How to Maximise your Cash?

As a fresh degree holder, I won’t really have much money to play around with so I thought of finding some ways around it.

I wouldn’t say it is the most perfect and ideal system, different lifestyle choices would result in a different strategy. (Disclaimer, I don’t get any money from any organisation to promote anything, this is just my own math and at least this configuration works for me)

Bank Account: OCBC 360 Account

Why? Because it is the best generally for fresh grads out of uni, your salary is bound to meet the minimum requirement for the 1% interest for salary crediting. I have 3 bills to pay a month, so I’ll get another 1%. I tend to charge everything to my credit card (more on that later) so I usually tend to get 1% too. But do note that it is capped at 50k, so those rich folks out there, I guess you know that the money has to go elsewhere.
Bonus - The interest is comparable to current endowment plans.

Credit Card: FRANK Credit Card

On credit cards, first thing everyone should have is DISCIPLINE and probably PSYCHOLOGY. Same as any trader should be.

Why FRANK? My justifications:

• Debit cards generally have no benefits, less dining or promotions which applies to credit cards too.
• I tend to ship a lot of things online, the 6% rebate makes sense.
• My transport fares is about ~$100 a month, which is the cap of the NETS ATU rebate, also 6% too!
• All other rebates fall under 0.5% rebate which is essentially the same rebate I get from UOB unis points conversion. (using VISA for all local purchases will eventually lead to more cost savings)
• I discounted all shopping and food rebates because at least from my experience I don’t seem to get much of them, thus it is an unknown/variable factor, making it hard to quantify.
• If I have spare money left in the NETS Flashpay, can use it to pay for NTUC/Guardian stuff if I needed any (but those are rare occasional purchases).
• BUT!
  • Remember, if cash is much cheaper than your rebate, use CASH.
  • Minimum spend a month is $500
  • NETS ATU triggers every 4 days (yes I tried before they implemented the cap)
  • Rebates capped at $60/month (~$1000 spend) but I don’t spend that much.
  • Annual Fee is about $30 bucks, so generally should cover more than that.

Bonus - I would take a Credit Card over a Debit Card for one more reason. You realise that your 360 account is calculated based on daily balances. By using a CC, you only pay the bill at the end of day, earn more interest compared to a debit card which reduces the balance day after day, which reduces the interest gained.

You can also find many discounts and cost saving means elsewhere, but I leave it to your own devices =)

One example, that I do is I bought a Ceramic Burr Hand grinder and an Aeropress for my coffee needs everyday. I get quality beans from Highlander Cafe and Nylon Cafe near Outram MRT. I make my straight black Americano (yes no sugar or milk), for about 50 cents a cup, or even my own cold brews for 60cents for 1.5cups, much cheaper than hawker centre stuff and tastes as good or even better than the mass produced Starbucks/Coffee Bean =)