Living paycheck to paycheck is not only stressful – it’s dangerous. Here’s how to stop and turn your finances around. If your paycheck seems to vanish as soon as it arrives, and you find yourself surviving on Maggi mee toward the end of the month – you have a problem. Specifically, you’re living paycheck to paycheck. Not only is it stressful; it’s dangerous. A single emergency, such as retrenchment, will send you neck deep in debt. Here’s how to break the habit:
1. Always pay yourself first
Before you start spending your money, make sure 20 per cent goes into your savings. We know the CPF does this for you already, but you can’t take out your CPF money easily. It’s important to have an emergency fund that you can tap into when you need. So the moment you get your pay, take 20 per cent and put it in a separate savings account. ...
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