MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Why Is Earning Money A Challenging Task?

COMMON REASONS FOR DIFFICULTY

1. FEELINGS OF INADEQUACY

The feelings of unworthiness and incompetence can drag many people away from accomplishments. If your mental dialogue focuses on these things then it can result to low self-esteem, lack of enthusiasm, and lack of creativity. No matter how much you want to succeed, these results can make you unsuccessful at work.

Your mental dialogue affects your behavior.

2. NEGATIVE ASSOCIATION

Money has been portrayed in media as a currency that most people fight for. Whether the news showcases a bank robbery or criminal dealings, the world has seen how money can make people “bad”. As the saying goes: “Money is the root of all evil.” This negative association fed by the environment is stored in our unconscious mind. If it is something undesirable, your unconscious mind is bound to “protect” you from it.

Hence, the negative association can affect how we deal with money.

3. FINANCIAL FEARS

Know if any of these fears consume you (click here).

4. THE COMPETITION

One the higher end of the spectrum are the people who earn millions of dollars each year. Sam Wilkin, economist and author of Wealth Secrets of the One Percent, says it is difficult to be as rich as them because of the competition that is present in an open free market economy. Much like United States, Singapore has a highly developed and prosperous free-market economy.

There is a possibility to become immensely rich but you will have to dedicate your life to high-risks and high-return strategies.

STEPS TO TAKE

1. DO NOT FOCUS ON MONEY ALONE

If you take money as your primary motivation to work then, you will be depressed when it is gone or not enough. Focus on the reasons why you earn rather than how much you earn.

2. LOVE WHAT YOU ARE DOING

If you love your job then you will have a positive association with money and occupation. You will find fulfillment in your passion even if you have a relatively small income and long working hours.

3. MANAGE YOUR MONEY

You shall have control over your money and not the other way around. Be wise in saving, spending, budgeting, or opening a business. Instead of a shopping list, make a list on how you can grow your wealth.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

Beginner’s Essential Guide To Unit Trusts

WHAT IS UNIT TRUST EXACTLY?

A Unit Trust follows an unincorporated mutual fund or trust structure that allows funds to hold assets and pass profits thru the individual owners. Money is pooled with the money from other investors and it is managed by a fund manager. The portfolio of assets is set according to the fund’s investment strategy and objective. Hence the success of a unit trust depends on the capabilities, expertise, and experience of the management company.

In Singapore, local and foreign unit trusts offered are regulated as collective investment schemes.

WHY MUST YOU INVEST ON UNIT TRUSTS?

Since funds are invested in an array of assets, one advantage of investing in unit trusts is diversification. In the current unpredictable market, this potency helps investors to adjust with the ups and downs without having to worry too much about the performance of a single stock. Generally, unit trusts provide you with more safety in terms of the performance of your investment.

WHAT SHALL YOU CONSIDER BEFORE AND AFTER INVESTING?

Before investing on unit trusts, you must assess the type offered as well as its fees. Also, you must examine the fund manager himself. Determine if the fund manager has the sufficient experience, skills, and resources to lead you to success. Look beyond the short-term performance and look into one’s long-term track record.

After investing on unit trusts, you must regularly monitor if its performance meet your expectations. Then monitor the economic and political risks of the markets you invested in.

WHAT IS ITS NET ASSET VALUE?

The price of each unit is based on the net asset value divided by the number of units outstanding. It is typically calculated daily to reflect changes in the prices of the investments maintained by the fund.

HOW CAN YOU BUY THE UNIT TRUSTS?

Aside from cash, you can purchase unit trusts by the CPF Investment Scheme (CPFIS) and the Supplementary Retirement Scheme (SRS). Furthermore, some insurance companies offer investment-linked insurance policies.

Image Credits: Ken Teegardin via Flickr (CC Licence Attribution-ShareAlike 2.0 Generic)

Sources: 1, 2, & 3

Here’s How You Can Conquer 4 Common Financial Fears

Most of us are overwhelmed with a certain financial fear. Some of us may take the conscious effort to resolve it. However, many of us do not take the necessary steps to overcome it. They simply allow the financial dilemma to drive their life choices. Fortunately, it does not always have to be this way! You can change your financial patterns by starting with awareness.

Consider if one of these common money fears apply to you:

1. FEAR OF BEING FINANCIALLY ILLITERATE

According to Kathleen Kingsbury, a financial author and money coach, women typically complain about being too stupid to learn about finance. This is not true! Since women learn by conversing, realize that your lack of financial knowledge is due to the lack of socialization related to money.

Solution: Join or start an educational club about personal finance or investing.

2. FEAR OF DEPENDENCY

As we live in an Asian country where close family ties is generally vital, it has become a part of our culture to be interdependent. We feel the need to take care of our family members physically, emotionally, and financially. Especially if you deem that your aging parent or your unemployed siblings cannot deal with the finances by themselves, you feel partly responsible for them.

Solution: Put your own finances on top priority first. Then, make a realistic financial plan that will help your other family members.

3. FEAR OF HAVING TOO MUCH MONEY

Believe it or not, there is an abundance of people who fear the unknown realm of having too much wealth. This is not a conscious fear as many can only dream about becoming billionaires in Singapore. However, there are still people who sabotage their own finances because of this unaddressed fear.

Solution: Be completely honest with yourself and examine if this is a genuine problem in your life.

4. FEAR OF NOT HAVING ENOUGH MONEY FOR EMERGENCY

Many people are afraid of not having enough money on-hand for emergencies. Yes! It is good to boost your savings and your emergency fund but, this fear may hinder you from growing your wealth. You hoard your money in low-interest saving accounts just to be “safe”. When in fact, this fear keeps you from making calculated risk in investments and increasing your savings.

Solution: Discuss with a financial professional about the advantages of compound interest and about ask for a feasible money strategy that fits your goals.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

4 Ways To Get Cheap And Affordable Spa Facial Services In Singapore

1. ENJOY AN AWARD-WINNING CUSTOMISED 90-MINS FACIAL AT $88

Looking for good facial treatment in Singapore? My Cozy Room, an award-winning luxury boutique spa near Orchard Road, is offering their highly-raved facial treatment for just $88 (U.P. $188) if you are a first-time customer residing in Singapore.

Known for their best Extraction Facial in Singapore, you can expect relatively painless extraction to treat acne clogged pores, blackheads and pimples. They have certified professional therapists with years of experience in treating customers skin problems on-site, so you’re definitely in good hands.

What are you waiting for? Take a break from the daily grind and indulge in this ultimate luxury session at the trial price of just $88!

For more information, click here to register for interest.

2. GO CRAZY FOR FAVE DEALS

Fave is probably my all time favorite shopping companion. Used by many Singaporeans, MYFAVE.COM is a website that offers discounted deals on events, luxury goods, bags, watches, beauty products, lifestyle services, and getaways. I recommend going for these current deals below that range for only S$18-48.

3. LOOK FOR FACIALS UNDER S$100

You do not need to break the bank to get quality spa treatment. Do not worry about spending a hefty amount of money as most of these place do not require you to buy packages. Although, you have to book in advance to guarantee your spot.

a. SG FACE

With more than a decade of beauty therapy experience, Michelle Foong of SG Face relies on the trusted power of recommendations. While their services are affordable, German brand Babor is used in the treatments. Try the 60-minute Deep Cleansing Facial for S$48 (first trial only) or the 90-minute Hydration Facial for S$70 (first trial only).

b. FLARE WELLNESS

For the organic-junkies, you will love the Flare Wellness beauty salon. According to their website, they have an ongoing promotion for the “Organic Refresh Vitamin C Facial” for S$98. It is a brightening, firming, lifting, and anti-ageing treatment that refreshes your face immediately. Also, it includes a complimentary foot massage!

c. CHEZ MOI DE BEAUTE

Chez Moi de Beaute uses another German brand called Phyris. What separates it from the most is their friendly and experienced staff that explain each step so you will not get surprised with all the sensations. Currently, they have a promotion on the “Mix & Match Facial” and the “Mix & Match Power Facial” that is valid until 30th April.

Mix & Match Facial for S$48, tailors the treatment for your skin’s needs. While the Mix & Match Power Facial for S$68, allows the therapist to choose from 6 serums to treat your skin concerns. You will get the most out of your dollar as these treatments last for 75 minutes.

4. LASTLY, SELF-SERVICE

If your budget for a spa-quality facial is less than S$20 then, try the magical services provided by you! Forget spending time and money at your local spa as you can pamper yourself with homemade facial masks. May this simple guide help you to get started.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

Unhealthy Personal Finance Habits That You Need To Stop

According to Dictionary.com, a habit is an acquired behavior pattern that is regularly followed until it has become almost involuntary. Since habits are done over and over again, it feels safe and normal to do it. However, some habits sabotage your financial health whether you are aware of it or not.

As “old habits die hard”, it takes patience, motivation, and effort to break these money habits:

1. NOT STICKING TO LESS CREDIT CARDS

When you are using more than two credit cards, you are allowing yourself to be financially vulnerable. It is not only harder to keep track of your spending but you will also owe more than you expected. Instead, stick to at least two credit cards that have minimal annual fee and a good rebates program.

2. NOT KEEPING TRACK OF YOUR SPENDING

Many of you do not keep track of your spending as you deem it to be time-consuming or unnecessary. However, making money management an habitual regimen is essential for every working adult.

You do not to adapt an extravagant lifestyle or earn millions to start a financial plan. Simply keep track of your daily spending and examine it every month. Then, accurately plan to meet your spending and saving goals.

3. NOT PAYING YOUR CREDIT CARD DEBT

Aside from splurging your money, another unhealthy habit that you have to stop is not paying off your credit card. The bad credit decisions you made while you were younger can haunt you in the future. For example, it can affect whether or not you are able to get a loan to buy a car.

So you must stay organized to keep up with your payments. Set aside some time in the beginning of the month to make a list of the bills you are expecting to receive. Put it on your working desk or create a file for it. This way, you will not pay a bill twice even if you received it simultaneously by e-mail and postal mail.

Alternatively, you can get your payments automated. Since you are prepared for the bills earlier on, you may have available money in the bank to pay it the same day as you received it.

4. NOT INVESTING

If you have a habit of ignoring investment opportunities due to the irrational fear of losing everything then, you cannot reach your fullest potential. If you are too conservative, you can still invest and grow a small amount of money! Just seek out the help of financial advisers or financial professionals first. This way, you can sit back and watch your money grow through time.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

Search the site