Beginner’s Guide To Setting Up An Emergency Fund

by  in Savings
0 Comments

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

 

Read More...

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

by  in Savings
0 Comments

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.

Read More...

How To Save Money In Your 20s

by  in Savings
0 Comments

You are in your twenties! You may be thinking that you have the rest of your life ahead of you. Well, you are right. Whether you just graduated from university or are on your way to finish your final term, you can start sending out your Curriculum Vitae.

Finally! You landed your first full-time job, before the Circuit Breaker period started. During your first two weeks, you learned the rules of the trade. You were able to find your rhythm and your work tribe along the way. Then, you received your first paycheck.

You hold your hard-earned money in your hands. Suddenly, you felt like a kid in a candy store. You want to buy whatever you see with this newfound wealth. Are you going to blow off your paycheck in one day? Or, are you going to save it for the rainy days?

It is good to treat yourself every once in a while, but it is better to set aside some money for future expenses. You do not know what the future holds! With our crumbling economy, many establishments such as Robinsons department store have taken the hit. Robinsons stated that they will close some of its branches. Do not let yourself fall into the trap of bankruptcy.

You can do more in your 20s. Start with these tips:

ELIMINATE THE TEMPTATIONS

Food establishments have been gaining more limelight these days. Delivery services such as GrabFood and food panda had been earning a significant amount of money as many Singaporeans are stuck in their own homes.

To get a taste of the outside world, establishments lure potential clients thru social media. A box of donuts sounds as tempting as a buy-one-take-one milk tea. However, you must limit your spending and sugar intake. Eliminate temptations by reducing your time spent on social media such as Facebook and Instagram. These are filled with display ads. YouTube is not safe either!

CREATE A BUDGET

Budgeting is a system that keeps track of your cash-flow and enables you to stay within your financial capacities. Categorize your expenses based on your priorities.

Set aside a portion of amount on fixed expenses first. These fixed expenses include utility bills, rental costs, and transportation costs. Your variable or non-essential expenses shall follow suit.

INVEST A LITTLE

Investing can be intimidating, especially when you have zero knowledge about it! Money Digest has a wealth of articles related to investments. Start reading these articles.

Nonetheless, consider investing small amounts of money and letting a professional handle your portfolio. I am referring to Mutual Funds. Seek help by using the right tools. You can even invest as little as S$100!

Related: Cheap Investment Opportunities In Singapore

Cheap Investment Opportunities In Singapore

KEEP THINGS IN THE CART

What do you say to online shopping promotions? Not today, sir! It is easy to be trapped in the attractive promotions found online. Do you really need another phone casing or a night stand?

Billionaire music mogul Jay-z was once quoted saying: “You cannot afford something unless you can buy it twice”. Can you really afford two sets of AirPods? If so, is that necessary? You may want to wait a day or two, before you decide to purchase something from the shopping cart.

ACT WITH THE FUTURE IN MIND

Since you are making a decent amount of money these days, set some financial goals for yourself. If you want to travel next year as most of the international travel restrictions will be lifted, then you may start saving now. If you want to live on your own by the end of the year, then you may start saving now.

Image Credits: unsplash.com

Always act with the future in mind. You hold the key!

Read More...