Generational wealth pertains to assets passed by one generation of a family member to another. Assets can include stocks, bonds, and other investments such as real estate and family businesses.
Other terms for generational wealth include family wealth, legacy wealth, multigenerational wealth, and intergenerational wealth. Many people may associate generational wealth with financial wealth such as cash, bonds, real estate, and family businesses. However, generational wealth can include valuable possessions, heirlooms, educational legacy, traditions, and connections.
Generational wealth transfers after death by passing it down in the form of an inheritance. A generation does not always have to die off in order to enrich its heirs. Families can transfer much of their wealth in other ways such as gifts, educational expenses, and medical expenses.
For instance, your grandparent died. The Last Will and Testament specifies that the S$2 million fortune be divided evenly to five grandchildren. The funds and assets passed to these grandchildren would then be considered generational wealth.
BUILDING GENERATIONAL WEALTH
Creating generational wealth to hand down to future generations starts with establishing a solid financial footing. You can build your generational wealth by investing. Buying stocks, bonds, and other investments can help your money grow through the power of compound interest.
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Moreover, you must have an emergency fund that will prepare you for short-term goals such as down payments on a home. Eliminating high-interest debt such as credit cards can be a helpful strategy to build your savings too. Lastly, opening lucrative family business can provide opportunities for you to create a financially successful life. Pass these down to the future generation!
“When money realizes that it is in good hands, it wants to stay and multiply in those hands.”
― Idowu Koyenikan, Wealth for All: Living a Life of Success at the Edge of Your Ability
It comes as no surprise that the relationship between life partners has an enormous impact on their professional lives. Sharing a life with someone entails that you are each other’s support system. Moreover, you must take your partner’s ambitions, needs, and wants to account when making decisions.
Career decisions affect how you manage your household. In Singapore, dual-career couples are becoming more of a norm. The Department of Statistics released a population census last 2021, which highlighted the current labor trends in Singapore.
The last decade has seen an increase in the proportion of resident married-couple households with working wives and an increase in households with spouses who hold equal qualifications. The proportion of resident married-couple households with spouses holding equal qualifications elevated from 44.3% to 46.6%.
Let us put our focus on dual-career couples. Dual-career couples were the largest group among married couples, increasing from 47.1% in 2010 to 52.5% in 2020. This significant increase was observed across all age groups. It is understood that resident married-couple households with both the husband and wife employed earned more. In fact, they earned a median monthly combined income of $11,101 in 2020. This is higher than the median monthly income of households with only the husbands were employed ($5,070) and those with only the wives were employed ($3,213).
As more households adopt the lifestyle of a dual-career couple, here are some helpful tips that can guide you through the journey.
#1: COMMUNICATE EFFICIENTLY
One of the main ingredients of a successful partnership is communication. Communication may take different forms for every couple, but it ought to be personal and practical. For day-to-day activities, you need to talk about the actions that will make your household run smoothly. Who will take charge of the household chores? Who will pick up the kids from school? Discuss feelings, ambitions, and challenges in a respectful and intimate manner. This will allow you to know what is going well and what is not.
#2: LOOK AT THE BIGGER PICTURE
When you make decisions, it is important to look at the bigger picture. For instance, a mother decided to quit her job to take care of her kids due to the excessive costs of childcare. However, this decision can decrease the net earnings of the household and affect their overall financial status. On the other hand, taking a short-term financial hit to pay for childcare may increase the earning power potential of the couple in the long run. Think about your current situation and examine the best options for your future.
#3: CONSIDER ALL THE PARTS
A partnership incorporates two people’s needs and concerns on the table. Moreover, you must include the needs of your family as a unit. Listen carefully to your partner and reach a shared understanding of each other’s goals. Doing this will help you strike a balance in your life as a spouse, a parent, and an employee/employer.
#4: SEEK PROFESSIONAL HELP
Let us face it! Communication does not come naturally to every couple, and that is okay. It is essential to acknowledge this and find other ways to communicate formally. For starters, a counselor can help you work as a couple to ensure that you are being equally heard and that you are developing your goals with consideration for one another.
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If your issue is finding time to communicate, you may ask a trusted family member to help lessen your workload at home. Seek part-time help while still meeting the needs of your household and your children. Seeking help can give you the physical and mental space to re-connect to your partner.
Mothers know best. We have heard this age-old saying before. Yet, how many of us are willing to admit that it is true?
It is normal to have little spats with our beloved mothers, some of us more than others. However, we would be lost without her unconditional love and support. In honor of Mother’s Day, here is a list of some of the best financial advice that several public figures received or gave as mothers themselves.
#1: NICKI MINAJ
Rapper, singer, and song writer Nicki Minaj gave birth last 2020. Her stellar career and experiences led her to value her worth. She once said: “One thing I learned along the way in business is the necessity for you to be unapologetic about asking for how much money you deserve.”
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Do not stop negotiating your pay once the company has absorbed you!
#2: JILLIAN MICHAELS
Jillian Michaels led contestants of the Biggest Loser to new heights with her expertise as a personal trainer. Both her parents always said:
“If you want to give someone money, then give it, but don’t give away anything you can’t afford to lose.”
Her parents imparted that she should never borrow or lend money to others. Lending money, especially to people closest to you, is a tricky situation due to the lack of a written contract. Sometimes, it is difficult to ask for the money that your friends or relatives owe you. Thus, be prepared to lose money on several occasions.
#3: DOUG LEBDA
LendingTree CEO Doug Lebda said that his mother “told me there was no free lunch. If I wanted to do all the things my friends were doing, I needed to pay for it myself – so go figure it out.”
Teaching your children responsibility at an early age can help prepare them for the future. As a mother, you can reward the household tasks which your child completes.
#4: ALEX RODRIGUEZ
Alex Rodriguez is well-known for his professional baseball career. He has since transitioned to being the Chairman and CEO of A-Rod Corporation. His mother thought him to be industrious and hardworking.
“There was no one in my life growing up more industrious than my mom. She worked two jobs – as a secretary during the day, and a waitress at night – to support me and my siblings and allow me to pursue my dreams.”
#5: PAMELA HABNER
Pamela Habner is the CEO of U.S. Branded Cards for Citi. Her mother’s most powerful financial advice was “to bet on myself and double down. Be an independent woman with the resources to take care of myself – no matter what.”
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It is important to invest in yourself and grow your knowledge. You do not need to be dependent on someone to succeed in life. Do things that excite you! My mother is a lifelong learner whose motivation comes from within. She still takes webinars and furthers her education to this day. Whenever you do something that you are passionate about, you will never lose a reason to do what you must do.
One of the most expensive possessions that you can acquire in Singapore is a home. Given that it is an investment, people want to make their home as comfortable and presentable as possible. However, doing a home renovation can cost you a lot.
HOW MUCH DOES IT ACTUALLY COST?
In Singapore, the ultimate cost of renovation depends on the several factors. Firstly, the type of home will determine the scope of renovation. This refers to whether you live in a condominium, an HDB flat or a landed property. The next factor is the age and condition of your home. The extent and type of renovation work for a brand new BTO differs from a decade-old resale flat.
Thirdly, the type of materials to be used for the renovation must be considered. It is up to you to choose affordable or high-end materials. The contractor or interior design firm is also up to you. Shop around to find the firm that suits you best. Lastly, your total cost will be influenced by how much work you want done. Starting with a blank canvas can cost more than renovating a single room.
You can expect to pay from S$5,000 to over S$100,000 when you are renovating a 4-Room HDB flat (i.e., approximately 90 sq m). Remember that all the aforementioned factors will influence the renovation costs. In fact, Qanvast stated that the average 4-room HDB BTO flat renovation was estimated to cost about S$43,000 to S$45,000 in 2020. Since renovating a resale flat is more extensive and expensive, the expected cost was from S$45,000 to S$52,000.
WHAT ARE YOUR LOAN OPTIONS?
If you are looking for financial aid, you will apply for a renovation loan. Renovation loans are different from personal loans. With personal loans, you receive the money in cash. The institution does not know what you are going to do with the money, so it is riskier for them to lend it to you. As a result, personal loan interest rates are generally high.
On the other hand, renovation loans work by giving the money directly to your contractor. Because the bank knows exactly what you are going to do with the money, they can charge you lower interest rates. Renovation loan interest rates are usually less than 5% p.a.
Before you can apply for the renovation loan, you need to have the contractor’s invoice or quotation signed by both parties. Renovation loans can let you borrow up to S$30,000 or 6 times your monthly income, whichever amount is lower. You can repay this in monthly installments.
HOW CAN YOU REDUCE YOUR RENOVATION COSTS?
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#1: Determine what you want.
Not all design styles are created equal – some cost more than others. Experts suggest that the most affordable style is the Scandinavian interiors as it involves simpler aesthetics and fewer built-in carpentry.
Knowing which design style you want, and which rooms you want to renovate will help you determine the total renovation costs.
#2: Paint your walls.
You can save money by painting your walls or an accent wall instead of using wallpaper or building a feature wall.
It is a practical choice if you want to change your home’s look every couple of years. You see, wallpaper or stone are notoriously difficult to remove.
#3: Have less built-in furniture.
Carpentry can take up a substantial chunk of your renovation costs. To reduce your expenses, you can make a list of your top five carpentry must-haves. Your priorities must revolve around custom solutions that require real design work that you cannot easily purchase. For things that you can easily purchase, you can buy as you go along with the renovation.
#4: Compare the available renovation firms.
There are a myriad of renovation, interior design, and contractor firms in Singapore. Different companies tend to provide different price structures. It is best to research all the available options to find the best company that suits both your budget and preferences.
#5: Keep or sell unused items.
When renovating your home, you may find some unused items such as excess paint or wood. It is recommended that you sell these items to make some money. This money can be used to reduce your overall renovation costs.
Gift-giving is not always easy! If your partner is interested in gadgets, there are hundreds of options from kitchen gadgets to the latest iPhone 13. Apart from the wide variety of options, your gift will depend on the occasion. Fortunately for you, here is a list of gift ideas that you can present on any occasion. Most of these items are available online too!
#1: STARTER KIT FROM FENTY SKIN
Launched in 2020 by superstar Rihanna, Fenty Skin was created to fill in the gaps that exist across all skin types and tones. Fenty Skin is a cult favorite brand along with its predecessor Fenty Beauty. Give your special someone the gift of beauty by purchasing the Total Cleans’R Remove-It-All Cleanser. This is a 2-in-1 makeup remover and cleanser that gives you the luxurious deep clean you deserve. Its creamy lather removes dirt, oil, pollution, and long wear makeup without harming your skin. It costs S$21 at Sephora.
#2: HOMEMADE CHOCOLATES
The artisan chocolates that you can buy at specialty shops are a complete waste of money when you can make a box of chocolates by yourself. Even beginners can still make homemade chocolates as a gift.
Start by laying classic-shaped or square crunchy mini pretzels on a baking sheet. Then, place one bar of chocolate on top of each pretzel. Pop these in a pre-heated oven for about five minutes or until the chocolates begin to soften. Take these out of the oven and allow them to set. Do not worry about the price tags as the ingredients can cost you less than S$6 at your nearest supermarket.
#3: SURPRISE CAR CELEBRATION
Birthdays, anniversaries, or Valentine’s Day can be celebrated in your own home. Set up the surprise before your partner goes to work. Use the back of your car as your creative space and put banners, streamers, and balloons inside. These decorations cost less than S$10 at Shopee or Lazada.
#4: ENCHANTING DIFFUSER SET
Help your lover find her inner peace with different essential oils or diffuser sets. Gifting a diffuser will allow her to create an at-home spa vibe.
If you are looking for a classic calming aroma that can fill your space with relaxing notes, then you can get the HOOGA Reed Diffuser. It is non-electronic and extremely easy to use. The capacity is 200 ml. Price starts at S$19.90 at Lazada.
#5: BEAUTIFUL TRIO OF SUCCULENTS
Aspiring plant moms will be delighted with a trio of succulents. Marked by experts as the best type of plants for beginners, your girlfriend can enjoy fresh houseplants delivered straight to her doorstep.
The World Farm or Hua Hng Trading is one of the largest garden centers in Singapore. Prices here are usually cheaper than most nurseries and they readily stock the bestsellers such as succulents (from S$3), herbs (from S$5), and flowering plants (from S$9).
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Whether you are celebrating an anniversary or a birthday, the expectations can be high while your funds are low. If your bank account balance limits what you can spend on, consider the items on this list. Have a romantic day without spending too much!
