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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:

Enjoy A Rejuvenating Retreat For Less Than S$15

After months of wrestling with tight deadlines, multiple assignments, and crucial projects…you deserve a peaceful rest. A weekend retreat will help! There are different kinds of retreat. While some are spiritually rooted (e.g., in Hindu, Buddhist, Christian and Sufi communities), others are for recreational purposes.

A recreational and wellness retreat is a short getaway with a goal to improve your overall health. Activities such as Yoga, meditation, workshops, and organic dining are usually included in the mix. Its average price ranges from S$700-3,000.

Luckily for you, you can take your mind and body to a rejuvenating retreat without flying off the shores of Bali or spending more than S$15. All you have to do is to create your own retreat within the walls of your own home.

1. SET THE POSITIVE MOOD

Kick off your weekend of relaxation by setting up a positive mood. Aromatherapy has been proven to enhance one’s physical and psychological well being. Scented candles ranging from S$2.90-4.90 are available at IKEA.

Image Credits: ikea.com/sg/en/catalog/products/90283207

2. PRACTICE YOGA TWICE A DAY

Eliminate your daily stress by practicing Yoga in the morning and before you end the day. Practicing at home along with a video or audio guide is definitely more cost-effective than attending classes. Websites such as doyogawithme.com and kinoyoga.com have abundant collection of Free Yoga videos and health information that you may use.

If you are in need of yoga props, here are some tips as shared by Abby Lentz (Founder of HeavyWeight Yoga classes):

a. Yoga Blocks

Make a handcrafted Yoga Block with bulky, unused, or old books, yellow pages, phone books, and dictionaries. Just slip a pace of hard cardboard halfway between the pages of the book to make it sturdy and tightly tape the entire areas close.

b. Yoga Straps

Make your own Yoga strap by knotting two neckties together. You may also use a second-hand bathrobe sash from the thrift shop as branded Yoga straps are merely made with cotton straps and buckles.

3. TAKE A BREATH OF FRESH AIR

Include at least 30 minutes of cardio exercises such as jogging, brisk walking, and cycling outdoors. These no-cost exercises done in the nearest park will help lower your blood pressure and improve your outlook in life.

4. LOCK DOWN ALL DEVICES

In the spirit of a true retreat, turn off all your devices for the whole weekend but, inform your boss prior to it. Avoid the laptops, tablets, and hand phones to decrease your worries and improve your sleep.

5. MEDITATE FOR 10 MINUTES

Through meditation and mindfulness, you will be focusing yourself to your present state. This improves your quality of life. In fact, a study showed that there was a reduction of grey matter’s amount in the brain after 8 weeks of meditation. This later resulted to less stress and anxiety.

Image Credits: misspsychobabble.blogspot.com

6. EAT HEALTHY FOOD

To detox your body even more, it is a must to eat healthy food for the entire weekend. Shy away from alcohol, tobacco, caffeine and too much sugar. Make an affordable yet healthy smoothie by following these steps by Jasmith1:

a. Pour 300 ml of Apple juice into the measuring jug.

b. Peel a Banana and break it into pieces. Add this to the jug.

c. Grab a handful of frozen Berries and add this to the jug.

d. Liquidate everything using a hand blender until it is fully blended.

e. Presto! You can now enjoy your smoothie. 🙂

Sources: 1, 2, & 3

3 ways to look for the best in people

Some people we know adopt generally negative and cynical attitudes towards others, but in doing so, they fail to realize that they have missed out on the joys of life. These people sometimes impose self-righteous beliefs on to others and form judgments of how others should behave. They keep close tabs on people’s mistakes rather than focusing on the positive experiences all of you can create and share. And such behaviours potentially strain friendships and social ties.

On the other hand, if everyone recognizes the fact that life has its own struggles, we could be more forgiving and compassionate. We can alleviate our own suffering while not adding to others’ emotional burden by being positive and looking for the best in people in 3 ways.

Image credit: fastcompany.com

Cultivate a compassionate attitude in which we are empathetic, receptive, understanding, and loving towards others. We all have independent minds that think differently due to disparate cultural and social influences. Most of the time, there isn’t a clearly superior or inferior viewpoint. It is thus often in our best interest to expose ourselves to the universe of diverse ideas and beliefs and learn the beneficial ones through methodical comparison and evaluation. At the same time, when we cultivate compassion instead of negativity, we become closer to the people we love and care about and experience a greater sense of moral fulfilment within ourselves.
Image credit: interviewling.com
Understand everyone has their own strengths and weaknesses and seek to recognise and complement people’s strengths instead of being unduly obsessed with their weaknesses. More often than not, it reaps far more extraordinary results by spending one’s limited time and resources on building strengths than minimising weaknesses.
Image credit: themaritzinstitute.com
Put yourself in other’s shoes and think from their angle. Always think of how you would want to be treated. Do you like somebody to nitpick your mistakes? If not, the best way to solve a problem is rarely blame shifting or lashing out on others. Instead, maintaining a cool-headed composure and providing constructive (rather than destructive) feedback would be a much more effective remedy. This speeds up learning, resolves the issue and gains other’s favour.

It is important to accept that we create and shape the world we want to live in. If we want others to be compassionate, considerate and understanding, we have to first be comfortable with exhibiting these traits. If we want others to discover and augment our strengths, we should first have a stake in developing others’ strengths and bringing them success. The old adage “don’t do unto others what you don’t want others to do unto you” still holds unwaveringly. Start appreciating what others have as opposed to getting sore at what they lack could be the first step. Every effort to make the world a more congenial place to live in counts.

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