New Insurance Savings Product: Dash PET offers 1.7% p.a.* on the first $10,000!

* Update 27 April 2021: The crediting rates for new Dash PET sign ups with effect from 27 April 2021 will be 1.3%* p.a. for the first year for the first $10,000, and 0.3%* p.a. for the first year for amount more than $10,000. Crediting rate is non-guaranteed.

Dash PET by Etiqa Insurance, the latest insurance savings plan available on Singtel Dash, allows users to Protect, Earn and Transact – basically taking care of you! You can earn up to 1.7% p.a.* with no additional criteria required, making it absolutely hassle-free! At 1.7% p.a.*, this makes Dash PET highly attractive especially given the current climate of uncertainty and falling bank savings interest rates. Here’s how Dash PET can take care of you.

Singtel Dash is an all-in-one mobile wallet for your everyday needs, from your commute to paying at your favourite hawkers, supermarkets and restaurants, and even for your online purchases.

Enjoy attractive returns with capital guaranteed

Earn 1.7% p.a.* for your first S$50 – $10,000, and 1.2%* for amounts above S$10,000! This means that up to the first S$30,000 earn attractive returns of $410 (1.37%) per year. Ensure that you maintain a minimum account value of S$50 to start earning these high interest rates on your funds. You will be glad to know that your capital in Dash PET is guaranteed.  It also comes with SDIC protection.

You won’t be kept on a tight leash with Dash PET (pardon the pun)

This insurance savings product offers the ultimate flexibility by having no lock-in period. Once your account is active, you can top up your funds anytime! This can be done at your convenience via Dash wallet or PayNow from S$1, or via eNets (minimum S$50 top up).

If you wish to use your money, you may withdraw anytime from S$1 to your Dash wallet (free) or to your bank account via PayNow (S$0.70 transaction fee applies for each transaction).

Highly accessible given low entry barriers

Some financial instruments in the market may require hefty contributions or long lock-in periods, which may not fit into some people’s financial needs. With Dash PET, all you need is S$50 to start saving and insuring. For instance, students can save their allowance or internship pay into Dash PET first to earn attractive returns. They can then withdraw via their Dash wallets to pay for their everyday expenses like their favourite bubble teas and even hawker meals.

Self-employed or gig economy workers who may not have regular monthly income can take advantage of Dash PET to save as it does not require them to complete the myriad of tasks required (e.g. meeting monthly salary crediting, minimum spends, etc) to unlock bonus interest rates.

Finally, there is no fall-below fee if the account runs low, so savers are not penalised when they have higher expenses for the month. One thing to note though, you’ll need to maintain at least S$50 average daily Account Value for the calendar month to enjoy the rates of return and Dash PET benefits.

Takes Care of You

The value provided by Dash PET is immense. It allows your capital to grow at an attractive rate, offers the flexibility for you to withdraw funds for everyday expenses and protects you by offering insurance coverage. Furthermore, the Protect element comes from the layer of insurance coverage of up to 105% of account value in case of death as well as financial assistance benefit for Covid-19.

As demonstrated, Dash PET is the PET that takes care of you by helping you to save and insure better!

All it takes are 3 simple steps to start your savings journey with Dash PET:

  1. Download the Dash mobile app (if you are not an existing user)
  2. Sign up for Dash PET through the Dash mobile app
  3. Top up your Dash PET account from either Dash Wallet, eNets or PayNow

In these uncertain times, it is prudent to consider safe and flexible options to start saving smarter and allow your hard-earned savings to work harder. With Dash PET, Singtel Dash aims to be the companion app for saving, insurance, payments and more!

Disclaimers

  • The information is meant purely for informational purposes and should not be relied upon as financial advice.
  • Dash PET is not a bank account or a fixed deposit. It is an insurance savings plan that earns a crediting interest rate.
  • * Guaranteed 1% p.a. + 0.7% p.a. bonus on first S$10,000 for first policy year. Guaranteed 1% p.a. + 0.2% p.a. bonus on above first S$10,000 for first policy year.
  • This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). This advertisement is for general information only. Terms apply. Full details of the policy terms and conditions can be found in the policy contract on dash.com.sg/dashpet. Protected up to specified limits by SDIC. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is accurate as at 1 February 2021.

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Financial Missteps Many Experienced Due To COVID-19

The global pandemic has caused recession in many parts of the world. Unfortunately, many Singaporeans found themselves in uncomfortable financial situations. We are slowly recovering with a hopeful heart this 2021. Despite the optimism, it does not erase the effects of the past year.

The economic turmoil exposed most of our financial mistakes and vulnerabilities. Here are just some of the missteps that many of us faced in the past several months.

#1: DIFFICULTY IN BUILDING AN EMERGENCY FUND

Say you did not build an emergency fund before the crisis hit. While we could not have predicted a pandemic, it is always crucial to have an emergency savings to cushion large expenses. A good rule of thumb is to keep up to six months of living expenses in an easy-to-access account. Start now!

#2: INABILITY TO SAVE MORE MONEY

Apart from having an emergency fund, one of the lessons that we learned during the pandemic is the importance of savings. Putting this knowledge into practice is harder than it seems. In a local survey, 55% of the respondents said they reduced their savings over the past months. This may be due to job loss, reduction in income, and other financial struggles due to the situation. Creating opportunities for other streams of income can help widen the savings.

#3: PUTTING A PAUSE ON THE RETIREMENT PLAN

Retirement may not be the first thing most people think about when they are still young, but it is a part of our financial plan that we cannot afford to ignore. Like it or not, there will come a time when you are no longer able to work. Your retirement plan must not stop due to a recession.

However, many Singaporeans found it hard to continue investing for their future due to the current climate. In fact, 27% of those with financial plans said they have stopped setting aside or even reduced their funds for retirement.

#4: MAKING EMOTIONAL FINANCIAL DECISIONS

Volatility has abounded lately. When you see your balance go down, do not allow yourself to make an emotionally driven decision. View it pragmatically as you are in it for the long haul. Remember how and why you originally structured the portfolio. If your circumstance have changed or your allocation no longer aligns with your goals, you should consider making risk changes.

Image credits: pixabay.com

It is crucial to stay engaged in the financial world. Take this uncertain times positively by creating more awareness around your financial health and goals. Talk to a financial professional to help you implement these goals.

Sources: 1 & 2

 

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How To Alter Your Budget To Suit Your Work From Home Lifestyle

According to the multi-ministry task force handling COVID-19, Singapore may enter Phase Three by the end of 2020 should the community cases remain low in the country. The restrictions reflected by this upcoming phase may last for a year or more. That being said, more and more people are working from home.

This huge shift in the global workplace has brought many changes in our lives. Whenever big transitions occur, it is a good opportunity to re-assess all the aspects of our lives including our finances. What has changed in your budget ever since you started working from home?

Reduced costs on transportation, work clothing, daily coffee stops, and dining out were usually observed in the previous months. In contrast, many experience a spike in utilities, groceries, and online shopping fees. How can you better prepare for your future with this new set-up?

#1: RE-EVALUATE WHERE YOUR MONEY IS GOING

Get a realistic view of your finances by pulling out your bank statements, credit card bills, and other month expenses from the past three months. If you are using a budgeting app such as Mint, you may track your spending using the information inside the app. Look for unnecessary categories or recurring expenses that you can do without. This will help you spend less than what you have originally planned.

Aside from your spending, concentrate on other parts of your personal finance such as investments and emergency funds. You have the luxury of time to re-evaluate how much you are saving in your emergency funds. Ensure that the money you put inside will be sufficient to cover unforeseen events such as unemployment. We must overcome complacency during these tough times.

#2: CONSIDER DIFFERENT BUDGETING STRATEGIES

As you establish your new budget to suit your work from home lifestyle, you may employ different strategies such as goal-specific budget and the 50/30/20 method. The former focuses on the goal and not the percentages. You may start with a specific short-term goal such as saving S$50 for your emergency fund this week or a long-term goal such as putting away S$5,000 for a vacation next year. Break down your goals and allot how much you need to save per week or per month. Ensure that you meet your other financial responsibilities as you prepare for your goals too.

The 50/30/20 method entails putting 50% of your take-home pay to your fixed expenses including groceries and rent. 30% needs to go to your variable expenses such as entertainment and clothing. While, 20% is dedicated to your savings. Choose a strategy that will best work for you.

#3: STORE EXTRA CASH IN YOUR HOME

Many of us are working from home because there has been a shift in the economy due to the unpleasant effects of the pandemic. It helps to be prepared as we live within the realms of uncertainty. Store extra cash in your home for emergency situations. You may label this as your emergency fund, which can cover your expenses for at least six to nine months.

Knowing that you will be alright for a considerable amount of time before needing to use other financial resources can help you sleep better at night. This will prevent you from incurring debts.

#4: MAXIMIZE YOUR TELECOM AND INTERNET PLANS

Because most of our time are spent at home, it comes as no surprise that our utilities are higher now. Do your best to ensure that you are getting the most out of your telecom and internet plans. If your plan has an inclusion of data, try to substitute a costly mobile call for calling over at WhatsApp or Telegram. Various online platforms offer free calling and video-conferencing services worldwide. Take advantage of that!

#5: CONSERVE ENERGY

This new living and working arrangements have considerable effects on our electric bills. As much as possible, conserve energy on the devices and appliances that you work with. Unfavorable habits such as leaving your laptop constantly plugged in or forgetting to unplug your smartphone charger can cost you.

Image Sources: unsplash.com

One of the easiest ways to save energy is by ensuring that your cables or chargers are unplugged. Most devices work best with the 40-80 battery rule. You must plug the charger when your battery drops below 40% and disconnect the plug when the battery reaches 80%. Leaving a laptop or handphone constantly plugged in can cause extra wear and tear to the battery. Take care of the devices, which you use on a regular basis.

Sources: 1, 2 & 3

 

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Beginner’s Guide To Setting Up An Emergency Fund

WHAT IS AN EMERGENCY FUND?

An emergency fund consists of the money you set aside to cover large, unexpected expenses. It serves as your cushion to save you from drowning into debt  and other unfortunate events. It can be used for unforeseen medical expenses, home appliances replacement, automobile repairs, and managing unemployment.

HOW MUCH MUST I SAVE?

When you are starting to build your emergency fund, it is important to value what you have. No matter how small, every dollar counts. Focus on the habit and consistency of saving money. When your financial situation improves, you can increase your savings.

The right amount for you depends on your financial situation, but a good rule thumb is to have enough money to cover your living expenses for six months. If you lose your job during pandemic, you can use your emergency fund for necessities while you hunt for a new job. You can also use the money to supplement your small business. Start small and increase your savings as your financial situation improves.

WHY SHOULD I TRACK MY INCOME AND EXPENSES?

Tracking your income and expenses enable you to get a realistic view of your financial situation. It can pinpoint the amount that is sufficient to cover your living expenses for six months. You can track your cash flow by writing down how much money comes in every month and by writing down your fixed and variable expenses per month.

Do not forget to include recurring expenses such as your rent, utility bills, school fees, and childcare.

WHERE SHALL I PUT MY EMERGENCY FUND?

You can put your emergency fund inside a savings account with a high interest rate and an easy access system. Since an emergency can strike at any time, having quick means to access your funds is crucial. However, you must keep your emergency funds away from your primary bank account. This will help lessen the temptation of dipping into your reserves. Moreover, having a high interest savings account enables you to reap the benefits of compound interest.

HOW CAN I PLAN OUT MY EMERGENCY FUND?

Establishing financial goals and developing a plan to achieve those goals go hand-in-hand. Part of your plan may include specific and realistic targets to work toward. For instance, you may save S$50 per week to put into your emergency fund. Once you have created a robust plan, make sure you follow through.

Sticking to your plan can sometimes be the hardest part of saving for an emergency fund. A good way to stay on track is to save automatically. You may automate your savings and set up a systematic transfer from your primary savings account to your “emergency fund” savings account. Alternatively, you may keep a money jar and label it with: “for emergency use only”.

Sources: 1 & 2

 

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5 Luminous Lessons Harry Potter Taught Us About Money

The magical story of a young wizard named Harry Potter has captured the hearts of fans of all ages and with a good reason. In fact, I am wearing my Hufflepuff shirt while I am writing this.

Despite being in a fictional world, the Harry Potter characters’ financial problems cannot be solved with a wave of a wand. They also have to struggle with the challenges of saving, spending, and growing money throughout the series. Here are just some of the personal finance lessons that you can learn form the wizarding world of Harry Potter:

GET THE A DEPENDABLE AUTO-INSURANCE

In the “Harry Potter and the Chamber of Secrets” book, Ron and Harry crashed a car into a tree. It caused an irreparable damage to a car that they do not own. This scenario taught us the importance of having a car insurance.

In Singapore, it is mandatory to have your car insured. Examine your options and look for an auto-insurance that suits your needs and your budget. Some of the plans that you may consider are the FWD, Aviva, and NTUC Income auto-insurance plans. FWD has three auto-insurance plans from Classic to Prestige. Its annual premiums start from S$731.38. Aviva offers three auto-insurance plans too from Lite to Prestige. Its annual premiums start from S$883.12. Lastly, NTUC Income has Drivo Classic and Premium plans. Its annual premiums start from S$$970.35. Annual premiums are usually based on the driver’s profile and the car itself.

SORT OUT YOUR WILL

After living in an uncomfortable cupboard under the stairs for eleven years, the book’s main protagonist Harry Potter found out that he was a wizard and that his parents left him a considerable amount of money. His family’s wealth was beyond what he can imagine! Although his parents died at a very young age, when he was just a baby, it was clear that they a robust financial plan in place. They left all their wealth to Harry. This helped him secure his school supplies and daily needs throughout the years.

Unforeseen events can strike at any moment. It is important to save up for your retirement as soon as possible. Moreover, you must create a will that ensures the list of beneficiaries on all of your savings and investment accounts.

SEE THE POWER OF COMPOUND INTEREST

Harry not only benefits from his parents’ wealth, but also reap the rewards of compound interest. His money was untouched for eleven years. When he opened his vault for the first time at the Gringotts Wizarding Bank, he discovered the amount of gold and money that was in his vault. Despite having this wealth, he did not lead a lavish lifestyle.

Like Harry, you may benefit from compound interest by leaving your money untouched for years in a bank or by investing your money for the long haul.

APPRECIATE WHAT YOU HAVE

As I said above, he did not lead a lavish lifestyle. Harry was humble. In fact, he wore the same glasses for seven years. He appreciates what he has and exemplifies this trait the most in the first book. When Hagrid gifts him Hedwig the owl, he was amazed and accepted it wholeheartedly. He was also very grateful when he was gifted the Nimbus 2000 by Professor McGonagall.

In our world, it is easy to be caught by all the sale items and designer brands. However, you must remember to strike a balance between your needs and wants. Appreciate what you have and live within a realistic budget that you set.

SECURE YOUR MONEY IN A SAFE PLACE

Harry’s immense fortune was stored in the Gringotts Wizarding Bank, located in the heart of London. The bank is operated and guarded by goblins. These goblins serve as the gatekeepers to the underground vaults. It is often described as the safest place in the Wizarding World.

Image Credits: unsplash.com

While you cannot keep your wealth within the protection of magical spells and goblins, you can secure your money in other ways. Firstly, you may set up an auto-deposit scheme to send a portion of each paycheck to your savings account. Secondly, you may store your emergency fund in a place where you will not be tempted to spend it frivolously. For instance, you may set up a different account exclusively for that. Lastly, secure your online banking apps through Two-Factor Authentication.

Sources: 1, 2, & 3

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