Financial tips for those just starting out - by Celine Tan

1. Change your mindset. You are no longer dependent on your parents. Learn to spend within your own means.

2. Track your spending. Keeping a record of every cents you spend tells you how you are spending your money. Do it for at least 3 months. Once you've done this, you can see which expenses you should cut back on.

3. Increasing your savings does not mean taking a larger portion from your take-home pay. There are plenty of cost-saving techniques that you can adopt in your homes, such as reducing your household expenses or preparing lunches at home.

4. Use your credit card sparingly. Use it only for convenience, such as making auto payments for your insurance policies. Avoid using it to spend future money on today's consumption.

5. Pay your credit cards on time. If you have registered for online banking, check you accounts and bills fortnightly. This ensures that you do not overspend & prevents negligent accumulation of debt.

6. Use debit cards or prepaid mobile phones if you keep "forgetting" your financial limits. Debit cards are a great way to prevent excessive spending while allowing you to go cashless: If you don't have enough money in your account to cover a purchase, the transaction won't go through.

7. Consider renting your home before you can really afford to buy one. Although it is wonderful to your own little place, renting would relieve you of the mental stress of having to commit to house loans, home insurance costs & utility bills. You can save up for your home while you rent a temporary one, especially if you are undecided about your career path.

8. Make it a habit to replace high-end items only when they are worn out or cost more to repair. For example, delay purchasing a brand-new car if your current one is still taking you from point A - B without any problems.

9. Learn to discuss your financial matters effectively with your loved ones. Money matters can spiral out of control if your loved ones do not know your exact financial situation. They may be able to help you get your spending on track & avoid burdening you with unnecessary spending.

10. Be disciplined in repaying what you borrow from family & friends. If you don't do so, it would become a habit that would not put you in good stead when you get a loan from a financial institutional later on.

* Courtesy of Personal Money - April 2009