Now Is The Time Declare A Financial Fitness Day!

Last Thursday was a day to get fit. Financially fit, that is.

On that day, the Motley Fool had organized an all-day event for its employees to get financially fit. There were classes on learning anything from getting the right insurance to negotiating a better rate for cable TV subscriptions. Beyond those, there was also time set aside to do what needs to be done, like filing one’s taxes.

With tax season in Singapore closing in, now is as good a time as any to take stock of our finances and take time to make a few adjustments if needed. To help you along the way, here are three simple tips worth considering.

Cutting recurring expenses

Cutting back on unnecessary recurring expenses may be a good place to start.

Recurring bills, like a gym membership or your telephone subscription, may deserve a bit more attention. After all, shaving $20 per month off such bills could put an additional hundreds of dollars in your pocket per year. The key could be to take stock of the number of services you use, whether you are making good use of each service, and whether you are getting the best bang for your buck.

Take your phone bill, for instance. The past week in Singapore has seen a mobile data price war erupt between M1 Ltd (SGX: B2F)StarHub Ltd  (SGX: CC3), and Singapore Telecommunications Limited (SGX: Z74), the trio of mobile operators in Singapore.

For shareholders of the telcos, the phrase “price war” may not sound good. But for consumers, it could provide ways to reduce their monthly phone bills.

Build your emergency cash

The past year has also seen companies cutting back on hiring or scaling back on their headcount. For instance, Keppel Corporation Limited (SGX: BN4), one of the largest Singapore-based companies in the stock market, has been reducing its employee headcount by the thousands.

Losing your job can be stressful if you do not have a back-up plan and have monthly bills to pay. As such, take time to figure out your monthly expenses and how much you can put aside in case of unfortunate events.

Putting aside emergency cash can also provide “peace of mind” when you go out to invest. After all, we may want to avoid situations of us having to sell our stocks on the cheap to cover any emergency needs.

Remember to celebrate        

Let’s face up to the fact that putting your financial house in order can be boring and mundane at times. It involves things that we know we should do, but have not come around to actually doing it. So, take a day or two off to put your finances in order. And, if you do a good job, treat yourself to a good meal or a fun activity to celebrate your newly found financial fitness.

Doing so may encourage you to keep up your financial fitness and – like stocks – Foolishly make it a long term habit to hold.

If you want more tips, tune in to the Fool’s MarketFoolery Financial Fitness podcast episode here or read about the Fool’s 13 Steps to Financial Freedom here.

Meanwhile, if you would like to receive investing insights and analyses and to keep up to date on the latest financial and stock market news, you can sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.