money management Archives | Page 12 of 17

6 Simple Ways To Organize Your Finances Now

In a sea of bills and taxes, its huge waves may drown one. Building a strong money boat to hold you and your finances together through organization is the key. Organizing your personal finances enables you to save more money and time. Start with these simple ways:

1. KEEP TRACK OF YOUR FINANCES DIGITALLY

Firstly, you must be aware of your spending patterns and exactly how much you are spending per month and per annum. A surefire way to organize your personal finances is to keep track of it by using a Smartphone App or computer software. Find the perfect (and Free) money management app for you here. Or, download reliable money management software called Money Dance or Mint. These digital tools will help you decide how much you shall save and help you to highlight the unnecessary expenses.

2. DESIGNATE A PLACE FOR BILLS

Never forget where you put the bills or what their due dates are by designating one place for them. Some bills arrive by electronic mail while some arrive by postal mail. You have to decide whether you are going to file all your bills in a tangible box or in a computer folder. For physical storage of bills, you may purchase the S$0.90 PAPPIS brown box from IKEA that is created to hold A4 size papers. Label the box accordingly and keep it in a safe place. While for virtual storage of bills, make scanned copies of those that arrive in the mail and put them into a labeled folder in your computer or laptop.

3. PREPARE FOR YOUR BILLS

At the beginning of the month, make a list of the bills you are expecting to receive. Put it on your working desk or create a file for it. This way, you will not pay a bill twice even if you received it simultaneously by e-mail and postal mail.

4. PAY THE BILLS IMMEDIATELY

Always charged for late payment? Try paying bills immediately. Since you are prepared for the bills earlier on, you may have available money in the bank to pay it the same day as you received it. If you have automatic payment scheduled and you still received a billing statement, call your bank or creditor.

5. CUT DOWN THE NUMBER OF YOUR FINANCIAL ACCOUNTS

In a world filled with a certain bank account card for all your needs, most people have several number of financial accounts. The complication starts when the credit card for travel, for petrol, and for shopping 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. This is why you must reduce the number of your accounts.

6. SET REALISTIC FINANCIAL 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 to 5 years. Track down your monthly progress.

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

Sources: 1 & 2

What Is Financial Well-Being And How Does One Boost It?

Early this year, the U.S. Consumer Financial Protection Bureau conducted a study on 59 consumers as well as 30 professionals to define what financial well-being actually is. Through their in-depth interviews they found that your income does not matter; consumers can experience financial well-being or the lack of it because it is highly personal. Therefore, financial well-being is defined as having financial freedom of choice and financial security in the present and in the future.

FACTORS THAT INFLUENCE THE FINANCIAL WELL-BEING

a. Social and economic environment,

b. Personality and attitudes,

c. Decision context,

d. Knowledge and skills,

e. Available opportunities,

f. and Behavior.

Image Credits: pixabay.com (CC0 Public Domain)

FINANCIAL WELL-BEING’S FOUR ELEMENTS

1. PRESENT SECURITY

You are able to pay your bills on time and do not have to worry about having enough money. You manage your finances and not the other way around.

2. FUTURE SECURITY

You are prepared to handle any financial emergencies or shocks that when it strikes, you have sufficient insurance, savings, and support from your family and friends.

3. PRESENT FREEDOM OF CHOICE

You have control over your life because you have financial freedom. Taking holidays, going out for dinner, and being generous to your family are done as you wish.

4. FUTURE FREEDOM OF CHOICE

You have short-term and long-term financial goals and you know how to meet them.

Image Credits: pixabay.com (CC0 Public Domain)

WAYS TO BOOST YOUR FINANCIAL WELL-BEING

1. EARN IT

Many people cut expenses but only a few examine ways to increase income. In the event of job loss, it is still important to do whatever it takes to provide for yourself and your family.

2. PROTECT IT

Do research (e.g., from newspapers, Internet, and financial experts) to ensure that all your monetary efforts are not wasted.

3. MANAGE IT

After you retire, the bottom line is not how much you make but how much you keep.

4. GROW IT

With careful financial planning, money will grow even in a slower economy.

5. ENJOY IT

A comprehensive plan will allow you to go for vacations, new car, and so much more. With this, you can transfer some funds to your heirs or to charitable causes.

Take each day as an opportunity to work towards improving your financial well-being! 🙂

Why It Is Essential To Surround Yourself With Financially Savvy Friends

As the Mexican Proverb once said: “Tell me who your friends are and I’ll tell you who you are.”

It is no secret that your friends influence your life in one-way or the other. This influence can either be small such as picking an outfit to work or huge such as choosing which bank to invest on. Either way, being surround by financially responsible friends is always a good idea.

Here are the reasons why:

1. THEY CAN TELL YOU WHEN TO STOP

When you are trying to eliminate an unhealthy habit such as overspending, you must first recognize that the problem exists. Financially savvy friends who care deeply about you can tell you when your spending goes overboard. Because sometimes, all it takes is a little nudging from your friends. Having a friend who will make you realize that you have a problem can make you think harder about your spending weaknesses.

2. THEY CAN STEER YOU TO BETTER FINANCIAL DECISIONS

The time spent with peers increases as the child ages. As the time increases, the power of peer pressure tends to increase as well. Using peer pressure to your advantage, you can make friends with people who are thrifty as they lead you to better financial decisions. For instance, instead of going to a fancy restaurant, they will opt for having a fun dinner at your place while splitting the expenses for pizzas and beverages.

3. THEY CAN HELP YOU DEAL WITH A FINANCIAL CRISIS

The reality manifests that layoffs, bankruptcies, and closings happen around us. Having friends who understand how important money is can help you deal with these unforeseen financial crises. They can help by listening to your dilemma, by connecting you to the resources of the community, and by the power of small deeds (e.g., cooking food or calling to catch up).

4. THEY CAN HELP YOU GROW

Your friend does not have to be as monetarily wise as Warren Buffet to guide you to better finances. You can be both starting from the bottom as long as you are responsible for each other’s financial growth. Do this by reminding yourselves about the monetary goals you set. And, if you have no financially responsible friends, you can always introduce them to the idea. Start by introducing the basics of budgeting such as knowing the envelope budgeting technique.

Image Credits: Riza Nugraha via Flickr With Creative Commons License

Truly, money matters get easier when you have financially savvy friends to support you along the way! 🙂

Hey Globetrotter! How Much Is Your Money Worth Around The World?

Has your strong desire to travel been itching you these past several weeks? Is your schedule free enough for you to travel at least 3 days away? If all your answers point to “YES” then, it is time to give in to your wanderlust!

As you let your heart decide which country you shall go next, it is paramount to understand the value of your money and the cost of living dynamics. These said information would help you build the travel fund that is suited best for your trip. Furthermore, you can carry a little more pocket cash in case an emergency rises.

Looking into the globe through a microscope, a few of the countries you may visit are Australia (Continent: Australia), Italy (Europe), China (Asia), South Africa (Africa), Canada (North America), and Peru (South America). Hooked to the globetrotter idea already?

Then, browse through the things that you can buy with S$2.50, S$52.50, and S$1,500…

S$2.50

In Australia, or Commonwealth of Australia, you can buy 1 liter of milk for S$1.53 or a 1.5-liter of water for S$2.48.

Are you a salad enthusiast? Try the lettuce (1 head) from Italy for S$1.35. The 1.5-liter of water there costs S$0.76 only!

If you love imported beer, get a 0.33 liter bottle for S$1.59 in China. Otherwise, conquer your thirst with the very affordable S$0.65 1.5 liter of water.

Image Credits: takuki via Flickr

In South Africa, you can purchase 500 grams of white bread loaf for S$1.31. And, their 1.5-liter of water retails for S$1.47.

Going up to Canada, you may purchase a kilo of tomato for S$1.90 that is otherwise S$2.66 in Singapore. The 1.5-liter of water? It costs about S$2.43.

Lastly, Peru offers friendly priced domestic beers (0.5 liter bottle) for S$1.84 while their 1.5-liter of water is priced at S$1.16.

S$52.50

You can ride a cab (normal tariff) with an hour of waiting for S$51.31 in Brisbane, Australia.

And, if you are a sucker for cheese, get 2 kilos for S$46.14 in Milan, Italy.

There is nothing but pure regard for your money at Zhuhai, China where a three-course meal at a restaurant can cost about S$43.38 for 4 people!

However, in Johannesburg, South Africa it is a tad pricier as the three-course meal at a restaurant can cost about S$48.74 for 2 people.

In Cold Lake, Canada, chain store (e.g., Zara) dresses are priced cheaper at S$43.78 whereas it retails for S$63.60 in Singapore. That is saving you S$19.82!

In the capital of Peru called Lima, you can enjoy 3 hours of playing tennis on a weekend (S$35.94) plus catching a flick on its international release (2 seats for S$15.76). Talk about an ideal date!

S$1,500

With this larger amount, you can rent an apartment for a month (inclusive of Internet services) at all these countries discussed. For instance, in Australia, you can rent a 1-bedroom apartment on the outskirts for S$1,187.62.

While in the world’s eight largest economy, an Italian 1 bedroom apartment outside the city costs S$1,034.54.

Image Credits: Julia via Flickr

For an incredibly cheaper price, visit China where you can rent a 3-bedroom apartment at the city for S$1,030.15.

Or go to South Africa where a 3-bedroom apartment at the city is about S$1,409.27.

And, if you have a month long business trip in Canada, consider renting the 1 bedroom apartment in the city for S$1,340.63.

Finally, Peru’s 3-bedroom apartment at the city will cost you approximately S$1,107.23.

Image Credits: blog.absolutvision.com

Oh! By the way…all these data were collected from Numbeo. It is a website that stores the world’s largest database of user contributed information about global living conditions. It has been mentioned in internationally renowned newspapers and magazines such as BBC, Forbes, The Economist, and New York Times among others. See for yourself! 🙂

Is Property A Viable Investment Tool?

A place where you can securely reside with your loving family – that is what you call a home.

Since land is scarce in Singapore, properties had always been a go-to investment tool for many. The majority of these investors have strategies limited to purchasing, reselling, and renting flats or condominiums. But, in order for higher returns to generate, one must consider investing to a range of other properties such as using the Real Estate Investment Trust (REIT).

And for a beginner with merely S$10,000 on hand, is property a viable and smart investment tool?

PROS

1. GETTING MORE LEVERAGE

With the banks help, you can have the ability to leverage your capital, make a down payment, and increase your overall return. Simply, more leverage enables you to pay less money upfront (e.g., 30% down payment and 70% from the bank) while making more money in the process.

2. CAN BE A SHIELD AGAINST INFLATION

Inflation occurs when there is a spike in prices and fall in the purchasing value of the dollar. As the miscellaneous for the property increases, the rent, and its value also increases. This is why property investing can be a good shield against inflation.

Image Credits: .Martin. via Flickr

CONS

1. CAN BE TIME CONSUMING

Finding a property in a decent location, building a good relationship with the tenants, and maintaining the condition of the property can be time consuming. Time that may not be in the good side of most.

2. THE RISKS ARE HIGH

A two-bedroom HDB flat can cost about S$250,000. That is a huge sum of money you may be willing to risk if you are serious in property investing. The risks only increase when the investor does not understand how the property market works or when and where to invest. Hurrying up without analyzing the situation thoroughly can only bring about more damage (e.g., bankruptcy) than good.

ULTIMATELY

You can lower the risk of property investing by diligently researching and analyzing reports, tests, and the current situation. Furthermore, investing in below market value properties backed up with insurance can help manage the risk. You would not know all these things unless you are well informed!

A buyer with an in-depth financial knowledge is important to the success of a property investment. So, if you lack sufficient knowledge, seek advice from a financial consultant or other professional advisers. And, when you find the “right property”, ensure that you keep your expectations realistic and keep your finances in tact.

Sources: 1, 2, & 3

Image Credits: Mark Moz via Flickr

DISCLAIMER: THIS ARTICLE DOES NOT FORM PART OF ANY OFFER OR RECOMMENDATION, OR HAVE ANY REGARD TO THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION, OR NEEDS OF ANY SPECIFIC PERSON. BEFORE COMMITTING TO AN INVESTMENT, PLEASE SEEK ADVICE FROM A FINANCIAL CONSULTANT OR OTHER PROFESSIONAL ADVISER.

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