Anna Agoncillo, Author at MoneyDigest.sg

3 Ways To Make The Most Out Of Your SRS

Prudent individuals go through great lengths in order to build retirement fund. Many Singaporeans completely rely on the government-mandated Central Provident Fund (CPF). It is a savings plan to fund important expense categories such as retirement, housing, and healthcare. Unbeknownst to some, there is a scheme that is meant to complement the strength of CPF. I am talking about the Supplementary Retirement Scheme (SRS). SRS flourishes your retirement savings by providing tax relief and investment options. Unlike CPF, SRS is a voluntary scheme. SRS members are free to contribute varying amounts which are subjected to a specific limit.

Make the most out of your SRS account by employing these tips:

MAXIMIZING YOUR TAX REDUCTIONS

While helping you cultivate your future, SRS simultaneously reduces your tax expenses at the present moment.

There are different types of tax relief that you can claim, such as the Earned Income Relief, Qualifying Child Relief, NSman Self Relief, and Parent Relief. The first one refers to the deduction of taxable income for every dollar deposited into the SRS account. Furthermore, you can reap tax-free investment gains made through your SRS account (i.e., not applicable to Singapore dividends).

SCHEDULING YOUR WITHDRAWALS

Let us be honest! You can withdraw funds from your SRS account even before you retire. Unfortunate instances such as medical emergencies and bankruptcy are among the significant reasons why this happens. Withdrawals can be completed in the form of cash or investments.

You must strategize your withdrawals to receive the most profitable scenario. You see, there is a chance that you will end up paying more tax if you withdraw the entirety of the SRS account upon retirement. By “more”, I am referring to the comparison between the “withdrawal tax” and the income tax savings. Consider scheduling your withdrawals spanning the period of 10 years.

GROWING YOUR INVESTMENTS

SRS is more than just a scheme to reduce your tax as it is an efficient tool for growing your retirement funds. It is meant to supplement your retirement money by embracing investment options. An increasing number of Singaporeans had been making contributions to their SRS accounts. For instance, the contributions made until December 2015 reached more than S$4 billion.

Why are people drawn to investing their SRS funds? For starters, gains are non-taxable. Furthermore, the long-term returns are higher when invested as compared to leaving your SRS fund in idle. From the retirement age and beyond, only 50% of your withdrawals will be taxable. It goes without saying that your bigger risk appetite is subject to the volatility of the stock market.

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A local institution that allows using SRS funds for unit trusts, index funds, unit trusts, or blue chip shares is OCBC.

Sources: 1 & 2

How To Redecorate Your Flat To Look More Expensive

A significant chapter of my life recently closed as we bid farewell to our childhood home. You read that right! My family bought a new pad in the same town. The first few phases of our move are the most exciting ones. Starting from scratch, we have the ability to make our home feel like a serene haven. We are purposefully displaying pieces that evoke strong memories for us.

Whether you are crossing through the same transition or are planning to redecorate your flat, one thing that can restrict us is our budget. Do not give up on your Pinterest dreams just yet! You can still create a luxurious looking flat by playing with textures and by adding essential elements. Here are some useful tips:

#1: SHOWCASE INEXPENSIVE PIECES OF ART

If there is one thing that I learned from my obsession with home makeover shows, it is that you can transform a blank frame into an effortless artwork. You may purchase inexpensive frames at IKEA Singapore (e.g., 3-piece RIBBA for S$11.90). Craft your masterpiece by framing artificial flowers, by making wire art, or by taking black and white photographs. Add accents to a plain frame by painting the sides gold.

#2: ADD CRYSTALLIZED TOUCHES

Nothing shouts luxury more than sparkling crystals. A chandelier is inessential and expensive so, opt for a collection of crystal pieces. This type of decor is helpful for smaller spaces as the transparency adds dimension. Furthermore, the reflective quality of fine crystals interplay with the flow of natural light. Grab an affordable crystal fruit bowl at Lazada Singapore. Or, you may bargain hunt at the nearby Cash Converter.

#3: DECLUTTER YOUR SPACE

There is truth to the statement: “less is more”. While some may think that adding more decorations or ornaments to a room can boost its perceived value, that is not usually the case. An overaccessorized room can appear messy and overwhelming. Consider decluttering your space by only retaining the pieces that have sentimental value to you.

#4: EVOKE CLASS AND LUXURY

If your preference may lean towards elegant European furniture and your wallet screams classic IKEA, opt for luxurious-looking finishes and upholstery. I am referring to metallic furniture and accessories. Experiment with gold (or rose gold) and copper pieces. For instance, IKEA sells a gold-colored lamp for S$9.90 and a gold-colored bowl for S$25.90.

#5: PLAY WITH LAYERS

Popular feeds in Instagram are filled with pleasing layouts that feature well-edited layers of objects. You can apply the same idea to your home by creating vignettes on your vanity or your coffee table. Vignettes are groups of various objects that tell a story. A matchbox may seem like rubbish, but it shines when you pair it with seashells and other souvenir items from your travels. Your guests will surely notice the textiles and fascinating pieces on your furniture. Be ready to share your stories!

Image Credits: pixabay.com

Sources: 1 & 2

6 Annoying Things That People Put In Their CV

Crafting a Curriculum Vitae (CV) or Resume urges you to select the type of information that you need to put in or throw behind. You are in luck! You live in an era where vast career articles can readily be pull out for you to use at any time. You may even ask your parents, co-workers, and other people surrounding you to help you with your CV.

Mistakes can be made in the actual writing of your CV,. While it is impossible to pick the brain of every hiring manager in Singapore, you can still avoid causing irritation!

KILL THE BUZZWORDS

As a budding candidate, your top priority is to impress your potential employer. I completely understand that you want to display your grammar proficiency and vocabulary prowess. However, you do not need to throw a bunch of buzzwords to shine. Do you really know the meaning of synergy and “best of bread”?

This type of words or terms will make hiring managers roll their eyes! Opt for words that highlight what you actually did such as created, managed, achieved, negotiated, and launched. Action words will show off your skills and provide weight to your profile.

STEER AWAY FROM CLICHES

Catch the recruiter’s attention without sounding too annoying by avoiding unimpressive cliches. These are either too vague or repetitive. Using flowery phrases such as “people person” and “hard worker” are difficult to prove. It is better to provide concrete examples to present your accomplishments.

Remember, much like in courtship, it is better to get creative and straight to the point!

BE CAREFUL WITH THE LABELS

I know how efficient it is to send a generic CV to all the possible employers. As an unemployed fresh graduate, this is one of the strategies that I used to partake on. If you are as guilty as I was, you must ensure that you edit the company or institution to which you are addressing the document to.

Attention to the slightest details goes beyond proofreading. It sends out a message that you are customizing your CV to the right companies. Start by labelling the file with your surname and the company’s name (e.g., Wee_Google.pdf).

REVAMP YOUR EMAIL ADDRESS

You can learn a lot from a person by merely checking out his or her email handle. Well, when was the last time you’ve changed yours? Answering “while in secondary school” may not be good. Chances are, your email may be something along the lines of [email protected] or [email protected]. You do not want to get flagged by tech-savvy companies just because of your humorous email address!

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Upgrade your profile by setting up a separate email for work. Choose a handle that is as similar to your name as possible. Gmail is highly recommended as it includes document sharing and group chat applications, which are helpful in the workplace.

TONE DOWN THE FONTS

Outward appearance or “face value” shapes the first impression. Recruiters and potential employers are bound to notice the document’s font and formatting before they read the contents of your CV. Thus, it is essential to keep things neat and professional.

The most acceptable fonts include Times New Roman and Arial, in font size 12 and color black. You may also apply Tahoma, Goudy Old Style, Lucida Sans, Garamond, and Century Gothic. It goes without saying that Comic Sans MS and Chiller are not welcomed in this club!

DO NOT INCLUDE EVERYTHING

The rise of modern technology urged us to evolve our technical skills. It is a common thing for recruiters to browse through a list of software that the candidate is familiar with. At this point, all of us are expected to be familiar with the Microsoft Office products (i.e., particularly Microsoft Word, PowerPoint, and Excel). Including other programs can boost your job profile. However, you do not have to add every piece of technology that you came in contact with!

Image Credits: pixabay.com

You need to be confident with your experience and skills in that area before adding it in. For instance, it is best to write “Final Cut Pro” to your CV after editing videos extensively. The same idea applies for the languages that you speak. Being part Mexican does not guarantee your proficiency in Español!

Sources: 1 & 2

7 Unconventional Ways To Save Money On Your Wedding

1. Concretely visualize your wedding day and the events leading up to it by writing a narrative. Doing so allows you to enumerate the possible expenses that you will incur. Keep this narrative in mind when making your budget.

2. Whether you want to believe it or not, the “fake cake” was one of the hottest wedding trends in 2015. Purely made for show, the fake cake consists of a tier of real cake while the rest is made of styrofoam. This alternative looks just as elegant, but for the fraction of the price. Simply serve the (plain) supplementary cake you have kept in the venue’s kitchen.

3. My previous experience in the wedding industry thought me one thing – prices for products and services surge up when you attach the word “wedding” into it. Try omitting this keyword when searching for items online. A simple cocktail dress costs around S$20, but a wedding cocktail dress may cost twice as that. Some brides have gone to the extent of calling their wedding a “big party” when booking suppliers!

4. It comes as no surprise that many people around you are genuinely excited for your the big day. Ask your relatives, friends, and colleagues for help. Help is not limited to ang pow or red packets! It can be as little as borrowing their punch bows or as huge as taking your prenuptial photos.

Image Credits: pixabay.com

5. The crucial elements of a wedding includes the banquet. Spend less money by opting for bigger tables that need fewer tablecloths and centerpieces. Speaking of centerpieces, you can reduce your spending by sticking to one kind of flowers.

6. As a sign of gratitude for their participation, couples usually send gifts to their beloved guests. Unleash your creativity without damaging your wallet by making your own wedding favors. One option is to purchase small jars, fill it with jellybean, and wrap it with a bow. Another option is to bake your own dessert and package it well.

Image Credits: pixabay.com

7. When money is still tight after exhausting all your resources, consider the power of crowdfunding. Crowdfunding is a means of sourcing out money from a large number of people. You may recall the time when famous blogger Bong Qiu Qiu (or Budget Barbie) crowdsourced her legal fees. What is nice about crowdfunding websites is its ability to display how far you are from your monetary goal.

Sources: 1, 2, 3, & 4

How Expensive Is It To Tie The Knot In Singapore?

As the chapter of your singlehood comes to a close, the celebration of your dream matrimony draws near. It does not matter whether you came from a developed country or not! Weddings are deemed to be hefty in all parts of the world. Adding Singapore’s economy into the mix makes it more complicated for your budget.

Let us start with the standard cost of a wedding in Singapore. It is difficult to synthesize information dating back from the previous decades. So, I shall focus on the average costs of the main wedding elements. Said elements include the wedding rings, banquet, documentation, and bridal package. Your union can cost somewhere around S$30,000 to more than S$100,000 depending on how simple or extravagant the celebration is.

THE SHINY RINGS

The roundness of the ring symbolizes infinity – to which there is no beginning or ending. Its eternal nature signifies the pureness of love. Sorry to burst your bubble but, purchasing jewelry does not stop after you find the “perfect” engagement ring.

You still need to search for wedding bands to exchange on your special day. Do not let these simple rings fool you as these costs between S$1,000 to S$3,000 each! Rates can go up depending on the material of the ring and the precious stones encrusted in it.

THE SCRUMPTIOUS BANQUET

A wedding banquet holds a major chunk of your wedding budget. Our “foodie culture” is one of the reasons why it is significant. We can all agree that feasting is one of our favorite pastimes. Thus, more creative menu and fancier venue customization had been available to us.

Generally speaking, a weekday wedding banquet with 300 guests can take you back by S$30,000. Why is this so? You see, the average price per plate is around S$100 for weekday lunches and S$127 for weekend dinners. Further research highlights that local banquets range between S$50 to S$235 per person. Your food expense can go as high as S$70,500 for 300 guests and as low as S$10,000 for 200 guests. The more intimate the banquet is, the more savings you will have. Perhaps the only consolation of having a bigger guest list is the volume of red packets that you will get.

Image Credits: pixabay.com

THE MEMORABLE DOCUMENTATION

Early this year, we welcomed a new member to our family. We exhausted our resources to find the best suppliers that were within the couple’s budget. They ended up with a company that offered a package for videography and photography. In other cases, it is cheaper to look for different photographers and videographers.

Prior research is recommended before signing a contract. You may start with the top results when you Google search: “Wedding Photography Supplier Singapore”. Then, compare the prices with the local suppliers nearby. Expect to spend around S$2,000 to S$4,000 on documenting the momentous occasion.

THE STAR OF THE SHOW

The blushing bride usually steals the show! The last wedding that I attended involved the bride changing into three distinct dresses. Having several gowns tailored to your onetime use is undeniably expensive (and possibly unnecessary). This is why most brides in Singapore prefer the “bridal package”.

A bridal package includes a photo shoot, the hair and makeup, and some rented gowns. This convenient package costs about S$3,000 to S$6,000. The price depends on the range of gowns and the location of the photo shoot. You may opt to have your wedding album taken in premium spots such as the Eiffel Tower or the Sydney Opera House.

Image Credits: pixabay.com

You cannot deny it! A wedding involves an incredibly long list of expenses. Before shelling out a fortune, you must organize your expenses. Budgeting will help you align these expenses with your priorities. Best wishes!

Sources: 1 & 2

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