money management Archives | Page 10 of 17

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)

Sources: 1, 2, 3, & 4

5 Efficient Ways To Manage Your Elderly Parents’ Money

Three months ago, social workers observed that there were more senior citizens who had been cheated or financially abused by their own children. There were some cases where the children would manage their parents’ money and end up taking their savings for themselves. While others trick their parents into selling their homes and leave them homeless. This is the sad truth that we have to swallow!

However, if you belong to the fraction of people who love their parents and want to take care of them from the goodness of your heart, consider these 5 Ways To Manage Your Elderly Parents’ Money:

1. DISCUSS ABOUT THEIR NEEDS AND GOALS

You have one task – to organize your elderly parents’ financial life. Know what issues or topics to discuss that will aid this task. Due to the declines in someone’s body as they age, topping the list is healthcare. You must introduce the advantages of life insurance, medical insurance, or long-term care coverage policies. Also, talk about estate and other assets. Having a last will and testament ready is a crucial thing. Then, talk about what they want to accomplish with their money.

Emphasize on the benefits of the talk and speak with love. Delaying the talk will only be more expensive because as health declines, premium prices increase.

2. DO YOUR RESEARCH

After seeing eye to eye on the important topics, you must prepare the documents needed. These documents are the bank statements, credit card bills, tax records, investment accounts, insurance policies, and so on. Review their current financial situation with these documents. Then put these in one safe place such as a relatively small safe deposit box at home. Grant access only to the people who are really trusted (e.g., the lawyer or immediate family members).

3. IMPLEMENT A MONTHLY PROCESS

Each month you must ensure that their bills are paid, their income are accessible, and their living comfortably.

To pay recurring bills automatically, some banks enable automatic transfer of payments. Use this system to pay for credit card bills, loans, and rent. To make their income from investments accessible, help them set up direct deposits. Lastly, to help them live comfortably, you must review their financial activities each month.

4. PROTECT THEM FROM SCAMS

From fake contractors to reverse mortgage scams, con artists of today had come up with more sophisticated ways to fool elderly people to get money or to sign away equity on their homes. Aside from this, handphone scams are on the rise. Common handphone scams occur when an unknown number contacts you and tells you to collect your prize or to pay for your kidnapped relative.

This is why it is vital to keep your parents updated with the newest scams. Visit Scams Singapore – a blog dedicated to identify and relay information about the existing frauds.

5. GIVE THEM ALLOWANCE

Protected by the law, senior citizens who are unable to sustain their lifestyle can apply to the court in order for their children to provide a monthly allowance. With the Maintenance of Parents Act, you have a responsibility to support your elderly parents. Instead of providing them with a certain percentage of your pay, it is good that you discussed their spending needs and goals first.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

5 Financial Tips For Savvy Singaporean Teens

When it comes to money management, starting early is always a good idea!

1. KNOW THE TRUE VALUE OF MONEY

When I was a teen, my sister and I spared a portion of our allowance in order to by the latest CD released by our favorite boy band. Instead of asking our parents for money, we worked patiently for it. That way, we understand the true value of money.

Aside from being a student, if you have a part-time job, you can see the value of money in terms of the work you have to do in order to earn it. For example, if you view a designer wallet as 25 hours of work at a S$6/hour job rather than as S$150 alone, it gives you a unique perspective on spending. This shall help you make more accurate decisions.

2. FOLLOW THE STOCK MARKET

To get a good grasp about investing, it is recommended to follow the companies that have growth potential and renowned products. For example, track the stocks of the world’s no.1 brand for half a century – Coca-Cola (NYSE:KO) or the stocks of your favorite bakery – Breadtalk (SGX: 5DA). Using these shares for financial education can help make learning fun!

3. SPEND SMARTLY

As a teen, you can save more money by employing simple spending strategies such as comparative shopping and buying sale items. If you are an artist who want to purchase assorted colored paints, compare the prices of online and physical shops to get the best deal. And if you want to save even more, go to the clearance or sales section to avoid paying the full price.

Image Credits: pixabay.com (CC0 Public Domain)

4. REWARD YOURSELF

To make savings as vital as expenses, you must set aside a certain amount that you are planning to save first. This way, you can keep track of your money without accidentally spending it. Even as a teen, it is advisable to open your own savings account (e.g., Junior Savings Account).

5. DO AVOID DEBT

In Singapore, students are eligible to use their parents’ CPF account in order to pay their school fees. To pay it off, you might start your adult working life with debt. Such type of debt is unavoidable but credit card debt is. So avoid debt as much as possible.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

Quick And Simple Ways To Fix Your Financial Clutter

In the daily hustle of the city, being a busy bee is hard work but, that is not an excuse to remain untidy with your finances!

Simply spare at least 20 minutes of your time to manage your own finances with these four ways:

1. IDENTIFY YOUR FINANCIAL VALUES AND GOALS

Without underlying values and goals about money, you would not be able to fully integrate it to your life. Thus, the essential first step is asking yourself: What are the most important things to me (i.e., values) and how do I get there (i.e., goals)?

Develop a habit of financial goal setting to know where you are going and to plan how you can get there. Write down your financial goals with a trusted witness and contemplate the monetary milestone you would like to accomplish in the next 2 months to 2 years. Track down your monthly progress accordingly.

2. TIDY UP YOUR WALLET

Like your study or workspace, you will be able to clear your thoughts better when your wallet is organized and neatly placed. Fill the individual pockets with your bank and identification cards so you can easily take it out when needed. Then, spend a few minutes emptying your wallet of old receipts and other clutter.

3. REDUCE YOUR FINANCIAL ACCOUNTS

In a world filled with a certain bank account card for all your needs, most people have several numbers of bank or credit card accounts. The complication starts when the credit card for travel, for petrol, and for shopping sends bills at the same time. Also, you may have different bank accounts for higher interest, minimal fees, and rebates.

More than being complicated, the constant shuffling between these accounts can get messy. Simplify your life by closing out one account per week or you may consolidate all your accounts online.

4. BUILD AN EMERGENCY FUND

Do you have an emergency fund to protect you from unforeseen events? If you do, it is best to put it on a separate account with an online access so you can easily tap on it if the need rises.

If you do not, the best time to build one is now! Consider joining the 52-Week Money Challenge (available here). The challenge starts off by saving S$1 a week and by the end of the year, you will be able to save up to S$1,378!

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Smart Financial Resolutions To Kick-Start 2016

What better way to usher in the New Year than by making smart financial resolutions to improve your wealth?

1. ELIMINATE YOUR UNHEALTHY HABITS

Unhealthy habits, such as excessively drinking alcohol or smoking tobacco, that you enjoy on a regular basis can not only increase your insurance premiums but also your daily expenses. Another unhealthy habit that may be costing you a lot is regularly eating junk. Junk food is called junk for a reason as excessive consumption can lead to obesity, diabetes, high blood pressure, and so on.

When you decide to stop drinking, smoking, and eating unhealthily this 2016, you will see your bills going down and you will feel improvements in your health in no time!

2. WIPE OUT UNNECESSARY EXPENSES

As you review your annual statement, there is probably an expense or two that you can trim from your budget. Mine is my mobile phone plan. Due to accessible Wi-Fi connection almost anywhere in Singapore, I am able to refrain from using the allotted local calls and SMS on my plan. Yet I am still paying for it. What a waste!

How about you? Go through your past purchases. After seeing the bigger picture, it is time to cut down your expenses. Reduce the unnecessary expenses such as mobile phone plan, designer bags or costly coffee beans and turn a new leaf.

3. BE MORE ECO-FRIENDLY

Fix, refurbish, or recycle your furniture, decor, or appliance that are still in good condition instead of spending money to replace these. As you revamp your stuff, use lighter colored paints to reduce the heat and energy consumption. As you recycle, you may consider turning your old drawer into a shelf. There are many ways to cheaply decorate your home and saving Mother Earth in the process…just keep your creative juices flowing!

4. LOSE WEIGHT

Every January, a huge queue of people flock in fitness studios and gyms. These members soon to disappear as months go by. Instead of wasting your money on costly gym or fitness studio memberships, workout for virtually free at your own home or at the town parks. Do yoga, jog outdoors, run in the stadium, or try any workout routine that you can do for free.

5. TIDY UP YOUR LIFE

Being messy with your space and time can cost you!

For instance, being untidy with your billing statements can result to late payments and penalty fees while being unorganized with your cooking time can result to overspending on take-out food. The list just goes on.

Image Credits: pixabay.com (License: CC0 Public Domain)

It is important to organize your life…have a physical storage for your bills and schedule your tasks. As long as you are on track, you will be able to save!

Sources: 1 & 2

Search the site