How to stay focused on your financial goals

green plant in a pot of coins

We’re down to the final week of February. Do you already find yourself struggling to put away some money for the upcoming months ahead?

You’re not alone. It’s harder than most people think to stay focused on their financial goals, and we’re here to lend a hand in finding your way forward.

Stay on this page if you want to find out more on ways to stay focused on your financial goals amidst the prolonged pandemic.

Factor in your dreams for the future

Do you know that many people don’t plan for the future because they don’t take enough time to dream about their financial goals and what they can hold?

Pondering over what you want to achieve this year and beyond can help you stay on track to reach it. For instance, are you looking to buy a house? Or are you looking to pay off your loans in two years?

Figuring out what you want to achieve will assist you in crafting a game plan to get there.

Be realistic and take concrete steps
planning a budget

Image Credits: TLNT

Some of us come up with lofty dreams when planning for the future. Perhaps you’re trying to achieve your goals too quickly without considering the finances you have available. Or it could be that the dreams themselves aren’t that reachable based on your current financial status.

If your dreams aren’t attainable, you will find yourself sidetracking on your financial goals down the road. So, plan your next steps based on your available budget and be practical about what you can or cannot do.

For example, if you have plans to buy your first home in the future, these are some real questions to ask:

  • How much do I need to save?
  • How to set aside this big sum?
  • Do I need to create an emergency fund?
  • How to grow my pot of savings?
  • Should I maximise my CPF?
  • Can I maintain a healthy credit score?

Take concrete steps (no matter how small) if you want to stay focused on achieving your financial targets.

Tweak your plans if necessary

If there is anything that the COVID-19 situation has taught us, it’s that life throws us lemons sometimes unexpectedly. Always be ready to rethink your financial goals should more lemons be thrown your way.

Maybe you’re expecting an unplanned baby, which means there will be changes in money priorities in the years to come. You don’t have a lot of time to make adjustments because once the baby arrives after 40 weeks, there will be significant changes to your lifestyle.

With that said, your immediate focus should then be on how to survive the first year financially. Take it one step at a time, and you will eventually get there.

Keep your eye on the finishing line
finishing line

Image Credits: scientificamerican.com

You’ve designed your financial future for a reason. When you forget what that reason is, it’s easy to get distracted and go off course. To stay focused on your financial goals, make sure you keep an eye on the finishing line. That’s what you’re working towards.

Several banks in Singapore like OCBC and DBS allow you to save a sum automatically each month. This automated savings will be a great tool to help you gather your money for that big purchase in the future.

Final thoughts

Your financial goals matter, and to keep that at the forefront of your mind, you will want to consider the tips mentioned in this article. Read this if you require more motivation to reach your saving targets!

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There’s a new insurance savings plan called “Dash PET” that is not for your pet

Dash PET cover image

Are you looking for a new insurance savings plan that allows you to Protect, Earn, and Transact (PET)? Then you might be interested in a project called Dash PET. If you’ve read the title and clicked in, you would have known that this policy is not for your pet.

The insurance savings plan is part of a product offered by Etiqa Insurance in collaboration with Singtel Dash. Etiqa Insurance is a licensed life and general insurance company registered in Singapore. They want you to think of Dash PET as the PET that takes care of you.

“We saw a gap we could fill amid the uncertain climate to help our customers grow their money smarter and faster. Using insights gleaned from the success of Dash EasyEarn, our first insurance savings plan, Dash PET is a new product with greater flexibility and a lower entry point,” Singtel’s International Group CEO Arthur Lang said.

To that, Etiqa Insurance Singapore’s CEO Raymond Ong added that they had designed Dash PET to be an innovative all-in-one insurance plan with a savings component and on-demand protection for the end consumer.

Peeps searching for an insurance savings plan where they can take full control of their finances, look no further! We will guide you through what Dash PET can offer you.

What Is Dash PET?

Dash PET on mobile mock-up

Dash PET is as cute and as useful as it sounds. It helps you maximise your money with savings at high returns, gives you guaranteed capital, and full flexibility of funds. As you invest more money into your savings account, your Dash PET will grow and provide a desirable incentive in the long run.

A comprehensive insurance plan focused on achieving simplicity for you; there are no unnoticed loopholes that could cause you problems later. Keep reading to find out the gains of Dash PET.

How can I benefit from it?

Dash PET benefits

Dash PET has an eclectic range of benefits that are solely focused on bettering your financial health. It also provides you with the support you may need through the pandemic. Worry not about a thing if you face challenging times.

Here’s a breakdown of the main benefits:

  • High returns: It allows you to earn up to 1.7% interest every year* on your savings. As such, Dash PET makes a great plan to have as you continue to accrue your savings.
  • Easy starting requirements: Whether you start with S$50 or S$10,000, Dash PET allows you to begin small and build your savings up to S$30,000.
  • Flexibility: The fear of a lock-in period should not stop you. With Dash PET, there is no lock-in period. This means you can withdraw and top up funds anytime you like without the threat of a penalty.

*First S$10,000: 1.7% p.a. for the first year. Above S$10,000: 1.2% p.a. for the first year.

Is it still not enough to sway you towards the multitude of benefits Dash PET can provide you? Maybe the fact that the policy is administered by the Singapore Deposit Insurance Corporation (SDIC) might give you peace of mind.

Everything else is automatic upon sign-up, so you’re covered without having to take any further action (except for the management of your account).

How do I sign up?

Are you a Singtel Dash user?

Singtel Dash iPhone Screenshots

Great! If you’re aged between 17 and 75 and have a valid Singapore NRIC or residency/work pass, then you are easily eligible to sign up for Dash PET. You can also check against the eligibility rules set by Etiqa Insurance.

Download the Singtel Dash app right now or click here to kickstart your savings journey today!

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How To Alter Your Budget To Suit Your Work From Home Lifestyle

According to the multi-ministry task force handling COVID-19, Singapore may enter Phase Three by the end of 2020 should the community cases remain low in the country. The restrictions reflected by this upcoming phase may last for a year or more. That being said, more and more people are working from home.

This huge shift in the global workplace has brought many changes in our lives. Whenever big transitions occur, it is a good opportunity to re-assess all the aspects of our lives including our finances. What has changed in your budget ever since you started working from home?

Reduced costs on transportation, work clothing, daily coffee stops, and dining out were usually observed in the previous months. In contrast, many experience a spike in utilities, groceries, and online shopping fees. How can you better prepare for your future with this new set-up?

#1: RE-EVALUATE WHERE YOUR MONEY IS GOING

Get a realistic view of your finances by pulling out your bank statements, credit card bills, and other month expenses from the past three months. If you are using a budgeting app such as Mint, you may track your spending using the information inside the app. Look for unnecessary categories or recurring expenses that you can do without. This will help you spend less than what you have originally planned.

Aside from your spending, concentrate on other parts of your personal finance such as investments and emergency funds. You have the luxury of time to re-evaluate how much you are saving in your emergency funds. Ensure that the money you put inside will be sufficient to cover unforeseen events such as unemployment. We must overcome complacency during these tough times.

#2: CONSIDER DIFFERENT BUDGETING STRATEGIES

As you establish your new budget to suit your work from home lifestyle, you may employ different strategies such as goal-specific budget and the 50/30/20 method. The former focuses on the goal and not the percentages. You may start with a specific short-term goal such as saving S$50 for your emergency fund this week or a long-term goal such as putting away S$5,000 for a vacation next year. Break down your goals and allot how much you need to save per week or per month. Ensure that you meet your other financial responsibilities as you prepare for your goals too.

The 50/30/20 method entails putting 50% of your take-home pay to your fixed expenses including groceries and rent. 30% needs to go to your variable expenses such as entertainment and clothing. While, 20% is dedicated to your savings. Choose a strategy that will best work for you.

#3: STORE EXTRA CASH IN YOUR HOME

Many of us are working from home because there has been a shift in the economy due to the unpleasant effects of the pandemic. It helps to be prepared as we live within the realms of uncertainty. Store extra cash in your home for emergency situations. You may label this as your emergency fund, which can cover your expenses for at least six to nine months.

Knowing that you will be alright for a considerable amount of time before needing to use other financial resources can help you sleep better at night. This will prevent you from incurring debts.

#4: MAXIMIZE YOUR TELECOM AND INTERNET PLANS

Because most of our time are spent at home, it comes as no surprise that our utilities are higher now. Do your best to ensure that you are getting the most out of your telecom and internet plans. If your plan has an inclusion of data, try to substitute a costly mobile call for calling over at WhatsApp or Telegram. Various online platforms offer free calling and video-conferencing services worldwide. Take advantage of that!

#5: CONSERVE ENERGY

This new living and working arrangements have considerable effects on our electric bills. As much as possible, conserve energy on the devices and appliances that you work with. Unfavorable habits such as leaving your laptop constantly plugged in or forgetting to unplug your smartphone charger can cost you.

Image Sources: unsplash.com

One of the easiest ways to save energy is by ensuring that your cables or chargers are unplugged. Most devices work best with the 40-80 battery rule. You must plug the charger when your battery drops below 40% and disconnect the plug when the battery reaches 80%. Leaving a laptop or handphone constantly plugged in can cause extra wear and tear to the battery. Take care of the devices, which you use on a regular basis.

Sources: 1, 2 & 3

 

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Beginner’s Guide To Setting Up An Emergency Fund

WHAT IS AN EMERGENCY FUND?

An emergency fund consists of the money you set aside to cover large, unexpected expenses. It serves as your cushion to save you from drowning into debt  and other unfortunate events. It can be used for unforeseen medical expenses, home appliances replacement, automobile repairs, and managing unemployment.

HOW MUCH MUST I SAVE?

When you are starting to build your emergency fund, it is important to value what you have. No matter how small, every dollar counts. Focus on the habit and consistency of saving money. When your financial situation improves, you can increase your savings.

The right amount for you depends on your financial situation, but a good rule thumb is to have enough money to cover your living expenses for six months. If you lose your job during pandemic, you can use your emergency fund for necessities while you hunt for a new job. You can also use the money to supplement your small business. Start small and increase your savings as your financial situation improves.

WHY SHOULD I TRACK MY INCOME AND EXPENSES?

Tracking your income and expenses enable you to get a realistic view of your financial situation. It can pinpoint the amount that is sufficient to cover your living expenses for six months. You can track your cash flow by writing down how much money comes in every month and by writing down your fixed and variable expenses per month.

Do not forget to include recurring expenses such as your rent, utility bills, school fees, and childcare.

WHERE SHALL I PUT MY EMERGENCY FUND?

You can put your emergency fund inside a savings account with a high interest rate and an easy access system. Since an emergency can strike at any time, having quick means to access your funds is crucial. However, you must keep your emergency funds away from your primary bank account. This will help lessen the temptation of dipping into your reserves. Moreover, having a high interest savings account enables you to reap the benefits of compound interest.

HOW CAN I PLAN OUT MY EMERGENCY FUND?

Establishing financial goals and developing a plan to achieve those goals go hand-in-hand. Part of your plan may include specific and realistic targets to work toward. For instance, you may save S$50 per week to put into your emergency fund. Once you have created a robust plan, make sure you follow through.

Sticking to your plan can sometimes be the hardest part of saving for an emergency fund. A good way to stay on track is to save automatically. You may automate your savings and set up a systematic transfer from your primary savings account to your “emergency fund” savings account. Alternatively, you may keep a money jar and label it with: “for emergency use only”.

Sources: 1 & 2

 

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Dash EasyEarn: The easiest way to save for a rainy day

We’re in the middle of a global pandemic, and with the economy swinging up and down, protecting and growing your money is a common concern. Some people may find it easier to save now that they’re home more often, but putting your paycheck in the bank isn’t making the most of your hard-earned savings, especially with banks reducing interest rates across the board.

In these uncertain times, it is definitely prudent to consider safe and flexible options to save smarter and grow your hard-earned savings. There are many financial tools available in the market that offer this, and you should choose one that gives you the best peace of mind, without compromising on your returns.

With that said, you might be excited to find out about the latest addition to the all-in-one mobile wallet Singtel Dash: Dash EasyEarn, a unique insurance savings plan underwritten by Etiqa Insurance, which will help you save better for a rainy day. This insurance savings plan offers an astounding 2% p.a. returns for your first year* with a minimum starting amount of S$2,000.

The best part? You can sign up directly through Dash on your mobile phone, with just a few clicks. Read on to find out more!

Enjoy attractive returns with capital guaranteed

Dash EasyEarn is capital guaranteed AND offers a very competitive 2% p.a. returns for your first year*, regardless of market movements. So if you’re risk-averse, especially in these uncertain times, you can rest assured that your savings will be safe – even if you have to withdraw it in times of need. Dash EasyEarn also has no lock-in requirements – which brings us to the next point on its flexibility.

NB: With effect from 25 September 2020, Dash EasyEarn will be revising its bonus rate to 0.3%, bringing the rate to 1.8%^ p.a. for the first policy year**.

Existing Dash EasyEarn users will continue to enjoy 2% p.a. (guaranteed 1.5% p.a. + 0.5% p.a. bonus) for the first year starting from their policy start date, including subsequent top-ups.

In addition, Etiqa Insurance will be extending an additional Financial Assistance Benefit for COVID-19 to all new and existing Dash EasyEarn policy holders. For more information on the benefits and other terms of this Financial Assistance Benefit, please visit https://www.tiq.com.sg/covid19/.

Ultimate flexibility with no lock-in period  

Image credits: Singtel Dash

Another great thing about this product is how flexible it is. After you’ve transferred your initial minimum premium of S$2,000, you can always make additional top-ups^ when you want, or withdraw what you need with no penalties.

There is no lock-in period, so if an emergency should arise, you’ll be able to access your funds immediately by withdrawing directly into your bank account or Dash wallet to tide you over.

^Maximum account value is S$20,000. Each top up must be a minimum of S$500. Minimum account value of S$2,000 must be maintained to be eligible for returns.

Open to everyone

Whether you’re a student, young professional or already savvy at saving, anyone can download Dash and sign up for Dash EasyEarn – all you need is S$2,000 to start growing your savings. As an insurance savings plan, Dash EasyEarn also comes with a layer of insurance coverage of up to 105% of account value in case of death.

Can’t wait to get started? Simply download the free Dash app today to sign up for Dash EasyEarn, and watch your savings grow.

It only takes 3 simple steps to start your savings journey with Dash EasyEarn.

  1. Sign up for Dash EasyEarn through the app
  2. Top up your Dash EasyEarn plan with your bank account
  3. Watch your savings grow!

Image credits: Singtel Dash

For more information, please visit www.dash.com.sg/easyearn.

Disclaimers

  • The information is meant purely for informational purposes and should not be relied upon as financial advice.
  • This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is accurate as at 29 June 2020.

  • *Effective for sign-ups up to 24 September 2020 (date inclusive): Guaranteed at 1.5% p.a. + 0.5% bonus for the first policy year.

  • **Effective for new sign ups from 25 September 2020: Guaranteed at 1.5% p.a. + 0.3% p.a. bonus for the first policy year, available on a first come, first served basis.

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