MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

6 Major Reasons Why Young Working Adults Are Not Saving Enough

1. MINIMUM WAGE

As fresh graduates enter the workplace with little to no experience, some are forced to settle for entry-level jobs with minimum wages. Whether you are a secretary at a recruitment firm or a personal assistant at an advertising company, the relatively low salary you earn every month makes it difficult to save money.

2. RECURRENT RENT EXPENSE

Some young adults move out once they start earning a decent amount of money. The independence, freedom, privacy, and convenience can be attractive but the reality of the rent expenses can hit you hard.

In the city centre, it will cost you at least S$500/month to live in a single room and at least S$1,500 to live in a small apartment by yourself. It makes more economic sense to stay at your family home and set aside the hundreds of dollars per month to your savings or investments.

3. INDULGING ON DESIGNER LABELS

Most young working adults spend their fortune on designer labels such as Prada and Louis Vuitton as well as other artisan brands. You may think that you are standing out from the crowd by carrying your S$2,000 Prada tote bag and your S$300 artisanal fragrance but you are simply creating holes in your pocket.

4. CABBING EVERYWHERE

Heading to work late? Hail a taxi.

Coming home after a crazy night out? Hail a taxi.

Aside from designer and artisan goods, you are preventing your savings from growing by cabbing everywhere. Five late night taxi rides can cost you at least S$100 and that equates to about 10 lunches at the nearby food court. This is why you must set aside an “emergency taxi fund” with a maximum of S$60 per month. You must not ride a taxi beyond your intended budget.

5. TECHNOLOGY AS NECESSITY

Technology is so pervasive in a young adult’s life that its costs are virtually inescapable. Interacting through social media is not just a culture but also a necessity. But staying connected comes with costly price tags as having the latest gadgets and paying for the monthly broadband fees can affect how much you can save.

6. EASY ACCESS TO SAVINGS

Most of us struggle with keeping our hands off our savings accounts. With the easy access of Internet banking, credit cards and multiple ATM machines, it is more convenient to spend cash than to save it. For young adults with this dilemma, make spending a chore by converting some of your money to US dollars. The thought of having to go for and pay for the currency exchange will likely to dissuade you from spending!

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

Important Money Matters To Sort Out After Divorce

Ending your relationship with someone you vowed to spend a lifetime with is never easy. Getting a divorce causes a significant life change that is often complex and stressful. It involves coping with several issues such as division of assets, discussion of maintenance, and custody of the children. These issues bring forth emotional, economic, and legal considerations.

Divorce is not simplistic wherein one solution fits everyone else’s circumstance. It is case-specific as it takes the needs and means of each person into account. Even the length of your marriage affects the division of assets. For instance, if your marriage is brief, the court may decide to part you with the money you had before coming in to the relationship.

According to the 2013 Population Trends by Statistics Singapore, marital dissolutions are escalating with 7,386 in 2009 from 7,216 in 2008. With this increasing number of divorced couples, it is important to discuss the financial matters to sort out after the breakup.

1. IMMEDIATE FINANCIAL CONCERN

Your first concern shall be the recurrent household bills. If you had been paying your bills through a joint account, you have to make some arrangements with your bank to dissolve this account and pay through your personal account instead. Remember to update your GIRO arrangements as well.

2. MAINTENANCE AFTER DIVORCE

Maintenance is intended to cover the living expenses and necessities of the wife and her children. Under Singapore’s law, maintenance for the wife continues until she remarried or passes away while the maintenance for the children continues until the age of 21 or until graduation. The husband can pay the wife in a lump sum but only monthly maintenance is allowed for the children.

There is no specific amount or length of maintenance as the Family Justice Courts examine the situation to arrive at a reasonable and fair decision.

3. THE FAMILY HOME

One of the most daunting decisions you have to make (especially if you used your CPF savings to buy a property with your ex-spouse) is the housing arrangement. Are you going to sell your family home? Or will you keep it while the other one moves out?

If you intend to sell your house wherein CPF savings were used to purchase it, you will need to apply for CPF refunds to your respective accounts. Please visit the CPF Board website for more information.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

Delicious And Affordable Places For Vegan Food In Singapore

One of the things Singapore is abundant of is food. The diverse food selection extends to the vegetarian options. From organic snacks to vegan Western food, this list has you covered!

1. VEGGIE COTTAGE

Camouflaged within the neighboring grocery stores is a beautifully casual cafe called Veggie Cottage. It serves a wide array of Asian and Western vegetarian food such as Avocado Salad, Claypot Tofu Rice Set, and Spaghetti Bolognese. They also sell cupcakes to satisfy your sweet tooth.

With seriously inexpensive prices ranging from S$2.50 to S$10.80, you will surely wear a smile while browsing their menu – here.

Image Credits: facebook.com

Online Reception: 100% Upvotes at HungryGoWhere.com

Location: 13 Dalhousie Lane, Singapore 209682

2. GOKUL VEGETARIAN RESTAURANT

Fusing Indian cuisine with other yummy vegetarian meals, GOKUL Vegetarian Restaurant boasts with over 100 food items. From bite-sized munchies such as Samosa Chaat and Dosa to health main courses such as Tom Yum Noodles and Paneer Fried Rice, they have it all for you. Furthermore, all of these are free of onion, garlic, and egg.

Image Credits: http://www.hungrygowhere.com/singapore/gokul_vegetarian_restaurant_upper_dickson_road/photo/98920000

Image Credits: hungrygowhere.com

Online Reception: 84% Upvotes at HungryGoWhere.com

Location: 19 Upper Dickson Road, Singapore 207478

3. CI YAN ORGANIC VEGETARIAN HEALTH FOOD

Nestled at the bustling streets of Chinatown is a humble treasure of an eatery called Ci Yan Organic Vegetarian Health Food. This place serves nothing but organic ingredients without the use of MSG.

With an uncomplicated menu of only 4 to 6 dishes that vary per day, it will take your taste buds to a healthy adventure. The quality of the dishes makes up for the lack of choice. However, if you are a picky eater, you may call them up in advance at 6225 9026. Worry not about their prices, as the average plate is S $7 while the noodle dishes are about S $5.50.

Image Credits: https://www.facebook.com/ciyanveg/?rf=166507166746710

Image Credits: facebook.com

Online Reception: 84% Upvotes at HungryGoWhere.com

Location: 8 Smith Street, Singapore 058922

4. REAL FOOD

If I were asked to name a place perfectly suited to a health conscious Singaporean, I would definitely suggest Real Food. Known for serving organic and vegan yet really tasty food, Real Food consists of affordable meal selections.

All of the Real Food outlets showcase a contemporary setting with relaxing lighting. What separates it from other eateries is that the Killiney Road outlet has a 3-in-1-concept design featuring a Cafe and Restaurant, a grocery, and a bookstore. Everything you need in one delightful space.

The recommended dishes include Steamed Dumplings (S$9.80), Beet Millet Burger ($13.80), Genovese Pesto Pasta (S$11.80), and Rise-n-Shine Breakfast ($8.80). End your meal with one of the cold-pressed fruit juices priced as low as S$6.50.

As blogger Doria Teo puts it:
“Everything is vegan and organic and especially for someone health conscious like me, this is a rare gem. I hardly find food that tastes so good and yet is so healthy at the same time.”

Image Credits: doriateo.blogspot.co.id/2015/01/healthy-organic-food-at-real-food.html

Image Credits: http://doriateo.blogspot.sg

Online Reception: 77% Upvotes at HungryGoWhere.com

Locations: Several outlets islandwide, visit: realfoodgrocer.com/outlets for more information.

Sources: 1, 2, & 3

Special DIY Gifts To Make Your Mother Smile

There are women in this world that are willing to work tirelessly for others, are willing to teach young minds, are willing to forgive failures and are willing to put someone’s else’s happiness ahead of their own. Remarkable in every way, these women are called mothers.

With less than three weeks more under your belt, it is about time to think of a precious gift to reward your beautiful mother on Mother’s Day (May 8). The good news is that you do not have to spend loads of cash since you can just use the materials you already have at home!

Here are some inexpensive yet very heart warming ideas for you:

1. FOR YOUR CRAFTY ARTSY ANGEL

If the angel of your life is into creating artistic items than receiving them, plan an afternoon crafts session. While sipping your tea, you can create lovely jewelry with the materials on promotion at Spotlight such as Pony Beads (S$4.99), Pom poms (S$2.99), and Quill Feathers (S$5.99).

Alternatively, you can grab a DIY kit from Typo to make the stylish and useful items such as a tote bag (S$34.99) and a scrapbook (S$29.99).

2. FOR YOUR POETIC PARENT

Celebrate the essence of Mother’s day by capturing the moment through a poem. Describe her in the sincerest of ways. A unique gift such as this will flatter her heart and make her feel how much you are thankful that she is in your life. You can also put a melody and turn your poem to a song if you want to.

Image Credits: pixabay.com (CC0 Public Domain)

3. FOR YOUR CINEMA CHAMP

My mother is one of those people who are fond of films. From romantic comedies to action, she is delighted to watch any flick as long as she has her family along. Apply this concept at home by purchasing a few DVDs from the yesteryear. As much as possible, select her favorite movies. Gather your family in the living, as having everyone present is valuable to the occasion.

4. FOR YOUR WORKAHOLIC WARRIOR

The best way to reward your workaholic warrior is by giving the present of an enjoyable bath time filled with relaxing fragrance. Achieve that by making bath bombs that are similar to the ones sold at Lush Singapore.

Image Credits: www.lushsg.com

Here are four ways you can make different types of bath bombs from basic to herbal type.

5 Things To Consider Before Investing On Gold

1. WHAT TYPE OF GOLD INVESTMENT?

There are two types of gold investment: physical gold and paper gold. The physical gold consists of the tangible gold bars, jewelry and coins. While the paper gold consists of the gold exchange traded funds or gold-related equities in the stock market.

The latter is more at risk with fraud, as you have no guarantee that the fund holds the amount of gold they claim. Furthermore, the stock market can be vulnerable due to the government intervention and hacking.

2. WHY SHOULD YOUR PORTFOLIO INCLUDE GOLD?

Including gold to your overall portfolio is a good way to diversity your assets. As the price of gold generally moves in a different direction than other types of investments, it can balance out your returns when the others are performing badly.

Cary Guffey, a Certified Financial Planner Professional and Board Ambassador, forewarns that you must not put too much of your wealth in gold. According to him, a good rule of thumb is having no more than 5% of a certain commodity in your portfolio.

3. HOW PURE SHOULD YOUR GOLD BE?

Pure gold (100%) is too soft to manipulated as bars and jewelry, therefore it is mixed with other types of metals such as silver, nickel or copper to improve its strength. Based on the content of gold, it is divided into “karat” configurations namely: 9k (37.50%), 14k (58.33%), 18k (75,00%), 22k (91.66%), 24k (99.99%). Ensure that you are getting what you paid for.

4. WHERE SHALL YOU BUY THE PHYSICAL GOLD?

In Singapore, physical gold can be purchased online or at the bank. For online bullion shopping, consider the trusted bullionstar.com where 1 gram of PAMP Gold Bar costs about S$79.54. Alternatively, you can purchase gold bars and gold bullion coins at UOB.

5. WHAT IS THE REAL PRICE OF GOLD?

Just like anything else, the price of gold is influenced by the supply and demand dynamics. In fact, 5 years ago gold’s price was about S$1,800 per ounce compared to today’s S$1,664 per ounce. Alongside this dynamics are other factors that affect the gold’s price…

Image Credits: bankrate.com

Sources: 1, 2, 3, 4, & 5

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