MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

5 Things You Must Know About Microfinance In Singapore And Beyond

As majority of people in developing countries are economically disadvantaged, Microfinance proved to be a viable source of capital. In fact nearly 15% are living below S$1.68 a day, according to the World Bank. Fueled by hope and excitement towards success, both public and private sectors are willing to accept the risks of working with numerous borrowers. The only factor in the way are tightened financial regulations across the world. That said, here are 5 Things You Must Know About Microfinance In Singapore And Beyond…

1. DEFINITION OF MICROFINANCE

Microfinance refer to a diverse group of services that specifically target people who are low-income earners and who are often denied access to banking loans. Microfinance services include loans, savings, remittances, and insurances. Interestingly, Microfinance gave women the biggest economic boost.

2. RISE OF MICROFINANCE

Muhammad Yunus, founder of Grameen Bank, developed Microfinance in 1974 to promote self-sustaining social businesses in Bangladesh. Since then, millions of people around the world have opened Microfinance institutions that allowed Microcredits. With Yunus’ valued efforts to impact many and improve global economy, he was awarded the Nobel Peace Prize in 2006.

3. TECHNOLOGIES AND MICROFINANCE

Funding more than millions of people, Microfinance aided by technology became a perfect match in helping to eradicate poverty. Hatton National Bank’s Chandula Abeywickrema highlighted that Sri Lanka had been experiencing relatively high mobile technology tap. For instance, mobile technology allows rural residents to perform transactions through mobile platforms. This will surely bring newfound opportunities.

4. INTEREST RATES OF MICROFINANCE

The interest rates of Microfinance services vary across the board. In 2010, several organizations and websites have sited the rate to be about 37% in average. Borrowers are required to pay these rates to receive the money they need. Certainly, the rates are still cheaper than that of the banks’.

5. SINGAPORE MICROFINANCE NETWORKS, ORGANIZATIONS, AND COMPANIES

Open a small business or help others to be entrepreneurs with these networks, organizations, and companies:

a. Microfinance Society (Singapore)

b. MILAAP

c. Kiva Lending Team: Singapore

Image Credits: Dean Meyers via Flickr

Through Microfinance, may we not only show care to the underprivileged sector but also show immediate action toward activities that promote social welfare.

Sources: 1, 2, 3, & 4

Make a Six Figure Income as a Fashion Blogger? Well, she just did.

Step aside Singapore’s bloggers.

Meet the new Instagram sensation who has recently hit 1 million followers last month.

Danielle Bernstein of We Wore What (@weworewhat) is a popular US’s fashion blogger that has set the fashion world abuzz with her inspiring street style.

Since started in 2011, she has amassed over 6,000 posts on her Instagram and is currently rank 1852nd in the World on Social Blade — a website that measures social media presence.

Photo: @weworewhat/Instagram

Bernstein had revealed to Harper’s Bazaar that she charges between US$5,000 to US$15,000 for each piece of sponsored content. And mind you, she don’t have to write a long review like any other bloggers did — instead, she just need to pose and get a #instaworthy shot of herself featuring a brand onto Instagram.

On average, if you have hundreds of thousands of followers you can make anywhere from $500 to $5,000 a post, but if you have upwards of 6 million followers, your fee can be $20,000 to $100,000 a shot. “Which is kind of crazy,” Rankin says. (Source: Harper’s Bazaar)

Of course, having the opportunities to work with big brands such as Lancôme and H&M helps.

weworewhatliterally on the move with @lancomeusa #miracleonthemove makeup | #ad (Photo: @weworewhat/Instagram)

Companies and brands shell out billion of dollars each year on sponsored content from the so-called new generation of social influencers. Being able to attract followers on Instagram (or other social media platforms) is a serious business.

Even Bernstein said: “Without my followers, i would not be where i am today”

For some, the holy grail of having a huge fan base would almost put you in the rank of celebrities.

Kelly Cutron, a judge on America’s Next Top Model, said to The New York Post:

Are bloggers important? Yeah they f–king are. They’re super important. Bloggers are being paid to sit in the front row, and editors aren’t. They’re talent along with reality-TV people and actors.

With the advent of Internet and technology, Generation Z social-media influencers are changing the way how brands engage their audiences. In fact, a recent research from BDMI has shown that social influencers have a far better reach than the brand itself.

(Chart: BDMI)

Well, then what about the local scene? Let’s not entirely discredit our own Singapore-based fashion bloggers. We do have some popular fashion tastemakers who have got their own taste of success. Ms Andrea Chong (@dreachong) who first started out as a fashion model years ago now boasts an impressive amount of followers on her Instagram. She has worked with numerous brands such as Victoria Beckham, H&M, D&G, Kate Spade Saturday and more.

Screengrab’s dreachong.com

Her street casual style has definitely won the heart of her fans from all walks of life. And she’s not afraid to share too. Last year, she ran a workshop on “I Want A Fashion Blog” and she covered topics like photography, blogging to social media marketing. If you have missed that, follow her on Facebook and Instagram to get your daily dose of OOTD and fashion tips.

Can you make that kind of money as a fashion blogger? You certainly can. But to make that amount of money, it takes a lot of hard work and passion in the ever growing niche.

How to make the best out of your last $300?

Experts estimate that more than 90% of the diseases are stress related. And rapid aging is probably another negative by-product of sustained elevated stress levels. While eradicating anxiety and stress altogether in fast-paced Singapore may be unrealistic, indulging in therapeutic treatments and one’s favourite hobbies can certainly help to manage stress.

Continuing from the article “How to maximise your life with a $3,000 paycheck”, this article is the last in a five-part series and it will zoom in to the ways of deriving the ultimate satisfaction and gratification from life with the last 10% or $300 of a $3,000 salary.

Image credit: taxisingapore.com

1. A short getaway to Johor Bahru

While it is a well-known fact that JB is a shopping and food haven, many may still feel that it is not worth a hassle to beat the checkpoints and commit to the distant travel. However, depending on one’s schedule and opportunity cost, the huge cost savings are hardly resistible. Indeed, food, accommodation, wares and massage services are priced at a steep discount to those in Singapore, especially when the favorable exchange rate persists. Therefore, it may be more sensible and economical to shop in the foreign land to maximize your spending power.

Image credit: outlet.com.sg

2. Go online shopping

Being economically vibrant and prosperous is honorable, but it is not without its costs. Prohibitively high rental and labour costs in Singapore have created much hardship for local businesses, and consequently, the consumers who have to bear the inflated price tags. However, it pays to be technologically savvy. The major growth spurt of online retailers has simply thrived on a low-cost but high-quality principle. Furthermore, online businesses are easily accessible, which enables effortless comparisons. And it is precisely this unmitigated flow of information that heightens competition and further drives down our bills. So, time to hitch on to this modern trend if you haven’t!

Image credit: appleandradish.com.au

3. Learn a fun skill

Learning is limitless. By continually expanding your knowledge and skills, you gain others’ respect while becoming an increasingly invaluable asset to their lives (and of course, you are the greatest beneficiary of your own abilities). It does not have to always be intellectual. It could be an indispensable skill that most people overlook. Thankfully, this gap is plugged by LessonsGoWhere, an online marketplace that brings exciting and enriching lessons covering a diverse blend of 9 categories from baking to photography to an aspiring community. Who knows if one day, the new skill may even change your entire course of life and carve out a rewarding career niche?

What do you need a $300 emergency fund for?

Unexpected events happen from time to time. Some could be delightful while others may be distressing. However, leaving things to luck may not always yield an optimal outcome. Indeed, it is prudent to set up an emergency fund to hedge against uncertainties. Since it is a form of protection, the earlier you recognise the need for this fund, the greater control you will have over your destiny.

Continuing from the article “How to maximise your life with a $3,000 paycheck”, this article is the fourth in a five-part series and it will be looking at the uses of the 10% or $300 emergency fund in coping with many of the life’s surprises – be it pleasant or unpleasant.

Image credit: dynomacapital.com

1. Health Insurance

One of the most debilitating episodes in life is to be afflicted with a chronic or acute disease such as kidney failure or cancer. While the majority of people do not experience such traumatic events, it is nevertheless difficult – if not impossible – to predict if you are the ill-fated one. This is when health insurance is one of the best bets (in the legion of insurance products) before the tragedy strikes. For fresh graduates who are in their twenties, the premiums are pretty affordable and the payouts are formulated attractively. For example, PRUshield extra offers an all-round protection where the insured gets to enjoy coverage from the very first dollar.

Image credit: corp.nhg.com.sg

2. Medical Consultation

As a typical health insurance policy often does not insure against minor ailments such as the common flu, cough or fever, it is thus essential to save up an adequate amount for ad hoc medical expenses. Having said that, it is a heartening news that many employers provide subsidized medical care to their employees. Still, it is a virtuous practice to be readily available to render financial assistance to the medical needs of one’s family members.

Image credit: mashable.com

3. Repair Cost

Occasionally, humans may not be in good shape. But so do our ubiquitous electronic devices, ranging from smartphones to laptops. While most consumer electronics are covered with warranty, it usually excludes personal damage that may arise from negligence or other causes. Therefore, it is crucial to take such accidental cost into account.

Image credit: lesterchan.net

4. Celebration

Joyous parties and festivals occur periodically. It could be an invitation to your superior or colleague’s wedding or baby shower. It could also be part of the family or societal culture to soak in the fun for festivals such as the Mid-Autumn Festival. It is a time where close friends and families get together and wallow in the festive exuberance, developing stronger rapport and splurging on their loved ones and themselves.

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.

Search the site