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Small Financial Achievements That You Should Be Proud Of

It comes as no surprise that many Singaporeans immediately turn to social media to share their achievements. Facebook and Twitter “walls” are bombarded with celebratory posts and pictures. If you feel that you have nothing worthy to share, think again! Our lives are full of achievements on a smaller scale.

Take these humble financial achievements into consideration:

SETTING UP A SUFFICIENT EMERGENCY FUND

If you are done building your emergency fund then, I am proud of you!

An emergency fund is a safety net that will cushion emergency expenses against high interest debts and bankruptcy. It is not entirely for you as you can use it to provide for your family members who are in need. The certain amount depends on your current situation. For instance, a married couple can merge their contributions and divide it into half. While, unwed individuals must cover at least half a year to stay afloat.

According to a Bankrate.com poll, participants from the younger generation did not appear to be less inclined to build their emergency funds than their senior counterparts. This goes to show that more people are opening up to the idea of shielding their future. Saving up while you are young will benefit you because time is on your side.

DEVELOPING THE HABIT OF TRACKING YOUR SPENDING

If you religiously track your spending, you must keep it up!

Noting down your daily or weekly expenses is a tedious chore, but it can help you manage your wealth efficiently. The primary reason why you need to do this is to create financial awareness. You need to know where your money is going in order to change your unhealthy spending habits. It is as simple as minimizing the income wastage.

Furthermore, it allows you to see if your spending habits match your financial priorities. Make sure to spend within your means.

ORGANIZING YOUR MONTHLY BILLS

If you are on top or ahead of your monthly bills then, you are doing your credit score a favor!

Organizing your bills goes hand in hand with the above bullet. This may either be done digitally or manually. Choose to scan your bills after you have received them and after they are paid. Store these papers in a secured hiding spot. Alternatively, you may save the scanned documents in a designated folder on your computer.

To make sure that you never miss a deadline, you may set up an auto-pay service within the companies that you pay bills to.

CONQUERING ALL THE ADDITIONAL FEES

You are fed up with the additional fees and made some adjustments with your lifestyle. I salute this action!

Being careless with your finances is forgivable in your early 20’s when you are not fully equipped with the financial knowledge and resources. As soon as you move forward in your life, you must aim to pay for what you will actually use.

For instance, it may seem insignificant to incur extra fees for withdrawing cash from an ATM that is not from your bank. However, walking a few blocks to find the right machine can save you at least S$5 (that can purchase you a meal from Kopitiam). Make simple alterations in your lifestyle in order to avoid additional fees.

PURCHASING WHAT YOU SAVED UP FOR

Congratulations! You did not give in to the temptation of swiping your credit card to complete the purchase. Instead, you eliminated unnecessary expenses and set aside cash for weeks. There is something satisfying about finally getting an item that you spent a lot of time saving for. Savor this positive feeling.

Image Credits: pixabay.com

Acknowledging seemingly small victories helps you to picture a progress in your financial journey. Psychologically, it elicits positive emotions and perceptions. The more individuals experience the sense of progress, the more likely they will be motivated and productive in the long run.

Notice these humble achievements and be proud of yourself!

Sources:1 & 2

Answering Five Awkward Questions About Money

How often do you have a chance encounter with a person who is innately savvy with money? Not so often, right?

Personal finance is not exactly a part of the school’s curriculum. This is why you must be open to discussing about proper money management. No matter how embarrassed you may feel, here are some questions that many Singaporeans are eager to know.

#1: HOW CAN I MAXIMIZE MY SAVINGS DESPITE LIVING FROM PAYCHECK TO PAYCHECK?

Tackling the overwhelming bills and loans can make you unenthusiastic about saving money. You see, it is difficult to save money if you are barely living from paycheck to paycheck. The solution could be found in the way you spend.

Notice how you allocate your monthly budget and look for ways to downsize your purchases. You may focus on entertainment costs such as limiting your restaurant dining. Strategically planning your spending habits will help you to increase your savings.

#2: WHICH FUND SHOULD YOU SET FIRST: RETIREMENT OR EMERGENCY?

Financial security places a heavy weight on both the emergency and the retirement fund. The former aims to protect you against unexpected events in the immediate future. While, the latter will cover your expenses in the golden years. Stop choosing between these two! Cultivate varying amounts in your emergency and retirement fund simultaneously.

Once you are done with setting up a sufficient emergency fund, you can start stretching out your contribution for your CPF OA.

#3: WHY WAS MY PLASTIC CARD DECLINED?

There is nothing worse than having a sales clerk or a waiter tell you that your credit or debit card has been declined. I can only imagine the horror on the client’s face as this happened to me before. Several years ago, I was working as an administrative officer at a fitness studio. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful. I must highlight that she is using plastic cards from international institutions.

Image Credits: pixabay.com

Why did this happen to the rising starlet? Well, it may be due to the bank’s security measures. Purchases made far from your home may seem like red flags to your issuer. So, call your bank or issuer right away and authorize the transactions. Handle this situation better by keeping your cool. Talk to the personnel privately and arrange an alternative form of payment such as going to the nearest Automated Teller Machine (ATM) to withdraw cash.

#4: HOW DO I TELL MY PARTNER ABOUT MY OUTSTANDING DEBT?

Telling your partner or future spouse about your outstanding debt fuels anxiety, but you must simply do it. Schedule an open discussion with your beloved. Explain the gravity of the situation and the events that led up to it. Highlight what you learned from your past mistakes and show how you can conquer your debt.

Do not forget to include your partner in the planning process.

#5: WHEN SHALL I STOP ADDING INTO MY SAVINGS ACCOUNT?

As a conservative adult, you had exhausted all your contributions for your future. Congratulations on meeting your short-term financial goals too! Now, you may wonder if you are putting too much on your savings account.

Limiting yourself to a savings account makes you miss the opportunities of growing your wealth to its fullest potential. Consider opening an investment account once your emergency fund, retirement fund, and living expenses are in order. You may even schedule a consultation from a financial expert.

Image Credits: pixabay.com

It is rare to encounter a person who is innately financially savvy. So, serve as a good example to other Singaporeans by raising important money discussions.

Sources: 1 & 2

Newbie’s Guide To Singapore’s Credit Bureau

The Credit Bureau (Singapore) is a principal credit consumer agency, which has the most comprehensive industry uploads originating from all the major financial institutions and retail banks. Credit Bureau (CB) is a joint venture between the “Infocredit Holdings Pte Ltd.” and “The Association of Banks in Singapore”.

The Monetary Authority of Singapore’s (MAS) vision to improve the public’s risk management capabilities is in lined with the holistic embodiment of CB. How is this so?

The Banking Act allowed the members of CB (e.g., credit card companies) to reveal credit-related data for the strong purpose of analyzing the creditworthiness of existing and potential customers. Simply, CB presents a “complete risk profile” of a particular customer to a particular credit card provider.

This complete risk profile includes a tangible number called the Credit Score. The Credit Score is an independent assessment of an applicant, which guides the decisions of the lenders. It is gauges the likelihood of repayment as well as the probability of going into default. You must pay close attention to your Credit Score if you are planning to apply for any forms of loans or credit. For instance, you and your spouse need good Credit Score to successfully take up an educational loan for your children.

Image Credits: pixabay.com

Say your Credit Score has been in its low point for the past 2 months. Wary not, my friend. You may still rejuvenate your credit history as the reports from the CB manifest your record on promptness over a 12-month period. You read that right! You have the ability to technically “undo” a poor credit history due to late payments and unmet minimum repayment sums. However, paying your monthly credit card bills and loan installments on time must be your top priority for the next 12 months. Doing so will only clean up a section of your credit report known as the “Account Status History”.

Hope fades when your problems go deeper than late repayments. Serious financial situations such as bankruptcy proceedings and debt management programs will remain reflective on your credit report. You have to be careful to secure a pleasant future!

Sources: 1, 2, & 3

Start 2017 Right By Creating A Year-End Financial Checklist

As we reach the end of the year, there are several things that you need to pay attention to.

DETOXIFY YOUR WALLET WITH THE DEBT DIET

The Yuletide season is all about merriment and festivities. Due to the overall positive spirit that it exudes, you may want to shy away from the looming shadows of your debt. I suggest that you pause for a moment. Now is a good time to acknowledge your credit score and to cut back on your spending.

Debt takes a toll on your relationships, your family, and your future. It is only hurting your financial health. You do not want this suffering to roll over the next year. This is why you must consider to go on the “debt diet”. The debt diet uses practical ways to help you get back on the right track. Read about it, here.

OPT FOR GROWING YOUR WEALTH

It comes as no surprise that the newbie investors are apprehensive when it comes to the timing of their initial stock purchases. However, it is important to realize that time is your ally whenever you first invest.

The compound interests of your strategic investments will add up despite the current condition of the market. You will most likely have time to recover. This idea may seem like common sense to you, but there are many Singaporeans who wish that they started investing earlier on.

KEEP YOUR INSURANCE POLICIES IN ONE PLACE

Insurance is your safeguard against unforeseen and unpleasant events. It is a way to minimize your risks and cushion your potential losses. If you are a client of several insurance companies, it is a chore to hold all the policy documents. This is where PolicyPal app comes in. It is an app that allows you to keep all your insurance policies in one place.

After collating your policies, get a summary of your overall coverage. This will help you to decide if you have too much or too little policies. For example, you may avail the AIA GLOW OF LIFE (Critical Illness Insurance) instead of adding a special rider to cover female-focused diseases.

AUTOMATE THE PAYMENT OF YOUR BILLS

December is a hectic month! To save valuable time and effort, consider automating the payment of your bills. Schedule electronic transfers thru your internet banking feature.

You may also set up a bank GIRO. GIRO payments take a substantial amount of time. This is why your money must be available at least 3 working days before the bill’s due date.

Image Credits: pixabay.com

Doing an annual review of your finances can help you spend and invest wisely for the upcoming year. Take the pro-active route to financial wealth!

Sources:1, 2, & 3

Do’s And Don’ts When Loaning Your Money To Family And Friends

Family gatherings and friendly reunions can be less awkward if you follow these tips:

DO FIGURE OUT THE WEIGHT OF REPAYMENTS

A friend or a family member asked for financial help from you instead of loaning from a credible financial institution. Before anything else, you must ask yourself about how important it is for a person to repay you. Are prompt payments necessary or will intermittent payments work?

Keep in mind that if an individual approaches you, it is typically due to weaker credit history. This means that there is a risk of not receiving the repayment. You must figure out the weight of repayments earlier on before emotions get in the way.

DO NOT EXPECT FOR ANYTHING IN RETURN

When you do good deeds for others, it best to not expect anything in return. There is nothing wrong with earning the cash you previously had. However, you may feel disappointment if you are expecting more than what you have agreed upon.

Reciprocity is not a part of everybody’s values. This is why it is unfair to place personal expectations on unsuspecting family members or friends. This statement does not only apply to loans.

DO GET EVERYTHING IN WRITING

If you are releasing a relatively large sum of money or if you are strict on full repayment then, you must get everything in writing. Make an agreement that states the terms of the loan. This agreement is called a promissory note. Have the promissory note signed by both parties and and a lawyer (if possible). This will ensure that pursuit of legal actions when necessary.

You may also document the entire process before handing over the money.

DO NOT BE TERRIFIED TO SAY “NO!”

Your hard-earned money belongs to you and you are in charge of it. If you do not feel comfortable in lending money to a friend or a family member then, be assertive. Genuinely say that you cannot loan the money at the moment due to your financial responsibilities. Discuss the matter in a mature manner.

People who care about you will understand. If they take it against you, you may be better off without them.

DO OFFER GENTLE REMINDERS

All was said and done. To approach the situation in a warmer light in respect to your relationship with the borrow, offer gentle reminders instead of asking direct questions. You are not in the business of interrogating or threatening people about repayment. Instead, you want to cultivate an smoother discussion.

Image Credits: pixabay.com

Sources: 1, 2, & 3

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