Rising energy and living costs: How to save to keep financial goals on track

Singapore is already feeling the ripple effects of ongoing conflict in the Middle East. Disruptions in the Strait of Hormuz, a key shipping route for around one-fifth of the world’s oil and gas, is driving up fuel and energy prices globally. In Singapore, you may see this impact reflected in higher prices at petrol pumps, more expensive taxi fares and rising electricity costs.

The effects of prolonged disruption may not be limited to transport and utilities. Fuel shortages could also raise prices for everyday goods, as crude oil and natural gas is needed to manufacture a wide range of products from cosmetics to plastic toys, phones and fertilisers. The Singapore government has warned that increasing fuel and raw material costs will eventually impact other items, including food and groceries¹.

In its April 2026 Monetary Policy Statement (MPC), the Monetary Authority of Singapore (MAS) raised both its 2026 core and headline inflation forecast ranges to 1.5 to 2.5%, from 1 to 2% in the January 2026 MPS². It also tightened monetary policy to guard against looming imported inflation risks.

Price increases can be challenging to manage, especially if you are supporting young children or elderly parents as well. Let’s look at how you can find ways to save and keep your long-term financial goals on track.

1. Lower your utility bills

With electricity prices set to increase from the second quarter of 2026³, the right household hacks can help you control your bills.

Start by examining your charges for electricity, gas, and water usage over the last 12 months. Do you notice any major spikes or upward trends? Can you identify potential factors behind this, such as a new appliance or a change in air-conditioning habits?

There are many simple ways to save on electricity costs. Start with these easy steps:

• Switch off devices when not in use. Appliances such as TVs, Wi‑Fi routers and microwaves still consume electricity on standby, so doing this regularly can save you around SGD25 a year⁴.
• Set an air conditioner timer. On cooler nights, you probably don’t need the air conditioner running through the night. Switching it off after a few hours can reduce unnecessary energy use. Or use a fan instead.
• Clean your appliances regularly. When filters and vents are clogged, appliances use more energy to work properly. Clean your air conditioner filters and fans once a month and clear the lint trap in your dryer before every wash.
• Choose cold water for chores. Since heating water consumes energy, using cold water for clothes and dishes can be just as effective and more energy‑efficient.

2. Set a transport budget

Transport expenses seem small, but they can quickly add up. Review your bank statements to understand how much you spend on transport monthly. To get a clearer picture, sort your expenses into three main categories: public transport, ride-hailing or taxis and driving (if you have a car).

Following that, look for ways to reduce transport costs with thoughtful planning. For example, you could:

• Maximise work-from-home days. If your workplace offers flexible work arrangements, group your in-person meetings over two or three days instead of spreading them across the week.
• Apply for Public Transport Vouchers. Eligible families with a monthly household income per person of SGD1,800 or less can apply for PTVs. Check online⁵ if you qualify.
• Opt for public over private transport. If you usually drive, consider switching to public transport on days when you’re not in a rush. If you use ride‑hailing services, consider carpool options to help reduce costs.

With these strategies in mind, set a transport budget within your monthly budget and review your spending at the end of the month. Since daily transport expenses can be hard to estimate, it helps to check your progress midway through the month too.

3. Invest in energy-efficient appliances

How many ticks does your refrigerator have? Appliances sold in Singapore have a tick rating⁶ between one and five to help consumers identify the most energy-efficient options. The more ticks awarded, the lower its energy consumption.

While energy-efficient models may be more expensive upfront, they offer more cost savings over the years. According to National Environmental Agency (NEA) estimates⁴, you can save around SGD303 a year by switching from a 2-tick air conditioner to a 5-tick model.

To ease the strain on your budget, make the most of your Climate Vouchers if you haven’t already done so. Under the enhanced Climate Friendly Households Programme (CFHP)⁷, eligible households in HDB flats or private properties can claim up to SGD400 in Climate Vouchers per household. You can spend the vouchers on a range of energy-efficient household appliances and fittings, such as air conditioners, washing machines and fridges.

4. Save up for a smarter home

In 2026, your family can look forward to various government subsidies and cash benefits. This includes quarterly U-Save vouchers⁸ to offset utility bills, SGD500 in Child LifeSG Credits⁹ for children aged 12 and below and GST Vouchers¹⁰ worth SGD450 or SGD850 in cash for eligible Singaporeans.

In addition, the government has announced stronger support measures amidst the Middle East crisis¹¹. Originally slated for January 2027, Singaporean households will now receive CDC vouchers worth SGD500 in June 2026. Those eligible will also receive an enhanced Cost-of-Living Special Payment of SGD400 to SGD600 in September 2026.

To maximise your savings, budget a certain percentage of these benefits to upgrade your home with energy-efficient features. Smart furnishing choices like installing solar film or light dimmers can help you save on utilities costs in the long run.

Decide how much of this year’s cash benefits you can allocate for home upgrades after offsetting higher living costs.

5. Take control of your everyday spending

From groceries to toiletries, the Middle East conflict will potentially impact prices for everyday needs in the coming months. It’s more crucial than ever to keep track of your family’s expenses and draw a line between essentials and luxuries.

List all your expenses and categorise them as either needs or wants. Here’s an example:

Set a realistic limit for non-essential spending to help you offset rising essential costs and sustain your savings goals. As a starting point, you could aim to reduce your spending by 5% to potentially offset higher prices later and evaluate this after the first month.

To achieve this, explore ways to stretch your dollar. Consider second‑hand toys or electronics, compare prices before purchasing and be mindful of promotions that encourage higher spending. For additional savings, you can look out for promotions which offer cash rebates when you pay your bills or income tax via GIRO.

As living costs rise, keep your long-term financial planning on track

These five strategies can help your family manage higher living expenses. But in some cases, current cost pressures may leave you with less budget for saving, investing, and insurance. Consider reviewing your financial health now to see how you can minimise the short-term impact of higher prices on long-term financial planning.

1. Balance short-term comfort with long-term security

Reflect on where your priorities lie. If you prefer to focus on maintaining a high quality of life for your family, you might choose to save less money in the short-term. On the other hand, if you prioritise building a retirement nest egg, you could trim down your budget to cover just the essentials.

2. Consider your medium-term financial goals

While long-term goals offer room for adjustment as life evolves, your medium-term plans have a tighter timeline. Calculate how lower savings or investment returns could affect your goals within the next five years. For example, if you’re saving for your children’s university education, will you be able to build up sufficient funds before they matriculate?

3. Review your household budget regularly

With the world changing faster than ever, last year’s budget may no longer match this year’s needs. Set a date to review your budget and recent expenses every two to three months.

Rising costs can feel stressful, but you can protect your family by taking action now. Tracking your expenses, finding creative ways to cut costs, and focusing on long-term planning are habits that help your family stay prepared for the future.

Review your financial health today

IMPORTANT NOTICE AND DISCLAIMERS

This article is provided for general information only and does not constitute financial, legal, tax, investment or other professional advice. It does not take into account your individual objectives, financial situation or specific needs.

Cash rebate promotions, cashback credit cards and other financial products or services are subject to their own terms and conditions, eligibility criteria and applicable fees. You should review the relevant terms carefully before making any decisions.

Information relating to government schemes, benefits or subsidies is based on publicly available sources as at the date of publication and may be subject to change, revision or eligibility requirements. UOB and its affiliates are under no obligation to update such information.

UOB and its affiliates make no representations or warranties as to the accuracy, completeness or timeliness of the information contained herein and expressly disclaim any responsibility or liability for any loss or damage arising from any reliance on this article. Readers should assess their own circumstances and seek independent professional advice where appropriate.