personal finance Archives | Page 23 of 37

How To Deal With The Toughest Questions About Money

Nurturing an honest and educational discussion about money is highly encouraged. It is helpful to share personal saving tips and ways to cushion the challenging economy. However, it is easier to travel deeper into the conversation as you get more familiar with someone.

A nosy or rude question about money can push your pleasant discussion into an inaappropriate territory. Prevent judgment or unsolicited advice from coming by considering these approaches:

#1: HOW MUCH MONEY DO YOU MAKE?

One of the most shocking encounters in my life was when my uncle’s neighbor directly asked how much I made. This is an inappropriate question to ask to a person you met for the first time. I wore a smile on my face and firmly said: “I am sorry, but that is personal. It is not something that you need to be concerned with.”

You may approach the same situation in a lighter manner by saying: “I earn enough to cover my needs and reasonable wants.”

#2: HOW MUCH MONEY DOES YOUR SPOUSE EARN?

When you are exercising a in-depth disclosure with your friends, it is easy to slip an invasive question from time to time. One person may ask how much your spouse earns per month. Divert the topic by saying: “We make enough money to enjoy your pleasant company today.”

If you are unsuccessful in changing the course of the conversation, politely state that you do not discuss financial matters outside of your marriage.

#3: ISN’T THAT TOO EXPENSIVE FOR YOU?

A concerned family member or a close friend may bluntly ask you about an item he or she perceives as hefty. Alleviate the worries of your “asker” by elaborating how good you felt about your purchase. Also, you may share how much thought you exhausted before purchasing the said item.

I shall illustrate this scenario in the following dialogue below.

Gabby: How can you afford to purchase the new GoPro?
Jayden: I did my research. I shopped around Singapore to find a camera that I really desire. Do not worry about it! This GoPro is still within my budget.
Gabby: Okay lah!

#4: HOW MUCH DID YOU SPEND FOR YOUR FLAT?

Real Estate in Singapore is a tricky subject. People may judge you for either spending too much or too little for your nest. Stay on the safer side by keeping your answers vague. Consider saying something along these lines:

a. It is more that we expected, but less that the actual asking price.
b. It was above our asking price, but within our budget.

Sway away from this matter by inviting the person as your guest in your upcoming housewarming.

#5: MOM AND DAD, ARE WE RICH OR POOR?

Children are immensely curious by default. As early as primary school, they begin to define themselves by observing the similarities and differences between them and the society. Their friends may brag about how much they have, but your child cannot fully appreciate what rich or poor actually means. This is why it is your responsibility to shape your kid’s definition of what it means to be well-off.

You can impart that the essence of being rich does not necessarily equate to a household’s net income. For instance, you may say that your family is rich in the love and presence of each other.

#6: HOW MUCH DO YOU EXPECT TO EARN IN THIS POSITION?

The juiciest job interview questions are related to salary. Your potential employer may ask you about the specific range of expected salary in order to make an offer. It is best to utilize a positive and direct response to avoid triggering the interviewer’s tougher side.

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Say that I was put in this situation. My response will be: “I would greatly appreciate if you could make an offer that is based on the budget for this position. We can negotiate from there on.”

Sources: 1, 2, & 3

Financial Resolutions That You Can Surely Fulfill This 2017

For the lack of a better term, 2016 was a “rubbish” year for many people around the world. Surprising political and social shifts occurred. Just take a gander at the newly elected President of United States! Nonetheless, most of us are ready to bid farewell to the yesteryear.

As you welcome 2017 with a bang, you may build a list of resolutions to signify a clean slate. Give it a go! While many Singaporeans are committing to adjustments surrounding their physical well-being, it is healthier to add several monetary resolutions.

Start becoming financially fit this 2017 by following these suggestions:

1. BE PROMPT AT ALL TIMES

There is a reason why money goes hand in hand with time. As the job market becomes increasingly competitive, most companies have minimum tolerance for employee tardiness. Keep your source of livelihood by always being on time.

You do not need to exhaust your resources or skills in order to remain prompt. You simply have to synchronize your clocks and set an appropriate alarm.

2. SAVE MORE ON ELECTRICITY BILLS

The top three appliances that spike up your energy consumption are the refrigerator, the air-conditioner, and the water heater. We became more reliant to these appliances due to the pressures of the contemporary lifestyle. This is why it difficult to give them up! So, save money by making small yet efficient adjustments.

Make energy-saving strategies a part of your 2017!

3. SWITCH TO A BETTER SAVINGS ACCOUNT

Savings accounts in Singapore were not shaped equally. Some may require you to have a minimum deposit of S$1,000, while others may not. To get most of the benefits of your savings account some encourage you to transact more, while others encourage you to withdraw less.

Earn the most profit out of your account by switching to an institution that offers the highest interest rates.

4. SEARCH THRU HOME FIRST

Before committing to a significant purchase, search inside your own home first. There are multiple ways to use your resources. You just have to be creative!

For instance, you may use your old drawer as a diaper changing table. You may also learn how to cook on a stovetop instead of replacing your broken microwave.

5. CUT DOWN ON YOUR TELEVISION INDULGENCE

The countless hours you spend in front of the television can drain your finances in the long run. Instead of immediately transitioning to the “couch potato mode”, do something productive in at least 60 minutes. You may also cancel your cable subscription and opt for watching shows at Toggle.sg.

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Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – for free! But, viewing of premium content is on a subscription basis.

6. REDUCE YOUR WATER CONSUMPTION

Singaporeans do not usually worry about clean and fresh water. However, the global supply of consumable water is getting scarce and more expensive with each passing year. Consider cutting down on your water consumption to save your pocket and Mother Earth.

7. WIDEN YOUR REPERTOIRE OF FINANCIAL KNOWLEDGE

Books will always serve as a clever investment. Some books will offer you a glimpse inside the minds of the greatest businessmen, while others will uncover strategies to become better investors.

Create a realistic list of all the financial books that you want to conquer within the year. Set an achievable goal for the amount of pages or books that you can accomplish each week. You might as well start as early as now!

8. MAKE THINGS EASIER

Aren’t you tired of the massive chaos and complexity that 2016 brought? Make things easier for yourself by closing or cancelling the accounts or cards that you are no longer using. Then, set up automatic transfers. 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.

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Sources: 1, 2, & 3

Four Financial Strategies To Usher The New Year

STRATEGY #1: REVISE YOUR HOUSEHOLD BUDGET

Overspending during the festive season happens to most of us. I cannot blame you! The competitive prices of the shops as well as the constant sales are undeniably tempting. This is why the New Year is a good time to revisit your previous household budget. Understand what went wrong in your current budget to help you succeed in 2017.

Start by making a detailed list of your total income. Then, collate all your annual expenses including debts. Build a robust budget plan out of these information. Do not forget to pay off all of the extra debts that were incurred during the season. Be realistic when it comes to how much you can pay at a given point in time.

STRATEGY #2: BEGIN ON A HUMBLE NOTE

Have you ever noticed that the individuals who partake in those “crash diets” (i.e., defined as a method of losing body weight quickly by eating very little) eventually bounce back to their previous figures? The significant relapse can be due to the dramatic and sudden changes in actions. It is unlikely that change will occur if you speed up the process. The same idea applies to your finances.

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Beginning with a humble note entails welcoming the new year with small and simple financial goals. This strategy is smart as it helps you to build confidence and momentum to achieve more complex and longer objectives. Learn how to adjust your behavior by reading the book entitled, “Investor Behavior: The Psychology of Financial Planning and Investing“.

STRATEGY #3: SET REGULAR REMINDERS

Say that you are done planning out your short-term and long-term goals for 2017. Put your creative juices to test by devising ways to remember those objectives. Personally, I use technology to create visual lists that I can view in my laptop and in my mobile phone. It helps me to monitor my financial progress.

If staying prompt is a part of your New Year’s resolutions then, you may consider setting up payment reminders. Do not tolerate late fees and payments by placing a notification on your eletronic calendar.

STRATEGY #4: PAY YOURSELF FIRST

Conquer a certain goal or eliminate a certain debt throughout the year by using one of the most potent strategies – to “Pay Yourself First”. This works well if your resolution focuses on saving money. Set aside a portion of your income as soon as you receive your paycheck. Allocate this portion to your CPF, retirement, or savings account.

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This means that the first bill that you shall fulfill is your own’s.

Sources: 1, 2, & 3

How To Bounce Back From The Holiday Splurges

The Yuletide season is upon us! Today is special as we celebrate the joyous occasion of Christ’s birth. While some people may not celebrate Christmas, December 25 (Sunday) is considered as a public holiday that will be observed on December 26 (Monday). Many Singaporeans take this long weekend as an opportunity to be with their families or to travel overseas.

If you went a little over your budget these season, January may welcome you with large debts and bank statements. Do not panic just yet. Take a deep breath! Consider these steps to bounce bank from your holiday splurges:

STEP 1: KNOW WHERE YOU STAND

You must initially assess your overall monetary situation. It does not take a financial whiz to decode what the first step entails! Simply include your budget and spending patterns from the past two months as well as your financial goals (i.e., both long-term and short-term).

Make a detailed list of all your debts, bills, due dates, and interest rates. This will help you to create a timeframe that will guide you towards paying down your debts. There is hope!

STEP 2: IDENTIFY WAYS TO CUT BACK

The damage has been done! It is time to take control of the situation by breaking the cycle of frivolous spending. Commit to a debt diet or prevent purchasing non-essential goods.

Avoid unnecessary spending by employing strategies such as reducing your energy consumption, using coupons, planning your weekly meals, or comparing prices online. These may seem miniscule, but these measures can make a huge difference to your wealth!

STEP 3: PLAN FOR THE FUTURE

To secure the future of your finances, you must build a robust budget plan to pay off all of the extra debts that were incurred during the season. Revise your current budget and stick to it! Be realistic when it comes to how much you can pay at a given point in time.

The remaining days of December is a good time to start thinking ahead. Understand what went wrong in your current holiday budget to help you next year. Perhaps you need to purchase your gifts as early as the Great Singapore Sale to save more money. Or, you may lower your entire gifting allowance.

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Whatever your mistakes were, it is important to learn from them.

Sources: 1,2 & 3

Do You Have These Harmful Attitudes About Money?

Having a wrongful attitude toward money can cost you in the long run. The earlier you alter your belief system, the sooner it will pay off. Here just some of the attitudes that you can slash off:

“MONEY IS NOT VALUABLE!”

If you relieve the weight on your finances, you may start spending carelessly. Saying money does not matter is like saying that you can live in Singapore without having to work. Money is valuable as it lets you exercise choice. You can choose to change jobs or to retire early. It helps you to afford the options that will change the way you live.

“I WILL REMAIN FINANCIALLY ILLITERATE.”

Just because you never attained a “Diploma in Banking and Finance” does not mean that you cannot learn to manage your wealth properly. Having the negative attitude that you are not good with money can increase the fallout in your finances. This ideology is more common than you think.

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According to Kathleen Kingsbury, a financial author and money coach, women typically complain about being too stupid to learn about finance. This is not true! Since women learn by conversing, realize that your lack of financial knowledge is due to the lack of socialization related to money. An individual may join an educational club about personal finance as a solution. These matters can be applied to main as well.

“IT IS NOT POLITE TO TALK ABOUT MONEY.”

As we live in a predominately Asian nation, talking about salary or money in general is taboo. This may lead to poorly equipped individuals. You see, money has been a source of many conflicts. This is why most people skip this topic.

The downside is blatant ignorance. It is your duty to separate money facts from fiction. To get your facts straight, you must search for answers. You may not get the right information if you remain silent. People may not be able to help you in huge monetary decisions too.

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Do you have these harmful financial attitudes? Perhaps, it is time for change.

Sources: 1 & 2

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