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6 Effortless Ways To Earn Money

As a kid, I remember asking my father to get me a new toy even though I had plenty of it back home. He looked at me and told me that he cannot purchase it at the moment because “money does not grow on trees.” This old Proverb implies that it is not easy to earn money. However, the modern times enlightened me to a revolutionary realization.

I realized that there are simple, unique, and effective ways to earn money without having to commit loads of your time and exhaust your physical or mental abilities. Hence, I give you the 6 “Effortless” Ways To Earn Money…

1. SHOP FOR FREE

Ever dream of getting paid to shop? I know I had at it was amazing!

The people that shop for a living are called Mystery Shoppers. Mystery Shoppers are paid by the company’s marketing department to report about their experiences as they try the said company’s products, eat at their restaurants, or buy their goods. If you accepted a “mystery shopping” job, you will be paid for your time as well as be reimbursed for anything you bought.

Eager to be one? Check out the current job openings at Gumtree and Jobstreet.

2. ENJOY A GOOD NIGHT’S SLEEP

Sleep has been proven to improve concentration, increase cognitive function, reduce stress levels, and increase one’s Emotional Quotient (EQ). But aside from these, it can also increase your salary! An additional hour of sleep per week has shown an increase in salary by 1.5% over the length of a season. This increase is due to the positive effect of sleep on productivity.

3. DISTRIBUTE FLYERS AND LEAFLETS

You do not have to exhaust your physical and mental skills in order to distribute flyers and leaflets to others. A go-to side job by many students, distributing paper advertisements might sound like a boring task but you can earn decent cash (about S$7/hour) in a span of a few hours. Simply search at Gumtree to apply for this “promotional gig” near you.

4. COMPLETE SMALL TASKS ONLINE

If you have an hour to spare, consider joining websites that pay you for completing small and easy tasks such as signing up for websites, searching articles, making a background image, or linking URL to websites. Creating an account at Fiverr will only take you 5 minutes. With Fiverr.com, you will be paid a minimum of US$5 (S$6.70) for every project you accomplish. Alternatively, you can create an account at Microworkers.com to join more than 600,000 workers worldwide.

5. SELL YOUR PHOTOS

If you love capturing moments and have a collection of creative images that are worthy to be featured on websites then, you can try selling your photos online. Companies are in constant need for images for their websites, brochures, cards, blogs, and other projects. Start by selling your stock photography on Shutterstock or Fotolia. Each website works differently so read through the guidelines first before you commit.

6. GET PAID TO TWEET

If your overactive Twitter page boasts with a relatively large following, you can get paid for posting sponsored tweets to your followers. The rate, which typically ranges from S$0.67 to S$26, depends on the number of your followers as well as other factors such as the creation “age” of your account. An example of this service is manifested by paidpertweet.com.

Image Credits: pixabay.com

Sources: 1 & 2

Know The Typical Features Of Critical Illness Insurance

When you hear the term “Critical Illness Insurance”, what comes to your mind?

If you are envisioning a coverage which offers a payout when the policyholder is diagnosed with a critical illness (e.g., stroke or cancer) then, you are correct!

Critical Illness Insurance or Dread Disease Policy is a lump sum payout given in the event that the policyholder is diagnosed with one of the specific illnesses covered by the policy. It can either be sold as a stand-alone policy or a part of a main policy in life insurance or investment insurance. The guidelines and definitions of the 37 critical illnesses are predetermined by the Life Insurance Association of Singapore. This definitions are fixed across the board.

Unlike other forms of health insurance, the benefits of Critical Illness Insurance is paid out in lump sum so that the person can use it not only for medical expenses but also for other living expenses that can result from the ongoing treatment.

COMMON FEATURES

Here are some of the usual features of the Critical Illness Insurance:

1. Its premium is adjusted based on the policyholder’s age-band.

2. The policyholder is allowed to claim no more than one of the critical illnesses listed.

3. There are no restrictions on the utilization of the benefit payment.

4. The critical illness rider will be terminated once you give up the basic policy.

5. A type of health insurance (with a critical illness rider) has an expiration once the policyholder reaches a maximum age.

6. To reduce the risk of moral hazard, there is a limit on the total amount that you can purchase.

7. Upon purchasing the Critical Illness Insurance, there is a waiting period before you can make a claim.

POSSIBLE ISSUES

Given the fixed definitions of the critical illnesses as well as the common features of the Critical Illness Insurance, there are several issues that can possibly happen in different situations. For starters, the benefits can only be paid if the disease EXACTLY meets the standard definition stated by the policy.

For example: Coma is defined as…

“A coma that persists for at least 96 hours. This diagnosis must be supported by evidence of all of the following:

• No response to external stimuli for at least 96 hours;
• Life support measures are necessary to sustain life; and
• Brain damage resulting in permanent neurological deficit which must be assessed at least 30 days
after the onset of the coma.

Coma resulting directly from alcohol or drug abuse is excluded.”

In reference to the definition above, say your beloved spouse had been in a state of coma for the past 48 hours due to substance abuse and you cannot do anything about it because he is not qualified to claim the insurance payout. It will be difficult for you to fork some money at a relatively short notice.

Another issue that can happen is when two or more diseases transpire (co-morbid diseases) and you can only claim for one of it.

Image Credits: pixabay.com

Furthermore, claiming of the benefits usually has a waiting period. If a critical illness is carried out during the waiting period then, you cannot be paid for its benefits.

Sources: 1, 2, & 3

What On Earth Is A Sharing Economy?

Is it possible to live in a world where you can carpool with a stranger during an emergency? How about dining at someone’s home or hiring an experienced chef with a swipe of a finger?

With a “sharing economy”, all these are possible!

According to Investopedia, a sharing economy is…“an economic model in which individuals are able to borrow or rent assets owned by someone else. The sharing economy model is most likely to be used when the price of a particular asset is high and the asset is not fully utilized all the time.”

United States, Europe, Seoul, Australia, and other parts of the globe have shifted from a consumer market to a sharing one. In these places, people use technology to rent, lend, and exchange goods and services rather than purchasing them from shops or companies. Considering the scarcity of some resources in the country as well as its technological advancements, experts suggest that a sharing economy is an untapped realm with great potential for Singaporeans.

April Rinne, a consultant and World Economic Forum Young Global Leader, expressed that a sharing economy can help a society to become more sustainable. And is it not what Singapore aims to accomplish?

In fact, in the Sustainable Singapore Blueprint 2015, the state set up a collective vision that includes being a zero waste nation by 2030. A sharing economy fosters activities that enable people to share and earn income from underused assets such as apartments, cars, clothing, and tools.

There are several benefits that a sharing economy can bring to a nation such as reducing environmental waste impact, redefining the materialistic ideal, increasing efficiency in transport, as well as cutting energy and water consumption.

Sharing economy helps to reduce the environmental waste impact and extend the longevity of items. For example, The Freecycle Network™ allows people to give and receive re-usable items to divert them from the landfills. 9,104,727 users post ads of pre-loved items and give them freely to people that would want to take it. Interestingly, I saw one post from Singapore that offered “lofted twin beds with desks underneath”.

A sharing economy also helps to redefine our materialistic ideal as it encourages to sell or share our possessions. You see, we grew accustomed of having material goods as a measure of success. We believe that the more we have, the more society will perceive us as wealthy and happy. But the truth is, having all these designer goods or lavish cars will never satisfy us. It will only make us craving for more. In a sharing economy, you can easily buy and rent clothes online.

Aside from sharing our possessions, a sharing economy supports the idea of community transportation. By community transportation I mean that people can rent cars from companies, carpool with strangers, and pay for a ride from the people in their neighborhood. A good model for this is Uber. Uber allows you to get a taxi or share a ride with other people through a mobile service.

Lastly, a sharing economy allows you to cut on the accommodation costs as well as energy and water consumption thru services like Airbnb and Couchsurfing. In 2014, a study found that sharing homes had considerably lesser energy and water consumption, greenhouse gases, and accumulated waster compared to hotels. The current situation of home sharing in Singapore depends on the Urban Redevelopment Authority (URA). The URA is re-assessing the law which considers that it is illegal for an individual to rent out their home for stays shorter than 6 months.

Image Credits: pixabay.com

For individuals, companies, and the society at large, a sharing economy presents a myriad of opportunities to invent new streams of revenue, solve social issues, and to create community resilience. If this idea is successfully achieved, Singapore can just boost its productivity levels significantly.

Sources: 1 & 2

Debunking The 5 Money Myths In Singapore

There is a whole lot of misinformation and mistaken beliefs surrounding personal finance. It is about time that we debunk some of it!

MYTH #1: TYPE OF SAVINGS ACCOUNT DOES NOT MATTER

Most savings account in Singapore reward you with only 0.05% interest rate per year. So if you left S$10,000 untouched in your account for a whole year, your interest will earn you $5 or less than 42 cents a month. With that amount of money per month, you cannot even buy a slice of watermelon at the hawker center!

Banks realized the importance of having competitive rates for its clients. As a result, big player banks introduced savings accounts such as DBS Multiplier Account (up to 2.08% per annum), CIMB StarSaver Savings Account (up to 0.8% per year), and OCBC 360 Account (up to 3.25% per year).

Know more about the most profitable savings account in Singapore by visiting this link.

MYTH #2: CPF SAVINGS IS ENOUGH FOR RETIREMENT

Contrary to the popular myth, your Central Provident Fund (CPF) savings may not be enough to sustain the lifestyle you desire during retirement. Keep in mind that your CPF savings depends on how much you earn during your working years. If your income is relatively low throughout the years then you can expect to receive lesser payouts than your “higher earning” friends. So your CPF savings may not be enough.

Plus if you exhaust your account earlier on to pay for your HDB flat, then you shall expect to receive lesser payouts than those who bought flats within their “means”.

MYTH #3: DEPENDENCY IS OKAY

Growing up in the Asian culture made us realize that we have a responsibility to take care of others especially to those in need. Having someone to depend on is a good thing but when it comes to finances, it can get pretty rough. If you believe that it is okay to spend since your spouse, parent, or children (based on the Maintenance of Parents Act) will take care of your expenses then you are putting the financial responsibilities outside from yourself. Thus resulting to inattention towards managing money and careless spending.

MYTH #4: ONE SIZE FITS ALL

Everybody’s financial situation is unique so be wary of the “one-size-fits-all” money tips from media’s financial gurus. Many factors such as your consumer personality, financial goals, and age should be considered. Thus, it is more beneficial to listen to your personal financial advisor. Ask your friends to recommend a good financial advisor.

MYTH #5: FINANCIAL ADVISORS CANNOT BE TRUSTED

I had met some financial advisors with HSBC and Prudential before. Can they be trusted?

In a study done by Scratch, nearly 3 quarters of Millennials said that they would rather go to the dentist than hear the financial advice of a banker. Part of their reluctance to financial advisors stems from the lack of services targeted to people like them. As you may notice, Millennials are highly self-reliant and that translates with how they handle their money. Most of them are not comfortable with trusting someone else with their money.

The truth is, financial advisors are knowledgeable and trained professionals whose job is to guide their clients to manage their money, investment options, and asset relocation. You have nothing to worry about as long as your money is in capable and honest hands.

Sources: 1, 2, 3, & 4

Extremely Wrong Reasons To Buy A Home

If you are updated with the latest in property, you will know that Singapore housing prices are trending down. In fact, the private residential property index decreased by 3.83% (or 3.45% when adjusted for inflation) in Q1 2015. However, the downward shift in pricing does not automatically mean that it is a good time to buy your own space.

Buying a home is one of the greatest financial commitment for most Singaporeans. It is a long-term commitment and responsibility that you must carefully plan for. Start by determining what you can afford as well as what you need to pay for. What you can afford depends on your total income, existing debts, savings on-hand, and loan eligibility.

Upon figuring these things out, examine if you are committing to a home for the right reasons. Otherwise, you will be a victim of these extremely wrong decisions…

1. TO EXHAUST ALL THE CONTENTS OF YOUR CPF ACCOUNT

If you are thinking of purchasing a home because you can simply deduct almost all the expenses from your CPF savings, think again! You can use your CPF savings to pay for a part of the home and to service the loan but not for the monthly expenses (e.g. mortgage insurance or conservancy and management service fees). You need to have sufficient cash to pay for these ongoing payments in addition to meeting your current monthly living expenses (e.g., rent and telecom bills).

A better reason to purchase a home is the fact that you already have savings to cover for the upfront payments such as the down-payment, agent’s fees, and stamp fees.

2. TO SUPPLEMENT YOUR “STABLE” JOB

Are you fond of your current occupation? How long have you been in the organization? Are you confident that your position is stable for the next couple of years?

The truth is, you can never be 100% sure that your job is secure. You can argue that CEOs or founders of the company can keep their jobs for the longest time but then again there’s the case of the Lehman Brothers. When deciding on whether or not you shall buy a flat, consider your current job situation as well as the workplace climate. To be sure, hold off a few years and grow your savings first before making this important investment.

3. TO SATISFY YOUR NEED TO MOVE

If you love the thrill of moving to a fresh nest and constantly changing your neighborhood, you will realize how difficult it is to sell your relatively new home in a short period of time without encountering a big loss. This is because most people prefer homes with better home equity. You cannot build a high value of ownership for your flat overnight!

4. TO COHABITATE WITH YOUR CURRENT PARTNER

As Nelly’s song goes: “Lovers to friends…why do all good things come to an end?”

With relationships, you have little to no certainty about what happens in the future. You may be in the best terms now but who can really be sure that you will end up together forever?

If purchasing a flat together is your solution to fixing an unstable relationship (even if you are engaged), what will you do if your partner suddenly vanishes? Or perhaps if he or she goes unemployed after a few months? You will have to carry the burden of the mortgage and all the monthly costs on your own. This poor reason for housing commitment will affect your credit.

Sources: 1 & 2

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