Top 3 Reasons Why Good Financial Habits Are Vital

This article was originally on GET.com at: Top 3 Reasons Why Good Financial Habits Are Vital

Singaporeans have long been acquainted with forced saving through the CPF, but savvy ones should know that the CPF alone isn't enough. For the most part, money saved in the CPF cannot be used for our daily necessities, meals, our kids' endless tuition classes and so on. Therefore, it's always a good idea that we adopt good financial habits that help us manage our money better, no matter whether we're fresh out of school or in our 40s and 50s.

Our interest has certainly been piqued after learning that Singaporeans are great at investment knowledge but not so great at planning for retirement, according to the 2015 MasterCard financial literacy index that was reported in the news recently. Here, we at GET.com round up the top 3 reasons it's vital to have good financial habits.

Top 3 Reasons Why Having Good Financial Habits Is Important

1. You Live Realistically Within Your Means

One of the fundamentals of good financial habits lie in an individual not having to live dangerously from paycheque to paycheque.

With that in mind, you seek to take charge of and manage your finances better. You are also very aware that although credit cards can help us save money, we can't just spend like there's no tomorrow because the bills that we chalk up have to be paid off in full and on time.

Spending within your means and getting yourself into a money-saving mode come naturally to you. You probably also dig money saving hacks using credit cards and smart money-saving tips. Kudos to you for being wise with your money and being real!

Of course, you will always weigh your options extra carefully when it comes to luxury purchases such as the classic Chanel 2.55 bag.

2. You Can Sleep In Peace Every Night

When you're conscientiously practising good financial habits such as budgeting and not lugging a ton of impulse shopping sheepishly back home, you shouldn't have to deal with nasty debt problems, if any. That in itself is a golden ticket that nudges us away from anxiety and stress commonly associated with debts, which cause us to literally lose sleep.

Having a restful shut-eye is incredibly important for everybody's well-being and health. It's always good to sleep better and minimise negative short and long term repercussions that tag along with sleep deprivation.

In any case, if you are in debt right now, check out these 3 tips to clear your debts in Singapore. We really hope you'll find them helpful!

3. You Can Better Afford To Send Your Kids To University

We all know that it pays off to have a university degree in Singapore. Parents who plan ahead for their child's education will find themselves saving up more fervently just to put them through school.

Don't believe me? A recent news report highlighted that more than half of Singaporean parents surveyed do not mind getting into debt in a bid to fund their kid's university education. An equally shocking finding was that many parents declare that being able to see their kid through university matters more than saving for retirement or paying bills.

That's precisely how high a price many Singaporean parents are willing to pay to let their kids secure a university degree.

As harsh as reality can be, saving adequately and saving for the future really matters. It's not fun at all to be fretting over paying the bills, meals, necessities or even housing and healthcare issues because of our negligence in managing our finances properly, don't you think so?

What do you think? Share your comments with us below!

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