money Archives | Page 7 of 15

Honestly, Why Are You Buying Insurance?

Insurance is a safeguard against unfortunate and unforeseen events. It is a strategic way to manage various risks. Insurance companies offer individuals or policyholders protection from potential losses in exchange of payments called premiums.

Aside from guaranteed coverage, what are the honest reasons why people buy insurance? On the flip side, what are the insurance company’s objectives as they offer their services?

OBJECTIVES OF INDIVIDUALS

As you age and progress along the stages of life, you become more and more aware of how necessary insurance is. A number of factors may lead to this realization such as seeing your elderly parents and starting your own family. While you know that you are supported by your CPF account as well as your Medishield Life, you can realize that it may not be comprehensive enough to meet your lifetime needs. This can serve as your wake up call to evaluate your present financial situation and plan for your future and that of your loved ones.

The exact reasons why people buy insurance is unique and highly subjective. However, here are some of them:

a. Worried about critical illness – consider health insurance.
b. Worried about permanent disability – consider life or term insurance.
c. Concerns about the loss of belongings – consider general insurance.
d. Concerns about death (as a breadwinner)- consider life or term insurance.

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

OBJECTIVES OF INSURANCE COMPANIES

Nowadays, insurance companies offer a wide array of insurance products and policies that cover areas from property, health, and travel. Insurance companies must satisfy certain objectives to effectively function and meet their clients needs. Before purchasing one, know some of their objectives:

a. Pooling Money

By collecting premiums from a number of individuals or businesses, the insurance companies are able to pool their money together. They then pay out for the relatively few claims filed each annum. Keep in mind that majority of the policyholders do not file claims over the same period.

b. Financial Competence

Another objective is to ensure the policyholders that they are financially stable. Once one or more policyholders report that they were not duly compensated, society’s confidence in the system may be gone.

c. Influencing Behavior

One of the most important aims of insurance companies is to reward and promote responsible behavior. For instance, individuals with lower records of vehicular mishaps are more likely to be quoted with a lower car insurance premium than those with unsafe driving records. Rewarding safe driving practices can increase the likelihood of such desirable behavior.

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

Sources: 1 & 2

6 Essential Things You Must Have In Your Wallet At All Times

1. BRING IN THE MOOLA

No matter where you are planning to go, it is always a good idea to keep some cash in your wallet in case of emergencies. A general rule of thumb that I employ myself is to store as much money as I am willing to lose (i.e., no more than S$50).

Aside from this, there are other advantages if you carried spare cash such as avoiding ATM service fees and controlling your spending. Purchasing items in cash is Psychologically beneficial than paying with credit cards because it makes you more aware and cautious of your spending.

2. USE WHAT YOU HAVE

Use the money you have while avoiding the inconvenience of carrying loads of cash by bringing your debit card along with you. Maintain security by refraining from putting notes of your PIN or password beside it. Believe me, some careless people do this!

3. RECEIVE THE REWARDS

Having your credit cards handy will only tempt you to shop for more. But if you pay off your credit card balance consistently each month, you might as well maximize its rewards and discounts.

For instance, use your credit card for grocery shopping. Grocery shopping can be costly at times especially because businesses are becoming more competitive. And if you were to use a credit card, be sure to indulge on all of its discounts. Check out this list for more information.

4. KEEP THE COUPONS

Couponing is a strategy used by a consumer to pay less in shopping for groceries, tickets, and more. You may shy away from coupons but once you see the real value of their savings by looking at the receipt, you would realize how great it is.

In order to receive its benefits, you must always put the coupons of your favorite stores inside your wallet. Aside from the coupons handed by the salesperson, get coupons for dining, leisure, toys, pets services, and just about anything at cuponation.com.sg or groupon.sg.

5. STORE LOYALTY/MEMBERSHIP CARDS

One of the surefire ways to save money while you shop is by organizing your loyalty or membership cards in your wallet. These types of cards deliver discounts and rewards points that will lead to bigger savings in the long run.

If you frequent Sephora, do sign-up for their loyalty program and receive up to 10% discount and other exclusive benefits – for free! Simply fill up quick form by approaching the cashier or by politely asking their staff.

6. PASTE YOUR CONTACT INFORMATION

In case of emergencies such as accidents or loss of belongings, a kind stranger will be able to help you if you keep a list of your most important contacts. This list must contain at least three of the phone or handphone numbers of your most trusted peers or family members.

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

*Simple Reminder: Do not place all of your personal information inside your wallet as it can lead to identity theft if it falls into the “wrong hands”.

Sources: 1 & 2

Interesting Ang Bao Facts Every Singaporean Shall Know

It is that time of the year again! We are about three weeks from the festivities of the Chinese New Year. Family reunions, abundant food, and small red packets called “Ang Bao, Hongbao, or Ang Pao” shall grace Singapore once again.

The color red embodies luck that is supposed to ward off the evil spirits. Along with its potent color, here are 5 Ang Bao Facts Every Singaporean Shall Know:

1. AMOUNT TO GIVE OUT

There is no specific standard on the lowest or the highest amount to give but the amount definitely reflects your character as a person. A simple survey on TheAsianParent Facebook Page showed that readers usually give out S$2 – S$80 to children in 2014. Although, Singaporeans usually give out S$6. If you are truly in touch with your Chinese roots, you will give out an amount ending with an even digit as odd digits are traditionally associated with funerals.

2. NOTES TO PUT IN

Generally, the number of notes you put it does not matter as long as the amount you gave is in the range of what is expected. Most Singaporeans do not mind if you opt for putting four S$2 or two S$5 notes! However, leaving even-numbered notes is believed to bring out future success!

3. NUMBER FOUR

Some people are likely to avoid giving amounts in fours such as S$40, S$44, and S$400. This is due to the fact that the number “4” is similar (or rhymes) with the word “death in several Chinese dialects.

4. DIFFERENT NATIONS

Since Singapore is a mixture of different cultures, we as a nation have created practices centering red packet gifting. It is not uncommon to have marriages between two different races, leading to traditional practices being modified or ignored. But aside from the Chinese, nations such as Vietnamese, Japanese, Filipinos and South Koreans have similar customs.

5. DIFFERENT CELEBRATIONS

Aside from Chinese New Year, red packets are given to religious practitioners and lion dance performers as a payment for their excellent service. Also, it is given to couples during wedding banquets. The minimum Ang Bao amount for this event is about S$50. It certainly is “little” compared to the minimum of S$150 handed out in Taiwan.

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

Let us be the first to greet you, advance Happy Chinese New Year!

Sources: 1, 2, & 3

Money Is Not The Motivation For Men In “Pink-Collared” Jobs

Men who work in “pink-collared” jobs are motivated by factors that are beyond money and progression.

Teaching, nursing, social working, waitressing, and counseling are among the occupations that economists call as pink-collared jobs. These jobs are generally female-dominated over the years. In fact, in United States alone, 9 out of 10 registered nurses are women. Alongside this are other professions concentrated with women…

Image Credits: Visual data of the U.S. Department of Labor was created by IdeasFisherman

Image Credits: Data from U.S. Department of Labor, Visuals Created by IdeasFisherman

While more and more men are wearing the pink-collar, they still face the stigma associated with the so-called “feminine work”. However, the people who choose to challenge the stereotypical norms about work and success considered other factors aside from promotion and salary.

A recent study from the United Kingdom interviewed men who worked as primary school teachers and as university administrators. They were asked to discuss their career history, their institutions’ support, and their experience of success. Interestingly, their definitions of success include building friendly relationships with their colleagues and having flexible working hours. Their definition of career development was influenced with the challenges faced by their students.

For Singaporean men, passion may also be a factor to overrule the occupational assumptions. You can either be doing something you are passionate about or do something that will logically lead to the work you love. Only then will you be able to give your 100% without feeling like work is forced upon you.

Passion will certainly give you a sense of fulfillment. Research even showed that people who make regular progress toward something they care about reported not only being fulfilled but also satisfied.

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

According to economists, it is important to work towards integration of gender distribution to make the economy more efficient. This way, organizations can find the best suited candidate regardless of gender and its stereotypes.

Sources: 1, 2,3

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

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