MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

How Much Shall You Spend On A Gift Without Looking Cheap?

While scouring the land for the one-of-a-kind gift, keep in mind that you must remain financially savvy. You may be tempted to go over your budget since you want to make the recipient feel special or you do not want to come across as being cheap. However, your gifts need not to be expensive to put a smile on someone’s face.

It is hard to put an exact price tag on the perfect gift as it all depends on a set of factors, namely: the amount you can afford, the budget you set, the current occasion, and the giver’s relationship with the recipient.

THE AMOUNT YOU CAN AFFORD

I read a good financial nugget from Manisha Thakor of The BAM Alliance. She said that if you cannot afford to buy the item in cash at the very moment then, you cannot afford to buy it. Simply, she wants us to be realistic when it comes to what we can and cannot afford. So if you are shopping in the mall, it is best to use mainly cash to regulate your spending. And if you are shopping virtually, convert that money as a gift card. When the gift card is maxed out, you will be done shopping.

THE BUDGET YOU SET

Just because the person gave you a lavish gift does not mean that you must do the same. If you budget does not allow you to go beyond S$50 for a gift then stick with your limits. Being stuck on debt just to keep up with a superficial appearance is never worth it.

If you are following a strict budget, you can allow your creative juices to pump. For example, your make-up obsessed best-friend wants to purchase the ridiculously costly and highly sought-after Kylie Lip Kit. You know that the product and shipping costs will exceed S$50. Then, you searched online for quality yet affordable dupes (equivalents) such as the NYX’s Soft Matte Cream lipsticks. These only cost S$12 so you went to Sephora and purchase four beautiful colors!

THE CURRENT OCCASION

The current occasion also dictates how much you shall spend. To illustrate this, let us take the Singapore’s “red envelope” gifting tradition into the table. For Chinese New Year, an amount of S$2-20 is common to give for children while it ranges to about S$8-S$88 for adults. On the other hand, the minimum Ang Bao amount for wedding banquets is S$50. This is why it is important to take the nature of the occasion into account. For corporate events, you can consider shopping from specialized online stores that offer corporate gifts or door gifts.

THE RELATIONSHIP WITH YOUR RECIPIENT

To whom is the gift for? How close are you to him or her?

Image Credits: pixabay.com

When it comes to giving the “perfect” present, it really is the thought that counts. If you are able to purchase a gift that translates how well you know and care about the person, you have done your job right. Start by determining what the person’s hobbies and interests are. From there, you can think of some gift ideas that will fit your budget.

Sources: 1 & 2

What On Earth Is A Sharing Economy?

Is it possible to live in a world where you can carpool with a stranger during an emergency? How about dining at someone’s home or hiring an experienced chef with a swipe of a finger?

With a “sharing economy”, all these are possible!

According to Investopedia, a sharing economy is…“an economic model in which individuals are able to borrow or rent assets owned by someone else. The sharing economy model is most likely to be used when the price of a particular asset is high and the asset is not fully utilized all the time.”

United States, Europe, Seoul, Australia, and other parts of the globe have shifted from a consumer market to a sharing one. In these places, people use technology to rent, lend, and exchange goods and services rather than purchasing them from shops or companies. Considering the scarcity of some resources in the country as well as its technological advancements, experts suggest that a sharing economy is an untapped realm with great potential for Singaporeans.

April Rinne, a consultant and World Economic Forum Young Global Leader, expressed that a sharing economy can help a society to become more sustainable. And is it not what Singapore aims to accomplish?

In fact, in the Sustainable Singapore Blueprint 2015, the state set up a collective vision that includes being a zero waste nation by 2030. A sharing economy fosters activities that enable people to share and earn income from underused assets such as apartments, cars, clothing, and tools.

There are several benefits that a sharing economy can bring to a nation such as reducing environmental waste impact, redefining the materialistic ideal, increasing efficiency in transport, as well as cutting energy and water consumption.

Sharing economy helps to reduce the environmental waste impact and extend the longevity of items. For example, The Freecycle Network™ allows people to give and receive re-usable items to divert them from the landfills. 9,104,727 users post ads of pre-loved items and give them freely to people that would want to take it. Interestingly, I saw one post from Singapore that offered “lofted twin beds with desks underneath”.

A sharing economy also helps to redefine our materialistic ideal as it encourages to sell or share our possessions. You see, we grew accustomed of having material goods as a measure of success. We believe that the more we have, the more society will perceive us as wealthy and happy. But the truth is, having all these designer goods or lavish cars will never satisfy us. It will only make us craving for more. In a sharing economy, you can easily buy and rent clothes online.

Aside from sharing our possessions, a sharing economy supports the idea of community transportation. By community transportation I mean that people can rent cars from companies, carpool with strangers, and pay for a ride from the people in their neighborhood. A good model for this is Uber. Uber allows you to get a taxi or share a ride with other people through a mobile service.

Lastly, a sharing economy allows you to cut on the accommodation costs as well as energy and water consumption thru services like Airbnb and Couchsurfing. In 2014, a study found that sharing homes had considerably lesser energy and water consumption, greenhouse gases, and accumulated waster compared to hotels. The current situation of home sharing in Singapore depends on the Urban Redevelopment Authority (URA). The URA is re-assessing the law which considers that it is illegal for an individual to rent out their home for stays shorter than 6 months.

Image Credits: pixabay.com

For individuals, companies, and the society at large, a sharing economy presents a myriad of opportunities to invent new streams of revenue, solve social issues, and to create community resilience. If this idea is successfully achieved, Singapore can just boost its productivity levels significantly.

Sources: 1 & 2

5 Ways To Grind Like A Boss Even When You Are Not

You may not be a boss yet but if you start acting like one, you can just snag a chance at a beaming promotion!

I am not encouraging you to point fingers and demand orders to everyone at the office. Instead, I suggest that you act like the boss that you wish to work for. Not only are you serving as an inspiring role model for your own boss but you are also giving your colleagues a glimpse of what it about to happen when you climb up the ladder.

On that note, here are some tips to act like a good boss:

1. GIVE ATTENTION TO ISSUES

Always channel your inner boss by asking yourself if there are current issues that the management needs to address.

I remember a friend of mine who started as a receptionist at a fitness studio. She used to do the attendance by typing the names of each participant in the room. Imagine doing this for a class of more than 30 people. You can easily lose count! Then she discovered a faster way doing things by assigning each participant with a bar code, which they can scan before they enter the room. The management was really pleased. A year after that, she became the manager of the studio for more than 4 years.

2. TAKE THE INITIATIVE

Good bosses have initiative and enthusiasm. Showing that you are dedicated to do every task and are taking control of your responsibilities would make people feel that you are an asset to the company.

Even without the guidance of the management, there are some simple things that you can solve by yourself. Do not waste time and get things in motion.

3. HANDLE PRIORITIES WELL

Business owners and supervisors have lots of things on their plates. Because of our competitive environment, several things pull them on different directions every single day. This is why they must handle the significant priorities first before moving on to the non-essential tasks. Do the same thing!

Start by keeping a list of all your daily tasks. Move the items up if they are really important. When a new project comes along, ask yourself about its importance and organize accordingly.

4. MANAGE YOUR MONEY

It is essential for a boss to understand the fundamentals of managing money including budgeting. A budget is your understanding of the materials needed as well as its costs – be it in the currency of money, time, and people.

Practice the basics of money management by budgeting your personal household expenses. Also, make sure that this is aligned to your financial goals.

5. EVALUATE YOURSELF

Performance appraisals help the management decide whether or not they shall give you a pay raise or a career advancement. Go inside the mind of your boss by reflecting upon your previous feedback or review. Know which areas you need to improve on and which areas are your strengths.

Do a self-assessment every few months to remind yourself about the changes that you shall make.

Image Credits: pixabay.com

KAYAK.sg reveals sky-high prices of in-flight refreshments on board of low-cost carriers

Travel search engine KAYAK.sg reveals the extent to which low-cost airlines are marking up prices

Travelers who want to enjoy a cup of coffee on board will have to pay on average 900% more than at the supermarket
The mark-up on the in-flight cup noodles is between 222% and 317% as compared to the cost at supermarkets
Airlines charge 562% more for a simple bottle of mineral water than a supermarket does

Singapore, 10 June 2016 – Travellers often expect to pay a little more than usual for snacks and drinks while flying on low-cost carriers, but new KAYAK.sg research reveals that some airlines are going overboard with mark-ups on the prices of snacks and drinks. For example, a simple cup of instant coffee costs, on average, 900% more up in the air than it would at a supermarket.

A cup of hot tea was revealed to be the worst offender. A single tea sachet can be bought in a supermarket for as little as six cents, but the mark-up for providing the same bag plus some boiling water while onboard is astonishing. Tigerair, Jetstar Asia and Scoot all charge S$4, while AirAsia charges a slightly more reasonable price of S$1.70 for a cup of tea, an average markup of 4,344%, compared to standard supermarket costs.

Breaking the bank for a sweet bite

Sky-high prices were also uncovered on everyday snack items; Scoot charges S$4 for a 40g chocolate bar – 74% higher than one would pay for the same item in a supermarket. A serving of cup noodles varies between S$2 and S$5 depending on the airline and brand, a mark-up of between 222% and 317% over the average supermarket price.

Cashing in on beverages

The price of alcoholic drinks on board is anything but relaxing. A small 330ml can of beer costs up to S$8 on low-cost carriers, compared to S$3 or under in most supermarkets. Interestingly, JetStar Asia, Tigerair and Scoot charge S$6, S$7 and S$8, respectively, for the same popular brand of Japanese beer, a mark-up of over S$160% on average, when compared to purchasing the same can at the supermarket.

Getting overboard with drinks prices

Even non-alcoholic drink prices are sure to give fliers a financial hangover. An identical bottle of water (330ml) costs up to S$4 on board compared to just S$1.40 at a supermarket, representing a 562% mark-up on average. A 330ml can of cola or a sports drink will also set travellers back; costing S$4 on each of the four major low-cost carriers flying from Singapore – a 433% mark-up, on average, over supermarket prices on the ground.

Debby Soo, KAYAK Vice President APAC said, “Low-cost carriers are providing a service when it comes to food and drink on board, which accounts for some of the mark-ups we see. However, it pays off to plan ahead and eat before you board, especially for short flights. Also, travellers should bring empty plastic bottles through security, into the boarding gates at Changi Airport, and then fill them up at the water fountains in order to stay hydrated economically while flying.”

Some of other largest mark-ups

Chocolate powder drink – S$4 (Tigerair/ JetStar Asia) vs S$0.40 – 770%
Crisps (40g) – S$4 (Tigerair/JetStar Asia) vs S$0.90 – 344%
Pretzel sticks – S$4 on (JetStar Asia) vs S$0.95 – 300%
Pulpy Juice (350ml) – S$4 (Tigerair/ JetStar Asia) vs S$1.15 – 247%

Notes to Editors:

Airline F&B prices are correct as of 16 May 2016 and are based on inflight menus on the airlines’ websites. AirAsia prices were supplied in Malaysian Ringgit and converted into Singapore dollars on 16 May 2016. Supermarket prices are based on the best prices found in three main supermarkets in Singapore and were correct as of 16 May 2016. In some cases, prices are based on multi-pack purchases.

How To Recognize And Beat Work-Related Burnout

The national values instilled as a society coupled by the relatively high cost of living in Singapore led to the “hardworking” culture that is embedded in almost everyone’s veins. With the amount of commitment that most people have towards their jobs, they can occasionally experience an unpleasant consequence called Burnout.

Coined in the ’70s by the American Psychologist Herbert Freudenberger, Burnout refers to the outcomes of relentless work stress and high ideals. Work-related burnout and its co-morbid problems commonly lead to absenteeism due to sickness. For instance, you have been spending more time at the office to get more things done but ended up being physically and mentally unwell. Going beyond the limits of your body is just counterproductive to your well being and finances. This is why you must recognize the telltale signs of work-related burnout. Here are some of them…

4 SIGNS OF BURNOUT

Image Credits: pixabay.com

1. LACK OF MOTIVATION

Have you been fantasizing about swimming on the beautiful Bondi Beach? Or are you wishing that tomorrow is a “newly proclaimed” non-working holiday? Well, wanting to run away from your work is a common sign of burnout.

2. COGNITIVE PROBLEMS

Burnout can cause cognitive problems in memory and attention. You can experience slip-ups such as messing up on normally easy tasks, forgetting to remember simple things, and having a hard time focusing.

3. FATIGUE

You are always tired. Need I say more?

4. NEGATIVE EMOTIONS

If you are wondering about whether what your doing is appropriately compensated and if it has any significance, you are experiencing “reduced accomplishment”. It is a common symptom of burnout that can affect anyone who has been working too hard including elite athletes and renowned surgeons.

4 WAYS TO HANDLE STRESS

Image Credits: pixabay.com

1. SEE YOUR FRIENDS

Sometimes, changes in the working environment and tangible support from others can help with the problems brought by the workplace stress. Consider spending some time with your friends or the people who make you smile. You may be putting off some of your tasks (for the meantime) by doing so but is it not the whole point of destressing?

2. HAVE A “ME” TIME

Since burnout is influenced by mental clutter, learning to relax and removing the distractions for an ample period of time can ease your negative feelings. Put your work assignments or projects down and do something you really enjoy. Set aside at least 10 minutes of the day to yourself.

Listen to your favorite love song, book a spa appointment, eat your favorite dessert, purchase new video games or try on different shades of lipsticks. You deserve it!

3. EXERCISE MORE

Exercise has physical and psychological benefits such as reducing stress, anxiety and depression. It can also improve one’s quality of life, self-concept and self-efficacy. So get pumping! Run outside the house or gather a group of friends to start a regular exercise routine.

4. GET QUALITY SLEEP

When you are tired and sleep deprived, you are less patient, less concentrated and easily irritated. As sleep deprivation can increase your stress, it is advisable to get quality sleep.

Nothing beats the feeling of waking up refreshed and rejuvenated after a good night’s rest. It does give you the boost you need to deal with the hurdles that the new day can bring. Give your body the restorative rest craves for. At least 6-8 hrs of sleep is ideal for working adults.

Sources: 1, 2, 3, & 4

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