SINGAPORE – Even though mine is a dual-income household, money seems to flow out of my bank account faster than I would like. On top of the regular household bills and insurance premiums, there are also school fees and expenses for the children’s extracurricular activities, unforeseen doctor visits and so on.

The monthly outflows don’t include money for retirement planning and the proverbial rainy day.

The Sunday Times Invest team has run many articles with suggestions and tips on how to manage a budget: Pay yourself first, save and set aside money first so that you can spend the rest without guilt, put your money into pools, automate the savings and so on. They do work, and I employ some of these tips myself, such as automating payments and savings.

But one thing that has really helped me is taking steps to manage my monthly cash flow. There is no better visibility than running a balance sheet for the month, much like how entrepreneurs do it for their business. The financial quantum for businesses is obviously much bigger than for households, but there are certainly some nuggets of knowledge that can be applied.

Mr Gabriel Le Roux, founder and CEO of Primer, a fintech payment infrastructure provider, said there are “definitely similarities” between managing finances for a start-up and for his household.

“Both require prioritising, budgeting and having a clear sense of your long-term goals… I’ve learnt the value of keeping things flexible. Life (and markets) can be unpredictable, so whether it’s business or personal, it helps to build in buffers,” said Mr Le Roux, who has two young children.

He automates payments that do not need constant attention, and keeps a clear view of his cash flow. “It’s not about micromanaging every expense – it’s about building a system that works, and more importantly, one that can adapt as life evolves. Scalability matters, even in a personal context.”

Mr Le Roux added: “At a start-up, you’re making financial decisions with much larger implications and at a much faster pace. In your household, you can pause and reflect a bit more.”

Mr Andrew Tan, who has two daughters aged eight and five, divides the money in his bank account into different cash pots for his personal finances, much like what he does for his business, furniture store Atomi.

Having an emergency fund pot proved a lifesaver when his younger daughter had an allergy within a week of her birth. She had to be hospitalised three days after being discharged following her birth.

“It was a five-digit bill and she had no insurance for the first month of her birth, so this was an unforeseen cost and it was a cash outflow we had to pay,” he added.

Mobile financial platform YouTrip’s monthly operating expenses may run into the millions, but the mindset for managing the household finances is “surprisingly similar”, said co-founder and chief executive officer Caecilia Chu.

It’s about “thoughtful allocation, long-term value and intentional choices”, said the 42-year-old, who has two children aged 11 and nine.

At its core, she said, managing both start-up and household finances comes down to setting “clear priorities and making deliberate trade-offs”.

“It’s about asking what matters most, and where does every dollar make the biggest impact? In the business, it could be a decision between expanding into a new market or doubling down on product innovation. At home, it might be choosing between a memorable family holiday or upgrading the living room TV – which, for the record, we still haven’t done. Both require discipline, but also a shared vision of what you’re working towards,” said Ms Chu.

Of course, keeping an eye on cash flow is just as important as building one’s savings or growing investments, said Ms Chu. It gives one the day-to-day clarity to ensure one’s financial choices align with what really matters, and she added that she has come to “value experiences with loved ones far more than material things”.

With the family’s packed schedules, there are only a few windows each year for them to get away for “meaningful family holidays”.

“So, we plan around those moments – we budget conservatively and prioritise saving for them, rather than spreading spending across less intentional purchases throughout the year,” she said. “To me, managing household finances isn’t just a numbers exercise. It’s about using money consciously to create the moments that truly matter.”

Credit cards and lines, and cash loans, when used responsibly, can help ease certain financial pressures faced by young families, such as housing upgrades, renovations and childcare costs, said Mr Vasu Menon, managing director of investment strategy at OCBC.

He stressed though, that these should only be used when they are absolutely necessary, and to tide oneself over in the short term while waiting for incoming funds to repay the loans in full, as interest rates on some of these credit facilities can be high. 

Consider the three A’s before borrowing, Mr Menon said:

  • Amount: Borrow only what is necessary, with a clear purpose.

  • Affordability: Ensure monthly repayments fit your budget.

  • Arrangement: Understand the terms, interest rates, and automate payments to avoid late fees.

For freelancers and gig workers, Atomi’s Mr Tan said there are “certain costs you can’t save on”, such as insurance and one’s regular contributions to your Central Provident Fund account.

This is especially important for freelancers and/or gig workers, or those who are their own boss and employee in a company – they would see about 37 per cent of their monthly income going to their CPF accounts as employers contribute 20 per cent, while employees contribute 17 per cent.

“Some take the easy way out and declare lower CPF contribution, because it takes a toll on the cash flow,” he said. “But don’t cut corners because you have to think about your house payments, Medi­Save, and the compounding interest that CPF will provide… The CPF contribution is an important discipline to undertake.”

Managing the daily and monthly cash flow is one way to manage your finances, but the act of it may not grow your money. When the going gets tough, it helps to remind oneself why – to reach a point where you feel free financially, and to teach your children how to get there one day, too.

“Everyone is on this quest to unlock financial freedom, and while you’re on that journey, you save and save and save. Then you figure out how to amplify and invest… because having a salary alone does not make you rich,” said Ms Tjin Lee, whose luxury marketing agency Mercury Integrated was bought by Hong Kong-based marketing firm Gusto Collective in 2023.

“If you’re still at the stage where you’re growing your money to hit that amount in your head that you need to hit before you unlock financial freedom, then of course you need to prioritise prudent spending and saving. Everybody has this number, and it varies for all of us.”

For Ms Lee, who has found her financial freedom (she declined to say what her financial goal is, monetary-wise), her focus is to cultivate an entrepreneurial and wealth mindset for her two sons aged 12 and 10.

“As an entrepreneur, we focus on making money rather than saving money. If you spend all your time teaching your children how to save money instead of how to make money, then you’re focusing on scarcity instead of abundance. Of course, I think being prudent about spending, smart about your money and financial literacy are very important,” said the 51-year old.

Citing the present, when many in the developing and developed worlds are gig workers, and the future of jobs is changing rapidly, resulting in the difficulty of teaching future skills for “jobs that don’t exist yet”, Ms Lee said she focuses on asking what problems her children want to solve in the world when they grow up.

“So, with that in mind, I think about gearing them up to be entrepreneurial, or to lead,” she said. “And not to ask, what do you want to be when you grow up? Because that job won’t exist in the future.”

She practises financial planning with her sons by asking them to plan and budget for a two-week summer camp for others to attend, for example.

“I’ll ask them, how much do you think you can make from this camp? This is the budget you have and there are 50 children. How much do you have to spend on each kid and how much profit do you want to make? So we work backwards, and the financials come into play. It’s almost like a maths game.”

Ms Lee added: “It’s very different from just teaching. As children, they have no concept of money, right? I know some people think it’s crass to talk about money, but this is financial literacy. It’s important for kids to learn.”

Ms Chu of YouTrip does a similar exercise with her children, as she and her husband value involving them in the budgeting process and helping them to understand decision-making and value creation from a young age.

“For instance, if we have a weekend budget, we ask them to ‘pitch’ their idea – whether it’s a visit to Rainforest Wild Asia or tickets to a local theatre performance. They’re encouraged to weigh the trade-offs, build their case, and reflect on what the experience means to them. It’s our way of raising mindful decision-makers, not just smart spenders,” she said.

And even when cash flow is tight, Mr Menon suggests starting retirement planning early.

“It may feel premature, but starting early – through CPF top-ups or disciplined investing – leverages the power of compounding. A small commitment today can grow into a meaningful nest egg tomorrow.”