Unhealthy Spending Habits To Kick To The Curb

How you spend your dollar is just as important to your financial health as your decision to save or to pay for debt. Savvy spending habits keep you from overspending on an item or a service. Nobody needs a stack of infomercial items paid for by impulse buying.

Spending smartly by kicking your bad habits to the curb allows your dollar to go further. Lead a resolute year by leaving these spending habits in 2019! A better 2020 is up ahead.

ADDITIONAL ATM FEES

I am guilty of paying for out-of-network ATM fees at the expense of my convenience. I withdraw money from other banking institutions from time to time as it is more favorable proximity-wise. The service fee may be minimal, but it adds up. A good solution is to open up an account at a bank that is more favorable to where you live in or where you work at.

SPENDING MONEY YOU DO NOT HAVE

Many Singaporeans are guilty of spending money that they do not have. How is this so? They spend money through taking loans, cash advances, or credit cards. Spending money you have yet to earn creates a pile of debt for year 2020. It will continue to grow, if you do not fully repay your debt each month.

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Solve this bad habit by cutting down your expenses and relying on your debit card or income to pay for your essentials and wants. Prioritize your needs first.

BOTTLED WATER EXPENSE

Speaking of expenses that pile up, you must look into your bottled water expenses. Water is a necessity, which we cannot escape from. Your daily water consumption can cost you more than S$1,000 per year. Reduce this number by drinking from the just-as-healthy tap water from the tap. In the long run, a little savings goes a long way.

CREATING MORE DEBT

Using debt to pay off your debt is not healthy. You are lying to yourself when you think that you are solving your problems by paying your initial debts with other cards. You are simply shuffling your debt around and incurring more interest in the process.

Using debt to “pay off” debt can only be beneficial if you can transfer a balance from a high-interest rate credit card to a lower limit one. Be careful when you do this. Transferring balance to take advantage of a good rate is different from continually dodging your credit card payments.

LIVING WITHOUT A TRACKER

Last year, I refrained from using a money tracking app. I lived without a financial tracker to see how my finances will be affected. Interestingly, I spent more within the year than I ever did in the past couple of years. Keeping up with your expenses is a healthy way to ensure your financial health.

Image Credits: pixabay.com

You can either whip out a ledger or download a money tracking app. Start using a budget tool such as Mint or Spendee to stay on top of your spending habits and to eliminate unnecessary expenses.

Sources: 1 & 2

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Have a Personal Finance Question but Paiseh to Ask? Why Not Ask on Seedly?

Personal finance is one of those things which was never taught in school but it immediately became apparent how important it is when you start working and have to pay for your own sh*t.

It gets worse when your friends start talking about stuff like “qualifying for tax relief by doing voluntary top-ups to SA” and discussing hacks to “maximise miles accrual and cashback rebates” by using different credit cards to pay for their monthly bills.

After a while, it seems like everyone has successfully transitioned to adulthood while you’re still figuring out what you actually want to do with your life.

Eventually, you’ll find yourself going quiet during group gatherings because:

If this is you, or if you’re afraid that this will be you in a couple of years time…

Why not ask the Seedly Personal Finance Community your personal finance questions?

It’s a huge online community where lots of personal finance enthusiasts and professionals from various institutions related to personal finance (like insurance, wealth management, and investment) hang out.

Best of all, you can even ask your questions anonymously!

Free Advice? Sure Boh…

If you haven’t heard of Seedly, they’re a one-stop personal finance platform, which aims to help Singaporeans make smarter financial decisions.

They do this through their educational, but fun to read SeedlyReads, which explains issues and topics related to personal finance in a simple manner.

But they also recognised that readers of SeedlyReads might have questions after reading.

That’s why they created the Seedly Personal Finance Community where you can ask your personal finance-related questions and get answers.

Yep.

They’re awesome like that.

How Can the Seedly Personal Finance Community Help Me?

The Seedly Personal Finance Community is made up of various personal enthusiasts, experts from various institutions and even the CPF Board.

Regardless of what kind of questions you have, you will definitely find a community or topic page that should satiate your curiosity. Even if you can’t find the answer, you can post your question and a community member who can answer it will do so.

Oh, and if you come across a question which you can answer, why not pay it forward by leaving an answer as well?

Some of the communities you’ll find include:

MileLion

Are you a miles or points enthusiast who wants to learn and share new ways of travelling better for less?

Then you’ll want to join the MileLion community.

Curious about credit card points accrual systems? Want to deepen your knowledge on hotel and airline loyalty programs?

Aaron Wong, founder of MileLion, will personally answer your questions.

SG Budget Babe

If you’re interested in cashback hacks or are a parent (or soon-to-be), then this is the community for you.

The host of the community page, SG Budget Babe, is none other than Dawn Fiona (founder of SG Budget Babe) herself.

Fans of SG Budget Babe can ask her questions about how to achieve a financially free lifestyle in Singapore and she’ll answer them personally.

Stocks Discussion

Whether you’re a seasoned investor or an amateur looking to make your first investment, the Stocks Discussion community is the perfect place to ask like-minded stocks investing enthusiasts and gurus for their investment insights and advice.

Some active members on the page include:

After all, it’s always better to learn from someone’s mistakes than to make them yourself right?

So, How Do I Ask the Seedly Community My Questions?

Simply head over to the Seedly website, click on “Ask Community” to get to the Seedly Personal Finance Community Page.

Once you’re there, click on “Ask A Question” to ask your question.

If someone has asked a similar question, you’ll be prompted via a dropdown menu.

All you have to do is pick the question that is closest to yours to find out what the community’s answers are!

And if it’s a question that no one has asked before, simply complete the form, choose the category which you think best suits your question and click “Post”!

Psst! If you’re really shy, just check the “Ask anonymously” box and your question will be posted anonymously.

Why Should I Ask My Questions on Seedly?

Still sceptical about asking your personal finance questions and getting answers?

What if you could stand a chance to win an all-expense-paid trip to Bali for 2 just by following Seedly communities and being active on their platform?

Seedly is sending three lucky winners to Bali (via Scoot) to enjoy a 3D2N stay at Lloyd’s Inn Bali, Seminyak for their Secret Santa Holiday Giveaway!

All you have to do is join one or all of the following communities: SG Budget Babe, MileLion, Stocks Discussion and be active.

You can ask or answer questions, and even receive upvotes to gain points and move up the leaderboard!

The Top 10 from each community will participate in a Live Lucky Draw during Seedly’s exclusive Christmas Party where one lucky member from each community will walk away with the Grand Prize. The rest will each win a $30 NTUC Income Voucher + a Mystery Gift!

Ask your burning personal finance questions, get answers, and even stand a chance to win Seedly’s Secret Santa Holiday Giveaway?

It’s truly a Christmas miracle.

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Financial Benefits Of Having A Second Job

For the longest time, moonlighting was seen as a means to take on extra work in order to supplement one’s full-time employment. It was exclusively for underpaid employees or those who are severely strapped for cash. Nowadays, moonlighting and having a second job are seen as acceptable means to expand one’s income without the weight of stereotypes.

Having a second job does not only expand your wallet, but also maximize your skills and talents. Many employers are open to the idea of giving their employees the freedom and flexibility to take on other jobs to keep up with the rising cost of living. To illustrate, combining your full-time job with a 20-hour per week sideline can pull in a greater income. You may also combine two part-time positions to get an income that will equate to a full-time position while working for less hours per week.

That is just the beginning. The following are other benefits of having a second job.

LESSENING YOUR TRANSPORTATION COSTS

Four years ago, I juggled my work as an enrichment teacher and as a freelance writer. As a teacher, I needed to travel three to four times per week around Singapore. While, my job as a freelance writer brought me to the comforts of my own home.

If your second job is either at a home office or at a place near you, you will be able to save more money on transportation costs. This situational advantage can help you shave dollars on monthly petrol consumption or EZ-Link top-up.

OPENING NEW JOB OPPORTUNITIES

We cannot fully guarantee that the economy will stay the same in a few years time. Say you lost your job. If you are running out of full-time job options, you may try your luck in several part-time employment positions that can eventually turn into a coveted full-time slot. After all, it is more cost-efficient for an employer to hire individuals who are already trained than to hire individuals who are unfamiliar with the field.

When given the chance to partake in a team as a part-timer, show how eager you are to know the tricks of the trade. Volunteer your time and exhaust your energy as much as possible. Do not waste the opportunities given to you.

GIVING MORE MEANS TO PURSUE OTHER ACTIVITIES

Freedom – is easier said than acquired. Experts say that people who have second jobs or second careers have a higher sense of freedom such as the feeling of not being shackled to one company. Furthermore, practicing in a different field gives you a financial cushion in case the economy becomes sour towards your other career.

Having a second job gives you more freedom to pursue other activities that will showcase your skills. If you are thinking of switching careers and want to minimize the risk, take on a part-time position that will enable you to test the waters. For those people who lack prerequisites or academic credentials to pursue their dream job, a part-time position may serve as a stepping stone that provides free training and meaningful experiences. While, others may use part-time positions as a means to climb the ladder within an existing field. For instance, a teacher may obtain an entry-level part-time work in order to finance his graduate studies. Further education will land him a more lucrative job in the field.

Image Credits: pixabay.com

It is up to you to find ways to maximize your income and make the most out of your second job.

Sources: 1 & 2

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4 Reasons Why You’re Stuck In Debt

Are you drowning in yesteryear’s debt? You are probably pessimistic about your financial future. Eventually, all these bills may push you to your boiling point. When this happens, a fresh start is essential.

Start by being aware of the reasons why your pile of debt exists. Then, do the necessary actions to eliminate it.

YOU ARE ADDICTED TO SHOPPING

Whether you call it shopping addiction or retail therapy, you simply cannot control your spending habits. It is harmful to associate your power and confidence with material possessions. Acquiring a new designer purse may give you short-term happiness, but its price tag may bite you in the long run. At some point, your addiction may turn into financial piles of debt.

Furthermore, our society has a skewed view of what we can afford. For instance, it encourages you to purchase something as long as you can pay off the minimum amount (i.e., when purchasing a car). This mindset may take you to financial regret. You will end up spending more on a monthly or quarterly basis. Instead, do not buy things that you cannot pay for in cash.

YOUR PARTNER IS NOT ON-BOARD

Mixing finances with relationships is complex, especially if you do not see eye to eye. Differences in spending habits and financial beliefs may cause conflicts when not addressed. One of you may be fully committed to being debt-free and practical, while the other spends carelessly. To make this relationship work, you and your partner must come to terms.

In matrimony, it is solely not your money or “their” money. It is “our” money and “our” debts. You are on the same team. Please start acting like one! Plan how you will pay off each other’s debts per month.

YOU ARE UNWILLING TO SACRIFICE

One of the quickest ways to reduce debt is to cut down your expenses. If you are unwilling to sacrifice some of your wants, you will not be able to thrive. How could you possibly justify eating out four nights a week? Do you really need a cable and Netflix subscription?

When stuck in debt, you must be willing to make temporary and permanent lifestyle changes. Ask yourself on what you are willing to give up in order to build a better financial future. Or, you may start by eliminating temporary expenses.

YOU WANT TO KEEP UP WITH OTHERS

Sometimes, the social circles we expose ourselves into can dictate how we lead our lives. Constantly keeping up appearances or doing things for Instagram posting may be costly!

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Yes! Your friend just had a Euro trip with her boyfriend. However, that does not mean that you have to sacrifice your credit to do the same. Following the lifestyle of others may lead you to debt or bankruptcy. You know your financial limitations more than anyone else. Be your own critique when it comes to your spending habits.

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Foolish Things People Do With Their Money

We have all made mistakes in the past, especially when it comes to money and relationships. While some are knowingly reckless, others are less obvious. That being said, here are some foolish things that people do with their own money.

Awareness is the key to change!

BEING OVERLY CONSERVATIVE WITH ONE’S INVESTMENTS

Whether you are terrified to max out your savings or to dive into uncharted territories, Millennials are not investing hugely in the stock market. Consider your risk tolerance while you are in your early 20s as this is the best time to bounce back after a decline. Compound interest entails that it is beneficial to stay in the market as early as you can. Simply put, a risky investment while you are young has time to correct itself.

Apply this ideal towards your retirement fund. Set a diversified portfolio directed to your retirement fund and ensure that the risk exposure is based on your age and timeline.

ABSORBING THE INTERNET SCHEMES

Let us face it! The Nigerian Prince you have waiting for may never come. Although Internet scams have become more sophisticated than ever, you must not give your sensitive bank information to anyone that pleads for it.

Some people carelessly give out their account passwords in the name of love. You have to think twice! You are merely opening yourself to identity theft by doing so. Mark suspicious emails as spam and leave them alone.

MAKING FINANCIAL DECISIONS ON YOUR OWN

A family is a unit and it is helpful to have an open communication with your partner. As financial decisions and career paths affect multiple people in the relationship, you must discuss these as a unit. Relocating, childcare, long working hours, or converting to entrepreneurship are examples of factors that involve the sole earner as well as other family members.

If you belong to a dual-income household, do not make the daft decision of managing your ambitions on your own. Ensure that you are on the same page when in comes to managing your household and your career goals to avoid conflicts.

DISMISSING YOUR CREDIT CARD REPORT

Despite being a free service, checking one’s credit card report is not something that people do religiously. It is important to check your report to help you catch suspicious activity, prevent identity theft, and report unauthorized purchases.

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In addition to keeping an eye on fraud, you can track your credit score progress.

Sources: 1 & 2

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