MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Bored? Here Are 4 Ways You Can Make And Save Money Right Now!

Boredom is unavoidable. It can happen to anyone at some period of time. With this period, you can either waste your time on non-sense facades or get your creative juices flowing! I would rather choose the latter.

Do something productive with your time while earning and saving money with these 4 simple ways:

1. KEEP TRACK OF YOUR PERSONAL FINANCES

Having a good amount of time to spare can be efficient if you utilize it to organize your personal finances. Start by tracking your bi-weekly and monthly income and expenses. Then, review your monthly budget. Contemplate if the budget is enough or overboard.

Image Credit: 401 (K) 2012 via Flikr

Afterwards, you must review different strategies to improve your budget. These strategies may include cutting down expense categories, limiting your shopping trips, or using coupons.

2. INEXPENSIVE INTERACTIONS

If you are trying to defeat boredom while living frugally, you must practice inexpensive ways to socialize or interact with the people who are important to you.

For instance, you can save more money while having the equal amount of fun when you are having your friends over at your house.

Image Credits: Alex Bellink via Flickr with CC License

You can also score free and delicious home cooked meals at your parents’ house. Of course, that comes with having a quality time with them.

3. ANSWER ONLINE SURVEYS

Bring your boredom to your advantage by answering online surveys while making decent money out of it. Answering online surveys is a type of freelance work done during your own convenience. However, it is important to highlight that several companies pay a couple of dollars while others compensate you with gift cards or rewards (e.g., iTunes or Amazon gift card).

Image Credits: 401(K) 2012 via Flickr with CC License Attribution-ShareAlike

Suggested online companies that conduct surveys are: SurveyMonkey, Opinion Outpost, and SurveySpot.

4. BUILD A BLOG

Share your thoughts and the things you are passionate about while making loyal followers and extra money through a blog. In order to get started, your blog must have a thematic niche such as fashion, finance, or parenting. Preoccupy your time by improving the blog’s design and content. Then, start earning by placing advertisements or becoming an affiliate partner.

Curious on how much a successful blogger can make? Well, they can earn as much as S$5,000 a day. Not bad for something that might have been a by-product of boredom! 🙂

Image Credits: Mike Licht via Flickr with CC License

Sources: 1, 2 , & 3

Smartest and Dumbest Ways to Use Credit Cards

Here’s the truth: whether you like it or not, we are living a life that has been accustomed to using credit cards. They seem to be rampant everywhere. There are even some places that only take payments via credit or debit cards. And it is also a given fact that most of us have at least one credit card in our wallets.

But take note that accessing credit cards is not a right but a privilege. If you make mistakes, you might just end up in a sea of debt that you’ll find very hard to clear.

With the advent of credit cards comes the dumbest and smartest ways to use it. Here’s a quick list of the dumbest moves that will surely leave you with a lot of credit debt.

Making late payments

Never mistake a due date as a guideline. It is your responsibility to execute timely payments for your credit use. Remember that although there are rules that must be followed, credit card issuers remain to have the right to raise rates when it comes to late payments. When you pay late, the following will apply to you:

You will be obliged to pay a late fee, and
Higher interest rates may apply to your future purchases. In some cases there may be an interest rate adjustment, but this is not an absolute fact.

Paying minimum for your credit card use

If you are paying the minimum in your credit debt now and then, it’s not actually a big deal, but it won’t be good at all anymore if you make it a habit. Paying only the minimum can dramatically increase your credit debt.

Abusing credit card cash advances

While there may be emergencies where your only option is to take cash advances, always remember that it is not a cheap deal. In general, licensed moneylenders can be a quick fix for your financial needs but it can incur up to 48% interest per annum. You can consider a personal loan before considering cash advance. There are several free personal loan calculators that can help you assess which will help you save more.

If there are dumb ways to use your credit cards, there are also considerably smart ways to utilise them. Credit cards offer valuable rewards when utilised properly. Here are the smartest ways you can utilise your credit card.

Earn credit rewards for spending

When you use rewards credit cards, it can earn valuable points, air miles and even cashback for up to 6% of your purchases. This might be a meager amount but some card holders earn a few hundred dollars with cashback rewards on a yearly basis. The best cashback credit cards in Singapore are usually just within reach.

Credit cards as a payment method

Paying your credit card statements within the grace period will help you avoid credit charges. When your credit cards are used as a payment method, it will allow you to enjoy a handful of benefits at no cost to you.

As your protection from devious merchants

When the merchant fails to deliver the services or items you have purchased, you can get help from your credit card provider during this dispute. If your credit card provider can verify your claim and block your payment, you just might be able to get your money back. However, keep in mind that this is only applicable with certain products. Always check the terms and conditions before applying for a credit card.

As a way to build your credit

Building your credit score is the best way you can do to qualify for the most affordable rates when doing big purchases. Observing how your credit card score affects your chances of getting a loan approval. If your credit score is bad, you don’t get approval on a loan. At most you will get a higher loan quantum with a good credit score. The best way still to improve your credit score is to get a personal instalment loan and pay it back consistently.

(This article is brought to you by SingSaver.)

There Is A Fine Line Between Frugality And Cheapness

Frugality and Cheapness are seemingly the same but are entirely different personas.

DEFINITION

According to freedictionary.com frugality is costing little why cheapness is being stingy. In order to analyze these two terms better, here is a concise list:

FRUGALITY

a. Taking advantage of great deals, promotions, or sales while planning for purchases.

b. Delaying gratification and pleasure to make huge purchases or decisions.

c. Does not obsess over brands.

d. Does not sacrifice the quality of the object because solely of the price.

CHEAPNESS

a. Being cheap affects the quality of life as well as everyday interactions.

b. Basic needs are of lesser quality than the norm.

c. Does not binge shop when one has money.

d. Will sacrifice the quality of the object just to by the cheapest one.

Simply, when you are willing to wait for the promotions on Singapore Airlines in order to get the best deal and good quality of flight then, you are frugal. But if you are refusing to spend more than S$150 on a ticket even when it is not feasible then, you are cheap.

TWO PRIMARY DIFFERENCES

There are two observable primary differences between frugality and cheapness. Namely:

1. FRUGAL PEOPLE MAXIMIZE THE WORTH OF THEIR MONEY AND TIME; CHEAP PEOPLE MAXIMIZE SAVING MONEY REGARDLESS OF THE COST

For instance, your group of friends decided to spend the weekend at Bali.

A frugal person will use various money saving strategies in order to build up a fund for future huge purchases or decisions. He or she may opt for in-house water at restaurants, packing lunch for work, and limiting buying new clothing in order to save up for a weekend at Bali. While, a cheap person will skip the trip all together until someone pays for his or her travel.

2. FRUGAL PEOPLE USE VALUE WHILE CHEAP PEOPLE USE PRICE

Say you are grocery shopping.

A frugal person will use accumulated coupons and purchase items that are only on his or her shopping list. On the other hand, a cheap person will highly decline to spend more than S$90 on a week’s groceries even though it is not sufficient for the whole family.

Image Credits: Paul Swee via Flickr Attribution-NoDerivs

With all this in mind, you can now ask yourself: “Do I want to be consistently frugal or just plain cheap?”

Sources:1,2 & 3

5 Things That Are Far More Important Than Money

Hustling through the most expensive city in the world, it is impossible not to get consumed with making money. We sacrifice our time and energy just to make sure that all the bills are taken care of. A lot of focus is really on building wealth in our society. But if we are mindful about the present, we will realize that there are far more important things than money. Start with these:

1. GOOD HEALTH

As the old saying goes: “health is wealth”. As long as the fountain of youth has not been located, our brain and body deteriorates as time goes by. Although we are aware of the benefits of physical activity to our health, most of us do little of it. So, instead of getting consumed by earning, lead a healthy lifestyle packed with exercise and balanced diet.

2. TREASURED TIME

If there is something money cannot buy, it is absolutely time! Time is one of the most important commodities on Earth. It is limited. And, once it is gone, you cannot take it back. Adding health into the equation, if you have been living with an unhealthy lifestyle then your time may be shorter than the rest. This is why you must make every second count.

3. APPRECIATED RELATIONSHIPS

Since our time here is limited, we must constantly put effort into making our loved ones feel that they are appreciated. Show affection by your presence, hugs, and kisses. Help one another in the time of need as this will only keep the bond stronger. Furthermore, one’s overall health is improved by continued support from his or her family and friends.

4. WISDOM AND KNOWLEDGE

William Shakespeare once said: “A fool thinks himself to be wise, but a wise man knows himself to be a fool.”

Wisdom comes from the knowing how minute you actually know. Submitting yourself to updated books and new experiences can fuel the lifelong learning process. Be amazed with how much knowledge you gained, often far beyond what you had hoped. Ultimately, this will lead to personal growth – another thing that money cannot buy.

5. DAILY GRATITUDE

Thankfulness increases happiness within you and beyond you. Instead of focusing on what you do not have, be appreciative of the things that you have. Before you go to sleep or the after you wake up, think of 3 things you are thankful about. This changes your focus from your stressors to the beautiful things that you might have taken for granted.

Image Credits: Evelyn Lim via Flickr with CC License

Sources: 1, 2, 3, & 4

How To Not Go Over Budget While Traveling

After working tremendously for a year, a vacation is a well-deserved reward. However, it is easy to become complacent and carefree over your budget. Going over board your budget when on a relaxing getaway is simple, but there are many ways to save money too! Here are just some of them:

1. DO PRIOR RESEARCH

The places you can go to heavily depend on your travel budget. For instance, if you have a considerable amount of money then, go to Europe than limiting yourself to Southeast Asian countries. Choosing an affordable destination that is suited to your travel budget is the first step. Do your research by comparing the accommodations, activities, transportation, and food costs of two preferred countries. Then, narrow it down to one.

2. IDENTIFY YOUR BUDGET

Once you know where to go and how long you are going to be there, you need to figure out how much your travel budget is. Start by identifying how much your spending will be per day. Include unforeseen expenses as well as food and travel costs.

3. BE SMART IN GETTING CASH

If you are still torn between two countries, compare their exchange rates. Sometimes, they make the largest difference. Since some of the foreign exchange centers have poorer rates, it is better to get the currency at the airport or at the ATMs (e.g., in Taiwan and France).

4. SET ASIDE MONEY FOR EMERGENCY

Speaking of unforeseen expenses, it is necessary to prepare for unforeseen circumstances too! If you have travel insurance then, this is only secondary. Money for emergency is important but try not to use it unless the situation absolutely requires it. You have to stick to your travel budget as much as possible!

5. SAVE ON FOOD

There is a greater chance that the breakfast from the hotel is expensive. So, it is better to walk out the door and find a nice local cafe in the mornings. You can immerse yourself to the place, the people, and the culture better by trying their local cuisine. Keep in mind that locally made food and beverage are often cheaper.

Alternatively, you may cook for yourself. Cooking in a new environment, even on a vacation, can be fun!

Image Credits: Nicole Abalde via Flickr Attribution-NoDerivs

Sources: 1 & 2

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