MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

How to make the best out of your last $300?

Experts estimate that more than 90% of the diseases are stress related. And rapid aging is probably another negative by-product of sustained elevated stress levels. While eradicating anxiety and stress altogether in fast-paced Singapore may be unrealistic, indulging in therapeutic treatments and one’s favourite hobbies can certainly help to manage stress.

Continuing from the article “How to maximise your life with a $3,000 paycheck”, this article is the last in a five-part series and it will zoom in to the ways of deriving the ultimate satisfaction and gratification from life with the last 10% or $300 of a $3,000 salary.

Image credit: taxisingapore.com

1. A short getaway to Johor Bahru

While it is a well-known fact that JB is a shopping and food haven, many may still feel that it is not worth a hassle to beat the checkpoints and commit to the distant travel. However, depending on one’s schedule and opportunity cost, the huge cost savings are hardly resistible. Indeed, food, accommodation, wares and massage services are priced at a steep discount to those in Singapore, especially when the favorable exchange rate persists. Therefore, it may be more sensible and economical to shop in the foreign land to maximize your spending power.

Image credit: outlet.com.sg

2. Go online shopping

Being economically vibrant and prosperous is honorable, but it is not without its costs. Prohibitively high rental and labour costs in Singapore have created much hardship for local businesses, and consequently, the consumers who have to bear the inflated price tags. However, it pays to be technologically savvy. The major growth spurt of online retailers has simply thrived on a low-cost but high-quality principle. Furthermore, online businesses are easily accessible, which enables effortless comparisons. And it is precisely this unmitigated flow of information that heightens competition and further drives down our bills. So, time to hitch on to this modern trend if you haven’t!

Image credit: appleandradish.com.au

3. Learn a fun skill

Learning is limitless. By continually expanding your knowledge and skills, you gain others’ respect while becoming an increasingly invaluable asset to their lives (and of course, you are the greatest beneficiary of your own abilities). It does not have to always be intellectual. It could be an indispensable skill that most people overlook. Thankfully, this gap is plugged by LessonsGoWhere, an online marketplace that brings exciting and enriching lessons covering a diverse blend of 9 categories from baking to photography to an aspiring community. Who knows if one day, the new skill may even change your entire course of life and carve out a rewarding career niche?

What do you need a $300 emergency fund for?

Unexpected events happen from time to time. Some could be delightful while others may be distressing. However, leaving things to luck may not always yield an optimal outcome. Indeed, it is prudent to set up an emergency fund to hedge against uncertainties. Since it is a form of protection, the earlier you recognise the need for this fund, the greater control you will have over your destiny.

Continuing from the article “How to maximise your life with a $3,000 paycheck”, this article is the fourth in a five-part series and it will be looking at the uses of the 10% or $300 emergency fund in coping with many of the life’s surprises – be it pleasant or unpleasant.

Image credit: dynomacapital.com

1. Health Insurance

One of the most debilitating episodes in life is to be afflicted with a chronic or acute disease such as kidney failure or cancer. While the majority of people do not experience such traumatic events, it is nevertheless difficult – if not impossible – to predict if you are the ill-fated one. This is when health insurance is one of the best bets (in the legion of insurance products) before the tragedy strikes. For fresh graduates who are in their twenties, the premiums are pretty affordable and the payouts are formulated attractively. For example, PRUshield extra offers an all-round protection where the insured gets to enjoy coverage from the very first dollar.

Image credit: corp.nhg.com.sg

2. Medical Consultation

As a typical health insurance policy often does not insure against minor ailments such as the common flu, cough or fever, it is thus essential to save up an adequate amount for ad hoc medical expenses. Having said that, it is a heartening news that many employers provide subsidized medical care to their employees. Still, it is a virtuous practice to be readily available to render financial assistance to the medical needs of one’s family members.

Image credit: mashable.com

3. Repair Cost

Occasionally, humans may not be in good shape. But so do our ubiquitous electronic devices, ranging from smartphones to laptops. While most consumer electronics are covered with warranty, it usually excludes personal damage that may arise from negligence or other causes. Therefore, it is crucial to take such accidental cost into account.

Image credit: lesterchan.net

4. Celebration

Joyous parties and festivals occur periodically. It could be an invitation to your superior or colleague’s wedding or baby shower. It could also be part of the family or societal culture to soak in the fun for festivals such as the Mid-Autumn Festival. It is a time where close friends and families get together and wallow in the festive exuberance, developing stronger rapport and splurging on their loved ones and themselves.

How to diversify your investment eggs with $1,500

Singapore may be the world’s most expensive city, but to lead a reasonably comfortable life may not be impossible. It takes significant forward planning and a strict adherence to one’s investment principles to achieve a desirable outcome. This article – the third in a five-part series that continues from “How to maximize your life with a $3,000 paycheck”- will thus explore the different ways to diversify and maximize your returns on a $1,500 monthly “investment budget”.

Image credit: blog.propertyguru.com.sg

Property

A home not only provides a physical shelter, but also instills a sense of belonging and emotional attachment in the members of a family. Therefore, this prized asset is arguably the main driving force that motivates people to work hard and tirelessly, which forms the bedrock of our prosperous society. At the same time, it makes sense to allocate a lion’s share of the investment budget equivalent to 40% or $600 to property. Given that 23% of the wages that are allocated to the Ordinary Account can be used for housing, which thankfully exceeds the regular 20% employee’s CPF contribution, no further action needs to be done to set aside any disposable income for the property budget. Since the CPF savings in the Ordinary Account yield a guaranteed annual interest rate of 2.5%, this should form the benchmark on which the returns of the alternative investment vehicles shown below are based.

Image credit: gelvininfotech.com

Stocks

Evaluating a stock is akin to evaluating your potential life partner. You need to understand it well before you are able to pass a well-informed judgment – to buy, sell or keep in view. And for most working adults, time constraint is a persistent bugbear. But keep your heads up. You just need to stay focused on certain options (both in the arenas of investment and love). Choose the industry that you are familiar and confident with – especially if you are working in that sector or make friends in the sectors that you are interested in – and share the exclusive knowledge and expertise with your selected group of friends to leverage on the pooled insights. Besides that, running checks on the consistencies of the historical dividend yields and the shareholding information of the top management executives of the publicly listed company is pivotal. These track records offer an ultimate backstop when things go awry by providing “consolatory recurring dividends” and a “management confidence boost” (assuming that these companies are content with the status quo). Allocate 35% or $525 monthly to your share investment budget. Engage in the due diligence process while gradually building your ammunition to purchase stocks that offer at least 2.5% dividend yield.

Image credit: pondicherryurbanbank.in

Fixed deposits

While most fixed deposit interest rates are considerably lower than 2.5% and grimly sufficient to beat inflation, it is nevertheless a secure source of income, especially during a recession where stock prices and incomes are falling. Moreover, it offers flexibility as you can decide on the tenure of your fixed deposits that ranges from 30 days to 10 years. Therefore, cap your downside risks by designating 15% or $225 to fixed deposits and be assured of the steady returns to this investment.

Image credit: forbes.com

Savings account

Saving up for a big ticket item like the upcoming iPhone? The remaining 10% or $150 should not be tied up in any illiquid investment vehicles. It is a good financial management practice to reserve a small portion of the investment budget every month for the pursuit of the latest trends or luxury indulgences instead of bursting your credit card limits on such occasional treats.

While these measures may not propel you to the top 10% of the Singapore’s population, they serve as a general guide to better manage your finances. As always, sheer hard work and discipline rule the day.

Leverage on modern marketing for your brand

Times have been difficult recently and this resonates with companies trying to keep their costs low. Traditional marketing techniques have been slowly losing its trend due to its time consuming and costly factors. All these things are delivered in print format or in person. On the contrary, Internet marketing transcends outdated form of marketing using the power of online networks and interactive media to reach your marketing objectives. With modern marketing, you can lower costs and accomplish more without catalogs, brochures and any other marketing collateral. You can reach more customers than ever before with its cost efficiency formula.

Spreading the name of your company does not have to be expensive. Owl City SG provides online advertising, marketing and profiling for local companies and businesses. They were nominated this year with “Top 25 Prestige Award 2015” for demonstrating exceptional accomplishment in Business Fields.

Owl City provides excellent Business to Business (B-to-B) services ranging from Profile Portal, E-commerce, Media Advertising and Marketing Consultation.

A recent profound marketing collaboration that Owl City has undertaken involves assisting Central Narcotics Bureau (CNB) on their Drug Awareness Campaign by managing CNB’s “Life Does Not Rewind” FaceBook page. In there, creative marketing techniques such as videos and games contests were showcased with highly creative and engaging content resulting in overwhelming responses from the general public.

Essentially, Owl City’s achievements would not have been made possible without Miri Yeo, the Founder of Owl City SG. Through her sheer determination to pursue her passion of starting up a marketing firm, she stands firm to her beliefs that profit maximization should never be her main goal, rather the importance of advocating an honest reputation when doing business, alongside with maintaining top-notch work quality standards and efficiency.

Fundamentally, over 300 clients who have engaged Owl City SG’s advertising and branding services have left them with positive feedbacks which resulted in significant cost savings in the long run. Owl City SG remains as a prime choice for people who wish to grow and expand their businesses, and customer bases. Its grasp of modern media and advertising is second-to-none.

An example on how Owl City provides a comprehensive services to Yoogane, a Korean restaurant in Singapore:

Yoogane, client of Owl City Singapore

For more information on Owl City SG, refer to the links below:

http://www.owlcitysg.com/ (Business to Business Services)
http://www.owlcity.com.sg/ (Business to Consumers Services)

This article is brought to you by Owl City Singapore.

How rewards could be the cash card for the financial services industry

Loyalty That Counts

James Berry, e-Commerce Director from Collinson Latitude explains how for banks and credit card providers, it’s time to make rewards add up, or risk losing out.

Consumers are keener than ever to shop around for a good deal when it comes to their finances, you just need to look at the rise of personal finance sites like Money Digest to see that. Armed with smartphones and 4G, they compare everything from the cheapest travel insurance to the best credit card rate, and are not afraid to do their research in order to get the best return for their hard earned cash.

In a new report, ‘Taking Account: The consumer perspective on loyalty programmes in financial services’ it was highlighted that nearly two thirds (63%) of consumers globally are now swayed by rewards on offer when choosing a new bank and credit card. In Singapore, stronger sentiments are expressed with nearly three quarters (73%) indicating that rewards have an influence on their choices, exceeding that of the global average. This actually ranked rewards on offer above customer reviews and almost on a par with brand reputation in terms of their sway in consumers’ decision making process.

But, it seems the financial service (FS) providers are playing catch-up when it comes to customer satisfaction. Many remain lulled by the false sense of security created by years of stable loyalty, as only 1 in 10 Singapore consumers said their rewards programme offers an excellent service.

The fact is the rules of engagement are changing.

Making Rewards Add Up

So we know loyalty programmes have a significant impact on consumers purchasing decisions when choosing a new bank or credit card, and that a positive rewards experience can evoke loyalty – but if it was that easy wouldn’t everyone be doing it?

The simple answer is yes, but it’s not that simple. Availability of a programme is one thing, matching it with increasingly high customer expectations is quite another.

Consumers today expect rewards that are suited to them and their lifestyle. Over eight in ten of respondents globally said that their reward programme would be better if it offered more choice and allowed them to choose the categories of reward they wanted. The point is, customers have come to expect value, flexibility and choice when it comes to rewards. With more than one in two preferring to engage with their programme online, offering a single channel package will no longer suffice. Using customer data to pinpoint their preferred touch-points and fitting the redemption process around these will encourage conversion, beneficial to customer and financial providers alike.

Cashing In On Loyalty

Unfortunately many companies in the FS industry continue to look towards reward programmes as an ‘add on’ rather than as an integrated part of their business offering; this undoubtedly has a knock on effect for customer satisfaction.

What’s important for programme managers and marketing professionals in the sector to realise is that consumer expectations have changed; they expect to be rewarded for their custom 24 hours a day, 7 days a week, on the device of their choice. Banks and credit providers need to start investing in more personalised reward programmes that offer consumers greater choice and accessibility.

In an era where online banking, live chats, mobile banking and remote account management are considered a necessity rather than a value add for ‘connected customers’ – rewards and incentives are helping differentiate providers. In fact, around three quarters said they would like better access to rewards online and the ability to redeem their rewards more easily.

The Forecast for Loyalty in Financial Services

Over the past ten years and during the midst of a world-wide economic crisis, the financial services industry had a shake-up – one that has thrown up new ways of doing things and ultimately changing the way consumers interact with them. So far, many have managed to keep hold of their customer base, but how many of that base have already taken a loan or a credit card with another provider?

It’s hard to say, but what is clear is that with smartphones in their pockets and information at their fingertips, it’s easier than ever for your customers to look elsewhere. And when they do, a decent reward programme will be towards the top of their priority list.

If you’re unsure how to go about ensuring your reward programme meets these needs our tops tips below are a good place to start:

Search the site