MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Risking Your Money On Investing Versus Gambling

Sense of expectations and hopes for future profit are both present in the whirlwind world of investing and gambling. Although they are seemingly similar as both involve the risk of money, they have undeniable major differences. From the basic definition to the societal view, here is a concise comparison between investing and gambling…

1. DEFINITION

Dictionary.com differentiates the two as:

a. Investing: To commit capital or money to gain a financial return.

b. Gambling: To bet on uncertain outcome, much like a contest.

If you understood what the above definitions entail, you will come to the conclusion that the difference between these two is based on the determinability of the outcome. In investments, you place your hard-earned cash at a risk of loss where the odds are usually favorable. This is because purchasing government bonds are more predictable and secure.

While in gambling, you place your hard-earned cash at a risk of loss where the odds are usually unfavorable. This is because the gambling games are devised so as to bring more winnings to the casino itself.

2. STRATEGY FOR FUTURE GOALS

If you are torn between investing and gambling as a means of strategy to build your future goal such as a Retirement Fund then, gambling may not be it. A long-term plan such as this takes sufficient research and favorable odds. And, that may not be present in gambling. In investing, systematic approach is taken from risk management to economic literacy. While in gambling, risk-seeking individuals conduct little to no research and are fueled by their momentary emotions.

3. SOCIETAL VIEW

Even if gambling is typically part of the Asian culture, some of its by-products include well-documented unpleasant consequences such as filing for bankruptcy or having hefty debts from Loan Sharks. On the other hand, investing is a socially acceptable engine that drives capitalism. Investors not only place their money on the companies but they also help them to accomplish their goals and pull the country’s economy to the top.

I shall close this post with a quote by Kenneth Cranham:

“Buying a particular vintage because everyone tips it and then waiting for it to mature is like gambling. The thrill is in placing the bet. Once the race is run or the match is played, you’ll either win or lose. Until that happens, you’re caught in this wonderful, agonising sense of expectation.”

Image Credits: Chris Potter (www.stockmonkeys.com) via Flickr with CC License

Sources: 1, 2, 3, & 4

Lost? Here Are Sensible Money Tips From 3 Financial Experts

Tangled in a financial dilemma? Who will you ask for monetary advice or practical financial tips? If a professional is out of your reach, the next best thing is to read about their nuggets of wisdom.

This is why I collated the best financial advice from three experts. These experts are no other than Suze Orman, Cullen Roche, and Jeanne Kelly. Suze Orman is an American Financial Advisor, Author, Motivational Speaker, and Presenter. Cullen Roche is the Founder of a financial services firm called Orcam Financial Group, LLC. Lastly, Jeanne Kelly is a media acclaimed Credit Coach.

1. TAKE CHANCES

Suze Orman tells us that nobody achieved financial security by being frightened and weak. Being confident in one part of your life is contagious, as it will bring more opportunities to you. You won’t get there unless you try!

2. INVEST MORE IN YOU

Cullen Roche shares that the primary way to financial success is more than just saving. It is by investing more…in you. Since your primary source of income is the person you see in the mirror, a good way to maximize your wealth is to make yourself valuable to other people or other companies.

To be valuable and different from the rest, you must never stop learning. Education that improves your skills so you can adapt to the ever-changing economy. I personally recommend you to start with free Internet education from YouTube’s Khan Academy or Crash Course.

3. BAD CREDIT IS EASY TO AVOID

Jeanne Kelly claims that it is easier to maintain good credit by avoiding bad ones than to rebuild a new credit once it has been declined. She says that a quick way to avoid bad credit is by regularly reviewing the credit reports – at least two times a year. In merely 15 minutes, you can minimize the errors of your credit report and save more money!

4. EQUATION FOR YOUR INCOME

Lastly, Cullen Roche suggests for you to try the 50/30/20 budgeting rule. Spend 50% of your income to the basics or essentials such as rent, food, and utilities. 30% should go on your personal needs such as entertainment, vacation, and leisure. And the 20% left should be allocated to your savings.

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

Take in their knowledge only if it applies to your situation. Then, fuse the elements together and enrich your life.

Sources: 1 & 2

How Can A Financial Consultant Improve Your Monetary Life?

Some of us are hesitant or skeptical toward Financial Consultants. To increase your knowledge on this subject, what do Financial Consultants actually do on a daily basis?

In general, Financial Consultants are professionals who guide their clients to manage their money, investment options, and asset relocation. But, what they do is far more complex than that. A career as a Financial Consultant gets to enjoy the flexible working hours and the privilege to indulge on the job incentives (e.g., Free Trip to Australia). Thus, the freedom will help them spend more time with their treasured family and friends. It can not only be challenging as they face a lot of rejection but also rewarding as they see their clients improving their monetary lifestyle. There is a job growth in this field as long as you go through continuous training with determination and openness.

Especially in large companies such as Prudential, HSBC, etc., Financial Consultants are:

a. Financial Planners

b. Dependable Advisors

c. Monetary Coaches, and

d. Financial Solutions Provider.

Financial planning entails creating the client’s financial goals by determining the shortage and the actual financial situation. Then, trusted advisory includes managing cash flow and developing money management strategies. While, Monetary coaching entails guiding clients to save more and to motivate them to avoid procrastination. Lastly, Providing Financial Solutions includes offering affordable solutions and options to achieve one’s financial goals.

Financial Consultants are more than just insurance salesmen because they organize your finances after identifying their financial needs and providing them with valid options. All these are given within a practical timeframe. Furthermore, the relationship established with you does not end after the “sale” is done. Financial Consultants are responsible for regular follow-ups to ensure that your needs are taken cared of. In short, they are committed before and after sales.

Image Credits: State Farm via Flickr with CC License

Sources: 1, 2, & 3

How do you bargain for a higher salary?

The Straits Times recently published an article on “Why a safe job is risky business for Singapore”, which urged young job seekers to change their mindset about the risk and remuneration issues apparent in local Small and Medium Enterprises (SMEs). While these are common issues faced by SMEs which often have limited resources to offer competitive salaries that may inevitably compromise their company’s growth, it is time to rethink the prevailing practices surrounding employment and compensation. Indeed, considerable funding support from SPRING such as the SME Talent Programme for SMEs should provide a strong impetus for SMEs to strengthen their competitive edge in today’s dynamic and rapidly evolving world by offering pay packages commensurate with each individual’s qualifications, experience and competence.

To all job applicants: It is not too late to “flaunt” your attributes, but please convey your gifts in a measured way. The diagram below just serves as a reference guide.

To the employers: It is never too late to start appreciating your potential hires’ talents that may prove invaluable to your company’s development and progress.

Amazing Date Ideas That Don’t Cost A Dollar

Dates can become a burden to the wallets of broke students. The idea of dating at a limited budget can sometimes be stressful and embarrassing. Well, not anymore! You can go on amazing dates without spending a dollar! Remember, there is absolutely nothing wrong about staying frugal while dating.

1. GO ON A TREETOP HIKE

Take your special someone to a morning hike while watching the sunrise at the MacRitchie Reservoir Park. MacRitchie Reservoir Park houses several long hiking routes including the famous TreeTop Walk. The TreeTop Walk consists of a freestanding suspension bridge that connects two highest points namely: Bukit Peirce and Bukit Kalang. This is the first of its kind. Your date will truly appreciate the unique experience of looking over the variety of plants and animals while being about 25 meters off the ground.

2. HAVE A GAME NIGHT

Turn your date night into a romantic game night. You can get to know each other while playing the infamous childhood game of Truth or Dare. Learn a lot about his or her boiling points while playing poker. Wage it with anything other than money (e.g., kisses or chocolates). Lastly, you can even play fun board games such as Monopoly, Scrabble, and Battleship.

Image Credits:
Anders Ruff Custom Designs via Flickr with CC Attribution-NoDerivs

3. CONDUCT A VIDEO GAME SHOWDOWN

Get your XBOX, Wii, or Play Station ready for a showdown. Nothing beats a date filled with enjoyable video games. What is even more interesting are old-school video games. If your old console or Nintendo hand-held game is still operating then, spend the night by facing each other into a classic brawl of Super Mario Brothers or Street Fighter. This is a sweet trip down the memory lane!

4. HAVE A MOVIE MARATHON

Looking for a perfect first date experience? Look no more as MovieMob brings you the premier outdoor movie screenings that would not cost you a cent! MovieMob, an acclaimed Outdoor Movie Specialist, screens movies to various locations around Singapore. Instead of heading to a fancy and pricey restaurant, plan a picnic while enjoying a free movie at the park. Stay updated by visiting: facebook.com/apemoviemob.

Alternatively, you can host a movie marathon by watching free movies at home. Catch a free flick or two in the comforts of your own home by watching at YouTube’s Movies playlist at youtube.com/user/YouTubeMoviesWW. Turn the romance on by switching to scented (and safe) candles instead of lamps and by heating up a bag of popcorn.

5. LEARN A SKILL TOGETHER

There is nothing more romantic than sharing your interests to your partner. If you are a fan of cooking and baking then, teach him or her the basic recipes and techniques. And, if neither of you have a special skill, you can look up free online tutorials and make a DIY project together.

Image Credits: Howard Holley via Flickr with CC License

Having tight finances should not stop you from spending quality time with your special someone! 🙂

Sources: 1, 2, & 3

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