MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

How To Solve The Most Embarrassing Money Experiences

1. WHEN THE BILL COMES

In Singapore, a passion that bonds us together is our love for food. Naturally, you will find yourself at the center of a large gathering in a restaurant or an eatery. But there is always a tad of confusion once the bill comes. Do you split the bill evenly or do you pay separately (only for what you ordered)?

Light can shine into the situation if the organizer of the gathering speaks up beforehand about the payment arrangements. Otherwise, speak up for yourself before you order. This way, you will not be shocked if you end up paying more that S$50.

2. WHEN YOUR IRRESPONSIBLE FRIEND BORROWS MONEY

In a big clique, there will always be that one person who seldom pays for the money he owes. Although your irresponsible friend is always present during his time of need, he immediately vanishes as the due date of payment comes.

The situation may seem complicated at first but you can surely get out of it. Simply say that you wish to help however, you do not feel comfortable in lending that “amount” at the moment.

3. WHEN YOU ARE OUT WITH A RICH FRIEND

Aside from the irresponsible friend, there will always be a “rich” friend. Whenever you hangout, you end up spending more than you desire because you feel pressured to keep up with your friend’s lifestyle. The situation gets worse if you promised to treat that friend out and he orders the most expensive thing on the menu. I only hope that you have enough money!

To solve this embarrassing dilemma, be honest to your friend about your financial capacity. Explain that you really want to hang out but your tight budget does not allow you to. If he is a real friend, he will understand.

4. WHEN YOU GET DECLINED

There is nothing worse than having a sales clerk or a waiter tell you that your credit card has been declined. In fact, a 2013 survey by CouponCabin.com rated this as the “most awkward money moment”. I can attest to how unpleasant this money-related experience is.

A couple of years ago, I was working as an administrative officer at a fitness studio. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful.

Image Credits: pixabay.com (CC0 Public Domain)

You can handle this situation better by keeping your cool. Talk to the personnel privately and arrange an alternative form of payment. Consider going to the nearest ATM to withdraw some cash.

Sources: 1 & 2

Basic Guide To Estate Planning In Singapore

Estate planning advice often focuses on the creation of legal documents such as wills and trusts. The choices you make about where your assets will go after you pass can affect people’s lives profoundly. This is why you must familiarize yourself about the basics of estate planning.

DEFINITION

In simpler terms, estate planning dictates how you would like to distribute your estate after your death. Your estate encompasses your properties, savings, and money. It makes sure that the people you love and the causes you care about are covered even after the inevitable event of death.

TRUSTS

As said above, estate planning primarily includes the creation of a will by appointing an executor. For individuals with higher net-worth, they may choose to create a trust in order to transfer their assets to pre-determined beneficiaries. Singapore is a prime financial hub for individuals with higher net-worth to set up their trusts. It is because the country is characterized by:

a business promoting environment,
a comprehensive legal system,
a globally competitive infrastructures,
a strategic geographic location, and
a robust set of regulations for the financial sector.

As trusts are used as a long-term tool, you must closely evaluate the pros and cons before setting one up. For instance, trusts are a viable option for vulnerable beneficiaries such as minors. However they can be costly and difficult to maintain.

TERMS

Here are the common estate planning terms that may boggle your mind at first:

Alternate Beneficiary is an individual or an organization named to receive the assets in the unlikely event that the primary beneficiaries die.
Co-Trustees are two or more people who had been named to coordinate in managing a trust’s assets.
Durable Power Of Attorney For Asset Management is a legal document that bestows a person full or limited legal authority to sign your name on your behalf in your absence. Its validity ends at death.
Gross Estate refers to the value of an estate before the debts are paid.
Will is a written document that includes the instructions for allocation of assets after one’s death.
Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, 3, & 4

You Need To Answer These 6 Essential Money Questions Before Getting Married

1. HOW DO YOU SPEND?

Your future spouse’s spending habits is one of the most important things that you must uncover. Whether you are a saver or a spender, your spending habits can influence the growth of your wealth. Discuss your this matter while keeping an open mind. Then, brainstorm on how you can blend your distinct spending habits in order to manage your wealth as a couple.

2. ARE YOU SPENDING A LOT FOR YOUR WEDDING?

Some people dream of lavish wedding ceremonies while otherS prefer simple gathering. As a unified couple, plan how much you are willing to spend on your wedding day.

If you want to save money, schedule your big day during off-peak months. Usually, getting married in “off-peak” months such as November, March, and April can be less expensive than marrying in “peak” months such as December and February. Save even more money by scheduling your honeymoon when the hotels and resorts are off-season.

3. DO YOU WANT TO HAVE A PRENUPTIAL AGREEMENT?

Even if we live in the most expensive city in the world where finances shall be carefully planned, do not assume that your fiancé is comfortable with pushing through a prenup. A prenup may suggest lack of trust in one party as you are planning for unforeseen divorce. Aside from this, talking about monetary and property division can make the marriage sound more like a business matter. Truly, this is a sensitive subject matter that should be handled with care, love, and honesty.

4. DO YOU HAVE EXISTING DEBTS?

To prevent unforeseen monetary issues, understand each other’s view by explicitly discussing your differences on financial issues. For honesty’s sake, show a copy of each other’s credit report. Know what your debt and income are actually worth so that you can realistically plan on how to pay for the remaining debt. Your partner’s lack of credit history will reflect on your credit score if you combine accounts.

5. SHALL YOU OPEN A JOINT ACCOUNT?

There are undeniably advantages and disadvantages to opening a joint account but it all comes down to your spending habits. Discuss whether you want to open a joint account solely because of the household bills or your emergency fund. Having a separate bank account is acceptable but, you have to tell your spouse about it.

6. HOW WILL YOU PAY THE BILLS?

Do not assume that your future husband has got all the bills covered for you. Instead, you must openly discuss how you will split the bills. If you come from a multiracial background, it is better to understand money with respect to each one’s culture.

Image Credits: pixabay.com (CC0 Public Domain)

Keep in mind that your goals are the same – to efficiently spend and save as a couple. As a team you may utilize your partner’s credit card to make use of the grocery rebates while the other takes care of the grocery shopping itself.

Sources: 1 & 2

Irrational Financial Beliefs That Most People Have

Let me start by defining what irrationality and irrational beliefs are. Irrationality is thinking or acting through emotional distress, insufficient use of reason, or cognitive deficiency. Thus irrational beliefs are the baseless opinions, attitudes, and values you possess that are beyond what the world really is. Particularly, your irrational beliefs about money shape how you spend.

Start by recognizing your irrationality with the 4 Irrational Financial Beliefs That Most People Have…

1. MONEY CAN BUY ME LOVE AND ATTENTION

If you believe that you can gain the affection and attention of others by earning enough money then, you are on the wrong track! Even if you are the shiniest dollar in the bank, you can’t please everybody.

When you put earning money as your top priority instead of valuing your family and friends, your self-worth will shrink once you lose your wealth. It is better to focus on the things that you can control – loving yourself and paying attention to others.

2. YOU CAN NEVER HAVE ENOUGH MONEY

Irrationality happens when you are not dealing with the truth of what really is and what you would like it to be. Your high expectations affect what you consider as “enough” money. Most people tend to accumulate debt by trying to reach this point of “enough”.

Instead of believing in this irrationality, live within your means by fulfilling your needs. Begin with the basic needs such as survival and security. Then allocate a portion of your money for your wants. Reach the lifestyle you desire by smart money management and not by debt.

3. MONEY CAN BUY HAPPINESS

I am sure you know people who believe that money is the quintessential source of their happiness. However, according to the words of Dr. Kathleen Gurney (CEO of Financial Psychology Corporation): “It’s not money that makes you happy…it’s how you use it.”

Studies show that you will get more satisfaction if you spend your cash towards memorable experiences such as vacations than towards material things such as a new table. Likewise, lending out possessions can help you enjoy the material things that your money bought.

4. MANAGING YOUR FINANCES TAKES LITTLE EFFORT

If you are one of those people who merely go by what the bank says and do cannot seem to organize your financial affairs then, you might be in trouble. Your bills and loans will not just go away on its own! It takes valued time and consistent effort to get your finances straight. Avoiding your responsibilities may make you happier in the short run but it will haunt you long after. So invest on real commitments and pay attention to details. If you are married, it is good to consult your spouse for all things related to money.

Image Credits: Chi King via Flickr

Sources: 1, 2, 3

Places To Find The Cheapest Gym Memberships In Singapore

Singapore is no stranger to expensive fitness center costs! And let us face it, most of you will not even use your membership perks to its fullest! With gym membership fees shooting up to S$2000 per year, one may wonder where the best rates are.

Fortunately for you, this list has you covered!

1. GYMM BOXX

GYMM BOXX is every gym-junkie’s dream as it has a wide array of premium equipment, a helpful staff, and a clean environment. What makes this place stand out is its “popular gym chain” facilities at affordable membership rates.

The standard membership rates are as follows:

a. Senior Membership ranges from S$90-240
b. Youth Membership ranges from S$120-360
c. Standard Membership ranges from S$150-480

If you do not want to commit just yet, you can pay per every entry for as low as S$3!

2. ACTIVESG GYM

Known for offering individuals and communities with various lifestyle opportunities, ActiveSG promotes better living through sport. It is only necessary that they include gymnasiums to their repertoire. If you are able to wait for your turn and workout with the basic equipments then, this place is suitable for you.

Here are the rates of the MyActiveGYM scheme:

a. Adults (Off-Peak) S$15/month
b. Adults (Peak) S$30/month
c. Seniors and Students (Off-Peak) S$9/month
d. Seniors and Students (Peak) S$18/month

As an ActiveSG member under the MyActiveGYM scheme, you will be able to get unlimited gym access to all the ActiveGYM outlets islandwide.

3. YOUR WORKPLACE

If you are serious about getting in shape, consider looking for an employer or a company that offers gym memberships. For example, Siemens has their own gym at the Siemens Centre Singapore. It is adjacent to a lounge where employees can read newspapers or magazines and listen to relaxing music.

Image Credits: pixabay.com (CC0 Public Domain)

Nothing beats a workout that is FREE and is situated at your own convenience!

Sources: 1, 2, & 3

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