings so the rest of the money is just like for me to spend on food or whatever I need to spend on.
Loh Chuan Ren: Actually it is mostly stipulated accordingly in the digibank app already ah, I just open that and look through that. Actually no, not really
Ryan Goh: I have the bank app, and since most of my money is in the bank, I don't really use much cash since now it’s a cashless society and everywhere you can like use paylah and use paywave. In the bank app itself there is the bank insights and they help you to personalise your money, like investment is one portion and food is like one portion. As of now I am just using the bank app. But ya, I know of a tool that can help to track them. There is this japanese notebook thing that’s quite popular ah. I can’t remember the name but it’s like a finance notebook thing, I have to google it. Ah, it's called Kakebo.
Clara: It’s just my OCBC banking app and I just use the bare minimum features like paynow. It gives money insights but I have not paid much attention to it since it is not that helpful I guess. I never really asked around. I wouldn’t ask also since I find keying things in daily is a bit too draggy and I am lazy.
What are your current spending habits, and what are the majority spent on?
Daron: More on food and entertainment.
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Yucheng: I think the only thing that I spend money on is the spotify monthly subscription. I also have netflix ah but I just pay one shot to my cousin for 1 year. Since I don't go out much, I guess I don't really have a spending habit. At most I would say it is for food.
Owen: Now I don't spend on anything currently because school start already, so I have to work less, which means I don't have excess money to spend on. The majority that I spent on actually is for my food expenses only, like transport also. Shopping not often la now, once in a while.
Aiman: I spend most on essentials. Like obviously food and water you know. I do spend on some skincare products, and those are essentials la. If I need things for school, yeah, those too. Most of the things that I spend currently, all are the essentials, not really on the one side for my own pleasure that type of thing.
Leticia: I do not spend a lot unless it's for going out with my friends for a meal, I only need to spend mostly topping up my ezlink card.
Jeslyn: Nowadays I have been spending a lot on food delivery and other than that I don't think I spend a lot. Maybe in the near future I will spend on technological stuff.
Kieron: Food. Because now the food at my workplace is cheap, and when I go home, my mom normally cooks, on my off days with friends, I tend to spend and indulge more in food that I want to try. Sometimes if there are tempting desserts or tempting cuisines, I will hold back based on health reasons. I enjoy food and think I subconsciously allocate most of my spendings to food even though I dont plan it, I sometimes indulge in more expensive food such as Sushi. Other things may also be birthday gifts for friends, and treating my parents to meals time to time.
Solihin: I usually spent on gold. That is the only thing I spend on.
Sabrina: I spend the majority on food and entertainment like movies, bowling, and entertainment.
Loh Chuan Ren: I would say food is a good 70% of what I spend right now, then probably like 20% is from online shopping ah.
Ryan Goh: Nowadays I spend most of my money on food ah.
Clara: Right now the majority of my spending goes to food. The other day when I got my pay, I had this certain rush of sense of wanting to spend it, especially on food for my family and like clothes. I will still think about whether I need it but I will just feel like spending.
Do you think the people surrounding you affect your spending behaviours? Why or why not?
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Daron: Yes, because sometimes, maybe they will be like “Eh bro that one quite nice want to buy anot?” Sometimes if I have the money I will buy ah, provided if there is value to it ah and it does not have to be monetary value ah.
Yucheng: Yes I guess, let's say if you go out with a high SES friend, normally they would go out to a high SES place and their recreational activities are also expensive. So I would say that I go towards my friends who are in the medium to lower SES. Since they also have a sense of limiting the amount of money they have to spend.
Owen: I don’t think that people around me affect my spending behaviour because I know what we have is different, so I wouldn't compare myself with other people. For me, I have to spend on myself, but some people have their parents to spend for them, which is why I don't compare with other people. But I will say that my spending behaviours are affected. I personally feel it's because when I'm young, I don't get to have any luxury stuff. I didn't have like a computer whenever I want to have ah, because my family last time was strict so they won’t buy for me. So now when I'm earning my own money, then I feel like I must buy it, so it's like childhood thing ah. I couldn't get it last time, so now I want to have it when I have the capability. I want to buy it. Maybe that’s when my impulsiveness come.
Aiman: Yeah, 100%. Like, for example, my family, they always encouraged me to save and not spend unnecessarily, or sometimes when I get packages sent to my house, I'll even get scolded for buying that thing online. They will say "oh why don't you save your money? You think you very rich is it." Then I will say I'm sorry, I won't spend anymore. But also the negative side of things is that sometimes that your friends peer pressure me into buying certain things. For example, during internship, a lot of my friends started building their own computers and I also felt pressured into that. I don’t want to feel left out you know. But then I remembered that I will need this money and I already have a pretty good PC. Why would I need a new one? So I guess it can affect you both ways, positively and negatively.
Jeslyn: Yes, I think they do because when you hang out with them, you just do what they do. My family just buys stuff so we don't really think we save so it does affect.
Leticia: Yes, one of the main influences. My mom is a super spender and whatever she does, i do the complete opposite
Kieron: Yes. There will be days where I have to spend less on food. But if most of my friends want to spend on a meal outside, I just join in. Its not that I don't want to miss out, the thing is I feel money is not too important now, not my habits. Because I am normally the guy who tells people to treat themselves abit. If one day or two, I suddenly don't wish to treat myself when friends are in on it too, I feel like im party pooping. There is no actual pressure to spend with them, but I feel its more of a subconscious effect.
Solihin: Nope, I don’t let people affect me. That is the most important thing.
Sabrina: No, I don’t think people surrounding me affect my spending behaviour or habits for me personally because I don't really get influenced base on what they are buying or what they are spending on other than if it's going to be like a group plan to go somewhere like for example to go to the movies then I will have to spend which I also agree on doing so I am not spending for nothing as I am a part of it , like I have a reason to why I spend.
Loh Chuan Ren: Of course, sometimes you can get influenced quite easily. When my family members buy some products, and I end up seeing it and will take a look at it and will be intrigued to get it myself also that kind of thing. So I feel like it will affect me quite a bit.
Ryan Goh: Yah sometimes, sometimes I will go out for drinks with my friends and a lot of money would just fly away like in one night.
Clara: I spend a lot and I am someone who actually cannot control my finances well and basically I spend a lot. On many things like food, especially wherever you go out with friends, you would just spend a lot. There’s also online shopping, clothes but mainly food.