Practical Strategies To Beat Inflation

Inflation is a sign of a healthy economy as it shows that the country’s wealth is growing. During inflation, you will experience periods of price surge. This is the perfect time to be more conscious of your spending. Do not worry! Inflation rates will eventually taper after several months. When this happens, your wallets can have the sigh of relief!

Ultimately, here are some strategies that you can employ to beat the inflation.

LET YOUR MONEY WORK FOR YOU

Let’s face it! To outpace inflation, having a high-interest savings account or long-term time deposit is not enough. Consider sparing some of your money to investment options that are safe to grow in spite of inflation. I am referring to asset classes such as mutual funds or pooled investments. Nowadays, many financial institutions in Singapore offer mutual funds at friendly rates. Read this article to learn more.

SLASH YOUR TRANSPORT COSTS

The Singapore government has declared this year as the Year of Climate Action. Take a page out of this initiative by getting on board with the public transport. You will not only save money by taking the bus or the MRT, but you will also minimize the carbon footprints.

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People who own cars spend around S$2,600 per year on petrol. Not to mention, there are other accompanying costs of car ownership such as parking and road tax. Taking public transport could diminish your costs significantly! Use your extra money to combat the price surge due to inflation.

CULTIVATE YOUR EMERGENCY FUND

An emergency fund is an account for funds set aside in case of events brewing from personal financial dilemma (e.g., loss of a job or having critical illness). When inflation rates elevates, your emergency fund becomes an added cushion to cover the sudden increase in the prices of goods.

It will keep you secured until you can adjust your budget. Experts recommend that you build an emergency fund covering your expenses for at least six months. If you have a family, then covering nine months’ worth of expenses would be a better target.

HUNT FOR GROCERY DEALS

A major chunk of our expenses is allocated to food. Whether you like it or not, inflation affects all goods differently. For instance, the cost of food rose faster than the general rate of inflation between September and October 2017. This price hike held across all types of food, from dairy products to vegetables.

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To get the best prices on food, you may use price comparison websites (e.g., diffmarts.com) or use online coupons. Spot the latest deals to bring down the cost of your basket!

Sources: 1 & 2

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How To Become A Money Magnet

Equipped with a best-selling spirituality book, you realized that there was a secret to cultivating the life you want. I know how bizarre this sounds, but hear me out! Rhonda Byrne, The Secret’s author, claims that our thoughts can influence the world we live in. This concept of manifesting destiny is called “Law of Attraction”. According to this concept, investing positive energy and belief can lead to a desired outcome. In contrast, negative thoughts may attract negative outcomes.

Similar to other philosophies, the Law of Attraction stresses how the universe and its creations are made of flowing energy. Your energy can be used to either attract or repel money. To attract money based on the Law of Attraction, you may follow these steps.

STEP #1: OBSERVE YOUR THOUGHTS

How can you lure money into your life, if you feel negative about it? What goes around comes around. Before changing your thought patterns, awareness of your thoughts on money is important. Be mindful with how you speak about money and wealthy people.

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Do not be quick to diminish your worth. Instead, appreciate what you have. Law of Attraction entails that you train the universe to send you more money by receiving and appreciating it.

STEP #2: RE-FRAME YOUR THOUGHTS

Have you noticed that whatever you do in two weeks straight usually becomes a habit? The act of repetition is essential to reprogram the minds of animals as well as humans. Reprogram your mind to attract money by wishing for abundance.

Law of Attraction encourages you to send positive signals to the universe by dressing the part, by surrounding yourself with money savvy individuals, and so on. Behave in a way that is directed towards your desires.

STEP #3: MAKE A LIST

Visualization is one of the key tools of the Law of Attraction. It allows you to create a path that you can reach for. You are empowered to create a vision for your financial life. Be clear about the amount of success and abundance that you want to achieve. It is recommended to practice visualization on a daily basis.

Dive into the feelings of abundance by either making a financial list or by making a money vision board. Practicing visualization on a daily basis may open opportunities to manifest these items.

Sources: 1 & 2

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Entertaining Money Activities For Kids

Financial literacy starts to develop while you are young. Discussing financial skills with your children through stories and practice is crucial to their development. Aside from this, they can learn through the examples you set. Hence, you have to find entertaining yet strategic ways to introduce some money concepts.

Teaching children how to count money does not have to be a snooze fest! Pass down positive financial matters through these money activities:

#1: CREATE FLUFFY ANIMAL BANKS

Introduce the concept of saving directed to a specific goal. Simply ask your children what they want to buy with their money. You may provide recommendations of the toys, video games, gadgets, and stationery items that they shall save money for. After identifying the end goal, provide your child with an assortment of art materials that they can use to create their own animal bank. Below are just some of the suggested materials that you can use:

a. hot glue gun
b. scissors
c. googly eyes
d. egg cartons
e. milk cans
f. empty coffee cups
g. baby food jars
h. newspaper
i. glitter glue
j. clear glue
k. markers and pencils

This project also presents an opportunity for you to introduce the importance of recycling. Gather recyclable supplies and be as creative as possible. Afterwards, you may have your children draw the specific item on the side of the animal bank. Through this, they will be motivated to get what they want.

#2: DIG THROUGH THE SLIME

Children love messy play! However, adults have a hard time cleaning it up. What if I told you that you can conduct a “messy play” activity with little mess? Well, start by buying a clear slime. Slime consists of non-toxic viscous material such as guar gum. Squishy and gooey are just some of the words that can best describe this toy.

Slime is a great sensory toy. Sensory toys are designed to tap the child’s five senses. By using slime, you can introduce new financial concepts by encouraging exploration. You can help your child understand the world around him or her by putting coins inside the slime. Ask your child to sort all the coins that he or she digs up. Interestingly, you may join your child as slime can have a calming effect on an adult. It shifts the focus from the demands of work to the unique texture of this toy.

Image Credits: stillplayingschool.com

Related Article: Useful Tips On Raising Financially Savvy Kids

#3: DRAW YOUR OWN NOTES

As a preschool teacher, I have witnessed how fond most kids are of scribbling and illustrating. They want to draw on different papers, tables, walls, and mirrors. Do not get me started with what they do when they are handed with a paint brush! Put this artistic energy to good use by asking your children to draw their own “Singapore notes”.

Encourage them to put the faces of each family member. This will evoke a fun reflection of how your child sees the people around him or her. Provide colorful papers with a measurement of 5″ by 2″. Then lay other art materials such as rulers, pencils, colored markers, and wavy scissors. Use these notes to help your child practice the basics of mathematics and the importance of currency.

#4: UPGRADE ON THE FIDGET SPINNER

For some reason, most boys are attracted to spinning objects. These spinning objects provide a distraction that can preoccupy them for countless of minutes. Mimic this effect by creating a coin spinner!

Start by getting an empty cereal box or any cardboard. Then, gather your hot glue gun, markers, pencils, and dollar coins. Use a cup to perfectly trace a circle along the cardboard. Cut accordingly. Then, cut a slit in the center that resembles the exact measurement of a dollar coin. Put the dollar in the center with the help of a hot glue gun. When you are done, you can easily peel off the glue without damaging the coin.

Image Credits: frugalfun4boys.com

Sources: 1, 2, & 3

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Forex sentiment indicator – An Incredibly Imperative Tool That Works for All

In accordance with April 2012 Foreign Exchange Committee, there are total 4 billion dollars of Forex spot transfers on a regular basis. With diverse participants especially those who are trading for some particular purposes are having an edge in the Forex market.

It is imperative to pay attention to the fundamental analysis as they show up the big picture. By looking at this picture, you can easily come to know about the latest actions of the currency pairs and technical analysis. Not just that, you get information regarding the trends.

The forex sentiment indicator is an imperative tool that alerts all the traders about the extreme conditions. This indicator also helps the traders to know the price reversals. It can easily be utilized in conjunction with the fundamental along with technical analysis.

An Incredibly Imperative Tool That Works for All

The sentiment indicators show up the percentage of the traders who have taken a specific position in the currency pair. For instance, you can assume that there are total 50 traders that are trading in the same currency pair. If 10 of these traders are long and 40 are short, then the 10 percent of the traders are considered as the long ones on the currency pair.

When the traders’ percentage in a particular position reaches the highest level, then the sentiment indicators becomes quite useful. For instance, you can assume that when a certain currency pair starts rising and 70 out of 100 traders are long; then some traders will leave to go with the trend.

The sentiment will indicate that it is the perfect time to consider the price reversal. When the price starts moving in lower and shows up a signal which is topped, the sentiment trader just enters the short. It assumes that those traders in the long will have to make sales to avoid losses when the rate falls.

On the other hand, it is said these indicators are not so accurate in providing the buying and selling signals. You have to wait for the rate to confirm the reversal ahead of acting on the signals of the sentiment. The currencies can stand on the higher levels for an extended time period as well as the reversal might not appear instantly.

The higher levels will be different for each currency pair. In the event that the rate of the currency pair has reversed when the buy reaches 75 percent and when the longs reach that higher level again then it is said that the pair is at the extreme.

Therefore, you will have to wait for the signals of the rate reversal. In case, another pair has reversed when the percent of the traders in the short is 80 percent then you will need to wait for the reversal at the extreme.

The sentiment indicators are present in diverse types. They are available from diverse sources. We cannot say that one is better than the other one. However, they can be utilized in juxtaposition with each other. Or else, the particular techniques and strategies should be followed to the data you find simple to interpret.

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How to find the best personal loan without damaging your credit rating

A personal loan can help you amass funds that you would require to pay for pressing expenses. However, if you have a poor credit score, you are likely to find it very difficult to get a personal loan approved. A bad credit rating will spoil your chances of acquiring a personal loan. A poor credit score or a poor credit history indicates your failure to pay back your loan amounts. Hence, if you are finding it difficult to get a personal loan approved, you should improve your credit history first.

Often we make the error of assuming that specific factors affect our credit rating when they have no impact. Factors such as your debit card usage, marital status and age have no role in determining your credit score. Other details such as your employment status, bank balance and income have no direct impact on your score, though it might influence your approval.

You will have to give individual attention to the factors that are likely to impact your credit score and the chances of getting a personal loan. Simply getting an appropriate personal loan is not sufficient as you also must have a decent credit rating to benefit from it. If you are looking for a personal loan by taking on a trial-and-error method it will be destructive and fruitless.

Let us look at some tips you can follow to find a personal loan without hurting your credit score:

Pay your dues on time

Even if you fail to pay your credit card bills and other dues on time, try to pay it within a month of the due date. Making payments within 30 days past the due date is accepted normally. By doing so, you can opt for the personal loan of your liking, without worrying about getting rejected. It will also have a positive influence on your credit score.

Avoid applying for personal loans from different lenders

If you are applying for multiple personal loans at the same time, your credit rating is likely to take a hit. This indicates your lack of confidence in obtaining a loan and which will reflect badly on your credit rating. Instead of applying for personal loans from multiple lenders, you must check the prospective rate of interest and eligibility by using a Personal Loan Eligibility Calculator.

Get a quote from the lender of your choice

If you apply for a personal loan formally, the lender will carry out a credit check. It is likely to leave a negative score on your rating. If this takes place often, your score will go down drastically. So, find out if you are eligible for a loan before applying by talking to the moneylender in person and going through the eligibility criteria.

Compare the fees charged by different lenders

Many banks offer low-interest rates but charge substantial supplementary fees. These include high prepayment penalties, excessive processing fees, arbitrary upkeep charges and more. These charges are likely to raise your burden and may lead you to miss a monthly instalment that may eventually damage your credit rating. So before applying, compare the charges and fees imposed on personal loans.

Seek help from non-banking financial institutions

Your chances of getting a loan will enhance significantly if you widen your pool of options. Apart from banks, approach non-banking financial institutions. These institutions are listed with Monetary Authority of Singapore and offer a wide range of loans. Like banks, these institutions also depend on your credit score and history to evaluate your risk as a debtor. However, these institutions may have different packages for different risk appetites.

Your credit score is the most significant financial tool to get the best personal loan. If you have the right credit score, you will easily get the approval for loans at the best available interest rates. As a result, it is very important that you make sure your lender offers you competitive interest rates and simple personal loan eligibility calculator together with other sufrepplementary benefits.

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