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5 Common Money Traps Targeting Travelers Abroad

You’ve booked your flight, packed your passport, and counted down the days until your vacation. But have you really thought about your travel budget?

Ever noticed the number of people buying extra luggage in Japan? It’s practically a rite of passage and a clear sign that spending can spiral without a plan. Let’s unpack five common money mistakes travelers make when heading overseas and how you can avoid them.

#1: SKIPPING TRAVEL INSURANCE

From trip cancellations and medical emergencies to lost luggage and delayed flights, travel insurance can be a financial lifesaver. If you’re a frequent flyer, consider investing in an annual plan as it may cost less than insuring individual trips.

Traveling with expensive gear? Even more reason to be insured. But whether it’s compulsory or not, skipping travel insurance is like boarding a plane without a seatbelt.

#2: NOT PLANNING YOUR PAYMENT METHODS

Picture this: you land in Thailand, only to find that your credit card isn’t accepted anywhere. Each country has its own money culture. In South Korea, per my experience, most stores and restaurants prefer cards, while street food stalls still operate on a cash-only basis. In contrast, cash is king in countries like Vietnam and Thailand.

Always travel with a mix of local currency and a travel-friendly card. Better yet, check with your hotel before your trip. The staff can give you the lowdown on what works best locally.

#3: USING PUBLIC WI-FI FOR MONEY TRANSACTIONS

That free airport Wi-Fi? Not your friend. Public networks are breeding grounds for cybercrime, especially when it comes to banking or logging into sensitive apps. Even if you’re not actively checking your balance, background apps could leak personal info the moment you connect.

Use a VPN or switch to mobile data for anything financial. Better safe than hacked.

#4: LANDING WITHOUT A BUDGET PLAN

Winging it might work for sightseeing, but it won’t help your wallet. Many travelers make the mistake of figuring out their daily spending limit after they arrive. Not only is it stressful, but it can also lead to overspending (or unnecessary scrimping).

Know how much you want to spend each day, monitor currency exchange rates, and start saving early. A pre-planned budget lets you enjoy the journey without counting coins.

#5: IMPULSE BUYING DESIGNER GOODS

Is it actually cheaper overseas with the tax refund? Sometimes, yes.

For instance, I found Hermes Oasis sandals to be cheaper in South Korea than in Singapore. Same goes for a Louis Vuitton bracelet I picked up in Bangkok. Do your homework before splurging. Prices vary wildly depending on the country, taxes, and exchange rates.

Image Credits: unsplash.com

While no trip is entirely free of surprises, a little planning goes a long way when it comes to your finances abroad. Avoid these common traps, and your wallet will thank you when you get home!

Sources: 1 & 2

First-Time Bill-Paying Guide for Young Singaporeans

Stepping into adulthood comes with its share of firsts—your first paycheck, first apartment, and yes, the dreaded first experience of paying bills. Don’t worry, though. With a little organization and some smart strategies, you can manage this like a pro.

Let’s break it down step by step, with some relatable tips along the way!

#1: ORGANIZE YOUR BILLS

When Marcus and his wife got their first flat, they found himself drowning in unopened envelopes and emails about utilities, rent, and more. Their solution? A master list of all the bills, split into two categories: automatic payments and those that needed manual attention.

Take a leaf out of their book. Start by listing out your recurring expenses including rent or mortgage, utilities, car loans, insurance, and even those sneaky subscription services. Next, prioritize them by due dates and importance. Not only will this save you from late fees, but it also keeps your finances in check.

Pro Tip: Create a “paid” folder (i.e., physical or digital) to file receipts and proof of payment.

#2: MARK PAYMENT DATES

Ever forgotten a birthday and scrambled for a last-minute gift? Missing a bill deadline feels worse, except it comes with late fees. Avoid this by setting up a payment calendar.

Image Credits: unsplash.com

Whether you prefer a physical planner or your phone’s calendar app, having due dates marked makes it easier to plan your finances and avoid the dreaded Oh no, I forgot! moment.

#3: KNOW WHAT YOU CAN AFFORD

When it’s payday, it’s tempting to splurge on a new gadget or that café-hopping adventure with friends. But adulting also means setting limits. Take some time to understand your monthly income and expenses.

Break your expenses into fixed (like rent) and variable (like dining out). Allocate a portion of your income to bills, and don’t forget to build an emergency fund for those unexpected surprises, like a burst water pipe.

#4: AUTOMATE EXPENSES WHENEVER POSSIBLE

Automation is the magic wand for forgetfulness. If it’s an option, set up automatic payments to avoid missed deadlines. For instance, paying your SP Utilities bill is as easy as using PayNow QR in the SP app or through eGIRO. Not into apps? No problem as you can head to an SP customer service center for a hands-on walkthrough.

Remember, automation doesn’t mean you stop checking. Always review statements for any discrepancies. You wouldn’t want to pay for something you didn’t use!

Image Credits: unsplash.com

Taking control of your bills might seem overwhelming at first, but it’s a skill that grows with time. Start small, stay consistent, and celebrate the wins (i.e., like making your first on-time payment). Because let’s face it, mastering bills is just one more step toward owning your adulting game.

Sources: 1 & 2

A Newbie Freelancer’s Guide To Getting Paid On Time

According to the recent survey by Freelancers Union, 44% of the participants (freelancers) reported problems with getting paid. Some are even tracking their clients for owning more than S$13,000 (US$10,000). Yes! Getting paid is one of the most frustrating and stressful aspects of being a freelancer.

In a world of fixed expenses and variable income, the stress of a freelancer comes when they have to deal with stubborn clients. While frustration arises when the client piles up more work when you still have not gotten paid yet.

Although this dilemma can be overwhelming at times, find fulfillment with this clever plan to get what you de$erve:

GET PAID FIRST

For your first client, shall you charge a flat rate or shall you give a discount? No matter what you choose to do, do not start working until you get upfront. This is the best case scenario!

As cash flow is the core of most freelancers, you do not want your finances to crash just because of the debt of your clients. Ask them to pay at least two weeks in advance before you commence your work to avoid chasing for your clients.

REQUIRE A DOWN-PAYMENT

If your client cannot pay upfront due to valuable reasons, consider requiring a down-payment to send a message that you mean serious business. As a newbie in the field, it is understandable to feel uncomfortable as you do not want to make demands that could ruin the new relationship you have with your client. I felt the same way in the first few months. However, like any professional services firm, you must require a down-payment to ensure that your client is capable of paying you.

SET A SCHEDULE FOR PAYMENTS

It is better to stick with a billing schedule to keep track of everything. Whether you would like to send the invoice every month or bi-weekly, you must bill on time. To put things in perspective, you may treat your client’s payment as something you can deduct to your credit. For example, deduct the “total bi-weekly due amount” to the credit pool upon making an invoice for it. This way, you are giving more importance to time and money management.

SEND A FRIENDLY REMINDER

For late payments, act immediately by sending a friendly reminder to your client. Give him and her the benefit of the doubt by assuming that the lack of payment is due to a mistake, medical reason, or an oversight. That is all it takes to get paid – sometimes.

PUT EVERYTHING IN WRITING

To prevent the unwanted “late payment scenario”, you need to have a contract that defines when you will get paid and includes a clause for when you do not get paid on time. In your contract, you must guarantee that…

a. the client does not own anything they have not paid for,
b. the client will be charged with an interest for overdue invoices, and
c. the court shall give you the right to get your money back.

Image Credits: pixabay.com (CC0 Public Domain)

This binding contract protects you in case legal matters arise.

Sources: 1, 2, 3, & 4

Snapchat’s Snapcash lets you transfer money fast!

One of the widely used Social Messenger App in Singapore (especially for the youngsters), is Snapchat. Recently, Snapchat has unveiled its new feature called Snapcash that allows its users to send money to their Snapchatting friends.

We all know how Snapchat works: you take a photo or a video of yourself; you send it to your friend; and, seconds later, it will disappear as though it never existed. So, will sending money be as quick as that?

Snapchat partnered with Square, Inc. to revolutionize fast mobile money transfer. Square is a company, which permits individuals and merchants in the United States, Canada, and Japan to accept offline debit and credit cards on their iOS or Android smartphone or other tablet devices.

Snapcash via blog.snapchat.com

For now, Snapcash is only available to users in the United States who have debit cards and are 18 or older.

How does it work?

Users must enter their banking details to a Square account first. Then, to send cash, Snapchatters must type the dollar sign with the amount (e.g., $12), and click the green button. This shall be done through a private message.

The good thing is that Snapcash messages don’t automatically disappear. Although, once you send money through, there is no way to cancel the transaction. So, be careful.

Another cool way to send money is by using the app’s “swipe-to-send” feature by typing three dollar sign into the chat window, like this video below:

Oh, it’s like tossing play money around—except it is real!

Snapcash is fast, fun, and incredibly simple. At least that is what Snapchat says. What do you think? Is it a good idea to bring this feature in Asia?

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