Practical Ways To Ease Your Stress On Financial Responsibilities

DO NOT BE FOOLED BY THE 0% INSTALLMENT PLANS

There are an array of goods that you can buy through 0% installment plans such as furniture, designer bags, electronic devices and appliances. Without control, you can potentially pile up your installment plans to the point that you can no longer afford paying for credit card bill.

Say you are strolling around the mall in the lazy weekend when you suddenly saw a shiny sign that says:

“FULL HD FLATSCREEN TV FOR SALE

    S$1,400 (U.P. S$1,600)

0% INSTALLMENT THRU UOB & OCBC CREDIT CARDS.”

It sounds tempting, right? But do you really need that telly when you have a functional one at home? Do you need another burden to add on your credit card bill? Well, it is time to live within your means!

UTILIZE YOUR CPF ACCOUNT WISELY

The Central Provident Fund (CPF) is a compulsory savings scheme for Singaporeans that is automatically deducted from the wages. Your CPF account can be used to support crucial financial commitments such as retirement, healthcare, and property purchases. While it is sitting there passively, you can maximize its use by utilizing it wisely. For instance, if you are using your account to purchase a new flat or refinance your current one, examine the situation every few years to see which is the better economical option.

And if you are not touching your CPF savings for a long period of time, consider putting it to the CPF Investment Scheme. It is a way to invest your CPF savings to various banks such as OCBC, DBS, or UOB. The money you will generate from your investments will eventually go to your CPF account and not your pockets. Compare the investment options and their charges. Instead of complaining about your “useless” account, why don’t you start investing?

FOR MARRIED COUPLES, SUPPORT EACH OTHER

Alongside merging two souls, marriage merges two finances together. Having another person to run to for support, opinion, and advice can help you make better financial decisions. For instance, if you are searching for a space at an Executive Condominium (EC), consult your spouse first. Are your incomes enough to suffice the payment of the EC? You do not want to end up working took hard for an EC when what your spouse just wanted an HDB all along.

Setting long-term and short-term financial goals such as purchasing a house or establishing realistic budget should be done together. Along with the goals, you must assign financial responsibilities to each other. Encourage and support each other throughout the process.

ALWAYS COMPARE PRICES

Almost every shopping hack includes a section about comparing prices so that your money would not go to waste. True enough; reading reviews and shopping around helps you get the best deal. Since comparing prices in physical stores is a troublesome and time-consuming activity, people have turned to technology. For example, browse at PricePanda if you are camera shopping. PricePanda.com.sg, the leading price comparison website for emerging markets worldwide, provides its users with prices, technical details and other information about the latest gadgets.

And if you are looking for an affordable wedding banquet, turn to SingaporeBrides.com.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

SingaporeBrides.com is your one-stop portal for your local wedding festivity needs. Here you will see that the cheapest banquet venue for lunch and dinner costs S$501 at LingZhi Vegetarian.

Sources: 1 & 2

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Important Money Matters In Marriage

As you may know, money is one of the biggest reasons why couples get divorce. Perhaps the reason why people fight most about finances is because of its measurable nature. With money, the give and take parts are quantifiable. Thus feelings of inequality and resentment can arise.

Discussing money matters may not seem romantic but it is very essential. Here’s where you shall start:

1. DETERMINE YOUR FINANCIAL GOALS AND RESPONSIBILITIES

Setting long-term and short-term financial goals such as establishing realistic budget should be done together. Along with the goals, you must assign financial responsibilities to each other. Who shall pay the utility bills? Who shall do the bookkeeping? Consider various factors such as time, knowledge and skills when deciding which of you shall take the primary responsibility for each task.

2. CONSIDER GETTING INSURED

The vow of “for better or worse, for richer or for poorer…” entails an important promise to live in a financially able home. Buying appropriate insurance coverage, to safeguard you from unforeseen financial hardships, can help embody this vow. Consider these types of insurance:

a. Life Insurance: This policy protects you and your dependents by giving the sum assured under certain circumstances such as being permanently disabled or critically ill. The agreed amount of money is intended to help you and your dependents meet your financial needs.

b. Health Insurance: This policy covers accidents, illnesses, and disabilities that affects your health. To help you and your family deal with the expenses, different health insurance policies are available in the market.

c. Home Insurance: This policy is designed to protect your home and its contents as well as covering any renovation work. Usually, homes that are less than 10 years old or those that are renovated within the last 10 years cost less to insure.

3. ESTABLISH A REALISTIC BUDGET

If you are planning to spend your lives together, it is only fitting that you learn to manage your finances as a unit. Once a month, evaluate your expenses and review important documents (e.g., credit card billing statement or utility bills) to help you create a realistic spending and budget plan for the weeks ahead. Make this a healthy habit to shield your family from piles of debt.

4. DISCUSS ABOUT THE NECESSITY OF A WILL

A Will is a legal document that communicates an individual’s final wishes. It determines not only the distribution of your properties but also the guardianship over your children in the event that both you and your spouse die.

Some people find it difficult to discuss about creating a will as the thought of it seems unpleasant, pessimistic, and morbid. However, think of it as an insurance tool that protects your assets and ensures its smooth transition. It is ideal to make a Will before having children or while they are still young.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, 3, & 4

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Should You Lend Money To Your Significant Other?

Lending money to your lover is a tricky business. You may be in a position where trust is completely present but, financial debts can pull you apart. An otherwise happy, supportive, and healthy relationship can come to an end if the money you borrowed is left unpaid.

With the exclusion of married couples, here are the things you must consider if you are thinking of lending your boyfriend or girlfriend money…

OBSERVE YOUR SIGNIFICANT OTHER

As societal norms dictate, lending your money to your fiancé or your spouse is acceptable as you handle payments together. If you are not on that stage yet, you must make a decision with your head and not your heart. Observe the actions of your boyfriend or girlfriend carefully and compare it against your preferences. Opt for someone who is financially stable and fiscally responsible. This does not mean that you are a gold digger rather it shows your perceptive nature.

For instance, your boyfriend borrows money from you in order to pay the bills because he spent his salary on the new game console. Are you going to lend him the money knowing he might not be able to give it back? Can he be able to handle greater financial issues as they arise? Think about it.

MAKE IT A PRESENT

If the amount is relatively small, consider it as a gift that you do not expect back. Do not lend an amount unless you are able to accept the fact that you may never see it again. That is always a possibility and you do not want to ruin your loving relationship with a “couple of bucks unpaid”!

EXAMINE YOUR FINANCES

Before anything else, make sure you can afford to lend and are not in debt. Just because you love your significant, does not mean that you are encouraged to loan him or her money despite being stuck with debt. Do not put your financial future on a downward slope just because your partner cannot manage his or her money too.

PUT AN INTEREST TO IT

When lending money for bigger things such as “buying a motorcycle”, you are bound to get paid for the full amount for a long period of time. For this, you need to make a signed contract that lay outs the amount of money borrowed, the interest rate, and the date/s of repayment.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Chances are, your partner is asking for your help to avoid high interests offered by the banks. Consider having your partner match your savings account interest rate instead.

Sources: 1, 2, & 3

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5 Simple Ways To Curb Your Online Shopping Tendencies

Almost every Singaporean loves to shop! When the convenience of online shopping was introduced, sales soared higher. Online shopping can be a delightful experience however, it can cause a major financial problem.

If your closet is bursting at the seams and your debt is piling up due to online shopping, then it is time to control your shopping tendencies. Start with these simple ways:

1. DO NOT SHOP WHILE TIRED OR TIPSY

According to Psychologist Graham Jones, author of Click.ology, making buying decisions when you are tired or tipsy can lead to regretful purchases. Instead, he suggests for you to reserve the item to the cart and revisit it the next morning. Once you are mindful about your online shopping, you will be able to make better decisions.

2. AVOID CLICKBAITS

Seeing a huge banner ad of the latest IPhone is not a sign from the universe that they are meant for you, they are simply clickbaits. Clickbaits have the sole purpose to attract visitors and draw attention to a particular website. To keep you from getting tempted, clear your browser’s history and cookies or download an App that blocks advertisements.

3. UNSUBSCRIBE FROM EVERYTHING

A surefire way to cut down your online shopping tendencies is to unsubscribe from all the promotional emails. Marking them as “spam” or “trash” will not stop them, instead you must go straight to the “unsubscribe link” and follow the steps. Unsubscribe to flash sales and auction sites as these are some of the most addictive shopping sites.

4. DO NOT BE FOOLED BY FREE SHIPPING

If you saw an online shop that offers free shipping, consider the extra costs of that deal. For instance, retailers may set minimum-order rules for free shipping or they may charge you for return policies. Add up the product price plus the extra fees first before making a purchase.

5. DELETE THE SHOPPING APPS

Shopping apps are tempting for all consumers and not just the addicts! The convenience of shopping at one’s fingertips as well as swift online payments have helped increase the online shopping tendencies of many. As everything is convenient, there is only a small room for contemplation and clearer decision-making. Hence, you must delete the shopping apps from all your devices.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

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Why Is Earning Money A Challenging Task?

COMMON REASONS FOR DIFFICULTY

1. FEELINGS OF INADEQUACY

The feelings of unworthiness and incompetence can drag many people away from accomplishments. If your mental dialogue focuses on these things then it can result to low self-esteem, lack of enthusiasm, and lack of creativity. No matter how much you want to succeed, these results can make you unsuccessful at work.

Your mental dialogue affects your behavior.

2. NEGATIVE ASSOCIATION

Money has been portrayed in media as a currency that most people fight for. Whether the news showcases a bank robbery or criminal dealings, the world has seen how money can make people “bad”. As the saying goes: “Money is the root of all evil.” This negative association fed by the environment is stored in our unconscious mind. If it is something undesirable, your unconscious mind is bound to “protect” you from it.

Hence, the negative association can affect how we deal with money.

3. FINANCIAL FEARS

Most of us are overwhelmed with a certain financial fear. Some of us may take the conscious effort to resolve it. However, many of us do not take the necessary steps to overcome it. They simply allow the financial dilemma to drive their life choices.

Know if any of these fears consume you (click here).

4. THE COMPETITION

One the higher end of the spectrum are the people who earn millions of dollars each year. Sam Wilkin, economist and author of Wealth Secrets of the One Percent, says it is difficult to be as rich as them because of the competition that is present in an open free market economy. Much like United States, Singapore has a highly developed and prosperous free-market economy.

There is a possibility to become immensely rich but you will have to dedicate your life to high-risks and high-return strategies.

STEPS TO TAKE

1. DO NOT FOCUS ON MONEY ALONE

If you take money as your primary motivation to work then, you will be depressed when it is gone or not enough. Focus on the reasons why you earn rather than how much you earn.

2. LOVE WHAT YOU ARE DOING

If you love your job then you will have a positive association with money and occupation. You will find fulfillment in your passion even if you have a relatively small income and long working hours.

3. MANAGE YOUR MONEY

You shall have control over your money and not the other way around. Be wise in saving, spending, budgeting, or opening a business. Instead of a shopping list, make a list on how you can grow your wealth.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1,  2, & 3

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