Anna Agoncillo, Author at MoneyDigest.sg

Fundamental Financial Tips For Startups

According to Investopedia, a startup is a company that it is in its first stage of operations. The founders of a startup often attempt to make money by developing product or service that they deem to be in demand. Startups are all about finding a market and a business model that works.

And since you are a newbie in the field, here are 5 essential financial tips that you must keep in mind:

1. GET A CLEAR IDEA OF THE TOTAL COSTS

The costs of the business depend on its scale. Say you and your spouse are the founders of an online company in a basic office setting. You would need to pay these expenses (approximately):

Office Rent = S$500/month
Tables, Chairs, and Office Supplies = S$400
Internet Access = S$150/ Month
Salary = S$2,500 /Month
Company Registration = S$100

As a startup, you must think of ways to minimize your cost by comparing prices and doing in-depth research.

2. VALUE EXPERIENCES

Degree and certificate qualifications seen on your C.V. are important but so does your experience. Experiencing both failure and success in the field determines whether you are suited for the market and whether you are passionate about what you do. Especially in the Silicon Valley or Tech World, experience matters massively. Bringing seasoned managers and talent is not only critical to your success but is also worth every cent.

3. ONLY HIRE PEOPLE WHEN YOU NEED THEM

As a startup, you are testing every aspect of your business including the amount of labor necessary. Do really a marketing team or can you handle the marketing aspect by yourself? Instead of hiring professionals to do the job for you, you can commit several hours in developing skills.

And when you decide to hire help, good sources of quality yet low-cost labor are university or polytechnic interns. If you are willing to supervise and devote your time to training, both of you can benefit from the experience. Think about it! You are giving a worthwhile experience and good recommendation for the intern while the business is receiving low-cost (and sometimes free) services.

You can also consider outsourcing your accounting matters to a cloud accounting firm such as Cloud CFO that provide cloud accounting services in Singapore for your company at a fraction of the cost.

4. MARK YOUR CALENDAR FOR TAXES

You are bound to pay your taxes even as a small startup. Otherwise, you will have to face penalties and additional interest from the Inland Revenue Authority of Singapore (IRAS). Also, you shall organize the allocation of money to pay taxes on time to avoid the extra fee of late payment.

Image Credits: pixabay.com (CC0 Public Domain)

5. GET PAID FIRST

One of the dilemmas you will encounter as a first-time founder is getting your clients to pay for the job. Shall you charge a flat rate or shall you give a discount? No matter what you decide to do, do not start working until you get paid first.

As cash flow is the core of startups, you do not want your company to crash just because of the debt of your clients. To avoid chasing your clients, ask them to pay at least two weeks in advance before you commence your work.

Sources: 1, 2, 3, & 4

Prominent Shifts In Singapore’s Budget 2016

The Budget 2016 signifies a new era – an era that is governed by a new decade (following SG50), new government (following 2015’s general election), and a new Finance Minister. Despite this, most of the expert panel at the discussion held by The Straits Times last March 26 agreed that the strategies taken by Finance Minister Heng Swee Keat was evolutionary.

Although he stayed on the path of restructuring for long-term growth and building social cohesion, as laid down over the past years, he had three main shifts in his approach. These shifts were namely: more financial help for companies, working closely with the people, and more funds for innovation.

MORE FINANCIAL HELP FOR COMPANIES

One of the most noticeable changes is seen in the government’s approach towards firms. With the S$4.5 billion Industry Transformation Package, Budget 2016 extends its financial help to companies with open arms. This promotes greater entrepreneurial spirit.

Another policy called the “Automation Support Package”, which will cost more than S$400 million over 3 years, is aimed at helping the companies to upgrade the utilization of automation in their operations. It will subsidize up to 50% or S$1 million of a project in order to help companies to expand the use of machines and progress more – even internationally.

WORKING CLOSELY WITH THE PEOPLE

In facing the challenges of tomorrow, Finance Minister Heng Swee Keat is positioning the government as more of a partner than a leader.

As the Budget is given to the trade associations, companies, and unions, the solution is in their hands. Regardless of which industry you belong to, the government is going to help the firm (of a certain size) to grow!

Image Credits: pixabay.com (CC0 Public Domain)

MORE FUNDS FOR INNOVATION

The last change is seen on Mr. Heng’s approach to focus more on innovation than productivity. In his speech, he highlights that innovation does not require high-tech software or robots. Instead, innovation is in the application of existing technologies in creative and lateral ways.

Supporting this approach is the upcoming S$100 million National Trade Platform. It will allow service providers to develop applications or value-added services on top of the platform. This is similar to an open-source environment. With this new scheme, an uncharted venture awaits!

Sources: 1 & 2

(CBD Area) Places Where Overworked Singaporeans Can Relax

The focal point of the financial and commercial centers in Singapore is called the Central Business District (CBD). To name a few, CBD includes Raffles Place, River Valley, Orchard, and Outram. Some of the most prestigious organizations both local and international have their offices compressed in this area.

Since most of the people here are hard-working employees, it is ideal to take a rejuvenating break every once in a while. If you agree, consider these nearby affordable places:

RULE OF THUMB

Close to the business offices is a neat and modern spa called Rule of Thumb. Do you want to see the spa for yourself? Click here for a panoramic view of the interior.

Price range for 60 minutes Shiatsu, Deep Tissue, Relaxation, Back, or Body Scrub is S$55-S$60. While add-on services such as cupping, ear candling, and magic light therapy are only S$15. Stuck at work? Worry not. It is opened until 4 am every day!

Location: 289 Beach Road, #01-01, Singapore 199552

MANICURIOUS

Located at 41 Beach Road, Manicurious may just be a woman’s paradise. It is a unique store that combines a nail salon with a cafe corner and a retail section offering shoes, accessories, and handbags. The interior of the store is relaxing, vintage, and neat. You will surely feel cozy in their armchairs while you choose from an array of polish colors. Their reasonable service prices (e.g., express manicure or nail shaping) start at S$6-18 while add-ons (e.g., hand scrub or quick dry) prices start at S$3-8.

What’s more? They have 10% off nail services from Monday to Thursday at 11 am-4 pm (T&C apply).

Image Credits: facebook.com/manicurious

Location: 41 Beach Road, Singapore 189680

TRADITIONAL JAVANESE MASSAGE HUT

As the name implies, Traditional Javanese Massage Hut offers an ancient system of oil massage by predominantly using strokes with strong thumb pressure to ease joint and muscle fatigue and soreness. There are five types that costs S$65 for 60 minutes. These are Hut 67 (signature service that is highly recommended), Smooth and Soothe, Back Breaker, Tired Feet, and Stress Buster.

Location: 415 River Valley Road, Singapore 248314

PHYSIQUE

Reach your body’s finest state with the services provided by Physique. Aside from the Cryotherapy they are known for, they also offer “power nap services”

Physique offers the one of a kind cold therapy called Cryotherapy. But they also offer power nap services. Upon paying S$28 for 30 minutes, you will be placed on a recliner and given free access on leisure items such as iPad and magazines. Enjoy a nap within your “own” space by calling 6532 0777 for an appointment.

Image Credits: https://www.facebook.com/physiquegroupsg

Location: 05-17, One Raffles Place, 1 Raffles Place, Singapore 048616

Sources: 1 & 2

5 Financial Tips For Savvy Singaporean Teens

When it comes to money management, starting early is always a good idea!

1. KNOW THE TRUE VALUE OF MONEY

When I was a teen, my sister and I spared a portion of our allowance in order to by the latest CD released by our favorite boy band. Instead of asking our parents for money, we worked patiently for it. That way, we understand the true value of money.

Aside from being a student, if you have a part-time job, you can see the value of money in terms of the work you have to do in order to earn it. For example, if you view a designer wallet as 25 hours of work at a S$6/hour job rather than as S$150 alone, it gives you a unique perspective on spending. This shall help you make more accurate decisions.

2. FOLLOW THE STOCK MARKET

To get a good grasp about investing, it is recommended to follow the companies that have growth potential and renowned products. For example, track the stocks of the world’s no.1 brand for half a century – Coca-Cola (NYSE:KO) or the stocks of your favorite bakery – Breadtalk (SGX: 5DA). Using these shares for financial education can help make learning fun!

3. SPEND SMARTLY

As a teen, you can save more money by employing simple spending strategies such as comparative shopping and buying sale items. If you are an artist who want to purchase assorted colored paints, compare the prices of online and physical shops to get the best deal. And if you want to save even more, go to the clearance or sales section to avoid paying the full price.

Image Credits: pixabay.com (CC0 Public Domain)

4. REWARD YOURSELF

To make savings as vital as expenses, you must set aside a certain amount that you are planning to save first. This way, you can keep track of your money without accidentally spending it. Even as a teen, it is advisable to open your own savings account (e.g., Junior Savings Account).

5. DO AVOID DEBT

In Singapore, students are eligible to use their parents’ CPF account in order to pay their school fees. To pay it off, you might start your adult working life with debt. Such type of debt is unavoidable but credit card debt is. So avoid debt as much as possible.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

4 Don’ts Of Real Estate Investing

Since land is scarce in our country, properties had always been a go-to investment option for many. The majority of these investors have strategies limited to purchasing, reselling, and renting flats or condominiums. While others consider other options such as the Real Estate Investment Trust (REIT).

REITs allow the investor to have a professionally managed portfolio of properties by purchasing a publicly traded investment product. Investors of REITs purchase units of the trust similar to shares of a common stock.

But no matter what type of property you purchase, here are 4 Don’ts Of Real Estate Investing to help you on your journey…

1. DO NOT FORGET TO IDENTIFY YOUR GOALS

Before committing to a property or even a property visit, it is important to understand what you want to achieve from investing on real estate. Be on a peaceful place where you can think carefully about your goals for the long-run.

You must have a transparent idea of your existing income, current expenses, and outstanding loans before diving into another complex route. Also, you must identify your budget and type of risk you are comfortable with.

2. DO NOT GO WITHOUT RESEARCHING

After identifying your financial circumstance and your investment goals, you must do your research on real estate investments in order to be sure that it is worth your money. For example, a two-bedroom HDB flat can cost about S$250,000. That is a huge sum of money you may be willing to risk if you are serious in property investing. The risks only increase when the investor does not understand how the property market works or when and where to invest. Hurrying up without analyzing the situation thoroughly can only bring about more damage (e.g., bankruptcy) than good.

So if you lack sufficient knowledge, seek advice from a financial consultant or other professional advisers. And when you find the “right property”, ensure that you keep your expectations realistic and keep your finances in tact.

3. DO NOT EXPECT TO BE A MILLIONAIRE QUICKLY

Do not fall into the trap that some real estate investors set – offering you properties for small amounts of cash with higher returns. These “undervalued assets or profitable investment opportunities” are mostly likely unsold overseas property projects. You see, real estate investors usually do not offer “jackpot” properties to complete strangers. They only invest with the people they know well.

There are no shortcuts to success on real estate investments! In fact, you must allot a long period of time on finding a property in a decent location, building a good relationship with the tenants, and maintaining the condition of the property. Time that may not be in the good side of most.

Image Credits: pixabay.com (CC0 Public Domain)

4. DO NOT PURCHASE A PROPERTY WITHOUT VISITING IT

In support of your in-depth research, you must drive to the property itself before signing any contracts. There are a number of reputable realtors and agents who can give you feedback about certain properties but you must follow your own instinct in the end.
There are no shortcuts to success on real estate investments! In fact, you must allot a long period of time on finding a property in a decent location, building a good relationship with the tenants, and maintaining the condition of the property. Time that may not be in the good side of most.

Sources: 1, 2, 3, & 4

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