Singapore is an attractive destination for OFWs for a lot of reasons. For one, it is so close to the Philippines. It also offers very high wages, and it is basically a first world country that is so advanced many other countries around the world pale in comparison. However, one downside to living in Singapore has been its high cost of living.
If you intend to live and work in Singapore as an OFW, you need to be aware of the costs you need to face, and you need to work on a strategy to save. Basically, you need practical cost-saving hacks to help you stretch your budget and make the most of your hard-earned income.
13 Smart Money Saving Tips for OFWs
Here’s a list of 13 specific suggestions on how to save money while working in Singapore. Each item will be detailed further below.
- Set up multiple accounts for savings and expenses
- Utilize credit cards with rewards
- Cook at home instead of eating out
- Open a multi-currency account
- Take advantage of second-hand markets
- Opt for outdoor fitness
- Save on accommodation
- Negotiate utility bills with your landlord
- Use discount cards and promo apps
- Plan your remittances wisely
- Reduce transportation costs
- Track your expenses and budget regularly
- Grow your savings with investments
1. Set Up Multiple Accounts for Savings and Expenses
You should create a payroll account that works solely for receiving your salary. Then, aim to save 15 to 20 percent each month. You can automate this with an auto-transfer system in your bank account so that a portion of your earnings automatically goes into different “folders” for specific needs. You can automate some of your money to go on rent, food, remittances, and even a budget for your “wants.”
Some OFWs also set up an emergency fund in a savings account with high-interest.
2. Utilize Credit Cards with Rewards
If you decide to use a credit card, choose one that offers cashback or mileage rewards. For example, Singaporean credit cards such as Citi PremierMiles or UOB Krisflyer provide good mileage points, while cashback cards like Citibank Cashback or UOB One help you earn money on your everyday purchases. Set a monthly limit on your card to prevent overspending.
3. Cook at Home Instead of Eating Out
Dining out is convenient, but if you do it often, that expense can quickly add up. You can save more money if you cook your meals. Plus, you get to eat healthier as well.
While in Singapore, try to visit the local markets like NTUC FairPrice, Sheng Siong, and Giant. These markets and groceries are affordable, especially if you shop in bulk or during sale seasons.
It also helps you save money on food if you meal prep over the weekend. This specifically helps you avoid last-minute take out expenses.
4. Open a Multi-Currency Account
Singapore’s banking scene can be restrictive for new residents, but using multi-currency accounts like those from Wise or Revolut is a good alternative. These accounts allow you to hold money in SGD and other currencies, convert funds at favorable rates, and avoid high fees on international transfers, making it easier to manage your money while sending funds home.
5. Take Advantage of Second-Hand Markets
Furnishing a new place can be quite expensive, but Singapore has some excellent online marketplaces that offer quality second-hand goods.
Some online platforms you can try are Carousell and Hock Siong. These offer affordable options for furniture and home essentials.
6. Opt for Outdoor Fitness
Consider other fitness alternatives if you are a gym buddy. Singapore, after all, has a lot of parks that have outdoor workstations. You can try the East Coast Park, MacRitchie Reservoir, and Bukit Timah Nature Reserve. These locations have trails and open spaces. If you prefer more structured workouts, then you can join cheap group fitness classes organized by community centers.
7. Save on Accommodation
Housing is a major expense, but renting a furnished room or apartment can save you money. If possible, avoid the cost of an agent by renting directly from owners through listings on forums or websites. Consider shared housing, which reduces rent and utility costs, and can help you find a community with fellow OFWs.
8. Negotiate Utility Bills with Your Landlord
Try to ask your landlord if they would allow you to include utilities in your monthly rent. This way, you save yourself from the hassle of paying deposits or dealing with variable bills.
9. Use Discount Cards and Promo Apps
Singapore has plenty of promotions for locals and residents. Download apps like Fave, Eatigo, and Burpple to access deals and discounts on dining, beauty, and wellness services. Many malls and attractions also have resident discount cards that can save you money on food, entertainment, and shopping.
10. Plan Your Remittances Wisely
Sending money back home is essential for many OFWs, and remittance fees can be quite expensive. As such, you should try to look for cheaper services. Some suggest Kabayan Remit or World Remit, which are less expensive than traditional banks that charge high transfer fees and low exchange rates.
11. Reduce Transportation Costs
Singapore has an efficient public transport system, so there’s little need for a car, which comes with high taxes, fees, and maintenance costs. Stick to the MRT, buses, or even cycling. If you’re commuting daily, buy an EZ-Link monthly pass to save on transportation expenses.
12. Track Your Expenses and Budget Regularly
A budget helps you stay on top of your finances and spot areas for saving. Use apps like Wally, YNAB, or Google Sheets to track expenses, plan payments, and manage subscriptions.
13. Grow Your Savings with Investments
Once you’ve built up a decent savings cushion, consider investing a small portion for long-term growth. Singapore offers several low-risk options like Singapore Savings Bonds (SSB) and blue-chip stocks, which provide better returns than traditional savings accounts.
These are just some of the many cost-saving hacks you can try as an OFW in Singapore. Perhaps you can come up with your own strangers. The longer you stay in Singapore, the wiser you get when it comes to managing your expenses.