Money may come easily for some, but there are ways it can go easily as well. So, here are some things advised by experts on being rational or sensible about money.
1. Live within your means and monitor how you spend your money
2. Save a portion of your income before spending the balance. Aim to keep six months of income for emergencies
3. Make use of credit cards wisely and settle debts promptly to minimize interest charges
4. Gather information and shop around before buying any financial product
5. Buy a financial product only that you understand. Read the terms and conditions carefully before you buy any financial product.
6. Understand what your insurance policy covers. Pay attention to exclusions and other terms and conditions of your policy contract
7. Be careful about buying any financial product on impulse. Determine your need and buy what is suitable for you
8. Do not give into persistent sales tactics and learn to say ‘No’
9. Plan early for your retirement. The government pension scheme normally covers only the basic retirement needs
10. Invest wisely by spreading the money over different types of investments. A financial product that has a higher return usually comes with higher risks as well
Source: Singapore ‘Money Sense’ program, 2004