6 Strategies To Control Your Urges To Spend

Self-control is one of the virtues that a savvy Singaporean can cultivate. Having a sense of self-control helps you to manage the seemingly irresistible urge to spend money. While, people who lack it have a tendency to instantly gratify their “itch” to splurge.

Combat this dilemma against your willpower by employing these strategies:

TRACK YOUR SPENDING

I know how cliché this sounds but, awareness is the key. You must note down how much money comes in and goes out. Previous literature displayed that this act of tracking your spending is an efficient tool to control one’s urges to spend. Start by keeping a daily list of your expenses.

IMPOSE LIMITS 

To prevent accidents and to maintain order in the streets, authorities impose speed limits. Apply the same idea to your finances by imposing monetary limits.

It easy to create tangible boundaries to some services such as postpaid and bundle plans. However, this is not always the case. This is why Professor and TED Speaker Dan Ariely highlighted that it is important to dictate your own boundaries. Doing so was proven to help increase self-control. Furthermore, sharing your self-determined limitations to other people urges you to stick to it more.

MAKE ONE DECISION AT A TIME

The shiny distractions all over the shopping mall are designed to confuse your mind and to open your wallets. You see, findings showed that strain in cognition (thinking) depletes self-control. This is why shops are graced with flashy signs, vibrant colors, loud songs, and bright wall decor.

Conquer the distractions by making one financial decision at a time. This strategy is not only limited to shopping. Divide your financial decisions instead of overwhelming your mind.

SAVE AUTOMATICALLY

Avoid committing much of your willpower toward deciding whether to save or to spend by automatic your finances. 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.

Image Credits: pixabay.com

Image Credits: pixabay.com

TAKE TIME TO DECIDE

With my background in Psychology, I can attest to the idea that the emotional states affect the way you spend. Anxiety was shown to decrease the likelihood of taking risks and sadness was shown to increase spending. Emotions influence your self-control in complex ways.

This is why I encourage you to take sufficient time for contemplation before buying something. Wait for a few hours or a few days, especially for huge and expensive purchases. Many people have submitted to this efficient strategy. Be one of them!

PREVENT TEMPTATION

A surefire way to stay on top of finances is to avoid temptation at all costs. Reduce your time spent on shopping malls and invest it in more productive matters. Alternatively, you may leave your plastic cards (i.e., credit and debit) at home. Simply carry the amount of cash that you can confidently afford.

Image Credits: pixabay.com

Image Credits: pixabay.com

These six strategies share one goal and that is to take control of your finances again. May these aforementioned help you to reclaim what was rightfully yours.

Sources: 1 & 2

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Frugal Mums’ Guide To Saving Money In Singapore

Here are five ways to save money as the head of the household:

SHOP ONLINE FOR SCHOOL SUPPLIES

There are many retailers that offer promotions and clearance sales on their own websites. You will not save money on the supplies but you will also save a lot on gas or transportation costs. If you have the time, purchase online.

Lion Stationery and Evergreen are the two local stationery websites you can visit.

LEAVE YOUR KIDS AT HOME

If you have the option to leave your children behind with a family member or a babysitter then, do so. Children play a huge role on what goes inside your basket. This is why marketers and store strategists put their items on a child’s eye-level.

You do not have to give in to what your playful kids wants if you go to the store alone. This will help you to save a lot more money!

Image Credits: pixabay.com

Image Credits: pixabay.com

MAKE A LIST AND STICK TO IT

Say you have no choice but to bring your precious little ones along. Turn grocery shopping into a fun task by making a game out of it. Start by planning your menu throughout the week. Then, list down the ingredients and other products you need to purchase. Save more money by opting for the generic or store brands.

Have your children find each item on the list (much like a treasure hunt). The person who finds the most items at the end of the shopping trip will win a prize. It is up to you to choose which prize will entice your children.

SAVE ON KIDDIE PARTIES

You are not forced to send invites to everyone in your kid’s entire class. If your budget does not allow you to invite your kid’s entire class, employ the “age plus one rule”. For example, you are planning to throw a party for your 6-year-old son then, invite 7 guests. Keep the numbers down by making it clear that the guests’ siblings are not invited.

Aside from that, you can forgo printing services by sending out electronic invitations through Facebook or email. This gets the job done – fast.

STOCK UP DURING GSS

An easy way to save money in Singapore is to take advantage of the “Great Singapore Sale”. This event which happens once a year includes numerous retailers from all over the nation. Bargain hunters like you can get good deals on baby clothing, child’s school supplies, toddler’s toys, and so much more. Stock up on these items to cover your annual needs but, do not go beyond your budget!

You may also buy several gifts to be prepared for the upcoming festivities (e.g., Christmas or Chinese New Year).

Image Credits: pixabay.com

Image Credits: pixabay.com

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Start Saving Cash By Following These 18 Spectacular Tips

Saving money is a crucial step to financial independence. No matter what your current financial status is, you need to understand that it is possible for you to grow your wealth. There are simple money-saving ways that you can employ now.

Let the round-up begin!

1. Start by accepting your financial responsibility and devising a monthly budget that is suited for your lifestyle. When you continue to make excuses to saving money or altering your spending habits, you may end up broke.

2. Eliminate your consumption of junk food and beverages such as sodas, chips, and sweets. These things are not only unhealthy but they are also costly.

3. Figure out the saving goals that are most important to you. Organize your expenses based on your priorities and your goals.

4. Spend at least 6 minutes on examining the last month’s utilities bill and credit card statement. Use your vigilant eyes to spot one expense that you can either reduce or eliminate.

5. Before purchasing anything, it is good to read the reviews and to compare the prices so that your money will not go to waste.

6. If you are taking medications on a long-term basis, ask your physician if he or she can prescribe a cheaper yet equally efficient alternative.

Image Credits: pixabay.com

Image Credits: pixabay.com

7. Surround yourself with financially literate friends. This is important as you can begin to adapt the attitudes and the beliefs of the people whom you are most exposed with. Know the 6 Kinds Of Friends Who Can Positively Influence Your Finances.

8. If possible, let your employer automate your salary in a separate bank account that is solely for your savings. This will lessen the temptation of immediate spending.

9. Give refurbished laptops a chance. Buy these from established and trusted retailers to ensure safety.

10. Save and reinvent the unconsumed food when you either ordered too much restaurant food or when you cooked excessively.

11. Your appliances and electronics will continue to consume energy and spike your tariff despite turning off the switches. This is why you must unplug your cables when not in use.

12. Save every last cent by putting it in a jar. If you collated your loose change of 50 cents a day, it can generate nearly S$200 a year.

13. There is no need to replace your torn clothing right away! Learning and mastering the basic sewing stitches can help you extend the life of your favorite clothing.

14. The sharing economy allowed people from all over the world to rent their own homes. Cut accommodation costs as well as energy consumption by availing the services of Airbnb, HomeExchange, or Couchsurfing when overseas*.

15. Stop hoarding or collecting unnecessary items. Start selling these items on global marketplaces instead.

16. What better message of gratitude can you convey when you pour your heart on handmade gifts? Consider creating your own gifts instead of buying them from the shops.

Related Post: Do-It-Yourself Gift Ideas Your BFF Would Love

17. Limit your taxi rides. Using public transportation can save you at least S$5 per trip.

18. Rather than spending all your money on a fancy restaurant with your friends or co-workers, socialize by having a pot-luck.

Image Credits: pixabay.com

Image Credits: pixabay.com

*Be cautious at all times. Read the reviews of the room or the house you are renting before paying for it.

Sources: 1 & 2

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OCBC 360 Account Offers The Best Fixed Deposit Rates

OCBC 360 Account

This is a contribution by Alison, who blogs at www.heartlandboy.com

Readers may be surprised that Heartland Boy is suggesting that an actual banking account, as opposed to some plain-vanilla fixed deposit schemes, offers the best fixed deposit rates in town currently. Ever since DBS launched its DBS Multiplier Programme with headline grabbing interest rates, it has forced its key competitors to react accordingly. As a result, this has spawned a new type of hybrid savings account which typically rewards account holders with significantly higher  interest rates than the moribund 0.05%. OCBC has its own OCBC 360 Account while UOB has its UOB One Account.  After comparing the various bank offerings, Heartland Boy chose the OCBC 360 Account as he thinks it offers the best fixed deposit rates amongst the local banks.

HOW THE OCBC 360 ACCOUNT WORKS

OCBC rewards account holder bonus interests for completing a myriad of tasks. This is in addition to a base interest of 0.05% per annum. The respective bonus interests applicable to the first $60,000 of the account holder balances are:

  1. 1.2% per annum when your credit your salary of at least S$2,000 through GIRO
  2. 0.5% per annum when you pay any 3 bills online or though GIRO
  3. 0.5% per year when you spend at least S$500 monthly on OCBC Credit Cards
  4. 1% per annum when you purchase a new insurance (eg: Policies of at least S$2,000 in annual premium) or investment product (Unit Trusts or Structured Deposits of at least S$40,000) with OCBC

Source: http://www.ocbc.com/personal-banking/accounts/360-account.html

The bonus interest accumulates and pays when you do all of the above of any of the following. As an illustration, if you satisfy only criteria 1 and 2, you would still be eligible for 1.7% bonus interest per annum.

TIPS ON MAXIMISING THE OCBC 360 ACCOUNT

  • Make sure that the salary credited into your OCBC 360 Account uses a code recognised and approved by OCBC in order to earn the 1.2% bonus interest.
  • A working adult should easily satisfy the criteria of paying 3 bills online (mobile phone, credit cards, insurance premiums etc). If you do not meet the criteria of paying 3 bills online, offer to help pay some of the household bills, such as broadband or utility charges, online.
  • Whenever possible, apply for GIRO so that the bill payments are automated. This ensures that you will never forget and are guaranteed to complete that task.
  • OCBC offers plenty of attractive credit cards, such as the OCBC 365, OCBC FRANK, OCBC Robinsons etc. Choose a credit card that is most compatible to your spending habits. For instance, if you enjoy dining out on weekends, you may apply for the OCBC 365 credit card to earn 6% cashback. If you are an online shopaholic, you can earn 6% rebate on OCBC Frank credit card.OCBC Credit Cards
  • If you are paying bills to an organisation which OCBC Credit Card has a partnership with, you can apply to pay through GIRO for greater bang on your buck. For instance, Heartland Boy’s M1 bills are deducted monthly via GIRO on his OCBC 365 credit card. He gets a 3% cashbackfor setting up a recurring telco bill, as well as becoming closer to achieving the S$500 minimum spending on an OCBC credit card as required by the OCBC 360 Account. That is equivalent to killing 2 birds with 1 stone.
  • If you are capable of making your own investments, you may consider forgoing the 1% bonus interest applicable for new insurance or investment products. That is because the expenses and fees that these products typically charge may well exceed the incremental 1% bonus interest that you earn.
  • The bonus interest is calculated based on average daily balance, so you cannot “game” the system by withdrawing money at the beginning of the month and depositing money at the end of the month and still hope to get the full interest over the month.

WHAT HEARTLAND BOY LIKES ABOUT THE OCBC 360 ACCOUNT

  • Previously, Heartland Boy was using the POSB Savings Account, an account his parents set up for him after he got tired of playing with his piggy bank. This account was paying a miserable 0.05% per annum and yet Heartland Boy continued using it out of habit and convenience. This was despite Heartland Boy knowing that he was actually losing money in real terms as Singapore’s historical average inflation was probably 2% per annum. However, since switching over to OCBC 360 Account, Heartland Boy feels awesome whenever he sees the bonus interest roll into his OCBC 360 Account. It was the same feeling he had when he was a small kid collecting candies after accumulating a series of stamps at the funfair.
  • There is no lock-in period and you are free to utilize the savings inside the OCBC 360 Account whenever you need to. This is in contrast to the traditional fixed deposit schemes whereby there is a lock-in period.
  • Informing Heartland Boy’s Human Resources Department to change his salary crediting account was surprisingly straightforward. All it took was an email instruction and he only had to do it once!

If you are unconvinced and still fret over the hassle of changing your monetary habits, Heartland Boy can assure you that once you have done it, it will become habitual eventually and you will thank yourself for having done so!

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The Importance of Your Family Wealth Structuring: What You Need to Know

As the head of a family or household you’ll understand just how important your finances are. The money you have is what keeps your home – and indeed your personal lives – in order, and without properly managing this you run the risk of getting into monetary troubles.

Knowing exactly what to look out for and how to effectively manage money is quite a challenge – especially if you lack experience in handing your finances. There are a variety of different aspects to consider such as where you should invest your money, how to ensure you have enough money and what’s the best course of action for your financial future – certainly a headache for many of us.

Luckily though, there are alternatives and also ways you can ensure you have a solid family wealth structure. In this post then, you’ll find a number of different examples of financial concerns and expenses and why you need to manage these. Then we’ll discuss what you can do to prevent any problems and offer some useful tips for making the right choices with your money.

Family Expenses

In our day to day lives, we have plenty of different things we need to spend money on each month in order to maintain a decent standard of living. Naturally, this is increased depending on if you have more than one child, and ultimately without keeping these in check you may run into debts. Here is a breakdown of some the main expenses you’re likely to encounter:

  • Rent or Mortgage Payments – regardless of whether or not you own or rent a property, the chances are you’ll have some form of payment to make each month. These are often a significant part of your monthly costs.
  • Food bills – the food you eat is another necessity which can again become more and more expensive over the years with a growing family.
  • Utilities – the bills you have to pay can be spread in different payment plans, but the reality is that every day you’ll be adding to your expenses with your use of gas, electricity and water.
  • Taxes – you’ll also have to pay taxes which more often than not will be taken from your monthly salary, what’s more you can also pay council tax on your home or accommodation.
  • Travel – another typical expense is for your travel. From your commutes to work, to taxiing your family around you’ll have to pay for fuel, tickets and/or fares.

Additional Expenses

These are just the basics though, the wealth management of your family can also cover additional costs like:

  • Leisure – the time you spend enjoying your life or socialising can add up over the month.
  • Clothing – you’ll need to buy new clothes fairly regularly, especially if you have a growing family.
  • Maintenance – there may be unexpected issues with your home or your appliances which need to be fixed.
  • Childcare – if you work full time and have a young family there’s also childcare costs that you’ll need to factor in each month.

All of these are aspects you should be budgeting for on a monthly basis.

Savings and Investments

With the money you have left over, you also need to consider what you’re going to do with it. The most obvious step is to open a savings account, but there are also real investment opportunities you should look at.

Heading to the stock markets is one avenue you might want to go down, but another popular choice is to buy additional properties as lets, or to renovate and sell for a profit. With this though you’ll need a decent understanding of finance and how the markets work to ensure you see a positive return.

The Simple Solution

While you can simply look into the markets yourself, or budget each month to manage your investments, if you feel you lack the expertise needed to keep your money secure there are other simple solutions. A sensible choice then is to put your trust into a financial expert to take care of the responsibilities for you.

There are plenty of companies and firms such as Withersworldwide who offer a variety of financial management services, from offering advice on investments to simply helping you look after your money more effectively. It’s also worth choosing an established company with a long history of success, that way you know they’re obviously doing something right with their services.

The Bottom Line

As aforementioned, the last thing you’ll want is to put your family’s welfare at risk by making poor decisions with your money. Consider the above options with investments, or make the smart move and search for expert advice and leave your finances in safe hands. This way you can count on a more secure future, not just in the present but for many years to come.

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