MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

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

2016’s Best Credit Cards For Grocery Shopping

As businesses are adopting increasingly competitive prices, grocery shopping became costlier. And if you were to use a credit card, be sure to indulge on all of its rewards by paying the bill in full each cycle. That said, here are the 2016’s Best Credit Cards For Grocery Shopping (listed in no particular order)…

1. HSBC VISA PLATINUM CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$40,000

Do you want a card that allows rebates on your daily spending? HSBC Visa Platinum Credit Card may just fill your heart’s desire. It has rebates for grocery shopping, telecom bills, petrol, and dining. Waived for 2 years, the annual fee is S$180. Get 3% cash rebates on your grocery shopping with a minimum spending of S$400/month or 5% cash rebates with a minimum spending of S$800/month.

2. OCBC PLUS! VISA CARD

Minimum Annual Income (Singaporeans/PRs): S$30,000
Minimum Annual Income (Non-Singaporeans): S$45,000

OCBC Plus! Visa Credit Card will give you a whopping 5% off on all the items at FairPrice and FairPrice Online. What’s more? You can save up to 5% off at Unity, 3% off at Popular bookstore, and 18.3% off at Esso fuel stations. All you have to do is pay an annual fee of S$80 – waived for the first year!

3. UOB DELIGHT CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$40,000

Does 10% rebates at groceries and pharmacies sound tempting? Then, UOB Delight Credit Card is perfect for you. Enjoy up to 10% off house brands at Giant, Cold Storage, and Guardian. For the rest of the products, you can get 3% or 8% rebate at Cold Storage, Market Place, Jasons, Giant and Guardian (T&Cs apply). To qualify for this, you must pay S$85.60 annually.

Buying in bulk? Get free home delivery at selected Giant stores with a minimum spending of S$150 in a single receipt.

4. CITIBANK SMRT PLATINUM VISA CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$42,000

As the name implies, Citibank SMRT Platinum Visa Credit Card will give you good savings for your public transportation. Surprisingly, it is also good for grocery shopping. Get up to 7% savings on Fairprice, Sheng Shiong, and Giant. Just pay an annual fee of S$161.50, waived for 2 years.

5. CITIBANK DIVIDEND CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$42,000

Looking for a credit card that does not limit your grocery shopping? Look no more as Citibank DIVIDEND Card gives you up to 8% cashback at all supermarkets nationwide (e.g., Cold Storage, Jasons, Sheng Shiong, and more)! Aside from this, you shall receive 0.25% cashback on your other retail spending. The basic card annual fee is S$192.60.

Image Credits: www.citibank.com.sg

4 Retirement Myths That Singaporeans Should Scrap

A number of Singaporeans who are planning for their retirement tend to rely on myths without even realizing it! It can happen to you too. As believing in these retirement myths can be detrimental to your financial future, it is important to scrap these myths.

MYTH #1: THERE IS A CERTAIN PERCENTAGE TO QUANTIFY YOUR RETIREMENT FUND

Some financial gurus have set a rule of thumb regarding the percentage of income you need for your retirement. According to them, you need to have 80% of your current salary in retirement. This is utterly exaggerated! The actual amount of your retirement fund depends on your pre-retirement and post-retirement lifestyle choices.

For instance, if you choose to travel frequently during the early months of retirement, you will need to spend more. However, if you choose to live “kampong-style” for the rest of your life, you will spend less. The amount of retirement fund you need depends on what you want to do and how you want to live. It does not rely on a magical percentage!

MYTH #2: YOUR CPF SAVINGS IS ENOUGH

Contrary to the popular myth, your Central Provident Fund (CPF) savings may not be enough to sustain the lifestyle you desire during retirement. Keep in mind that your CPF savings depends on how much you earn during your working years. If your income is relatively low throughout the years then you can expect to receive lesser payouts than your “higher earning” friends. Thus, your CPF savings may not be enough. Also, if you exhaust your account earlier on to pay for your HDB flat then you shall expect to receive lesser payouts than those who bought flats within their “means”.

MYTH #3: RETIREMENT ONLY HAPPENS AT AGE 62

Do you know that some people retire as early as 30? Believing that 62 is the magical retirement age can harm your finances. If you limit yourself to 62 then you may procrastinate on growing your retirement fund, you may ignore the knowledge of bonds and stocks, and you may panic at the last-minute. Retirement actually happens when you have achieved financial freedom. Do not limit yourself to a magical number and regret planning too late.

MYTH #4: MY CHILDREN WILL SUPPORT ME IN THE LONG-RUN

According to the law, your adult child has the responsibility to support you in old age. Protected by the Maintenance of Parents Act, senior citizens who are unable to sustain their lifestyle can apply to the court in order for their children to provide a monthly allowance.

Here are the exact statements from the Maintenance of Parents Act:

“Any person domiciled and resident in Singapore who is of or above 60 years of age and who is unable to maintain himself adequately (referred to in this section as the parent) may apply to the Tribunal for an order that one or more of his children pay him a monthly allowance or any other periodical payment or a lump sum for his maintenance.”

However, the court will consider several factors including if your child is able to afford it. If your child has started a family of his or her own, you can only hope that your child is financially stable by then!

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

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