Anna Agoncillo, Author at MoneyDigest.sg

Four Financial Mistakes And How To Beat Them

Recognizing these wrongful money decisions is a vital step to improving your financial health:

#1: NOT SAVING FOR EMERGENCIES

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Skipping an emergency fund can be one of your deadliest money moves. You see, our lives are full of pleasant and unpleasant surprises. Can you fork out a sufficient amount of money to cushion the urgent costs due to unemployment or loss?

Building a fund for these types of events shall be one of your financial priorities to avoid getting into debt or even into bankruptcy.

Solution: Having an emergency fund allows you to build a breathing space to deal with life’s highs and lows. It is recommended to keep about 6 months’ worth of salary inside your emergency fund. Start gradually by aiming for S$400 in the first month. Increase this amount as months pass by.

#2: EATING OUT CONSTANTLY

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It is no secret that Singaporeans love to munch! We are blessed with a myriad of cuisines that one cannot resist the temptation of eating out. As with everything that is good, too much can be a sin too. You may feel that eating out during lunch or dinner daily does not make a difference. But, all your costs add up.

Solution: The cost of one restaurant meal may be equivalent to three home-cooked meals. Consider packing lunch from home as it is almost always cheaper.

#3: PURCHASING UNNECESSARY THINGS

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Many shoppers in Singapore experience mindless sprees when the Great Singapore Sale is on. People purchase unnecessary items just because they are on sale! However, you must not bury yourself in a pile of debt due to the irrational thought that you cannot live without a discounted Prada bag.

Solution: Examine if you are willing to purchase the item in its full price. If not, you probably do not need it after all. Saving up for a new designer bag is better than having to loan money for it. Seek a balance between your debts and your savings.

#4: NOT SAVING FOR RETIREMENT

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The “HSBC’s Future Of Retirement: Generations And Journeys” report found that the average Singaporean begins saving for retirement at age 32 and continues it for another 29 years. Despite having the advantage of saving for a longer period of time than their ancestors, 41% of the participants wished that they had started to save earlier. The perceived insufficient fund may be influenced by the higher cost of living in the recent years.

Solution: You must save a fraction of your salary for retirement while you are employed. There will come a time when you will not be earning money, but you still need to support yourself. Read about building an efficient retirement plan. Seek the help of a financial adviser if necessary.

Why I Failed At My Previous Job Interviews

I can vividly recall the rush of emotions that I felt upon receiving a pleasant message from an esteemed insurance company. At the crack of dawn, the HR department of the international company emailed me to meet up for an interview. I immediately agreed to a job interview at Raffles Place.

This was not my first rodeo, but I was overly excited. I had been dreaming about becoming a party of this company for the longest time. Unbeknownst to me, being overeager was a part of my downfall. You will come to that conclusion later on.

On the day of my interview, I solely entered a spacious room. The recruiter came in and handed me with two Psychological tests. With my background in Psychology and human behavior, you may think that these tests are easy to accomplish. I knew how to answer in a manner that is both genuine and acceptable. However, I was too excited that my mind blacked out she stated the instructions. The tangible gravity of the reality overwhelmed my spirit! She had to repeat the instructions again because I committed several errors. The situation was embarrassing! I compensated by extending our chatter. The excessive conversations made me seem desperate. Needless to say, I did not land the coveted job.

Although the recruiter did not mention the reasons why I got rejected, most of our application rejections are due to basic issues. This is why you must avoid these certain mistakes: being overeager, including documentation errors, and not caring about personal appearance.

The scenario that I shared above is a prime example of the negative consequences that can spring from being too eager and excited. Much like speed dating, a candidate that seems too desperate is a major turnoff. Constantly calling or emailing for updates is a waste of the recruiter’s time. Remain calm and wait patiently for a call back.

Secondly, most people commit typographical errors in printed and written documents. Even professionals cannot escape this wrongful pit!

While I was scanning through my old emails, I noticed that I misspelled a couple of simple words (e.g., “the” became “teh”) in an old application. This happened long before I started to make a living out of writing articles. However, its value holds true until today. The materials that you submitted signify an impression. This is why you must give a substantial amount of time to proofread or revise everything. For handwritten forms, do not forget to do the “i’s” and cross the “t’s”. Pay attention to details!

Lastly, you must dress to impress. Let us face it! We live in a relatively superficial world where physical appearance plays a huge part in our interactions. A recent study even highlighted that tall people get paid more. Look professional during an interview by dressing appropriately. Show that you respect the position that you are vying for by properly grooming yourself. Add a tad of moderate make-up if needed.

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We all learn from our personal experiences and job interviews are no different!

Sources: 1 & 2

Alibaba’s Sales Soared High Months After Singapore Bought A Billion In Stocks

My uncle is a proud owner of several holistic spas. Whether his branches are in need of a new machine (e.g., IPL or Laser Hair Removal Machine), he visits Alibaba first. Alibaba is a global marketplace that is relatively prompt and reliable. It is reigns supreme in the world of Chinese e-commerce. Its broad prevalence in Asia is comparable to United States’ Amazon or eBay.

It comes as no surprise that its sales soared up to 55% in the last quarter due to cloud computing. As Chief Executive Daniel Zhang once said: “Our results reflect our increasing ability to monetise our 450 million mobile users through new and innovative social
commerce experiences.” You can expect that this number of users will grow positively each year.

Image Credits: Global Panorama via Flickr Creative Commons (Attribution-ShareAlike 2.0 Generic)

You see, cloud computing is the practice of utilizing a network of remote servers hosted on the Internet instead of using a local server. It manages, stores, and processes data in that manner. Basically, cloud computing allows the users to store and access data online without needing a computer’s hard drive. It allows Alibaba to operate conveniently and swiftly.

What is interesting is the fact that the Government of Singapore purchased a total of US$1 billion (about S$1.38 billion) last June. GIC Private and Temasek Holdings each signed to US$500 million (S$692.15 million) of Alibaba shares, which were priced at US$74 (S$102.44) a piece thru subsidiaries. These shares were a part of the US$8.9 billion (S$12.32 billion) sale by Japan’s SoftBank. SoftBank remains to be Alibaba’s biggest shareholder. The elevated sales of Alibaba showed that the decision to acquire the shares was beneficial – at least for now.

You may think that Alibaba’s local competitors called RedMart and Lazada were shaken by these news, but you are wrong! Alibaba had recently invested in these two companies due to their financial constraints.

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We can only hope that these circumstances will improve Singapore’s e-commerce platform in the future.

Sources: 1, 2, & 3

Avoid The Four Lethal Sins Of Sales Talk

Whether you consider me as blessed or not, I was born to a health-conscious family. Our parents encouraged us to exercise regularly and drink nutritional supplements to nourish our bodies. Yesterday, I was at a well-established fitness chain with several international branches. The facilities were exceptional. The machines were adequate. And, the classes were engaging. It suits my cup of tea!

I was sitting quietly at a corner to relax. Minutes later, a trainer sat next to me and began to flash a smile. He started talking to me. At first I thought that it was a flirtatious conversation, but it dawned on me that he was trying to sell himself. He said that he trains the most number of students in the facility. He said that his winning asset was not a certificate, but his winning personality. He implied that the appeal that he oozes was due to being a foreigner in an Asian land. His ego was inflated and he kept wheeling the conversation back to himself. He was overselling! I was not a fan of this approach. I shrug him off and continued with my Yoga class.

Like him, there are several salesperson who commit costly mistakes. Know each one of these “sins” by reading thru:

#1: BEING TOO PUSHY

Do not reek of desperation! Pitching a product or a service non-stop can send a signal that you are being too pushy or too obnoxious. Cultivate a safe room for the customer to make an intelligent decision. It is important to know when you must stop the sales talk.

#2: EXCESSIVE CHATTER

Too often than not, salespeople chatter about the goodness of their products or services. This practice can be annoying! In my example above, the trainer kept about himself. Instead of copying his steps, it is better to ask your customer some questions. Pause and listen to what they he or she has to say. Listening will help you to identify what the customer wants and needs. Your job is to fill these requirements!

#3: USING TECHNICAL TERMS

It is hard to listen to a salesperson when you do not know what he or she is blabbing about. Talking mainly in technical terms or business jargon can lead your customers to a “land of confusion”. Break this barrier by using a language that the customer understands.

It is wrong to say that the “company fulfills a robust implementation of 80,000 protocols”. It is friendlier to say that the “company can virtually connect anywhere”.

#4: SKIPPING RAPPORT

You need to establish a smooth relationship in any type of business. Just take a look at the websites of famous brands. They have landing pages to provide information about the products or services that they offer. These pages come first before the shopping cart. Apply the essence of the landing pages by not rushing into the sale. Take your time to educate your customers and they will reward you with coveted sales.

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Do your research to know who makes up your target audience!

Sources: 1 & 2

Savvy Couples’ Guide To Saving Money While Dining Out

Preparation Before Eating Out

First things first! Make it a habit to check the restaurant’s menu and price range before booking a reservation for two. Websites such as sg.openrice.com, yelp.com.sg, or hungrygowhere.com can help you to locate a restaurant, identify its menu, and give an estimate of the average spending. This will help you make tastier, healthier, and cheaper decisions.

You can employ a money-saving technique beyond your credible search. Simply have a light snack at home before you enjoy your exquisite main course. Or, you may do the opposite by eating the main course at your home and dining at the restaurant for luxurious desserts.

Relish The Moment Of Consumption

Relationships are all about giving and taking. Spread the spirit of reciprocity by sharing your meal to each other. Restaurants usually serve a portion that is bigger than expected. Instead of ordering for two, you may order one starter and one main course meal. Doing so will reduce the expenses.

To get most of their money, some couples indulge on all-you-can eat buffets. If you are not a fan of buffets, you may purchase less by savoring the taste of your food. Eating slowly will help you realize that you are actually satiated!

Consequences Of The Next Day

The romantic date night ended in a great note. You remembered to pack your leftovers from the restaurant. Fortunately, you do not have to cook breakfast because you can reheat the leftovers. You may also revamp the dishes by following the directions on this post.

Regularly dining out can put a strain on your budget. It is perfectly acceptable to spend on something you love, but you have to set boundaries and stick to them. Curate a “Date Fund” or a “Spending Plan” and adjust your budget accordingly. You will have to make significant sacrifices in order to follow your financial goals.

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Are you willing to enjoy three consecutive date nights and eat instant Ramen noodles for the rest of the week? Are you willing to restrict your food budget to S$100 per week?

That is the kind of discipline that you (as a couple) will have to maintain.

Sources: 1,2,& 3

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