MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

5 Dont’s When Buying Health Insurance In Singapore

1. DO NOT PURCHASE INSURANCE POLICIES BASED ON ITS PREMIUM

As most companies employ monthly premium payments, premiums had become a fixed cost for consumers to consider. But if you solely focus on the price, you might miss out on the policy’s coverage.For example, you may buy the cheapest premium without checking if the insurance policy has disability benefits.

There are a number of exclusions, deductibles, and other factors that you should take note of. Do not purchase a policy just because it is the cheapest. Ask the financial professional to recommend you the best health insurance plan that fits your budget.

2. DO NOT CONCEAL FACTS THAT ARE RELATED TO YOUR HEALTH

Before anything else, you are required to tell your insurer about your medical history even if you had fully recovered from serious medical conditions. Never conceal anything related to your health as you might end up in a grave dispute in the future when making a claim. Be honest about your preexisting medical condition and other on-going health problems.

3. DO NOT DELAY POLICY RENEWAL

Allowing even a day or two to renew your health insurance policy can make your coverage ineffectual. What if an accident happened a day before you renewed? How can you make significant claims then? So do not delay policy renewal to prevent your policy coverage from being useless.

4. DO NOT ASSUME THAT IT IS UNNECESSARY

Health insurance policies are meant to safeguard you from the potential and unforeseen losses, accidents, and hardships. They are meant to curb your expenses at an affordable rate. It is best to purchase an insurance when you are “healthy” as premiums are cheaper when you do not have preexisting conditions.

5. DO NOT AVOID THE INSURANCE AGENTS

Health insurance agents are meant to answer all your questions while understanding your personal situation. Your lifestyle patterns, genetic health predispositions, and budget are unique. And since one policy does not fit everybody, health insurance agents guide you to the policy that is most suitable to your needs.

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Do not hesitate on meeting health insurance agents as they can help you get the bigger picture.

Sources: 1 & 2

Should You Lend Money To Your Significant Other?

Lending money to your lover is a tricky business. You may be in a position where trust is completely present but, financial debts can pull you apart. An otherwise happy, supportive, and healthy relationship can come to an end if the money you borrowed is left unpaid.

With the exclusion of married couples, here are the things you must consider if you are thinking of lending your boyfriend or girlfriend money…

OBSERVE YOUR SIGNIFICANT OTHER

As societal norms dictate, lending your money to your fiancé or your spouse is acceptable as you handle payments together. If you are not on that stage yet, you must make a decision with your head and not your heart. Observe the actions of your boyfriend or girlfriend carefully and compare it against your preferences. Opt for someone who is financially stable and fiscally responsible. This does not mean that you are a gold digger rather it shows your perceptive nature.

For instance, your boyfriend borrows money from you in order to pay the bills because he spent his salary on the new game console. Are you going to lend him the money knowing he might not be able to give it back? Can he be able to handle greater financial issues as they arise? Think about it.

MAKE IT A PRESENT

If the amount is relatively small, consider it as a gift that you do not expect back. Do not lend an amount unless you are able to accept the fact that you may never see it again. That is always a possibility and you do not want to ruin your loving relationship with a “couple of bucks unpaid”!

EXAMINE YOUR FINANCES

Before anything else, make sure you can afford to lend and are not in debt. Just because you love your significant, does not mean that you are encouraged to loan him or her money despite being stuck with debt. Do not put your financial future on a downward slope just because your partner cannot manage his or her money too.

PUT AN INTEREST TO IT

When lending money for bigger things such as “buying a motorcycle”, you are bound to get paid for the full amount for a long period of time. For this, you need to make a signed contract that lay outs the amount of money borrowed, the interest rate, and the date/s of repayment.

Image Credits: pixabay.com (CC0 Public Domain)

Chances are, your partner is asking for your help to avoid high interests offered by the banks. Consider having your partner match your savings account interest rate instead.

Sources: 1, 2, & 3

The Age-Old Relationship Of Money And Time

If you lived in Singapore long enough, you will realize that time is money! Not in the literal sense. In a fast-paced work driven environment, time is seen as a valuable and finite resource. Since time is irreplaceable, we must accomplish tasks as quickly as possible. You can always make money but you can never bring back time.

Time and money’s dynamic relationship is manifested in different daily scenarios such as these:

a. HAVING TOO MUCH TIME

Experts say that the unrealistic expectations people have with time outweigh their irrationality with money. It is because measuring our lifespan is a complex task. In a study, participants placed more bets when they gambled with their time than when they gambled with their money. Time is such an ambiguous currency that people cannot see its actual worth.

b. HANGING OUT WITH THE CROWD

Financial psychologist Brad Klontz said that: “It’s the herd instinct that influences each of us, particularly when it comes to our wallets.” Generally, we surround ourselves with people with the same monetary habits. If you frequently hang-out with a cautious buyer, you are more likely to learn a thing or two about the importance of budgeting. And that is not a bad thing!

c. POWER OF COMPOUND INTEREST

As an investor, the longer you keep your money on the account, the more you will make out of it. Elevation of your wealth each year is possible because of Compound Interest. This is why it is advantageous if you started young. And if your “younger years” passed, the next best thing is to start now.

d. BUYING A CAR

When purchasing a car, the present value of your money may not be enough. And you will have to make several financial strategies to increase your future value of money. Watch this short video to grasp its idea:

According to Investopedia, “Time Value of Money is the idea that money available at the present time is worth more in the future due to its potential earning capacity”. Provided that money can earn interest, any amount of money is worth more as time passes. Thus, it is important to calculate the Time Value of Money before you start investing.

Sources: 1, 2, 3, & 4

Ways To Spot Counterfeit Singapore Notes From The Genuine Ones

Several security features in the currency notes act as shields to minimize the risk of counterfeiting. It is important for every Singaporean to know more about these security features to be able to spot between real and fake notes.

Start familiarizing yourself with these 6 ways:

1. OBSERVE THE PORTRAIT

Late Encik Yusof bin Ishak’s portrait takes up the front of the notes. As it is hand-engraved and printed in intaglio ink, it serves as an anti-counterfeiting feature that is hard to imitate. Look for this feature because the fine lines of the engraving are difficult to reproduce.

2. USE A MAGNIFYING GLASS

Upon looking at the note through a magnifying glass, you shall notice the text “BOARD OF COMMISSIONERS OF CURRENCY SINGAPORE” or “MONETARY AUTHORITY OF SINGAPORE” printed in micro-letters above the word SINGAPORE on the front side. To the naked eye, this line appears in a singular line but the intricate details are clearly seen with the help of a magnifying glass.

3. LOOK FOR THE BRAILLE CODE

To know if it is genuine, look at the note’s unique Braille code. Each note has a Braille code at the top right corner of the front side of the note. It is printed in heavy intaglio ink so that visually handicapped individuals can easily recognize each denominations by touch.

4. USE A UV LIGHT

If you place a genuine note under the UV light, you will see that its denomination numeral, its seal, and its serial number will glow on the front. While on paper notes, fluorescent fibers will glow if the note is genuine.

5. INSPECT THE LION

If the note is genuine, the Singapore Lion symbol on the front shall register perfectly with the image on the back. It is because the front symbol is printed simultaneously with the back symbol. Also, it appears near the watermark.

6. FEEL THE NOTE

A genuine note has an “embossed feel” due to the intaglio printing. The use of intaglio printing on the engraved portrait, the Singapore Arms, the word SINGAPORE, and other parts offers good overall tactility. This is done so that even the tiny details are clearly defined.

Image Credits: quora.com

Although the number of counterfeit cases is very low, you shall report its occurrence immediately to the nearest police station or to the Commercial Affairs Department (Contact: 6325 0000).

Sources: 1, 2, 3, & 4

5 Simple Ways To Curb Your Online Shopping Tendencies

Almost every Singaporean loves to shop! When the convenience of online shopping was introduced, sales soared higher. Online shopping can be a delightful experience however, it can cause a major financial problem.

If your closet is bursting at the seams and your debt is piling up due to online shopping, then it is time to control your shopping tendencies. Start with these simple ways:

1. DO NOT SHOP WHILE TIRED OR TIPSY

According to Psychologist Graham Jones, author of Click.ology, making buying decisions when you are tired or tipsy can lead to regretful purchases. Instead, he suggests for you to reserve the item to the cart and revisit it the next morning. Once you are mindful about your online shopping, you will be able to make better decisions.

2. AVOID CLICKBAITS

Seeing a huge banner ad of the latest IPhone is not a sign from the universe that they are meant for you, they are simply clickbaits. Clickbaits have the sole purpose to attract visitors and draw attention to a particular website. To keep you from getting tempted, clear your browser’s history and cookies or download an App that blocks advertisements.

3. UNSUBSCRIBE FROM EVERYTHING

A surefire way to cut down your online shopping tendencies is to unsubscribe from all the promotional emails. Marking them as “spam” or “trash” will not stop them, instead you must go straight to the “unsubscribe link” and follow the steps. Unsubscribe to flash sales and auction sites as these are some of the most addictive shopping sites.

4. DO NOT BE FOOLED BY FREE SHIPPING

If you saw an online shop that offers free shipping, consider the extra costs of that deal. For instance, retailers may set minimum-order rules for free shipping or they may charge you for return policies. Add up the product price plus the extra fees first before making a purchase.

5. DELETE THE SHOPPING APPS

Shopping apps are tempting for all consumers and not just the addicts! The convenience of shopping at one’s fingertips as well as swift online payments have helped increase the online shopping tendencies of many. As everything is convenient, there is only a small room for contemplation and clearer decision-making. Hence, you must delete the shopping apps from all your devices.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

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