9 Things To Take Note Of When Setting Personal Finance Goals

Set personal finance goals for optimal financial health and remain debt-free

Ever wonder how the money you received from your recent personal loan has dwindled? And how have you been spending your hard-earned money? Setting short-term and long-term goals is the first step towards financial independence.

When you have no personal finance goals, you will likely develop poor spending habits and may even end up in debt. Short-term financial goals act as a stepping stone to help you achieve bigger goals by providing you with information and foundational knowledge to set long-term goals. So, how should you begin? Here are 9 things to get you started.

1. Goals should be specific

Rather than setting personal finance goals such as “I want to save money”, you should have goals such as “I want to save $10,000 by December.” Specificity prompts you to take the necessary steps in achieving those goals. For instance, if you want to renovate your kitchen by the end of July, you can consider taking a personal loan in Singapore of a specific amount to finance that goal. By knowing that your goal is to repair your kitchen, you’ll have a clear budget that dictates how much money you need for materials and labour.

2. Ensure your goals are measurable

“I want to pay off my loan this year.” This is not the right way to set goals. Instead, your goal should read, “I want to pay off 50% of my loan this year.” A measurable personal finance goal helps you set the specific amount to contribute towards personal loan repayment each year. Setting measurable goals enables you to estimate the measurable amount of personal loans you need to finance your goals. When taking a personal loan in Singapore, ensure that it is fully utilised and research on personal loan interest rates that are lowest and most affordable.

3. Goals need to be achievable

Sometimes it is easy to overestimate the results of your goals, which may lead to eventual failure of adherence and demotivation. Penning down your goals creates a commitment towards achieving them. You can always feel the satisfaction of ticking a goal off once you have achieved it – the feeling is unbeatable. Once you’ve written down your short-term and long-term goals, place them in a location where they will always be seen and remembered.

4. Set realistic goals

In view of setting achievable goals, you must also ensure those goals are realistic. You should be able to reach those goals based on your current mindset, skills, and motivation. If writing down your goals is too much of a habit to inculcate, try vocalising them instead. Sharing your goals with like-minded friends and family will provide you with viewpoints on how realistic they actually are and hold you accountable for achieving them. It’s also important to discuss your goals with a financial advisor who can offer tools and insights to help you manage money better. Finance experts can even help you manage your personal finance effectively and keep you out of debt.

5. Every goal should be time-sensitive

There is no day such as ‘someday’. Ensure you have a timeline for saving or paying off that personal loan and aim at achieving it. Personal finance goals are more realistic when there’s a deadline attached to them and it will always give you foresight towards financial freedom. Hence, no delays and accumulation of debts.

6. Avoid goal comparisons

It’s easy to look around and see your friends and colleagues building homes and saving for grand weddings. But, comparison is the thief of joy. Your goals may seem small compared to those around you, but they are personally yours. There is no reason to follow the crowd when setting goals. Put the blinders on and focus on yourself.

7. Establish a budget and stick to it

When you sit down and analyse your finances, you may be shocked at just how much money is slipping through the cracks without your noticing. A budget is exactly what is needed to help analyse your monthly expenses and income to ensure you are spending money wisely. When you spend soundly, you can set aside the money you don’t need to use towards goals you have set. For personal loans, having a budget will help you determine a comfortable amount to borrow. As a result, you’ll find yourself actively seeking the lowest personal loan rates, which will save you tons of cash.

8. Keep a positive mindset

As long as you’re doing your best to achieve your set goals, maintain a positive mindset. Whether your goal is to pay off a huge personal loan or to cap personal loan interest rates by making regular payments, keep your eye on the prize. Remember, it’s normal to get discouraged along the way due to emergencies that may veer you off track. In such cases, take a look at how far you have come and keep a positive outlook and remember your goals are in sight and definitely achievable.

9. Track your progress

You can’t get to your final destination successfully if you are unsure of where you are. Seeing how far you’ve come and how close you are to your goal can motivate you to keep going. You can keep track of your goals using a journal or using apps if you prefer using technology. Ensure you have records of all your goals and what you have been able to achieve. For instance, if you’re seeking a personal loan in Singapore, you should be tracking your credit score. As your credit score improves, you’ll be at a better chance of getting a low-interest personal loan.

Now that you have these tips under your belt, it’s time to get your financial health in check. As always, speak to Galaxy Credit today if you are looking for personal loan options with affordable interest rates to keep you on track!


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Whether you are a Singapore citizen, permanent resident, or foreign worker residing in Singapore, securing a personal loan in Singapore has never been easier. As long as you qualify for the type of loan you are applying for, the process is pretty simple, quick, and straightforward. If you’ve reached a tough spot financially and are in need of emergency cash with the lowest personal loan rates, here are some tips you should follow when considering applying for a legal loan in Singapore.

1. Check your credit score

A credit score is used by banks, financial institutions, or licensed money lenders to gauge the likelihood of you paying off your loans on time. If you want to get the lowest personal loan rates, you have to have a substantial credit profile that shows a higher credit score or rating.

The higher your credit score, the more likely you are to get approved for a personal loan in Singapore as it shows creditworthiness. As these credit reports are sourced from a credit bureau, you will also be able to source your own credit report by requesting a copy online or from Credit Bureau Singapore for $6.42.

2. Don’t apply for too many loans at once

For a smooth sailing loan application process, you have to ensure you do not have too many loans running at once. When you apply for too many loans at one go, lenders will raise an inquiry with the credit bureau to evaluate your creditworthiness. These can be considered hard inquiries where a lender is initiating a credit inquiry on behalf of the borrower.

Bear in mind that with each direct inquiry from a legal moneylender, there is a possibility that the loan evaluation process will be further scrutinised. Rather than having multiple credit inquiries, it is much more ideal to figure out the various types of legal loan options available and identify the right fit before applying for a loan.

3. Plan your budget before applying

As with all financial plans, it is best to budget well at the very beginning, before you even apply for a loan. This step is crucial to ensure that you can repay the loan on time to avoid late fees and extra charges. If you have a gauge on the range of monthly instalment payments that you are financially able to commit to, it will be much easier to choose the type of loan in Singapore.

Doing it this way would mean that you would already know the maximum interest fee you can commit to. Budgeting wisely also requires you to look at timelines to help you work out a comfortable repayment agreement or loan tenure.

4. Prepare substantial proof of income

You must have the right documents so that you can have a smooth sailing loan application process. These include your NRIC; proof of income and employment documents such as your last 3-6 months of payslip or income tax notice of assessment (NOA); current credit report; past CPF statements; proof of residence or tenancy agreement; employment letter; employment pass and bank statements (for foreigners).

It is usually not difficult to secure proof of income for employees having a monthly salary arrangement. However, other employment arrangements like commission-based work or self-employment may prove more complex for verifying future income. Regardless of the reason, it is usually a must for borrowers to find a way to prove that they will honour their debt.

If you are applying for a personal loan without formal proof of income, you can consider showing past bank statements that indicate regular payment from an employer or credit card statements to show that you have paid your bills on time. The credit history reflects your past credit management so it can be used as an indicator of creditworthiness. Documentation of annual tax returns from IRAS can also help your cause. You should also protect your credit score to get a higher rating. Lastly, you can also consider providing a larger amount of downpayment to secure a reasonable loan tenure.

Ultimately, applying for a personal loan in Singapore is not difficult. As long as you follow the tips above and ensure you have the necessary documents on hand, you will experience a quick and seamless application and approval process.

Interested in securing a personal loan in Singapore? Find out more about your legal loan options with us.

Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

  • A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
  • Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your licensed moneylender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

  • Size of each debt
  • The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.


When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or moneylender you choose but generally, they will require these essentials:

  • Proof of Income
  • ID copy
  • Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

  • Contribution statement to your Central Provident Fund (CPF)
  • Latest income tax Notice of Assessment
  • Latest computerised payslip
  • Bank statement showing salary crediting into your bank account
  • Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain the lowest personal loan rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your personal loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.


Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. We offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!