Dealing With Bank Points + Paying Yourself First

💳 Card Hack of the Week

We’ve got our spanking new credit card from one of the big banks in Singapore and it’s earning us miles. Or so we think.

In fact, all these miles cards with the big banks earn us “bank points” which then have to be converted into (mainly) KrisFlyer miles – part of Singapore Airlines’ frequent flyer programme (FFP).

But the process of converting those miles can be convoluted, especially for first-time transfers. A few points to note. First off, transferring bank points to miles typically incurs a one-time cost each time you transfer. Normally, this will be in the range of S$25 per transfer.

As for the big banks of DBS and UOB, you can just google “DBS/UOB KrisFlyer conversion” and navigate to the appropriate sites via the first links that pop up.

Pro Tip: For DBS cardholders, it’s worth getting the DBS Altitude solely to make use of the KrisFlyer auto-conversion programme.

By paying S$43.60 per year, cardholders can have all their DBS points – across all cards – be automatically converted into KrisFlyer miles at the beginning of each calendar quarter.

Essentially, you’re getting four miles transfers for S$43.60 and, as an added bonus, you don’t have to worry about bank points expiring as DBS will automatically transfer the points into your KrisFlyer account on a regular basis.

For a more detailed breakdown, check out my TikTok post here and give me a follow.

🎯 Personal Finance Quick Action

How much should we be aiming to invest or save per month? Ideally, the rate would be anywhere from 20% to 30% of our gross income. Remember, that word “gross” is key.

Gross income is our headline salary…before factoring in tax. By saving or investing that amount each month, we can better compound our wealth over time.

Early on in our career, we may not be earning enough to hit that 20% goal so even getting to save/invest 10% of our gross income is a first step.

How can we set it up? It’s easy. As the saying goes, “Pay yourself first” when your salary comes in. So, instead of going out and buying something we might not need, put aside a set amount into a market exchange-traded fund (for investing) or a separate high-yield savings account (if you prefer to save).

At the end of the day, paying ourselves first can get us to form those habits that we can take forward with us. It also takes the whole psychological aspect of investing or saving out of the equation.

We don’t need to worry about that money because it’s gone as soon as it comes in. Bottom line? Figure out a reasonable target for your monthly cash flow. Then pay yourself first before figuring out what you’ll do with the rest of your moolah.

📈 Market Money Moves

The price of gold hit a record high earlier this week as the yellow metal climbed to US$3,051 per troy ounce. 

The US Federal Reserve kept interest rates steady on Wednesday but signalled that it would cut rates twice (by 0.25% each time) before the end of the year.

Tim’s Take: Gold is shining bright with investors as uncertainty – not only in financial markets but in the world generally – persists. As a defensive asset, gold benefits.

Remember that gold tends to perform well when interest rates are falling as the US dollar generally weakens in this environment, heightening the appeal of gold. But gold has performed well in recent years, even with interest rates being “higher for longer” and the uncertainty that is globally ubiquitous is one big reason.

There are a few other tailwinds; geopolitical tensions between the US and (it seems) everybody else, as well as the war in Europe, and a significant amount of central bank buying of gold.

Investors might be surprised to know that gold is the best-performing asset of the 21^st century so far, rising 10-fold in value since 2000, and has outperformed key stock markets such as the S&P 500 Index.

Indeed, so far in 2025, the spot price of gold is up around 16% while the S&P 500 Index in the US has declined 3.4%. Will it continue? Historically speaking, stocks outperform gold over the long, long term (with significant stretches of time where gold basically does nothing).

However, in this “new normal” of uncertainty that we’re living in, maybe gold is at the start of a multi-year run upwards. Only time will tell.

For a more detailed breakdown – as well as the best way to buy gold in Singapore – check out my TikTok post here and give me a follow.

👋 How I Can Help

Introducing Miles Consulting from Tim Talks Money

I’m excited to announce the launch of my Miles Consulting service! Through this service, you’ll get:

• ✨ Exclusive 60-minute one-on-one consultation

• 📊 Comprehensive credit card spend audit

• 📝 Personalised miles report

• 💳 Maximise sign-up bonuses

• 🚫 Avoid the pitfalls

• ✈️ Expert Singapore Airlines insights

• 💡 Optimise for couples/families