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Stop Oversharing Your Wealth on Social Media

In a digital era where every meal, milestone, and moment is shared online, it’s tempting to show off your financial wins. I am talking about your latest pay raise, that dreamy Maldives vacation, or the luxury watch you just bought.

But before you hit POST, consider this: oversharing your financial life on social media can bring more harm than good. Here’s why keeping your salary, travels, and big purchases under wraps might just be the smartest financial move you make.

#1: AVOID UNWANTED ATTENTION FROM SCAMMERS

Singapore has seen a rise in scams, from phishing attempts to identity theft. When you broadcast your salary or expensive purchases online, you inadvertently make yourself a target. Scammers can use this information to craft highly personalized attacks, tricking you into revealing more personal data or even gaining access to your accounts.

For instance, if you constantly post about your latest gadgets and expensive vacations, cybercriminals may assume you have disposable income. Keeping your financial details private reduces your vulnerability.

#2: PREVENT UNNECESSARY SOCIAL PRESSURE

Even among close friends and family, revealing your salary or luxurious purchases may stir envy or create unnecessary competition. Oversharing can lead to silent resentment or pressure others to keep up, potentially leading them into unnecessary debt just to match your spending habits.

Furthermore, constantly flaunting wealth can strain relationships. You might find yourself being approached for loans or financial favors more often than you’d like.

#3: PROTECT YOUR PROFESSIONAL REPUTATION

Sharing your salary and big purchases on social media can backfire in the workplace. If your colleagues or boss see your posts about pay raises or lavish spending, it could create tension or resentment. If you work in an industry where discretion is valued, such as finance, law, or consulting, oversharing may be perceived as unprofessional.

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In some cases, discussing salary publicly can even put your job at risk. Employers often discourage employees from disclosing their earnings.

#4: MAINTAIN PERSONAL SECURITY

Posting vacation photos in real time signals to the world that your home is unattended. Even if you live in a secure condominium, why take the risk? If you must share your travels, consider posting only after you return.

Similarly, revealing expensive purchases online can expose you to potential burglaries. A new Rolex or designer bag on your Instagram feed might attract the wrong kind of attention.

#5: STAY FOCUSED ON YOUR OWN MONEY GOALS

Social media fosters a “comparison culture” where people showcase only the highlights of their lives. If you constantly post about financial wins, you may fall into the trap of spending just to impress others.

By keeping your financial milestones private, you stay focused on what truly matters. Shift your focus to your long-term financial stability. Whether you’re saving for a home or planning early retirement, financial discipline is best cultivated away from social media’s influence.

#6: ENJOY WINS WITHOUT EXTERNAL VALIDATION

Not every success needs an audience. Achieving a financial milestone should be personally fulfilling, not a means of seeking social approval. Keeping these moments private allows you to fully enjoy them without external pressure or unsolicited opinions.

Personally, I appreciate the finer things in life, which is why I save up to travel and experience new places. I also take advantage of opportunities to purchase luxury items at lower prices while abroad. When I share my travels on Instagram, it’s primarily to preserve memories and not to show off.

IN A NUTSHELL

In a world where oversharing is the norm, financial privacy is a power move. Keeping your salary, travels, fancy meals, and big purchases off social media isn’t about being secretive, it’s about being smart.

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So the next time you’re tempted to flex on Instagram, ask yourself: is the validation worth the risks?

6 Financial Tips for Seniors in Singapore

As we enter our golden years, financial planning becomes more critical than ever. With evolving healthcare needs, lifestyle changes, and estate management considerations, staying on top of your finances ensures a comfortable and stress-free retirement.

Consider these six essential financial tips tailored for seniors.

#1: UPDATE YOUR FINANCIAL GOALS

Your financial priorities will likely shift once you retire. This stage of life may involve:

Traveling more frequently
Retiring abroad in a lower-cost country
Pursuing new hobbies and interests
Providing financial support to children or grandchildren, such as funding education or helping them start a business

Start by clarifying your financial goals and estimating their costs. From there, create a strategic withdrawal plan that maximizes your savings and CPF payouts to sustain your desired lifestyle.

#2: ESTABLISH YOUR EXPENSES

Most retirees rely on a fixed income, making it crucial to understand and plan for both essential and discretionary spending:

Fixed expenses: Housing (HDB loan payments or rental), utilities, food, insurance, phone bills, and transportation.
Variable expenses: Leisure activities, dining out, shopping, travel, and entertainment.
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Additionally, factor in future expenses, such as rising medical costs and potential long-term care needs. If your savings seem stretched, consider adjusting your budget or lifestyle to ensure financial security.

#3: PLAN FOR HEALTHCARE FEES

Healthcare is one of the most significant expenses in retirement, especially with the aging population. Be proactive by:

Reviewing your MediSave and MediShield Life coverage to ensure it meets your healthcare needs.
Exploring ElderShield or its enhanced version, CareShield Life, for long-term care protection.
Setting aside a medical fund for out-of-pocket expenses such as specialist consultations, medication, and home care services.

#4: REVIEW YOUR ESTATE PLAN

Estate planning is essential for ensuring your assets are distributed according to your wishes. Key actions include:

Updating your will: This legal document specifies how your assets will be distributed.
Assigning a Lasting Power of Attorney (LPA): This enables a trusted person to make financial and healthcare decisions on your behalf if you become incapacitated.
Making a CPF nomination: Unlike other assets, CPF savings are not covered in a will, so nominating beneficiaries ensures smooth distribution.

#5: BEWARE OF SCAMS

Elderly individuals are often prime targets for scams, ranging from phishing emails to fake investment schemes. Protect yourself by:

Never sharing personal or banking details over the phone or online.
Verifying the identity of callers claiming to be government or bank representatives.
Enabling multi-factor authentication for online banking and financial transactions.
Staying informed about the latest scams through advisories from the Monetary Authority of Singapore (MAS) and Singapore Police Force.

#6: REVIEW YOUR FINANCIAL PLAN

Retirement planning isn’t a one-time event as it requires ongoing review. Optimize your financial strategy by:

Regularly assessing your CPF LIFE payouts, investments, and passive income sources.
Understanding how different income streams (such as rental income, dividends, and annuities) contribute to your financial stability.
Consulting a Certified Financial Planner (CFP) to help align your portfolio with your risk appetite and retirement goals.

IN A NUTSHELL

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Financial security in your senior years is about careful planning, smart spending, and protecting your assets. By staying informed and proactive, you can enjoy a fulfilling and worry-free retirement in Singapore.

Sources: 1 & 2

Money Management Tips Embraced by Gen Z

Meet Generation Z, the younger siblings of millennials, born between 1995 and the late 2000s!

Despite growing up in the aftermath of the 2008 recession and facing an uncertain job market, Gen Z has developed some impressive financial habits that everyone can learn from.

#1: THOUGHTFUL CHOICES & SACRIFICES

Gen Z understands the significance of making thoughtful decisions, especially when it comes to spending on non-essential items. Having experienced the impact of the 2008 recession, they’ve earned the reputation of being the most fiscally conservative generation in years. This frugal nature allows them to manage their funds wisely, focusing on essential expenses and saving for the future.

I had a conversation with my younger Gen Z cousin about money, and She shared how the recession taught her the value of choices. Her family had to cut back on certain luxuries, which taught her to prioritize his spending and save for rainy days.

#2: UTILITY & QUALITY OVER BRAND NAMES

Unlike their parents’ generation (Gen X), Gen Z doesn’t base their choices on recognizable logos and brand loyalty. Having grown up in the tech age, they value efficiency and usefulness over trendy branding.

A Gen Z friend once shared a funny incident where they refused to buy expensive shoes just because they had a famous logo. Is logomania really over?

#3: DIVIDE YOUR MONEY INTO BUCKETS

Gen Zers must organize money into different categories or “buckets” to track spending effectively. This could involve setting up separate bank accounts for different financial goals or physically allocating cash into envelopes labeled for specific expenses.

For example, dividing income into necessities and discretionary spending helps maintain financial discipline. Creating buckets for short-term and long-term goals, as well as savings and investments, aids in focused financial planning.

#4: SOCIAL MEDIA AS A STARTING POINT

Many seek financial guidance through platforms like TikTok and Instagram. While social media can offer useful tips, it’s essential to recognize its limitations and supplement it with further research.

One of my Gen Z acquaintances confessed how she used to believe everything she saw on financial TikTok without question. After making some hasty financial decisions, she learned the importance of cross-referencing information from reputable sources, like financial websites and expert advice columns.

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In conclusion, Gen Z has demonstrated remarkable financial acumen by embracing mindful spending, prioritizing utility over branding, adopting the bucket strategy, and using social media as a stepping stone for financial knowledge. Their approach serves as a valuable lesson for all generations to manage money wisely and secure a stable financial future.

Sources: 1 & 2

6 Money Lessons To Avoid Being Broke

Nobody ever wakes up one morning and thinks, “I want to be broke.” A hefty loan here, a bad investment there, and a long credit card statement later – you have no idea how you landed in this state. You are living paycheck to paycheck without savings intact.

What can you do to turn the tide? Start by reading this article and applying these lessons into your life.

#1: THE POWER OF SETTING CLEAR FINANCIAL GOALS

Goals mark your direction in life. If you do not have a clear destination to work towards, it can be difficult to find the passion or motivation to save. Whether you are eyeing on purchasing a flat or figuring out how to pay off your debts, crafting a plan can get you there.

As you set your financial goals, consider making them SMART. Financial goals need to be specific, measurable, attainable, realistic, and time bound. Creating goals using the SMART method can help you ensure that you are working on an achievable goal within the timeline that you set. Stay on course!

#2: DON’T BUY WHAT YOU CAN’T AFFORD

Spending less than you make and buying what you can afford seem like simple personal finance rules. However, these are easier said than done. You can get distracted with the consumer-driven society that tempts you to live beyond your means. When this happens, a good rule of thumb is to save at least 15% of your income.

If you find it hard to save money, try paying for groceries and clothes with cash instead of a credit card. Take it one step further by using a budget per month. Withdrawing a fixed amount every month can help you to become more aware of your spending choices.

#3: EMBRACE THE FINANCIAL WORLD

The majority of personal finance lessons do not center around financial education, but on financial behavior. If you can modify your behavior with money, you can alter your financial future. Remember that you do not need to be a financial expert to prepare an emergency fund or to save for retirement. Start by building a solid financial plan and committing to it.

#4: THE IMPORTANCE OF INCREASING YOUR INCOME

Search for part-time jobs such as freelancing or dog walking to grow your income. You can take on other positions in the same company too. If you feel like you have reached the glass ceiling in your field, consider looking for new career paths to generate more income. Increasing your income can help your financial future.

#5: INVEST SMARTLY, AND NOT IMPULSIVELY

Investing is a good way to protect and grow your assets. However, the talent of wise investing does not come to us all. You may be succumbing to emotions and invest impulsively, hence you win big or lose big.

As a precaution, have an advisor who is trustworthy and credible. Research on your part is vital as well. It will give you the knowledge and confidence you need to make smart investments.

#6: BUDGET YOUR MONEY

It is understood that budgeting plays an essential role in controlling your spending, paying off debts, and staying on track with your financial goals. Creating a budget starts with adding up all your expenses for the month and subtracting that amount from your total income.

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Set monthly and daily spending limits to adjust and make up for any oversights. You can create a budget using a notebook, a spreadsheet, or a budgeting app. Use a tool with which you are most comfortable.

Sources: 1 & 2

How Frugal Are You Really?

According to the Merriam-Webster dictionary, frugality is characterized by being careful in the usage of one’s resources. Those who are frugal are unwilling to lavishly enjoy the fruits of their labor. It may come as a surprise to you to know that the word frugal derives from the Latin term “frux”, meaning “fruit” or “value”.

In Behavioral Science, frugality is defined as the resourceful use of already economic goods and services to achieve a long-term goal. If you are keen to adapt this multi-dimensional consumer lifestyle trait in order to save money during the pandemic, you may read the list below to see how many frugal choices you have been doing.

#1: YOU CREATE A GROCERY LIST AND STICK TO IT

Instead of grabbing whatever attracts your eye at the counter, you prefer to create a grocery list and stick to it. It is easy to increase awareness when it comes to your grocery spending when you plan ahead. It may be challenging at first and you may forget several items, but you will find yourself becoming more intentional with your listings as time passes by.

The grocery list is essential because frugal people plan their meals and frequently eat at home. You may avoid the temptation of dropping by a fast food chain by keeping a container of snacks in your bag or in your car. Calm your rumbling tummy as you travel back home.

#2: YOU DO NOT CARRY CREDIT CARD BALANCES

Frugal people are not dictated by their credit card purchases. While some have the discipline to pay off their credit cards every month in full, others choose to stay away from these entirely.

Self-awareness and control play play huge roles in a person’s success with credit cards. If you have been in debt for years, consider to cut down on your credit card spending and pay them off once and for all.

#3: YOU DO NOT COMPROMISE YOUR HEALTH

Being frugal does not mean that you will only invest on cheaper alternatives and low-quality food items. Many frugal people choose to eat healthier greens and legumes and keep meat to a minimum. Frugality does not compromise health to save money. Frugal people have strategically plan their meals and have invested on insurance plans that will benefit them in the future.

#4: YOU DO NOT WASTE FOOD

Frugality entails that you use what you have until you need to replenish it. Frugal people eat leftovers until they are non-consumable or inedible. Eating your leftovers also cuts down on your food expenses and environmental waste.

You may create new meals from your leftover food. For instance, your leftover chicken can be shredded and turned into chicken sandwich. While, leftover rice can be used for your egg fried rice. Just ask Uncle Roger!

#5: YOU LEARN FROM YOUR MISTAKES

Frugal people are not perfect. No one is. Frugal people make financial mistakes and learn from it. You may have spent too much on your holiday shopping last year or caved in to your monthly food cravings.

It is important to be aware of these financial mistakes. If going over budget becomes a habit, you need to re-evaluate your spending patterns and your budget.

#6: YOU KEEP TRACK OF YOUR BILLS

Frugal people look for ways to save money by keeping track of their bills. Other than eliminating unnecessary plans or subscriptions, you may find it easier to pay off your dues through auto-pay programs.

Search through the profiles of your service providers and ask if they have automatic payment schemes. For instance, some telecommunication plans offer automatic payment schemes through online banking. This way, you will be able to save on time and avoid paying late fees.

#7: YOU NEGOTIATE ON A PRODUCT OR A SERVICE

Frugal people love to negotiate to get a good deal. Whether they are purchasing a gadget or an appliance, they excel in the art of negotiation or spotting the best deal. They do not shy away from purchasing second-hand or pre-loved items to get a good deal. And, they certainly do not want to spend S$85 on a cup of coffee.

#8: YOU COMPARE PRICES FIRST

In order to save more money, frugal people tend to search high and low for the best prices and free upgrades. Helpful price comparison apps and websites have flooded the market these days. Some popular price comparison websites in Singapore include pricepanda.com.sg and iprice.sg. Use these tools to help you decide on an item, before adding it to the cart.

#9: YOU SHOP OUT OF NEED

Making shopping a hobby can cause a significant hole on your wallet. Frugal people shop out of need and save money whenever they can. Finding an inexpensive hobby is easy, when you are open to the possibilities. I, myself, am learning how to play a new instrument. I have picked up a Kalimba (Thumb Piano) online for a little over 20 dollars. This inexpensive instrument has provided countless hours of entertainment for me and my family. Now, my entire house knows how to play the Kalimba.

#10: YOU DO NOT SHOP BASED ON YOUR EMOTIONS

Shopping based on your mood may lead to buyer’s remorse and impulse purchases. Frugal people can get into emotional circumstances too, but they usually are not emotional spenders.

You can be the most disciplined person under normal circumstances, but be heavily impacted with unfortunate circumstances. We are not exempted from the effects of the global pandemic. When this happens, you have the choice to throw all the structure out of the window or to slow down and examine possible solutions.

#11: YOU CONTINUE LEARNING

Personal development is important across all fields. Frugal people continue to learn from others and their own financial mistakes. It is beneficial to listen to educational audiobooks and enroll to (free or paid) online classes to boost your professional and personal growth. You may browse through the free courses by Google Digital Garage to start growing and learning.

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Sources: 1, 2, & 3

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