MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

4 Enchanting Ways To Run A Business Like Taylor Swift

Whether you are captivated by her or not, Taylor Swift is a smart businesswoman who has been making all the right decisions lately. A proof of her success was her album 1989 that sold millions of copies worldwide. To top that off, her current net worth is US$80 million (about S$111 million) according to Forbes.

From nurturing her relationship with her fans to embracing her authenticity, here are the 4 Enchanting Ways To Run A Business Like Taylor Swift:

1. CREATE AN EXCLUSIVE CIRCLE

If your product has a limited-edition content, customers can create a common circle wherein it is exclusive to them alone.

For instance, Taylor Swift’s CDs sold successfully not only because of her infectious music but also because of her personalized memorabilia (such as the limited Polaroid photo sets) as well as special fan codes (to win a personal meeting with her). Those who buy the CDs will immediately share its contents to their friends or social media. That is free advertising at its best!

Mimic this by offering occasional discounts and exclusive promotions. Keep your customers in the loop by sending out electronic announcements and decorating your shop with attractive posters.

2. UNDERSTAND YOUR AUDIENCE

Aside from talking to them genuinely, you must actively listen to what your target audience has to say. Take it from Taylor who not only showed her audience that she listens to them but also gets in their inside jokes (in reference to the “no its becky” tee).

Business owners who want to make the brand seem more approachable can interact and join in the discussions of the consumers thru social media. Accept feedback and take necessary actions to improve your business.

3. BE YOUR TRUE SELF

If you closely observe Taylor Swift during the awards season, you will realize that she is singing and dancing like she owns the place! She is not afraid to be her fun and quirky self that marches to the beat of her own drum.

As entrepreneurs, it is your duty to uphold your values and vision even if it is not aligned with what is on trend today. Avoid losing your consumers by staying true to yourself in your advertising/marketing campaigns.

4. APPRECIATE YOUR CONSUMERS

Aside from her killer dance moves, Taylor is known for having a strong bond with her fans. In fact, she personally invited 89 of her fans to her homes to provide feedback and listen to her 1989 album before it was released. This is a great technique to increase consumer satisfaction.

Channel your inner Swift by showing gratitude to your loyal consumers. Manifest your appreciation to your consumers by saying “Thank You” in person or by sending an electronic “Thank You note”.

Image Credits: pixabay.com (CC0 Public Domain)

This simple and inexpensive gesture will impact the way they view you and your company as it will make them feel valued and special.

Sources: 1 & 2

Is It Time To Embrace The Rise Of Digital Red Envelopes?

First comes Snapchat’s Snapcash then there was MasterCard’s Selfie Authorization, and now we make way for the digital Ang Baos.

Yes! You read that right.

As we usher in the Year of the Monkey, China’s three Internet giants namely Baidu, Alibaba, and Tencent (developer of WeChat messaging app) offered their own versions of digital red envelopes. Even the Chinese government weighed in as they gave away a total of 300,000 RMB or about S$63,000 through Alipay – Alibaba’s digital payment service. However, the most impressive of them all was Tencent’s WeChat app.

WeChat‘s red envelope scheme started in January 2014 in support of its digital payment service called WeChat Payments. Its functions include sending virtual money, withdrawing cash, and checking the transaction history.

Its popularity spread like wildfire since its inception. In fact, last February 8 marked a milestone as over 8 billion of digital red envelopes were sent through WeChat’s gifting scheme. That signifies an eight-fold increase from the previous year.

The types of WeChat’s red envelopes are as follows:

a. REGULAR RED ENVELOPE – upon availing this, the user can specify the amount of money he or she wants to give.

b. RED ENVELOPE LUCKY DRAW – upon availing this, the user will allocates a lump sum of money to a “group red envelope” wherein a number of small red envelopes are inside it. After posting this on a group chat, WeChat will randomly assign an amount for each recipient’s red envelope.

Although these all sounds fuss-free and convenient, you must consider its disadvantages. For instance, digital platforms are susceptible to cyber crimes. In 2015, a user who claimed to be the billionaire Chen Guangbiao deceived many WeChat users and ended up receiving a significant gain from them.

Also, digital Ang Baos may take away the family re-connection that the tradition entails.

Image Credits: pixabay.com (CC0 Public Domain)

So ask yourself: “Do you want focus on strengthening relationships or on monetary incentives?”

Sources: 1, 2, & 3

Investment Basics: Bonds Versus Equities

BONDS

Just like some people, organizations and governments need to borrow money in order to function. An organization may need funds to expand into new markets while the government may need money to improve the infrastructures. However, some organizations need more money than the bank can provide. This is why they have to issue bonds to the public market. After which, a number of investors can lend a portion of the capital needed. So in a sense, bonds are borrowed money with a fixed and stable rate of return.

EQUITIES

For an aggressive investor that embraces risks, consider purchasing equities. Equities are the shares sold by companies. Buying equities means you become a shareholder – an owner of a percentage of the company. But if the company gets bankrupt, an equity investor will get the last claim on its assets.

PROS

BONDS

Including bonds to your portfolio provides you periodic interest revenue for a certain length of time. Since its interest rate typically does not change, you will know what to expect.
In an unfortunate event that the company goes bankrupt, bondholders are the ones who get paid first because they are creditors with the first claim on the company’s assets.
There are various types of bonds to choose from such as government bonds, zero-coupon bonds, and corporate bonds.

EQUITIES

Since equity investors become owners of a percentage of the company, they are equipped with the highest possible returns.
You can profit it different ways such as gaining from the increase in share prices or dividend income (if the company declares dividends).
Depending on how huge your shares are, you may have power to vote in the company’s decisions and issues.

CONS

BONDS

Since the market changes and the bond’s interest rate relatively remains the same, it can lead you to getting lower investment returns.
If you are keen to sell a bond with an interest rate that is lower than the current market rate, you will have to sell it at a reduced or discounted amount that what you originally paid for.

EQUITIES

Equities are volatile and riskier than bonds. As much as equities can give you the highest returns, they can also give you greater losses.
Unlike bonds, there is no guarantee of dividend payment in equities. Based on the current market and business circumstances, the company can choose whether it pays the dividends or not.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

Genius Ways To Hide Your Cash In Case Of Emergencies

No matter how safe Singapore can be, unforeseen events in the form of natural catastrophes, bad power outage, credit/debit card decline, or even theft can happen. Whether you call it secret stash or emergency fund, keeping a substantial amount of cash in your home is a must to handle the demands of these unforeseen events.

As people get clever in time, the old “putting it under your mattress” trick does not work anymore! Instead, consider these Genius Ways To Hide Your Cash At Home:

1. CREATING FALSE STRUCTURES

If you have a knack for the tools, consider an intensive Do-It-Yourself project of faking fixtures around your house. You can install a drain pipe or a power outlet in your room that doubles as a secret safe. Worry not if you are not too good of a craftsman as some online shops sell installation-ready disguised safes.

For example, you may purchase the Hidden Wall Safe that acts as a non-functioning outlet with a hidden compartment to keep your valuables such as cash, cards, and jewelry.

2. DISGUISING IN PLAIN SIGHT

Keeping your money scattered in the most unexpected places is a good theft-proof strategy. Contemplate on the best places to hide your money where no one else would look. If you are an avid fan of books, pick a “random” book in your cabinet and cut a space in the middle where you can store your cash. Then, put it back where it belongs.

Here are other easy tricks you may follow:

a. Push the lint brush/roller’s handle up and put your cash inside.
b. Stuff your money inside a jar of cotton balls.
c. Put your money (rolled with a rubber band around it) inside an empty medicine or vitamins bottle and seal it well.

3. SWIMMING WITH THE FISHES

If you have a relatively large aquarium at your house, consider putting rolled up cash inside a watertight solid-colored jar inside it. Keep it hidden among the seaweeds, rocks, ruins, and corals so that it is as concealed as much as possible.

Image Credits: pixabay.com (CC0 Public Domain)

Alternatively, you may put your watertight jar of money inside the toilet tank.

Sources: 1 & 2

Top 5 Tunes About Wealth And Money

Relationships, heartbreaks, and love may be the most observable theme in the music charts today but you cannot deny that money comes next.

Whether you like listening to songs about the pains of fortune or the joys of owning material things, there seems to be no shortage of songs about money. In fact, Jay-Z’s new record label “Magna Carta Holy Grail” stressed his insistence on continuing to rap about his wealth.

With that said here are the tunes that prove how complex and well-documented money is…

1. She Works Hard For The Money by Donna Summer

From the Queen of Disco herself – the late Donna Summer’s “She Works Hard For The Money” swiftly became one of her signature songs.

2. Mo Money Mo Problems by The Notorious B.I.G. ft. Mase & Puff Daddy

Life After Death album’s lead single is one of the first songs that come to people’s mind when talking about money-related lyrics. The catchy chorus says a lot about the difficulties faced by Biggie after he began growing his wealth.

“I don’t know what, they want from me
It’s like the more money we come across,
the more problems we see”

3. Taxman by The Beatles

A timeless dedication to the United Kingdom’s government taxation, “Taxman” came about when the band realized that it was losing a bulk of its earnings due to the supertax that Harold Wilson had introduced.

4. Like Money by Wonder Girls ft. Akon

“Like Money” is a song that mashes both love and money as a theme. In its first week, the song debuted at number 11 in South Korea. By the end of August 2012, its popularity soared to about 583,737 downloads in south Korea alone.

5. Bills by LunchMoney Lewis

Exuding elements of hip-hop, ragtag, and jazz, this hit is the debut single of the American rapper called LunchMoney Lewis. It is about a man who is overwhelmed about his debts and bills that he has to work harder everyday in order to make sure that they all survive.

I have to admit, I cannot get enough of this song!

Sources: 1, 2, 3, & 4

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