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Where Did All Your Money Go?

“Where did all my money go?”, a friend of mine shouted in an open space.

Let us face it! People usually do not realize how much they are spending. You may not have a lavish lifestyle but, you seem to run out of money. Why is this so?

If you want to uncover the answer, tracking your spending comes in handy! Reach clarity by understanding how you manage your money. This step will help you to fully take control of your finances.

DETERMINE YOUR SPENDING HABITS

With the complexities of finances, where do you begin? Consider starting with identifying your spending habits. Do you pay to get your hair professionally dyed or do you dye it at home? Do you buy coffee from Starbucks or take advantage of the free-flowing coffee? Shed a light to your daily expenses and match these with your financial goals.

When you have identified a mismatch between your spending habits and financial goals, you can immediately plan the necessary alterations. Tracking your spending is essential to making better financial choices.

CATEGORIZE YOUR EXPENSES

Looking at your spending habits under a microscope entails that you have the ability to categorize each one. Complete your task by writing your expenses on a notebook or a ledger. Much like us, these expenses exist in a variety of ways. Some expenses are exclusively for students, while others are exclusively for working adults.

Image Credits: pixabay.com

Begin tracking your expenses by dividing a piece of paper into several columns. Assign an expense category on top of each column and highlight the allotted amount for it. For instance, the “entertainment” expense category can only consume S$100 of your monthly income.

TAKE SMALL STEPS

It goes without saying that you cannot force things. Forcing someone to love you reeks of desperation and displays no self-respect. Attraction comes naturally. Same with your finances. Taking control of your finances must not be a forceful act. Forcing success may lead to shutting down opportunities that you could have had. Try taking small steps first.

After categorizing each expense, commit yourself to recording your daily spending. Awareness of your daily spending helps you to keep track of how much you have left on each category. Simply deduct the amount that you spent today from the category’s “allotted budget”. A savvy shopper equips himself or herself with these information.

DOWNLOAD AN APP

Embrace modern technology by downloading an app or a software to keep track of your expenses. I, for one, use the free Spendee app. This user-friendly finance app allows me to categorize my expenses and to illustrate the entirety through graphs or charts. Entering a budget is as simple as pie!

Image Credits: pixabay.com

Some apps or programs allow you to sync your device to the computer. This way, your partner can examine your spending habits too. As a team, you may prevent overspending and stay within your bounds.

Source: The Balance

Essential Tips On Finding The Right Loan For Your Needs

You have a stable job right now, but since you’re thinking of embarking on a new business soon, you’ll need to acquire a loan. You need the money to purchase your supplies, to hire people and to market your business’ existence. And while you’re certain that you need a loan for this endeavour, you still don’t know how to actually to find the right loan for your needs. In your mind, you think this decision is crucial because the success of your business relies on it – and you’re right. To help you out with your dilemma, consider the essential tips below to find the right loan for you:

How much do you really need?

Just because a lender offers you a loan worth thousands of dollars, doesn’t mean you should take it immediately. Keep in mind that the bigger amount you borrow, the bigger your payments will be – and this can become an issue if your business isn’t as successful as you’d like it to be. On the other side of the coin, if your loan is too small, it might not help you in any way, and you’ll end up paying for high-interest rates. To avoid being placed in this kind of situation, carefully think how much you need for your business and look for a lender which can give you that amount.

What is the interest rates?

Aside from the loan amount itself, you should also consider the interest rates associated with it. Is the lender offering you the amount you need but has very high-interest rates? Are there any lenders in the market who can give you a lesser interest rate? Think about these things first before choosing a loan. It’s also essential to ask the lender if there are any other fees or penalties to be paid after you received the loan. All of the processes involved in the loan should be transparent to you to avoid problems in the future.

What’s the term?

Different loans have different terms. Some loans can be paid for six months while others, in ten years. Since you’re still starting a business, it might be best to settle for a loan which will require you to repay within an extended period of time. This will allow you to save up for the interest rates and the loan, without putting your business’ operations at risk.

Aside from the things you’ve read from this article, it’ll also help if you can actually work with experts when it comes to finding the right loan for your needs. Places like oinkmoney.com may be a good starting point.

Be A Responsible Borrower

Finding the right loan for your needs is never easy. There are several things to think about to come up with the best possible decision. You also have to keep in mind that your responsibility as a borrower doesn’t end the moment you receive the money – you should pour in your time and effort in order to pay all of these in time. If not, your life may be affected negatively. Remember all the things presented in this article, and for sure, you’ll come up with a decision on which loan to get without compromising your financial health in the long run.

Sarah Porter

Sarah Porter is a money-savvy writer and mum of two based in Manchester, UK. She is the Brand and Marketing Manager at the UK loan website Oink Money (oinkmoney.com), as well as the founder of a well known money-saving website. Sarah is originally from Edinburgh where she studied Business and later worked in finance for a FTSE 100 company. She left her career in finance to pursue her passion for writing, a move which allowed her to travel the world with her laptop while running her blog.

4 Cardinal Rules Of Budgeting

Managing your finances is not a piece of cake! Mixing motivation, perseverance, and careful planning is needed to keep everything in place. This is why people look for inspiration in books and online articles. With the abundance of resources and information available out there, you can build a massive library.

As you select certain strategies and ideals to follow, here are some of the personal finance rules that you must consider.

#1: A LITTLE GOES A LONG WAY

Start embodying the mindset that small actions eventually adds up. This slow yet steady progress is called Incremental Growth. You will notice that incremental changes pay off in the long run as you track your cash flow. For instance, cutting down on alcoholic beverages can make a significant difference at the end of the month.

#2: PAY YOURSELF FIRST

As a habitué of finance websites, you may have encountered this phrase: “pay yourself first”. This popular statement refers to routing your contributions from each paycheck that you received (e.g., automating your retirement contributions). Doing so entails that you mentally established “saving” as a priority. You are more important than any expense categories.

Most people spend their money first and save the extra later on. But, why must you turn the tables around? For starters, keeping a portion of your money reduces the temptation of overspending and improves your chances during emergency situations.

#3: FOCUS ON THE DEBT

It is challenging to save if you have a mountain of debt to hike. Before you start creating a realistic budget, you shall set a strategic plan to resolve your outstanding debt. Any lingering credit may ruin your financial goals. The sooner that you diminish the negative, the more time you will have for the positive.

#4: YOU ARE THE CAPTAIN OF YOUR OWN SHIP

You are in control of your wealth and not the other way around. Perceiving yourself as the “captain or master” helps to instill accountability over your spending habits. With financial awareness, it is harder to let money flush down the drain.

Image Credits: pixabay.com

Sources: 1, 2, & 3

Small Financial Achievements That You Should Be Proud Of

It comes as no surprise that many Singaporeans immediately turn to social media to share their achievements. Facebook and Twitter “walls” are bombarded with celebratory posts and pictures. If you feel that you have nothing worthy to share, think again! Our lives are full of achievements on a smaller scale.

Take these humble financial achievements into consideration:

SETTING UP A SUFFICIENT EMERGENCY FUND

If you are done building your emergency fund then, I am proud of you!

An emergency fund is a safety net that will cushion emergency expenses against high interest debts and bankruptcy. It is not entirely for you as you can use it to provide for your family members who are in need. The certain amount depends on your current situation. For instance, a married couple can merge their contributions and divide it into half. While, unwed individuals must cover at least half a year to stay afloat.

According to a Bankrate.com poll, participants from the younger generation did not appear to be less inclined to build their emergency funds than their senior counterparts. This goes to show that more people are opening up to the idea of shielding their future. Saving up while you are young will benefit you because time is on your side.

DEVELOPING THE HABIT OF TRACKING YOUR SPENDING

If you religiously track your spending, you must keep it up!

Noting down your daily or weekly expenses is a tedious chore, but it can help you manage your wealth efficiently. The primary reason why you need to do this is to create financial awareness. You need to know where your money is going in order to change your unhealthy spending habits. It is as simple as minimizing the income wastage.

Furthermore, it allows you to see if your spending habits match your financial priorities. Make sure to spend within your means.

ORGANIZING YOUR MONTHLY BILLS

If you are on top or ahead of your monthly bills then, you are doing your credit score a favor!

Organizing your bills goes hand in hand with the above bullet. This may either be done digitally or manually. Choose to scan your bills after you have received them and after they are paid. Store these papers in a secured hiding spot. Alternatively, you may save the scanned documents in a designated folder on your computer.

To make sure that you never miss a deadline, you may set up an auto-pay service within the companies that you pay bills to.

CONQUERING ALL THE ADDITIONAL FEES

You are fed up with the additional fees and made some adjustments with your lifestyle. I salute this action!

Being careless with your finances is forgivable in your early 20’s when you are not fully equipped with the financial knowledge and resources. As soon as you move forward in your life, you must aim to pay for what you will actually use.

For instance, it may seem insignificant to incur extra fees for withdrawing cash from an ATM that is not from your bank. However, walking a few blocks to find the right machine can save you at least S$5 (that can purchase you a meal from Kopitiam). Make simple alterations in your lifestyle in order to avoid additional fees.

PURCHASING WHAT YOU SAVED UP FOR

Congratulations! You did not give in to the temptation of swiping your credit card to complete the purchase. Instead, you eliminated unnecessary expenses and set aside cash for weeks. There is something satisfying about finally getting an item that you spent a lot of time saving for. Savor this positive feeling.

Image Credits: pixabay.com

Acknowledging seemingly small victories helps you to picture a progress in your financial journey. Psychologically, it elicits positive emotions and perceptions. The more individuals experience the sense of progress, the more likely they will be motivated and productive in the long run.

Notice these humble achievements and be proud of yourself!

Sources:1 & 2

Answering Five Awkward Questions About Money

How often do you have a chance encounter with a person who is innately savvy with money? Not so often, right?

Personal finance is not exactly a part of the school’s curriculum. This is why you must be open to discussing about proper money management. No matter how embarrassed you may feel, here are some questions that many Singaporeans are eager to know.

#1: HOW CAN I MAXIMIZE MY SAVINGS DESPITE LIVING FROM PAYCHECK TO PAYCHECK?

Tackling the overwhelming bills and loans can make you unenthusiastic about saving money. You see, it is difficult to save money if you are barely living from paycheck to paycheck. The solution could be found in the way you spend.

Notice how you allocate your monthly budget and look for ways to downsize your purchases. You may focus on entertainment costs such as limiting your restaurant dining. Strategically planning your spending habits will help you to increase your savings.

#2: WHICH FUND SHOULD YOU SET FIRST: RETIREMENT OR EMERGENCY?

Financial security places a heavy weight on both the emergency and the retirement fund. The former aims to protect you against unexpected events in the immediate future. While, the latter will cover your expenses in the golden years. Stop choosing between these two! Cultivate varying amounts in your emergency and retirement fund simultaneously.

Once you are done with setting up a sufficient emergency fund, you can start stretching out your contribution for your CPF OA.

#3: WHY WAS MY PLASTIC CARD DECLINED?

There is nothing worse than having a sales clerk or a waiter tell you that your credit or debit card has been declined. I can only imagine the horror on the client’s face as this happened to me before. Several years ago, I was working as an administrative officer at a fitness studio. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful. I must highlight that she is using plastic cards from international institutions.

Image Credits: pixabay.com

Why did this happen to the rising starlet? Well, it may be due to the bank’s security measures. Purchases made far from your home may seem like red flags to your issuer. So, call your bank or issuer right away and authorize the transactions. Handle this situation better by keeping your cool. Talk to the personnel privately and arrange an alternative form of payment such as going to the nearest Automated Teller Machine (ATM) to withdraw cash.

#4: HOW DO I TELL MY PARTNER ABOUT MY OUTSTANDING DEBT?

Telling your partner or future spouse about your outstanding debt fuels anxiety, but you must simply do it. Schedule an open discussion with your beloved. Explain the gravity of the situation and the events that led up to it. Highlight what you learned from your past mistakes and show how you can conquer your debt.

Do not forget to include your partner in the planning process.

#5: WHEN SHALL I STOP ADDING INTO MY SAVINGS ACCOUNT?

As a conservative adult, you had exhausted all your contributions for your future. Congratulations on meeting your short-term financial goals too! Now, you may wonder if you are putting too much on your savings account.

Limiting yourself to a savings account makes you miss the opportunities of growing your wealth to its fullest potential. Consider opening an investment account once your emergency fund, retirement fund, and living expenses are in order. You may even schedule a consultation from a financial expert.

Image Credits: pixabay.com

It is rare to encounter a person who is innately financially savvy. So, serve as a good example to other Singaporeans by raising important money discussions.

Sources: 1 & 2

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