Anna Agoncillo, Author at MoneyDigest.sg

Useful Money-Saving Tips For Pet Owners

Most owners treat their pets not as animals but as members of their family. With this special bond, they only want what is best for their pets.

Fortunately, you not have to go overboard in order to shower your pet with care and affection.

1. CREATE YOUR OWN TOYS

Instead of purchasing a S$10 chew toy, you can recycle old materials and turn them into instruments of entertainment. Remember your old pair of “ripped” jeans? You can transform it into a good tug toy for your dog. There are more ways to DIY your pet’s toys, you simply have to research online and use your creative juices.

2. BUILD YOUR OWN NEST

Aside from crafting your own toys, you can make a cozy haven for your beloved ones. Shaina from sugarstilettosstyle.com showed her audience how to make a space-efficient and cost-efficient bed for her dogs. Watch this video to see for yourself:

The IKEA SKUBB storage case retails for S$11.90 in Singapore.

3. EMPLOY PREVENTIVE CARE

As the age-old quote goes: “prevention is better than cure.”

One of the best ways to avoid paying costly veterinarian bills is to keep your beloved protected against illness. Do so by religiously employing preventive measures such as vaccinations.

4. SHY AWAY FROM FANCY PET FASHION

There are lots of options for pet apparels these days! Instagram is filled with pets that are decked out with glitter accessories, fancy collars, and customized sweaters. But does your pet need all those?

Shy away from the high-end pet trends and stick with purchasing products that will make your pet’s life easier like a sturdy ID tag (in case she or he gets lost) or a comfortable leash.

5. ALLOCATE MONEY FOR YOUR PET

Keep track of your pet expenses before it is too late. This month, analyze how much you are spending for your pet (e.g., costs for grooming and food). Then, designate a budget for your pet that realistically covers your spending. Lastly, eliminate unnecessary expenses from time to time.

6. APPLY EUCALYPTUS

My cousin recently purchased a 2-month-old puppy. The pup is currently in its oral stage where he is obsessed with licking and biting things. He has bitten countless items such as shoes, papers, and even the cabinet. Since the situation is getting out of hand, he stays in his cage most of the times.

A simple solution that my cousin can employ is to apply eucalyptus-enriched products such as Mentholatum (Decongestant-Analgesic Ointment) or Vicks Vaporub. This works because pets cannot take the potent smell of eucalyptus. So apply it in the areas that you wish your pet can stay away from.

Image Credits: pixabay.com

Sources: 1, 2, & 3

Different Ways To Define Financial Independence

Whether you call it Financial Independence or Financial Freedom, the first step to achieving autonomy is by defining it.

If you Google this term, you will find that there is an abundance of definitions available. However, let us focus on these four:

1. BY CASH FLOW

The most common definition of Financial Independence relates to cash flow. Many experts accept the idea that it is the “state of having sufficient personal wealth to live, without having to work actively for basic necessities.” Simply put, you passive income is able to cover your living expenses. Passive income sources include rental property, royalties from intellectual properties (e.g., books), trust funds, online business, investments, and pension plan.

Quantify your progress by calculating the percentage of living expenses that your passive income covers. When you reach 100% then, you attained Financial Independence by this definition. Having a full-time job is certainly optional with this circumstance!

2. BY WORRYING LESS

For many people, Financial Independence is achieved once they can use their money to banish their stress. These people focus more on what they can accomplish – in the terms of minimizing the “gap”. The gap that I am referring to is the division that exists between your income and your spending.

By this definition, you can increase the gap and reach Financial Independence quicker by spending less and earning more.

3. BY HAVING NO DEBTS

Financial Independence is characterized by being off the debt latch. While some debts are necessary and can be easily paid off, others are unplanned and difficult to pay off. Eliminating the latter is a crucial step to gaining financial freedom.

There are numerous ways to minimize your debts and build a better relationship with money, learn some of them by checking out our helpful posts, here.

4. BY DOING WHAT YOU WANT

A refreshing definition of Financial Independence is shared by Investopedia. Its contributor believes that Financial Independence “should mean the ability to live more or less as one wants to, within reasonable limits.”

Financial Independence can be seen as being able to do and choose the path that you desire the most. Absolute autonomy mean not always be synonymous early retirement as it can refer to your power to quit a horrible job.

Image Credits: pixabay.com

In my opinion, this is the most achievable definition among the four.

Brilliant Ways To Simplify Your Finances

1. UNTANGLE YOUR STREAMS OF INCOME

If you are juggling through your day job, online business, personal blog, and weekend side-job…take a breather!

Multiple sources of income sounds great in theory but it can be very challenging at times. I can attest to this statement as I am freelancer. When new opportunities are handed to you, analyze if you (and your schedule) can handle another weight. You do not want to waste your precious time on things that are not necessary.

2. ALLOT MONEY USING LAST MONTH’S INCOME

Budgeting your money is efficient for two reasons. It brings you a sufficient cushion as you are a month ahead of your bills. Also, it is very helpful for people with irregular income.

Image Credits: wikihow.com/Do-Envelope-Budgeting

3. CUT DOWN YOUR BANK ACCOUNTS

In a world filled with choices, most people have several number of financial accounts. You may have an account that brings highest interest or another that brings the highest shopping rebates. More than being complicated, the constant shuffling between these accounts can get messy. This is why you must narrow down the number of your accounts.

4. REDUCE YOUR JUNK

Reduce your physical and virtual junk authorizing creditors or vendors to issue bills using one method. If you want to go paperless, keep digital copies of your important documents on the “cloud” or on an external hard drive. If you are old-fashioned, organize all your documents in labeled folders or boxes.

5. SET SMART FINANCIAL GOALS

Develop a habit of financial goal setting to know where you are going and to plan how you can get there. Write down your financial goals with a trusted witness and contemplate the monetary milestone you would like to accomplish in the next 2 to 5 years. Track down your monthly progress.

6. CONSOLIDATE YOUR BILLS

Are you tired of receiving 3 separate bills for your landline, hand phone, and internet services? Consider consolidating all of them in a single bill by signing on bundled services. For example, Singtel’s Fibre Home Bundle (1 Gbps) offers the following:

a. Fibre Broadband,
b. Wireless Dual-band Router
c. 4G Mobile Broadband Plan, and
d. Home Digital Line with free unlimited local calls.

This plan costs S$59.90/month with a contract of 2 years. What is nice about this plan is that it offers an additional “10% off monthly Mobile subscription” (T&C apply).

Image Credits: pixabay.com

By bundling these services together, you just eliminated 2 monthly bills!

Sources: 1, 2, & 3

Main Implications Of Brexit To Singapore

One of the most talked about issues surrounding the world today is the Brexit. Brexit is shorter term that refers to “British Exit”. It is the strong vote of British people to detach themselves from the European Union (EU). This referendum impacted the global markets including that of Singapore’s.

For starters, Brexit contributed to the changes in exchange rates as the value of Pounds drop in its lowest level in decades. Aside from this shift in currency, the Brexit has implications in Singapore’s trade, properties, and investments.

CURRENCY

The British Pound is in its weaker state – as of the moment.

To illustrate, imagine Sally is a Singaporean expat who moved to United Kingdom 6 years ago. Being financially savvy, she made a plan to save some of her money for retirement back home. Since Sally kept a relatively huge sum of money in Pounds, she was surprised to find out that her funds are worth less than they were a week ago.

Aside from the individuals like Sally, British companies are affected by the weaker British currency. It will cost them more money to grow and expand their businesses here.

TRADE

Unlike other ASEAN countries, the Singapore government has concluded their negotiations for “Free Trade” with the European Union. Within the Free Trade agreement, any imports and exports between EU and Singapore are more affordable and are subjected to lesser restrictions. This greatly helped our transactions as we imported over S$44.46 Billion worth of goods and products from the EU last year.

An issue floats as majority of our EU trade was with the Brits. There seems to be an uncertainty whether Britain will have more or less bargaining power over Singapore after the Brexit.

PROPERTY

According to Knight Frank, Singaporeans lead the list of Asian buyers who patronized United Kingdom commercial properties in 2015. With the prevalent clamor of Singaporean buyers and the ambiguity of the British market, banks such as UOB and DBS had to act quickly.

In a statement, UOB says that they “will temporarily stop receiving foreign property loan applications for London properties.” While, DBS is advising its lenders to be more cautious.

INVESTMENT

Behind Japan and Hong Kong, Singapore ranks third as the largest investors in EU. This is why the population of the Singaporean investors will be surely affected. In particular, a stock called GL Ltd (SGX: B16) encompasses more than 5,000 hotel rooms in London. If the British currency will decrease further, it can pressure GL Ltd’s profit in Singapore dollars.

Image Credits: pixabay.com

As a solution, experts suggest to diversify your investments in terms of currency exposure.

Let me close with the post that PM Lee Hsien Loong published in his Facebook page:

https://www.facebook.com/leehsienloong/posts/1142353405827364
“Singapore will continue to cultivate our ties with Britain, which is a long standing friend and partner. We hope in time the uncertainty will diminish, and we will make the best of the new reality.”

Sources: 1, 2, & 3

How Money Can Ultimately Buy Happiness

In the previous posts I wrote entitled “Important Things You Must Know About Money And Happiness” and “10 Wonderful Treasures That Money Cannot Buy“, I highlighted that happiness along with other important values does not come with price-tags. This is supported by the 2012 report by Gallup.

According to the report, Singapore is still the unhappiest nation despite the fact that Singapore enjoys one of the highest per capita GDP values in the world. Surprisingly, it ranked as less happier than the populations of Iraq, Haiti, and Afghanistan.

Money cannot purchase happiness in all circumstances. Unless…you spend your wealth in the “proper” way!

Recent studies showed that there are some efficient ways that money can result to happiness. Here are some of them:

1. WHEN MONEY IS SPENT ON EXPERIENCES

A study by Cornell University researchers found that spending money on experiences instead of material possessions, improved the well-being of the person. Your feelings toward your materialistic purchases are subjected to buyer’s remorse as well as comparisons to others. Almost anyone can buy a new bag but, not everyone can experience the thrill of scuba diving!

To stimulate happiness, focus more on experiences that are unique to you. Only if these expenses are within your allotted budget – of course!

2. WHEN MONEY IS SPENT BASED ON THE SELF

Upon analyzing over 76,000 transactions of 625 participants, a recent study showed that matching personality to spending habits was more crucial than one’s total income and total spending. The personality categories in the study were divided into 5, namely: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism. This is based on the Big Five Personality Traits.

For example, Singaporeans who are high on “Openness” enjoy trying new things. These people can experience increased levels of happiness if they spent their money on a beauty or hair makeover.

Know your personality and spend money in accordance with your Psychological needs by completing a simple test here.

3. WHEN MONEY IS SPENT ON THE LITTLE THINGS

In the 2010 issue of Journal of Consumer Psychology, Jing Yang Zhong and Vincent-Wayne Mitchell surveyed the spending habits of 5,000 households. They found that the best way to increase one’s happiness was to make a series of smaller purchases. For instance, the people who spent their money on a series of concerts by lesser known artists were happier than those people who spent the same amount of money in one concert by an immensely famous band. Do you agree?

Well, it goes to show that the things that we think will make us happy often do not.

Image Credits: pixabay.com

Dr. Elizabeth Dunn even believes that “we may be better off devoting our finite financial resources to purchasing frequent doses of lovely things, rather than infrequent doses of lovelier things.” Simply, satisfying our simple pleasures frequently can elicit happiness in the long run.

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