Debt is the amount of money borrowers by an individual or a corporation used to make huge purchases that they cannot afford under the normal circumstances. Pay this debt in a later date and you would get fined with interest! As of June 2015, the total card billings in Singapore amount to S$3,980,000.40 million! If you do not owe anybody now then, good job! You can start browsing our other articles and enjoy your debtless life. For the rest of you, there is an easy way to check if your debt is not healthy and it is called: the debt check.
DEBT CHECK
The debt check gives you 4 warning signs that you are heading to a troubled path. Awareness of this will come a long way later on. Check if these apply to you:
1. You do not know exactly how much you owe. This shows that you are not in control over your debts.
2. You are usually paying late for bills and sometimes, you go over your credit limit. This could only pile up the debt even more.
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3. You use your credit card as you would use a debit card just to get by. You can be charged with a higher rate of interest.
4. You are borrowing money to pay your debts. In a sense, you are currently borrowing money to pay the money that you previously borrowed. This vicious cycle is how most people get into trouble.
MAKING YOUR DEBTS HEALTHIER
If all or any of the warning signs apply to you then, you need to take action – now! Take control of your debt and live a happier life by:
1. GATHER DATA
The first step is to gather date of where you are financially. It is important that you are aware of your current debt situation by knowing: how much you owe, to whom you owe these to, how often do you need to repay the amounts, and what interest rates are attached to these.
2. PRIORITIZE DEBTS
The consequences of not paying off some debts are more serious than others so, you must divide your debts into categories. The categories are priority and non-priority debts. Priority debts include mortgage, rent, government tax, loans, utility bills, and child maintenance (if applicable). These are priority debts because you do not want to lose your home, to be bankrupt, to have your electricity cut off, and to be summoned in court. The rest of the debts are non-priority debts.
3. ESTABLISH A BUDGET
Establish a budget to track your spending and savings. Keep track by having an online or physical journal where you log your cash flow every month. By doing so, you will get a fuller picture of where you spend too much and where to cut down costs. You can get out of debt faster if you prioritize paying it.
4. STICK TO YOUR BUDGET
Here are some helpful tips to ensure that you stick to your budget:
Whenever we go for first dates or job interviews, us women prefer to put our “best foot forward”. Aside from making a great impression, we take this idiomatic expression literally by preening the nails on our foot or hand to perfection!
With all the specialized nail salons sprouting over Singapore, it has been difficult for us to choose the best ones. But in totality, we look for a nail salon that has friendly staff, hygienic practices (e.g., uses clean tools), and value for money. That said, here are the 4 nails salons that suit your needs…
1. MANICURIOUS
Located at 41 Beach Road, Manicurious may just be a woman’s paradise. It is a unique store that combines a nail salon with a cafe corner and a retail section offering shoes, accessories, and handbags. The interior of the store is relaxing, vintage, and neat. You will surely feel cozy in their armchairs while you choose from an array of polish colors. Their reasonable service prices (e.g., express manicure or nail shaping) start at S$6 while add-ons (e.g., hand scrub or quick dry) prices start at S$3.
What’s more? They have 20% off nail services from Monday to Thursday at 11 am-4 pm (T&C apply).
Gelish manicures may stay for the longest time but they can get very pricey even amounting to over S$60! Thankfully, you can go to Lily Nails Salon for an unbelievably affordable express gelish manicure costing about S$16. You can avail this whether you are working or you are studying. Aside from this, they have interesting designs with an assortment of polish and gelish colors. The express manicure is priced at S$8 while the classic manicure is priced at S$9.
Aside from pampering the nails of some celebrity brides, Nail Queen Beauty Services is known for its premium nail art service. Located at Far East Plaza, this nail salon is great place for fashionistas to soothe their nails after a long day of shopping. Their express service ranges from S$12-15 while classic service ranges from S$25-35. And, their express gelish costs S$30-35. What you will love about this salon is the vintage interior and the amiable staff.
Since 2003, Fingerwork has been renowned for its gel nail extension and nail art services. Located near Raffles MRT, working ladies in the area can enjoy personalized manicures or pedicures are reasonable prices. Also, students can enjoy discounts from time to time. The prices for the manicure range from S$6-46 while the prices for pedicure range from S$9-56. For instance the express manicure is about S$12 while the express pedicure is about S$17. Aside from this, you can indulge on their nail enhancements including nail repair, gel infill, and temporary tips.
If you give yourself an opportunity to freelance or by being your own boss, you may be able to do the things you love and get paid for it. Also, you can have the freedom to design a schedule that works for you and still be able to nurture your loving children!
Yes! Sometimes, stepping out of the cubicle to be a self-determining entrepreneur or a freelance worker gives you the opportunity to find yourself while bringing money in the bank. Nonetheless, it will give you self-benefiting outcomes. Start with these 5 jobs that take purposeful risks…
1. OWN AN ONLINE SHOP
Do you love to make cupcakes, jewelry, or essence oils? Turn your hobby into your own business. Be your own boss by thinking about your skill set and hobbies then, start making an online business out of it. Popular platforms for selling or making your own online shop such as: Carousell and Tictail, are available for free. Furthermore, these platforms have a growing following of audience or customers already.
2. BE A SALES REPRESENTATIVE
Sales representatives or brand ambassadors sell household, beauty, or health products in their own ways. Join millions of independent ambassadors of Herbalife or MaryKay worldwide by visiting their respective websites. Here are added information that you can benefit from:
If you enjoy writing or sharing your ideas then, becoming a blogger might just be for you. There are many ways to monetize a blog such as advertising, memberships, selling books, product affiliations, becoming speakers, and so on.
A blog may lead to success with a combination of hard-work (e.g., countless hours of writing articles and editing videos), networking during events, media affiliations, luck, and building a fan base. A job as a full-time blogger can be so persistent in your life that you can be working everyday without noticing it!
4. BE A FINANCIAL CONSULTANT OR ADVISOR
In general, Financial Consultants or Financial Advisors are professionals who guide their clients to manage their money, investment options, and asset relocation. But, what they do is far more complex than that. A career as a Financial Consultant gets to enjoy the flexible working hours and the privilege to get the job incentives.
It involves a lot of paperwork, preparation, and building relationships. It can not only be challenging as they face a lot of rejection but also rewarding as they see their clients improving their monetary lifestyle. There is a job growth in this field as long as you go through continuous training with determination and openness.
5. PURSUE AS A PROPERTY AGENT
Early this year, a young property agent by the name of Shirley Seng sold a penthouse in Le Nouvel Ardmore for S$51 million. With that, she gained a commission of a whopping S$1.5 million! It’s like winning the jackpot!
Image Credits: pixabay.com (License: CC0 Public Domain)
Truly, the top richest people in Singapore have been involved in either the property business or the property development. But, what is a property agent exactly? A property or a real-estate agent is someone who arranges the selling, renting, and management of properties. So, be prepared to be creative in your marketing strategies and to be able to build a good network of people to aid in financial crises.
Many Singaporeans look to their CPF to provide for retirement. As the General Election draws close however, some critics have panned the retirement scheme, saying it no longer suffices. Have a look at some of the realities of the CPF, and decide for yourself:
What is the CPF?
The Central Provident Fund (CPF) is a mandatory savings scheme for Singaporeans. This fund is used to provide for a range of crucial financial needs, such as healthcare, retirement, and home ownership.
Your CPF is automatically deducted from your wages, and your employer is also required to pay a portion into your CPF. Compulsory CPF contributions are as follows:
Age
Your contribution
Your employer’s contribution
Up to 50 years old
20% of monthly income
17% of monthly income
From 51 to 55 years old
19% of monthly income
16% of monthly income
From 56 to 60 years old
13% of monthly income
12% of monthly income
From 61 to 65 years old
7.5% of monthly income
8.5% of monthly income
Above 65
5% of monthly income
7.5% of monthly income
Your CPF is divided into an Ordinary Account (OA), a Special Account (SA), and your Medisave account. The interest rates for these accounts (as of 2015) are:
OA – 3.5% per annum
SA – 5% per annum
Medisave – 5% per annum
You do have the option to invest your CPF money in other schemes, based on an approved list. However, the returns are not guaranteed, and the government will not replace any losses you incur. You can see further details on allowable investments here.
Once you reach the age of 55, you will be able to withdraw all the money except for a required Minimum Sum. The Minimum Sum is placed in a Retirement Account (RA). From the age of 65, savings in your RA are disbursed to you in monthly payouts, which should ideally last till you are 90.
The Minimum Sum (as of 2015) is S$155,000. From the age of 65, this should provide monthly payouts of around S$1,200.
Is the CPF Alone Enough to Retire On?
The answer for most Singaporeans is “yes, but…” Here are some of the factors you need to consider:
Your CPF depletes very quickly when used to pay for your flat
The CPF rate barely keeps pace with inflation
A lot depends on how comfortable you want your retirement to be
1. Your CPF Depletes Very Quickly When Used to Pay for Your Home
Buying a home is one of the ways Singaporeans use their CPF. When you take out a HDB concessionary loan, the entirety of the down payment can come from your CPF*.
(*This does not apply to private bank loans, in which only 15% of the down payment can be made with CPF.)
CPF can also be used to pay for certain fees, such as the legal paperwork for the purchase. Mortgage repayments can be taken from your CPF rather than your bank account.
But this means that, if you use too much of your CPF money purchasing a house, there is a real possibility of it running out.
If you use HDB loans, the interest rate is 0.1% above the prevailing CPF rate (3.6% at present). If you use a private bank loan, the rate fluctuates according to an index, such as SIBOR or SOR. Both options can wipe out your CPF, and leave too little even for the Minimum Sum.
So if you want CPF to provide for your retirement, never overreach and buy a property beyond your means. If you buy the biggest house you can possibly qualify for, be aware that you could be forced to sell it to fund your retirement.
2. The CPF Barely Keeps Pace with Inflation
Singapore’s core inflation hovers at around 3%, which is on par with most developed countries. This means that the general cost of living goes up by 3% with each passing year, and your wealth is being depleted if it can’t grow as fast.
Given the CPF’s return of 3.5% and 5% (for OA and SA respectively), your real returns are only around 0.5% for OA and 2% for SA. This means that relying on CPF alone will provide for a very modest retirement.
Should you have plans after you stop working (e.g. travel the world, look after your grandchildren financially), it may not be a good idea to rely solely on CPF. You should speak to a financial advisor or a wealth manager about different investment products, which can complement your CPF.
3. A Lot Depends on How Comfortable You Want Your Retirement to Be
A pay out of S$1,200 a month is comfortable for some people, but painful for others. We are all used to different standards of living. If you enjoy a high income of S$15,000 a month, for example, switching to S$1,200 a month will be extremely painful.
As such, it is important to work out your desired Income Replacement Rate (IRR). This can be done with holistic financial planning, which also takes into account the amount you will need at retirement, and how long you have to get there (your investment horizon).
Do not believe any arbitrary “rules”, such as sayings that you must have a million dollars to retire in Singapore, or that S$500,000 is enough to quit your job. Such figures are not grounded in your specific needs. Speak to a qualified wealth manager or financial advisor to identify the sum you need.
A Note on Debt
Personal loans range from 6 – 8% per annum, and credit card loans reach around 24%. Your CPF interest rates (or the rates of even the most phenomenal financial products on the market) will never “outgrow” your debt. It is almost impossible.
If you want to retire well, you must pay down your debts early. Be an extreme miser with loans. Make comparisons every time you need money from the bank. You can find the best loans on SingSaver.com.sg.
In Summary:
The CPF is enough to provide the bare basics, when it comes to retirement. However, your retirement will not be lavish if you rely on CPF alone, especially if you are used to a more expensive lifestyle.
Hawker food is part of Singapore’s heritage, and is the place to go to for a spread of local delights without the price tag.
From your favourite Chicken Rice to Wanton Mee and Mee Rebus, wouldn’t it be good to find out the stall that sell the cheapest local fare in Singapore?
The Ministry of Trade of Industry (MTI) has launched a Hawker Guide early last month where you can search for the cheapest hawker dish in Singapore island-wide.
It is user-friendly and you can simply select the hawker dish from their list of budget hawker food.
In this example, Chicken Rice has been selected.
You can then search their database according to their location:
The search results will show the cheapest chicken rice in ascending order.
This is a pretty handy guide that is worth sharing with your friends, or for any visitors that are coming to Singapore! Now at least you know where to get the cheapest Nasi Lemak in Singapore.
