1. Track Your Spending and Set a Budget

One of the biggest things I’ve learnt is that it’s difficult to make informed decisions about your money if you don’t know where it’s going.

I track my daily expenses, such as food and transport, using a tracker app. I also keep a note of fixed expenses such as insurance premiums, subscriptions and bills. This gives me a clear picture of how much I’m actually spending each month.

You may have come across the 50/30/20 rule: 50% for needs, 30% for wants and 20% for savings. I don’t follow it strictly because everyone’s circumstances are different.

Instead, I set a monthly spending amount that I’m comfortable with and try to stay within it. I also treat saving as part of my budget, rather than something I do with whatever is left at the end of the month. I also make sure part of my savings goes towards an emergency fund, so I have a buffer for unexpected expenses.

The important thing is to find a system that works for you. You could divide your money into separate pots for spending, savings and investments, or automate regular transfers so you stay consistent.

2. Know What You’re Covered For

I didn’t really think about insurance when I was a student. It felt like something I would deal with once I started working. That changed after I had a health scare. I realised I needed to understand what I was actually covered for, but I struggled to make sense of it.

Now, as an adviser, I often hear young people say, “My parents already settled it.” But when I ask what they’re covered for, they often don’t know. Sometimes their parents don’t either, especially if the policies were bought 10 or 20 years ago and may no longer suit their needs.

That made me realise that insurance isn’t a “just started working” milestone. Life doesn’t wait until you have a job to happen.

Choosing to get covered means choosing to protect yourself and your family. If you choose not to, you’re choosing to take on the risk yourself. And not knowing what you’re covered for can leave you underprepared.

At the very least, find out what insurance you already have, what it covers and where the gaps are. Understanding your coverage can also help you know what you may have to pay out of your pocket.

3. Understand Before You Invest

I started investing at 18 or 19, when I was in polytechnic, with just a few hundred dollars.

I bought blue-chip stocks through my banking app because I could afford the $100 minimum, and sold them as soon as they went up. Later, I tried a robo-adviser and chose an equity-focused portfolio because of its higher projected returns. When the value fell, I withdrew my money at a loss.

Looking back, I realised I was too focused on finding the “best” investment and making short-term gains. I didn’t really understand what I was investing in.

As an adviser, I’ve seen clients build substantial retirement portfolios by staying invested for more than 10 years. It reinforced for me that investing is a long-term game, especially when you’re young and have more time to ride out market ups and downs. Today, I invest through my own brokerage account and generally diversify across different sectors and geographies.

Before investing, ask yourself: Have I set aside emergency savings? What are my short- and long-term financial goals? How comfortable am I with risk? Do I understand what I’m investing in?

At the end of the day, it’s your money on the line. Start learning bit by bit, and don’t invest simply because everyone else seems to.

4. Spend on What Matters to You

I don’t believe in scrimping through your youth just to maximise your net worth. Money is meant to make your life better too. I’m happy to spend on things that matter to me, especially food and travel, as long as I stay within my means.

When I travel, I set a rough budget and prioritise what I’m willing to spend more on. I might take a cheaper flight at an odd timing so I can spend more on something else I care about.

I also try to be intentional about everyday spending. Before buying something, I’ll ask myself, “How often do I drink $8 coffees?” or “Do I really need to take this $20 Grab ride or am I just lazy?”

The goal isn’t to stop spending. It’s to enjoy your money while making sure it goes towards the things that matter to you.

The views expressed are those of Jamie Ou and do not necessarily reflect those of BrightMinds or Kariera Group Singapore. This article is for general information only and is not intended as financial advice.