MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

5 Things To Do When You Lose Your Wallet In Singapore

1. BE 100% SURE

Before you can confirm that your wallet is lost or stolen make sure that you did not just misplace it. Keep calm and carefully retrace your steps. Check if your wallet just fell out of your drawer at work, inside your car, or hidden at the sides of the couch.

Do not hesitate to call or to talk to the people in charge of the place you have recently been (e.g., restaurants or shops). And, if there is still no luck and you are 100% sure that it is gone then, you must proceed to number two.

2. CALL YOUR DEBIT AND CREDIT CARD ISSUERS

If your lost wallet contains your debit, credit, and ATM cards, you must immediately call your bank or card issuer. You will be happy that you acted swiftly and prevented any unauthorized withdrawals at the moment of your loss. Instead of canceling your cards, you must report your cards as lost or stolen. The bank or the card issuer has a procedure that will suspend the card to keep your wealth safe.

Then, you must replace your cards with new ones. According to a Singaporean blog, only POSB/DBS banks will deliver your new ATM card directly to you. While Maybank and UOB requires you to go down to their branches personally. They will require you to present your IC too and if you lost your IC, bring your passport along and proceed to number three.

3. REPLACE YOUR IDENTITY CARD

One of the most important things that you might have in your wallet is your Identity Card (IC). If you lose your IC and it is not stolen then, you may go straight to ICA to get a new one. Otherwise, you are required to have a police report or to present the completed Declaration Form NR 12. Bonded by the law, Singaporeans and Permanent Residents who lost their ICs are required to report it and apply for replacement within 14 days.

Please bring the following documents:

a. One recent passport sized photo (i.e., photo-taking services are available at the 2nd and 4th level of the building)

b. Police report or completed Declaration Form NR 12 if you are a victim of a crime

c. Passport

d. Entry and Re-Entry Permits

e. Malaysian IC (i.e., if it’s applicable)

Be ready to pay S$100 as a first timer. Subsequent losses will have to pay a fee of S$300.

4. FILE A POLICE REPORT TO THE LOCAL AUTHORITIES

Do not take your loss or theft too lightly. You must take this step in order to replace your IC if your wallet was really stolen. Furthermore, it will provide sufficient evidence if you become a victim of fraud or identity theft.

Be ready to answer the police officer’s questions such as:

When and where did you lose your wallet?

What are the articles inside your wallet?

If it is stolen, can you describe anyone suspicious?

Then, keep a copy of the report afterwards.

5. CHANGE YOUR LOCKS IF YOUR KEYS ARE INSIDE

If your keys are missing along with your wallet, you must change the locks to prevent the event of a break in. Even if your wallet was returned perfectly, someone could have easily made a copy of your keys and your information.

Image Credits: pixabay.com (License: CC0 Public Domain)

It is better to be safe than sorry! 🙂

Sources: 1, 2 & 3

4 Tips You Need To Know Before Buying A Home As A Single Singaporean

According to the latest Population Trends report, single-hood rates are highest among lower-educated Singaporean men in their 30s and 40s and among higher educated women. It is clearly observable that the number of unmarried Singaporeans have been growing over the years but that does not stop one to contemplate about purchasing his or her own flat.

With the hefty housing prices in the market today, can an individual with an average income really afford a huge investment single-handedly?

To tell you honestly, the answer is YES!

It is possible, but you have to consider these few things:

1. KNOW ABOUT THE AVAILABLE SCHEME AND GRANT

In 2013, the government introduced a scheme that allows first-timer singles aged 35 and above earning up to S$5,000 a month to purchase a 2-room flats in “non-mature” estates. At that year, HDB launched 3,861 flats for sale in Sengkang, Bukit Merah, and Yishun under the Build-To-Order (BTO) exercise.

This relatively new scheme is called Single Singaporean Citizen (SSC). As you are aware of, before SSC, singles could only buy either private properties or resale HDB flats which can be costly! Thus, this will give a great opportunity for all the singles out there that are planning to become home owners despite of their average incomes.

Say you are an unwed Singaporean who just turned 35 a few months ago and you draw an average of S$3,000 a month, you can be entitled to receive the Special CPF Housing Grant (SHG) worth S$10,000. However, the eligibility of SHG is only given to first-timer citizen who is applying for a 2-room flat in non-mature estates. Furthermore, his or her average gross monthly income must not exceed S$3,250.

By knowing the available scheme and grant, one can safely conclude that owning a 2-room flat in Singapore is possible without the need to fork out loads of cash upfront.

2. ANALYZE YOUR BUDGET

Since purchasing a house is probably the biggest financial commitment you have at this point, it must be planned carefully. Before you start looking for a flat in the non-mature estates, know what you can afford as well as what you need to pay for first. Even if you are purchasing a new private property, you will need to reserve extra money to cover repair, taxes, and maintenance. Affordability is certainly a huge issue!

3. PROTECT WHAT YOU OWN

There is a huge sense of comfort and independence in owning your own home wherein you make your own decisions as days go by. Along with that comes the responsibility to take care of yourself. It is important that you have sufficient insurance to cover your health and your life.

Image Credits: pixabay.com (License: CC0 Public Domain)

4. CONSULT THE PROFESSIONALS

As I said before, buying a home is a huge commitment to make. This is why you must take your time and do your research with the available resources you have. Aside from this, it is always a good idea to talk to real estate agents or to consult a financial adviser beforehand.

Sources: 1, 2, & 3

Tidy Up Your Family’s Life In 5 Professional Steps

With a house full of children, life can quickly get a little topsy-turvy! Juggling through the chaos of household chores, family relationships, and work responsibilities can become overwhelming. Luckily, you can adopt a professional system that has been present for centuries.

This system is none other than the “business system”. Businesses, enterprises, and firms are organized because they follow a synchronized structure. Apply this to your home life by following these simple tips:

1. DETERMINE YOUR FAMILY’S CORE VALUES

Core values exhibit what is important in the company and its members. In your case, you must consider what are the important beliefs and morals that you want your family members to uphold. Determine your family’s core values to help guide your every decision. For example, if your family values saving money and hard work then your plans for your next vacation will be based on those values. Furthermore, it will affect how much you will save (i.e., practices) and what you will spend your money on (i.e., strategies).

2. SET YOUR PRIORITIES

Spreading out your energy and time to things that are not necessary can be a waste of your resources. This is why efficient companies set their priorities straight and focus more of their resources on the top priority. Your priorities as a family can be anything that you would like to accomplish in the near future such as exercising together everyday. These priorities are personal and subjective to you.

3. ESTABLISH A SCHEDULE

Most of the firms follow a strict schedule for every employee. Apply this to your family by using a digital calendar to automate your family’s schedule. A beloved digital calendar by most is the Google Calendar, which is available if you have your own Gmail account. Establish a schedule that includes household chores, special events, school works, and etc. You can assign a different color for each child too.

Alternatively, you may use a Microsoft Excel spreadsheet and assign a color and a row for each child. It is best to plan the week ahead by making the schedule every Sunday night.

4. PRACTICE TEAMWORK

Cooperation and teamwork can extend the walls of your home too! Join or organize a parenting group including the other parents in your children’s school. Aside from meeting new people, you can save more money by taking turns in babysitting each other’s children. Use WhatsApp or a private Facebook group to exchange your contacts for emergency purposes and to schedule events together. Taking care of each other’s kids are matters of trust so make sure that these newfound friends can be trusted.

5. REVIEW YOUR PROGRESS

As a whole, you must sit together once a week for at least 10 minutes to review your progress in terms of your priorities, your schedule, and your other issues. Talk openly and honestly.

Image Credits: pixabay.com (License: CC0 Public Domain)

To increase the positivity and the sense of accomplishment, commend your children for their achievements that week (no matter how big or small it may be).

Sources: 1 & 2

Bank Loan and HDB Loan: Which Has More Advantage?

For any potential home buyer, home loans should be a serious business. Pick the wrong kind and it can cause a cascade of unfortunate events, including being trapped in a huge debt and even losing your home.

But between a bank and an HDB loan, which one is better? Let’s compare them:

How much can you borrow?

Under the HDB loan, you can borrow up to 90% of the purchase price or the market value, whichever is lower.

Banks, on the other hand, can provide you with up to 80% Loan to Value (LTV) of the property. This the ratio of the loan quantum to the property’s appraised value.

Take note, though, that both HDB loans and bank loans cannot guarantee the full LTV. Simply stated, it can be lower than 80% or 90%. This means that you have to use your own money to pay off the rest of the mortgage or consider other bank loans.

Taking out a personal loan to cover the rest is an option, but this might affect your debt servicing ratio. Always compare to find the best personal loans.

How much is the down payment?

HDB loans would require 10% down payment, which may be fully covered by your CPF savings. Banks would need 20%, 5% of which should be in cash as only 15% can be absorbed by the CPF. Regardless of which loan you choose, though, repayments may be made through the CPF.

How do they calculate the interest rate?

One of the biggest differences between HDB loan and bank loans is in the way they determine the interest rate. For a home buyer, you need to learn this as it’s the basis for the amount you pay on top of your principal loan.

The HDB loan is pegged at 0.1% above the CPF Ordinary Account (OA) rate. Do note that the CPF rate is reviewed quarterly, so the rate may still change, although it is quite consistent.

Banks can offer either a fixed or a variable rate, although the fixed rate is not perpetual: it’s fixed for only a few years, say, three to five years. Then the rate becomes variable.

Either way, banks have three possible bases for computing their interest rates: SIBOR Singapore Interbank Offered Rate (SIBOR), Swap-off Rate (SOR), and Internal Bank Rate (IBR). On top of that, the bank adds a spread, which is the bank’s charges. As an example, the SIBOR rate (we’ll use this since it’s the most preferred bank rate) may be 1.1% and the spread is 0.9%, which means the overall interest rate is 2%.

Banks express the interest as 0.5% + 3-month SIBOR, which means the rate is revised every three months.

Although banks can offer similar home loan packages, they can still differ on the interest rate alone. Thus, to make sure that you can make the right decision about that, speak to a mortgage broker.

Over the last few years, homeowners with bank loans have been enjoying lower interest rates, but that’s due to quantitative easing (QE), which somehow repressed the bank’s interest rates. But now that it’s over, the rates may significantly change.

Hopefully, with this article, you can make a much better choice whether to get an HDB loan or a bank loan.

(This article is brought to you by SingSaver.com.sg)

Making Your Will In Singapore: Are Lawyers Non-Compulsory?

Whether we like it or not, death is inescapable. This is why it is important to prepare a “Will”, especially if you are retiring soon. The essence of making a Will is not only to prepare for the event of death but also to make sure that others understand your parting wishes.

In Singapore, the surviving spouse is usually entitled to one half while the other half is divided among the children. But if there is no Will, there are higher chances that no one would be held responsible to sort out the estates or to take care of the orphaned children. Without a Will, your assets may be distributed to people whom you do not intend to give anything to. Certainly, it is simpler, more responsible, and more convenient to consider making your own Will.

Clueless about the entire process? Start here:

DEFINITION

An individual makes a legal declaration or a Will to provide the administration and distribution of what he or she owns among his or her beneficiaries at death. The person who made the will is called the “testator” while the people who will inherit the assets are called “beneficiaries”. The Wills Act governs all the Wills in Singapore.

A WILL’S FORMALITIES

1. The testator must be at least 21 years old.

2. The testator must sign the Will accordingly. If he or she is unable to do so, a trusted person may sign in his or her presence.

3. Two or more witnesses are required and they must sign the will too, in the presence of the testator.

4. The two witnesses cannot be beneficiaries of the will (e.g., spouse of the testator) but the third witness can be a beneficiary.

MAKING A WILL IN SINGAPORE

Interestingly, you do not need a lawyer to make a Will!

A 21-year-old individual of sound mind can make his or her own Will and change it any time in the course of one’s life. But if you have insufficient legal knowledge on the subject, your “homemade Will” may be at risk of being ineffective or invalid. So, it is still best to seek legal advice. After writing one, you must keep a copy in a secured place and let your family members know of its existence.

Image Credits: pixabay.com (License: CC0 Public Domain)

To ease the process, you must approach the Wills Registry to deposit the document’s information. Expect a fee for it.

Sources: 1, 2,& 3

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