money management Archives | Page 13 of 17

Newbie’s Guide To Financial Planning

Picture a curve going up. This is your lifetime money curve. Every decision you make affects the direction of your curve. For example, once you earn money from your first job then, the money curve will go up higher. But living in reality, your money curve are exposed in certain financial pressures such as taxes and bank fees, which, will push the money curve direction down. The good news is that, with a strategic plan that evaluates the potential pressures, you can survive or prevent the downward money curve. This strategic plan is called a Financial Plan.

Financial planning is an important process that draws out your monetary future. It is a process of managing your finances and knowing where you want to go. Here are 5 pointers to guide you…

1. INFORMATION GATHERING

In order to manage your finances, the first step is to gather all the important documents (e.g., bank statements, insurance policies, and investment accounts) and financial information. Organize these records by using a folders or filing accessories that will cost less than S$5 at Popular Bookstore or Daiso.

2. EVALUATING

After you gathered all the essential information, you must evaluate all the areas of your financial life including long-term savings (e.g., retirement and college fund), short-term savings (e.g., payment for bills and emergency fund), key documents (e.g., durable power of attorney and will) and insurance (e.g., life and car insurance). Calculating your net worth is also in this step.

3. SETTING GOALS

Following evaluation is goal setting. It involves two things: identifying your goals and knowing what resources you need. Identifying your financial goals both short-term (e.g., staycation in Bali) and long-term (e.g., retirement at 50s) is vital to knowing what your next plan of action will be. After plotting your goals, you must know the resources you will need to achieve them.

4. TAKING ACTION

Since your goals are set, your next plan of action is to decide whether you shall do it on your own or to hire a professional financial advisor. The personal actions you can take may include purchasing life insurance, creating a will, and setting a side money for your retirement. While, hiring a professional can help you reach your objectives in the midst of time your constraints.

5. MONITORING

The last step is monitoring. Monitoring involves tracking your progress and altering your goals based on the reevaluation of your current economic situation.

Image Credits: carlocanyougo.tumblr.com

With a systematic and a holistic Financial Plan, may your money curve take a flight…leading you to success! 🙂

Sources: Entrepreneur and MoneySense

Fantastic Tricks To Help You Spend Less

Often you feel confident to change your shopaholic ways. Then, you find yourself stuck with your old and impulsive patterns. The good news is that, it is never too late to change. You can outsmart your mind by tricking it with these simple ways…

1. AVOID SHOPPING WHEN YOU ARE FEELING H-A-L-T

Four common emotions that lead you to overspend are hunger, anger, loneliness, and tiredness. You must not shop hungry in a grocery store because you would end up buying everything that satisfies your hunger. Same goes for other aspects of shopping, it is best not to shop angry, lonely, and tired.

2. HAVE A 7-DAY MENU PLAN

Are you one of those people that take long in deciding which meal to cook every night? Menu plans will not only save you time but it will also save you money. If you have a menu plan for your meals throughout the week then, you would only spend money on the items that you really need. More so, you will be able to manage your calorie intake to live a healthier lifestyle. Here is a sample 7-day meal menu plan by Anytime Fitness:

3. SELECT A CLEVER PASSWORD

For the shopping websites that require you to log-in before purchasing, I suggest to use clever passwords related to your long-term goals such as Need$4NewCar or $ave4HOLIDAY. This way, every time you type your password in, you will be reminded to think twice before spending it.

4. WALK OR CYCLE AROUND

Instead of spending money on petrol, walk or use your bicycle around the streets of Singapore. Running errands will not only serve as a good exercise, but it will also make you spend less.

5. NARROW YOUR EXPENSES

When it comes to spending less, do not try to be Jack-of-All-Trades. Instead, narrow your expenses by focusing on two categories that you spend more of such as dining out and groceries. Cut down these expenses by 20-30%. You will feel less overwhelmed and more motivated afterwards.

6. SHOP WITH HIGH-HEELED SHOES

A 2013 study showed that consumers who wore high-heeled shoes are more likely to spend less as they are more focused on maintaining their balance. The effect is the same when you shop after a relaxing yoga class.

Image Credits: Victor Tongdee via Flickr

Follow your 2015 New Year’s Resolution and do your best to spend less and save more for your future! 🙂

5 Things You Should Consider Before Opening A Savings Account

According to Investopedia, Savings Account is an account managed by the bank which provides principal security and a moderate interest rate. Personally, I value this financial tool because it serves as an accessible shield to cover the immediate expenses. Before you open your own savings account, here are the 5 helpful and feasible things you should consider…

1. HOW MUCH TO SAVE

Having enough money in reservation, especially in an expensive country such as Singapore, is very important not just for you but for your family too. A savings account with an emergency fund can pay for the unforeseen expenses instead of using credit cards or applying for loans. You need to ask yourself this: “How much do you need to save?” Consider your needs and that of your family.

2. CHOOSE YOUR BANK WISELY

The first thing you should look out for aside from your eligibility to open the savings account, is the initial fee and the maintaining balance requirements. For example, UOB’s passbook savings account has an initial fee of as low as S$500 (for Singaporean/PR) and a maintaining balance of S$500. While, OCBC’s passbook savings account has an initial fee of S$1,000 (for Singaporean/PR/Foreigner) and a maintaining balance of S$1,000.

3. ATM AND BRANCHES AVAILABILITY

It is important that you can withdraw the cash from your savings account at your convenience once the need arises. Be sure to examine the bank’s ATM locations. Are there ATMs near your home, workplace, or frequented shopping malls? Also, if you are traveling a lot then, a bank with branches around the world is a better option.

4. SCOPE OF FACILITIES

In today’s world, most banks allow Internet banking and even Mobile App banking to check your savings account balance and to make various transactions. Consider this. Also, know whether your savings account comes with a passbook, a debit card (e.g., with VISA, NETS, or MasterCard), or an ATM card. This will help your options to narrow even more.

5. ESTABLISHING THE SAVINGS

To establish your savings, it is better to have a fixed amount to put inside every month. First, you must set a long-term goal about the money you can accumulate. Second, you must set a time frame that allows you to complete your goal.

Image Credits: Ken Teegardin via Flickr

Do not forget that different banks have varied interests rates that may affect your savings.

Mr. Lee Kuan Yew’s Notable Quotations on Economy and Life in Singapore

As the nation bids its final farewell to Mr. Lee Kuan Yew, the founding father of Singapore, here is a humble homage for his wisdom on money and life matters.

1. “People want economic development first and foremost. The leaders may talk something else. You take a poll of any people. What is it they want? The right to write an editorial, as you like? They want homes, medicine, jobs, schools.”

~The Man and His Ideas, 1997

2. “If Singapore is a nanny state, then I am proud to have fostered one.”

~From Third World to First, The Singapore Story: 1965-2000

3. “Life is not just eating, drinking, television, and cinema…the human mind must be creative, must be self-generating. It cannot depend on just gadgets to amuse itself.”

~Speech at Chinese New Year and Hari Raya Haji Celebrations held at Joo Seng Community Centre, February 28, 1970

4. “But I’m not God, I can’t change you. But I can encourage you, give you extra help to make you do, say maybe, 20% better.”

~Success Stories, 2002

5. “Every Singaporean who owns a flat can double his value in today’s terms within the next 15 to 20 years. In other words, in the next 20 years, we can make everybody worth twice as much, at least.”

~National Day Rally, 1990

6. “If you can’t think because you can’t chew, try a banana.”

~Reply to a BBC reporter, 2000

7. “I am often accused of interfering in the private lives of citizens. Yes, if I did not, had I not done that, we wouldn’t be here today. And I say without the slightest remorse, that we wouldn’t be here, we would not have made economic progress, if we had not intervene on very personal matters – who your neighbor is, how you live, the noise you make, how you spit, or what language you use. We decide what is right. Never mind what people think.”

~Straits Times, April 20, 1987

Image Credits: William Cho via Flickr

To build a strong Singapore during the most difficult years and to transform it from a Third World to a First World country is truly admirable beyond words. Mr. Lee, your outstanding leadership gave us the direction and for that your legacy will on forever.

Sources: 1, 2, 3, and 4

Best Credit Cards for Singapore’s Students

Being a “poor” undergraduate student with little income is not a problem anymore! With credit cards that have a credit limit of S$500 offering tons of rewards on shopping, dining, travel, and more…here are the four Best Credit Cards For Students in Singapore:

4. DBS LIVE FRESH VISA STUDENT CARD

S$500 Credit Limit

Live Fresh Visa card is designed especially for tertiary students who want to manage their spending comfortably while still enjoying its rewards. The DBS reward points are accumulated for every S$5 charge on your card. It can be exchange with a wide range of shopping, dining, and travel deals. It has no minimum income requirement and the annual fee of S$64.20 is waived for 5 years!

3. MAYBANK EVIBES CARD

S$500 Credit Limit

Maybank’s eVibes card is available for tertiary students or working adults aged 18 to 30. Its credit limit allows clients to spend within their means. With a S$0 annual fee and S$0 minimum annual income required, it is really an ideal credit card for every student. Although there is a quarterly service fee of S$5 but it is waived when you pay using your card once every 3 months.

Get 1% of cash rebates for everything you purchase! And, easily track your expenses online at any time.

2. STANDARD CHARTERED MANHATTAN CREDIT CARD

S$500 Credit Limit

Are you a student wanting to indulge your bountiful appetite and thirst for films? Then, Manhattan is the right card for you. Enjoy 15% off your total bill at Harry’s Bar and Restaurant or S$1 off per movie ticket plus a free popcorn combo set at the Cathay Cineplexes. What’s more? You get .25% cash back for all retail spending, 20% off from items at Nature’s Farm, and 15% off from items at Oroton. Aside from these benefits, the annual fee of S$30 is waived for the first year and there is no minimum income required.

1. CITI CLEAR CARD

Dreaming of having free entry to Zouk and 1-for-1 drinks at wine bar one of these days? Or how about having exclusive deals at good restaurants such as db Bistro, Shin Kushiya, and The Chop House? Dream no more students! With Citi Clear card, you will be pleased with benefits in dining, clubbing, petrol, shopping, and more.

Dining

10% Citi Rebate at Starbucks

5% Citi Rebate at Burger King

Entertainment

Free entry and 1-for-1 drinks at Zouk

10% off total bill at Wala Wala Café Bar

15% off ala carte food menu at Beer Market

Petrol

10% discount at Esso stations

Shopping

6% cash rebate at Tangs

Worry not about your qualifications because there is no minimum income required and besides the annual fee of S$29.96 is waived the first year. Best of all? Upon application, you get S$30 Havaianas or CommonThread voucher.

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