Saving up for life's biggest milestones

It helps to save a fixed sum every month, budget and cut back on non-essential buys

- Rosalind Ang

Although we had budgeted about $60,000 for our home renovation, speaking to various contractors made my husband and I realize that our budget would quickly rise to $80,000.

The factors that drove up our renovation costs include soundproofing the master bedroom, as my husband is sensitive to loud noises, and installing window grilles that are safe for cats that we plan to adopt.

The biggest expenses for most people often occur shortly after they enter the workforce. This is especially so for young couples starting their lives together.

In the Singapore context, we all know too well that when this major life milestone takes place, many young couples end up spending the bulk of their savings on their new homes, renovation costs and, yes, wedding expenses.

As someone who has been in the workforce and earning a full-time salary for not more than five years, I was initially very worried about how I would afford all these things.

Over the past year, my husband and I came up with a plan to work towards paying for these milestones. Firstly, we set aside a fixed amount of about $2,500 every month for upcoming expenses, and this sum goes into the joint bank account that we opened to save for big expenses.

Some people might prefer saving what's left of their salary at the end of the month, but I've found that saving at the start of the month works better for me.