Don’t do these things during a recession

cosigning a loan

According to a senior economist from DBS bank, Singapore is very likely out of a full-fledged recession. To be exact, a recent news report in April this year revealed that our economy grew by 0.2% in the first quarter.

While it’s good news, it might be too early to rejoice over the numbers. Economists noted that the trend does not necessarily mean that the economy is doing well. But it’s on its baby steps to pre-pandemic levels.

Since COVID-19 has been with us for 1.5 years and will eventually become endemic, it’s always wise to prepare for rainy weather. If you share the same sentiments, don’t do these things during a recession.

#1: Accept the request to be a cosigner

Maybe your long-time best friend or a family member has requested your help to be a cosigner for a loan they’re planning to take. But in uncertain times, it’s better not to accept the plea.

No matter how much you can vouch for the person’s personality to repay the loan, nothing is an absolute guarantee. Just think about the possible consequences should the borrower disappears or is simply unable to pay back the loan due to sudden unemployment or downward spiralling financial status.

#2: Taking out a personal loan
a loan application form

Image Credits: fortunecredit.com.sg

Speaking of debts, it’s advisable that you don’t pick up a personal loan when the economy is terrible.

That new car you’ve been dreaming of having or that private housing you would like to own with your future spouse can wait. During a recession, you may lose your job on short notice, which will significantly affect your ability to repay your monthly loans. The worse thing is to be faced with bankruptcy should the situation aggravates.

#3: Slack on your job

Unless you’re planning to force your superior to fire you, now’s not the time to slack on your job. 

Yes, working from home is still the default as Singapore slowly moves to Phase 3 (Heightened Alert). But that doesn’t mean you can take this opportunity to produce mediocre work. If you want to prove that you’re worthy of the salary or position you’re holding, be sure to demonstrate that you’re an indispensable team member.

#4: Make sudden investments

It may be tempting to put your money into investments right now, considering that you don’t want to be working your arse off and still possibly be on the company’s chopping board when there’s an economic slowdown.

However, don’t make sudden investments without prior extensive research. Be sure that you’re able to weather the storm if your money’s gone up in a cloud of smoke due to unforeseen circumstances. Remember that the stock market will always be volatile. Don’t play the game just because everyone else is doing so.

Perhaps now’s apt to relook into your monthly budget or consider running a side business to boost income?

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Are you a Singapore Citizen aged 12 to 39 years old? You can now register for Covid-19 vaccination

The COVID-19 vaccination programme is being progressively rolled out to all Singaporeans and long-term residents.

The Ministry of Health announced that they have extended the vaccination programme to Singapore citizens aged 12 to 39 years old. For individuals who have had an earlier Covid-19 infection from over six months ago are also recommended to receive a single dose of vaccine to boost their immunity against reinfection.

Those who fall in the above groups can register for Covid-19 vaccination from 11 June 2021. For individuals below 18 years of age, and who are not part of the MOE vaccination exercise, the parent/guardian should register on behalf of the individual.

vaccine.gov.sg

If you require any assistance, please call the MOH COVID-19 hotline at 1800-333-9999.

Check out the Frequently Asked Questions here.

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How To Manage Your Money In Your 30s

As you enter your thirties, your focus is geared towards saving money and meeting your financial obligations. This is the time to figure out the future you want to have to lay its groundwork.

On that note, let this article give you an idea on some of the financial goals that you need to set when you are in your 30s.

#1: REVISIT YOUR BUDGET

Are you still following the same budget you set in your 20s? If so, it is time for an upgrade. Your responsibilities and financial capacities evolve as time passes. Food, housing, childcare, and medical expenses will require a different type of budgetary attention as you enter your 30s. Examine your current budget and make necessary changes.

#2: GROW YOUR EMERGENCY FUND

If you are still on the fence on whether you should start an emergency fund or not, just think about the uncertainties brought by the pandemic. It is a concrete example of why people need to have a cushion for unforeseen events.

Most financial experts recommend having a savings that will cover your expenses for a minimum of 6 months. However, this amount varies per person. Adults with dependents need to consider putting more money in their emergency fund. The more funds you put aside, the more money you can use for unexpected expenses.

#3: GET INSURANCE

Due to the many demands brought by your professional and personal life, prioritizing your health is vital in your thirties. Having health and life insurance plans will not only be beneficial for you, but also for your family. You see, insurance premiums increase as you age. It is cheaper to get an insurance plan now. Shop around for the best insurance plans that suit your needs and your budget.

#4: PAY OFF DEBTS

While you are building an emergency fund and revisiting your current budget, identify how much debt you still have. Debts can negatively impact your financial health and your ability to accomplish your long-term goals. Why not start paying off your debts? The sooner you can reduce or eliminate debts, the sooner you can focus on turning your dreams to reality.

#5: THINK ABOUT YOUR RETIREMENT PLAN

Although you are decades away from retirement, thinking about your retirement plan will help you to allocate your retirement funds. Whether your employer has a company retirement plan or not, it is a good idea to think about what you want to do once you stop working.

Image Credits: unsplash.com

How much you need to save for your retirement will rely on the kind of lifestyle you want to have when you retire. Fortunately for you, there are many financial resources online. Do your research!

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10-Year Singapore Passport Validity To Take Effect For Citizens Aged 16 & Above

The Immigration and Checkpoints Authority (ICA) announced that the Singapore Passport validity will be increased to 10 years, as compared to the current validity of 5 years. This will come into effect for applications submitted on or after October 2021.

The longer validity period applies to Singapore citizens aged 16 and above. If you qualify for this, please submit your application on or after October 1, 2021. Despite the increased validity period, the passport application fee in Singapore remains the same (i.e., S$70). Furthermore, applications submitted in person at Singapore’s Overseas Missions will be charged an equivalent of S$80 in foreign currency.

ICA highlighted that it “has assessed that it is now viable to increase the validity of the Singapore passport to 10 years without compromising security or global confidence in the Singapore passport.”

In a similar fashion, many countries have changed their passport validity period from 5 to 10 years. These countries include Australia, Britain, Canada, China, France, Germany, Japan, the Netherlands, New Zealand, South Korea, and the United States.

SPECIFIC EXEMPTIONS

Notice the age bracket qualified to the passport validity period extension. It starts at the age of 16. Those who are under the age of 16 will continue to have the passport validity of 5 years. The primary reason behind this is that children’s facial features typically change during the early years.

“As children’s facial features change more rapidly, renewing their passport every five years will allow the photograph in their passport to be updated more frequently, which will minimise identification problems when going through immigration,” the Authority said.

Apart from this, the passport validity has a limit too. The validity is capped at 10 years in compliance with the International Civil Aviation Organisation’s (ICAO) recommendation. Any remaining validity in an old passport cannot be added to the new passport, with a 10-year validity period.

APPLICATION PROCESS

Singapore citizens can apply for new passports by going to ICA’s e-service website. Those without an internet access may either visit the Citizen Connect Centres or go to the ICA Building in Kallang.

Image Credits: pixabay.com

Ultimately, the changes in the passport validity aim to reduce the need for frequent passport renewals and to offer greater convenience to Singaporeans all over the world.

Sources: 1 & 2

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5 Steps To Protect Your Debit & Credit Cards When Shopping Online

Swindlers and scammers are always on the lookout for opportunities to gain access to your money. Since the pandemic, many types of scams have emerged. As cashless payments became vital to the new normal, adding layers of cybersecurity to your debit and credit card transactions will reduce your chances of becoming their victims.

This article highlights the 5 steps that you can take to protect your debit and credit cards. Fraud is prevalent, but you can act now!

#1: NEVER DISCLOSE YOUR PERSONAL INFORMATION

Fraudsters typically pretend to be bank representatives to steal personal information or to perform unauthorized transactions. Be smart when it comes to what you share online. Do not get too excited about sharing personal information, even via screenshots or through your 24-hour daily stories (e.g., sharing a snap of your QDL). Despite having restrictions with your target audience, you will never know how fraudsters can work their way around.

As much as possible, use different passwords for your online banking and social media accounts. Try using different email addresses for your online banking and social media accounts too.

#2: IDENTIFY WHETHER YOUR EMAIL ADDRESS AND HANDPHONE NUMBER WERE COMPROMISED

The personal data of over 500 million Facebook users was leaked online. You are vulnerable if you are using the same email address and handphone number for your online banking and social media accounts.

To know whether your email address or personal number has been compromised, you can visit helpful websites such as Have I Been Pwned. Have I Been Pwned allows you to know whether you experienced data breaching in the past or not.

#3: USE YOUR CARDS ON WEBSITES YOU TRUST

When you are shopping with your debit or credit card online, it is important that you only go to websites that you trust. Ensure that you typed in the correct website and not phony one. You can also print a copy of your online purchases for future reference.

While shopping in your favorite website, avoid clicking on email links and suspicious images because these could take you to a phony website whose sole purpose is to steal your credit card information.

#4: ACTIVATE THE OTP OR TWO-FACTOR AUTHENTICATION

A one-time password (OTP) is a dynamic pin that is valid for a single login transaction on a digital device. It is an automatically generated alphanumeric or numeric string of characters that authenticates the user for a transaction. Activating this security feature will enable you to be notified whenever your accounts or cards are used. The OTP is usually sent via SMS or via email.

Similarly, the two-factor authentication (2FA) adds a layer of security by authenticating the credentials of the user. Most email providers such as Google and Yahoo! have this feature. Activate it to prevent other people from logging in to your email/s.

#5: BE VIGILANT AT ALL TIMES

Be vigilant when it comes to identifying phishing emails. Fraudsters may send you emails and newsletters that copy your bank’s promotional campaigns. Check the email sender to ensure that it is from the financial institution itself. Remember that most banks use corporate email addresses when sending newsletters and not personal Gmail or Yahoo Mail accounts.

Image Credits: pixabay.com

As mentioned above, avoid clicking links or buttons that can potentially lead you to unsecured websites. Keep your eye on the email address of the sender and the grammar of the message sent to you. If many words are misspelled, you can easily spot a red flag.

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