Anna Agoncillo, Author at MoneyDigest.sg

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.

Incredibly Free Things That You Can Get At Hotels

Whether you are a frugal Fred who wants to get your money’s worth or a forgetful Bessy who left some of your travel necessities at home, here are some hotel freebies that are both money-saving and useful:

1. BATH ESSENTIALS

Let us start with the obvious freebies that guests typically take home – the bath essentials. Although you packed a sufficient supply of bath essentials, it does not hurt to pack a little more for future use. Keeping the shampoo and conditioner bottles as well as the soaps can save you a decent amount of cash.

If you have sensitive skin and experience adverse effects with the hotel soap, use it for other purposes. Keep the bar of soap and use it as a freshener for your drawers or shoes at home. Or, you may use it to clean your cosmetic sponges.

2. NEWSPAPERS AND MAGAZINES

The array of newspapers and magazines left at your room are not only free but also helpful. Firstly, you can use the valuable coupons inside to pay less in shopping for groceries, tickets, and more. Secondly, you can use these publications in the event that your child needs to cut pictures for his or her school projects. Lastly, you can use these publications as decorations to your dull office.

3. CURLING AND STRAIGHTENING IRONS

To all my fellow beautiful women out there who want to look their best but forgot to bring their trusty curling or straightening irons to the hotel, worry not! Many major hotels (i.e., large hotel chains such as Hyatt) offer loans for these hair styling items. Simply approach the front desk and ask politely for what you need.

4. SEWING KIT

Tailoring or sewing services in Singapore can range from S$5-40 depending on the type of clothing article. Some of the prices are too much if you asked me! You might as well buy a new one. Good thing there is a better and quicker option – altering clothes by yourself. But, how can you alter your clothing while on vacation?

Say you broke the straps of your backpack. Having a sewing kit can solve this problem right away. Thankfully, your Trump Hotel room has complementary sewing kits. Like Trump Hotel, many major hotels have free sewing kits on-hand. Remember to bring those kits before you checkout!

5. DENTAL CARE

The worst thing that I can forget while on a vacation is my own toothbrush. Unlike the couples who are comfortable with sharing one toothbrush, I will never use someone else’s! This is why I am very grateful that hotels provide basic dental care products such as toothbrush, toothpaste, mouthwash, and floss.

Image Credits: pixabay.com

Minty fresh breath does not always come in cheap packages! In fact, a bottle of mouthwash can cost you about S$4-14. Hence, I suggest that you pack that free mouthwash with you.
Sources: 1 & 2

Factors Affecting The Currency Exchange Rate Of Singapore

The Currency Exchange Rate is one of the most important means to quantify the country’s level of economic stability and economic health. It refers to the “rate at which one country’s currency may be converted into another”.

The market where these currencies are regularly traded is called Forex. The Forex market, the most liquid market in the world, includes all of the global currencies. There is no central marketplace for trading these currencies; however, there are financial centers in Singapore, New York, Tokyo, Zurich, London, Sydney, and Paris.

Exchange rates fluctuate regularly with diverse market factors affecting it such as inflation and government debt. If you are planning to send or receive funds from overseas, you need to be in constant lookout of the changes in the foreign exchange rates.

INFLATION RATE

A country’s inflation rate causes a change in the value of its currency. For example, if Singapore experiences high inflation, you will observe a depreciation in the Singapore Dollars (SGD). This high inflation is typically related to the higher interests rates. In contrast, if Singapore experiences low inflation, you will observe an appreciation in SGD. And the prices of the goods and services will increase at a slower rate.

The average inflation rate in Singapore from 1962 to 2016 is 2.69% – reaching its all time low of -3.10% in 1976.

This observable negative inflation or deflation is not good. It happens when the prices of the commodities fall because the supply is greater than the demand. It can ripple the economy and later lead to high unemployment, recession, and depression.

GOVERNMENT BUDGET

A government’s budget surplus or deficit have an impact to the currency exchange rate. For instance, when our government’s budget surplus is expanding, the exchange rate of SGD will grow competitive.

The financial regulatory authority and central bank of Singapore is called The Monetary Authority of Singapore (MAS). An important institution that supports the effectiveness of the interventions given by MAS is the Central Provident Fund.

INTEREST RATE

The interest rates set by the central banks influence the customers and investors. First, it affects the borrowing behavior of customers. If the economy is overheated, central banks may increase its interest rates to make borrowing more expensive and discourage people.

Second, it affects the balance between the investor’s safety of funds and the yield returns. For example, the yields for assets in SGD increases as interest rate goes up. This leads to an increased demand by investors and eventually lead to the appreciation of Singapore’s currency.

GOVERNMENT DEBT

The government debt (public debt or national debt) is the balance owed by the government. Countries with immense amounts of government debt are less likely to receive foreign investors and foreign capital. As an effect, decrease in the value of their currency exchange rate will follow.

The is 105.6% as of 2015. This signifies the country’s ability to pay back its debt.

Image Credits: pixabay.com

Sources: 1, 2, 3

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