money management Archives | Page 5 of 17

Five Secrets To Handling Your Finances As A Couple

Managing your finances together can be tricky when you are in a committed or serious relationship. However, you can employ several strategies to avoid headaches and arguments surrounding money.

#1: DISCUSS ABOUT YOUR FINANCIAL GOALS

There are a handful of Singaporeans who tackle life from paycheck to paycheck. These people deal with the expenses as they come without forethought about their retirement fund. Do you want to be in the same situation?

You have to realize that financial stability is important in strengthening the future that you want to build together. So, start by establishing at least three financial goals. These initial goals are short-term and realistic. Whether you want to save up for a getaway in Bali or a broadband bundle, your short-term goals will serve as an encouragement to take on bigger goals that will lead up to financial security.

#2: KNOW EACH OTHER’S FINANCIAL STATE

Tying the knot or living with someone who has a bad credit score may affect your finances. Imagine taking out a mortgage. Your partner’s credit rating may affect the potency of your combined credit score. This is not good!

Mutual disclosure can help you reduce conflicts over financial matters. As early as possible, carefully examine each other’s financial state and exchange useful tips. Are there any spending habits that you want to help your partner with? Do you have some outstanding student debts? Familiarize yourself with his or her deeply rooted attitudes and habits toward money.

#3: CREATE A MUTUAL UNDERSTANDING

As a couple, aim to distribute the control of your finances equally. Educate your partner about the facets of personal finance no matter how uninterested he or she might be. Financial literacy is necessary.

Aside from mutual disclosure, mutual understanding is crucial to your success. This means that you need to be aware of what you two can and cannot afford. Furthermore, you must contemplate on the process of dealing with unfortunate events.

#4: MAINTAIN JOINT AND INDIVIDUAL ACCOUNTS

A couple’s joint account is primarily used for shared expenses such as groceries, utility bills, phone bills, and mortgage repayments. Maintain this along with your individual accounts. You are entitled to a separate account because you must treat yourself or your partner personally without affecting the “household fund”.

You might say that this burns the bridges of sharing, but not really. The foundation of having individual accounts is that both would have access to each other’s account to prevent from keeping secrets. Spending beyond the threshold of your personal account is something that you need to discuss with your beloved first.

#5: DIVIDE YOUR MONETARY RESPONSIBILITIES

Compromise could be your best bet when you are sharing the responsibility for your finances. This goes hand in hand with the above statement. Having a joint account and two separate accounts helps to keep your independence and to stick with your budget.

Here are just some things that you must contemplate on when you are dividing your monetary responsibilities:

a. What are the bills that you want to pay using your joint account?

b. How much shall each one contribute to the joint account?

c. Which of your partner’s spending habits do you want to keep and to ditch?

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May these tips help you to foster good financial management habits as a team!

Sources: 1 & 2

How To Balance Your Busy Work And Blossoming Romance

No one ever said that cultivating a successful career is easy. Throwing the element of romantic relationship into the mix may make things more challenging. But, you can survive it!

SET YOUR PRIORITIES STRAIGHT

Many Singaporeans choose to shift all their resources to professional aspirations. There is nothing wrong with that. But, isn’t it more fulfilling to share your promotion with someone special?

For those of you who agreed, consider prioritizing both your work and your relationship. Prioritizing one thing over the other does not entail that you have to sacrifice entirely. It just means that you have to commit to temporal adjustments. Start by building a strong ground for both your professional and romantic life. When your employer and your significant other understand that they are mutually valuable, disruptions when priorities shift may not be a problem.

STAY UPDATED

The capabilities of social media are not limited to sharing adorable cat videos to your friends. Its primary purpose is to reach out to the people whom you care for. Allotting a significant amount of time at the office in unavoidable. It is a part of your responsibility as an adult. However, ruining your relationship because you are occupied by your job is avoidable.

Spare at least five minutes to write a sweet message to your significant other via Facebook. You may even send a quick video on WhatsApp. Or, you may call each other before going to work. Simple gestures can make your partner feel appreciated, wanted, and loved. Furthermore, having someone’s support makes it easier to get through a busy day.

SPEND YOUR TIME WISELY

Managing your time is a crucial factor in creating a work-love balance. Personal issues can be avoided with a little forward planning. Let say that your career exhausts much of your time as it demands you to work long hours. As much as possible, plan a weekend getaway with your beloved. Do you fancy staying at these affordable and Instagram-worthy hostels in Singapore?

After this much-needed staycation, you will come back to the office energized. Spending your time wisely may show that you are both devoted to your career and your personal life.

STRENGTHEN YOUR FUTURE

More often than not, people stay committed to each other because they see a brighter future ahead. I am distinctly referring to couples who are in long-term relationships. Financial stability is important in strengthening the future that you want to build. Although the fantasy of winning the Singapore Pools Toto is attractive, but it can become a barrier to accomplishment.

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It is time to bring a reality check! Take serious steps toward financial stability. Write down your financial goals together and discuss your monthly expenses. Be aware of each other’s financial situation and current income.

Sources: 1 & 2

Do Not Tell These Money Statements To Your Kids

There are some financial issues and information that you shall just keep to yourself.

1. “Your Dad makes more money.”

In a dual-career household, you shall refrain from pointing out which parent earns more than the other. Putting a distinct label on the breadwinner signifies that one’s contribution is more important than the other. It is better to highlight that the two of you work as a team in order to cultivate a brighter future.

2. “Your uncle owes us S$5,000.”

You may be infuriated that your brother has not paid his debt. Sure! S$5,000 is a decent amount of money, but you shall not get your children involved in this issue. Children usually mirror the reactions and emotions of their parents. Telling your daughter that her uncle owes you money may ignite hatred or uncomfortable feelings toward him.

It is an admirable thing to warn your children about the risks of lending money. However, you must use an example that is too close to home.

3. “I spent a lot of money for your gift.”

Most children do not mind the cost of your gift. They simply want to relish the excitement that the act of receiving brings. To an innocent child, there is no difference between a bespoke and a store-bought cake. It is still a sweet dessert!

Putting a price on a gift (i.e., high/low or cheap/expensive) can just change their perceptions. Teach your children that the value of the gift is not always reflected on its price tag.

4. “I am broke.”

Have you ever noticed that some of our adult conversations are exaggerated? Children are less likely to absorb our subtleties in communication. Imagine you uttered these words: “I am broke.” Your young offspring may misunderstand what you just said due to your choice of words. Avoid declarations of financial disaster.

Instead, it is important to give your children reassuring messages. You may say that you have to wait a week until the pay day comes.

5.”Do not tell your Daddy/Mommy that I bought this.”

Your devotion to your spouse does not stop after having kids. Make it a point to discuss about your spending habits and future goals. If you are about to purchase something that you want to conceal for now (e.g., a surprise birthday present), do it at your own time. Do not use the vulnerability of a child as an escape.

If you encourage a child to lie to the other parent, it increases the likelihood of dishonesty. It sends a message that spending money is merely a shameful act. All these wrong signals can be prevented by you.

6. “I dislike going to work.”

No matter how tired you are of answering demanding calls or how much you hate your boss, you shall not verbalize these thoughts when your child is around. Complaining about these negative aspects of the job can make your child feel anxious about the future.

Opt for sharing the aspects that you enjoy the most about your job. What makes your work fulfilling and interesting? Dwell on that. Save the serious talk until she or he reaches maturity.

7. “We cannot afford to buy that.”

After spending a few hundreds on the grocery store, it can be confusing to tell your child that you cannot afford to purchase a toy. He or she may think that you spent all your money on groceries or that you have no more money for the important things. Turn this situation around by teaching your children about the importance of prioritizing and delayed gratification.

You may say something along these lines: “Please put that toy back. We do not need it right now. If you really want to buy it, you have to save up for it. I can help you!”

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As with most aspects of parenting, it is best to lead as a positive example to your children. Choose your words wisely.

Sources: 1 & 2

Financial Resolutions That You Can Surely Fulfill This 2017

For the lack of a better term, 2016 was a “rubbish” year for many people around the world. Surprising political and social shifts occurred. Just take a gander at the newly elected President of United States! Nonetheless, most of us are ready to bid farewell to the yesteryear.

As you welcome 2017 with a bang, you may build a list of resolutions to signify a clean slate. Give it a go! While many Singaporeans are committing to adjustments surrounding their physical well-being, it is healthier to add several monetary resolutions.

Start becoming financially fit this 2017 by following these suggestions:

1. BE PROMPT AT ALL TIMES

There is a reason why money goes hand in hand with time. As the job market becomes increasingly competitive, most companies have minimum tolerance for employee tardiness. Keep your source of livelihood by always being on time.

You do not need to exhaust your resources or skills in order to remain prompt. You simply have to synchronize your clocks and set an appropriate alarm.

2. SAVE MORE ON ELECTRICITY BILLS

The top three appliances that spike up your energy consumption are the refrigerator, the air-conditioner, and the water heater. We became more reliant to these appliances due to the pressures of the contemporary lifestyle. This is why it difficult to give them up! So, save money by making small yet efficient adjustments.

Make energy-saving strategies a part of your 2017!

3. SWITCH TO A BETTER SAVINGS ACCOUNT

Savings accounts in Singapore were not shaped equally. Some may require you to have a minimum deposit of S$1,000, while others may not. To get most of the benefits of your savings account some encourage you to transact more, while others encourage you to withdraw less.

Earn the most profit out of your account by switching to an institution that offers the highest interest rates.

4. SEARCH THRU HOME FIRST

Before committing to a significant purchase, search inside your own home first. There are multiple ways to use your resources. You just have to be creative!

For instance, you may use your old drawer as a diaper changing table. You may also learn how to cook on a stovetop instead of replacing your broken microwave.

5. CUT DOWN ON YOUR TELEVISION INDULGENCE

The countless hours you spend in front of the television can drain your finances in the long run. Instead of immediately transitioning to the “couch potato mode”, do something productive in at least 60 minutes. You may also cancel your cable subscription and opt for watching shows at Toggle.sg.

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Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – for free! But, viewing of premium content is on a subscription basis.

6. REDUCE YOUR WATER CONSUMPTION

Singaporeans do not usually worry about clean and fresh water. However, the global supply of consumable water is getting scarce and more expensive with each passing year. Consider cutting down on your water consumption to save your pocket and Mother Earth.

7. WIDEN YOUR REPERTOIRE OF FINANCIAL KNOWLEDGE

Books will always serve as a clever investment. Some books will offer you a glimpse inside the minds of the greatest businessmen, while others will uncover strategies to become better investors.

Create a realistic list of all the financial books that you want to conquer within the year. Set an achievable goal for the amount of pages or books that you can accomplish each week. You might as well start as early as now!

8. MAKE THINGS EASIER

Aren’t you tired of the massive chaos and complexity that 2016 brought? Make things easier for yourself by closing or cancelling the accounts or cards that you are no longer using. Then, set up automatic transfers. Some institutions allow the employer to automate your salary in a bank account that is solely for your savings. Patronizing this method will lessen the temptation of immediate spending.

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Sources: 1, 2, & 3

Do You Have These Harmful Attitudes About Money?

Having a wrongful attitude toward money can cost you in the long run. The earlier you alter your belief system, the sooner it will pay off. Here just some of the attitudes that you can slash off:

“MONEY IS NOT VALUABLE!”

If you relieve the weight on your finances, you may start spending carelessly. Saying money does not matter is like saying that you can live in Singapore without having to work. Money is valuable as it lets you exercise choice. You can choose to change jobs or to retire early. It helps you to afford the options that will change the way you live.

“I WILL REMAIN FINANCIALLY ILLITERATE.”

Just because you never attained a “Diploma in Banking and Finance” does not mean that you cannot learn to manage your wealth properly. Having the negative attitude that you are not good with money can increase the fallout in your finances. This ideology is more common than you think.

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According to Kathleen Kingsbury, a financial author and money coach, women typically complain about being too stupid to learn about finance. This is not true! Since women learn by conversing, realize that your lack of financial knowledge is due to the lack of socialization related to money. An individual may join an educational club about personal finance as a solution. These matters can be applied to main as well.

“IT IS NOT POLITE TO TALK ABOUT MONEY.”

As we live in a predominately Asian nation, talking about salary or money in general is taboo. This may lead to poorly equipped individuals. You see, money has been a source of many conflicts. This is why most people skip this topic.

The downside is blatant ignorance. It is your duty to separate money facts from fiction. To get your facts straight, you must search for answers. You may not get the right information if you remain silent. People may not be able to help you in huge monetary decisions too.

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Do you have these harmful financial attitudes? Perhaps, it is time for change.

Sources: 1 & 2

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