Anna Agoncillo, Author at MoneyDigest.sg

Newbie’s Guide To The Dynamics Of Debt And Credit

DEFINITION

Before anything else, we must define two terms: debt and credit. Debt is the amount borrowed by one party (e.g., corporations or individuals) from another (e.g., banks). While Credit is the lawful agreement in which a borrower receives something of value today and agrees to repay later on in the future, usually with interest. Simply, when you use your credit card, you create debt. Debt here is the result from your ability to borrow – from your credit.

Now that you know the definitions and the differences between these two terms, you must discover the pros and cons of using credit as well as the 3 C’s of worthiness. All these are according to the Credit Bureau Singapore. Credit Bureau Singapore was set up in lined with the Monetary Authority of Singapore’s vision to enhance the public’s risk management abilities.

Image Credits: pixabay.com (License: CC0 Public Domain)

PROS AND CONS OF USING CREDIT

The pros and cons of using credit or credit card are plain and straightforward.

Pros

Being able to buy what you need right away

Not having to carry cash

Automatic record of purchases

More convenient than cheques

Cons

Interest especially for items of higher cost

Have additional fees

Financial difficulties may arise

Elevation in impulse purchases may occur

Image Credits: pixabay.com (License: CC0 Public Domain)

3 C’S OF WORTHINESS

Before swimming in a pile of credit, know if you are worthy to take the plunge by asking yourself a set of questions.

1. Character (Are you the type of person who will repay his or her debt?)

Does your credit history show that you are honest and reliable in paying debts?

Do you pay bills on time? Do you have a good credit score/report?

Can you provide a couple of character references?

How long have you been at your present occupation?

How long have you lived at your present home?

2. Capacity (Are you able to repay the debt?)

Is your job income enough to support your credit usage?

Is your job stable and steady?

How much is your salary?

How many loan payments do you have in total?

What are your current debts?

How many people are dependent on you?

3. Capital (Do you have back-up if you cannot repay the debt?)

Do you have a savings account?

Do you have various investments to use as a collateral?

Can you enumerate the properties that you own to help secure loans?

What other valuable assets do you have that could be used to repay debts?

It is essential to know all these to assess whether you are truly fit to apply for a credit card or loan. Furthermore, you may use the information to guide you in your responsibilities as a borrower.

Sources: 1 , 2 & 3

6 Best Places To Eat Delicious Local Dishes

Singaporeans really love to eat. It is one of the forces that hold our country of different races together. A chicken rice, chili crab, nasi lemak, and roti prata can share the same table with problem at all! So, for the newcomers and locals who want to experience good food at a budget, here are the best places to visit:

1. HAINANESE CHICKEN RICE

One of my all time favorite local dishes is the chicken rice! It is so popular in the island that almost all the restaurants, hawker centers, and Singapore Airlines aircrafts serve this dish. When it comes to chicken rice, people expect the chicken to be as good as the rice. Both should be flavorful, tender, and smooth. Suggested places are as follows:

a. Tian Tian Hainanese Chicken Rice

Known for its fragrant and delicious chicken rice, Tian Tian has been voted as the best chicken rice hawker stall in Singapore. A bowl of chicken broth and a plate of chicken rice cost about S$3.50. This is a great price for quality taste!

Location: 1 Kadayanallur Street, #01-10/11 Maxwell Food Centre, Singapore 069184

b. Wee Nam Kee Hainanese Chicken Rice

Wee Nam Kee has been named as the Top Hawker at AsiaOne People’s Choice Award in 2010. Its chicken rice is unique because of its dipping sauce. A plate of chicken rice is about S$4.80 while a half chicken is S$16.

Location: 101 Thomson Road, #01-08 United Square, Singapore 307591

2. CHILI CRAB

In 2011, CNNgo dubbed Chili Crab as one of the world’s most delicious food. Such a prestigious list, if you ask me. Chili Crab is one of the famed seafood delicacies for any travelers. Suggested places are as follows:

a. No Signboard Seafood Restaurant

No Signboard Seafood Restaurant is the home for unique white pepper crab. The peppery taste is strong but does not overpower the sweetness of the crab. And, the spiciness is paced at your own taste. The average price per person is S$40.

Location: 414 Geylang, Singapore 389392

b. Mellben Seafood

Mellben Seafood’s menu features a wide array of crab dishes such as chilli crab, claypot crab vermicelli soup, black pepper crab, butter crab, and shimmering sand crab. The average price per person is S$35.

Location: #01-1222, 232 Ang Mo Kio Avenue 3, Singapore 560232

Image Credits: pixabay.com (License: CC0 Public Domain)

3. SATAY

Also in CNNgo’s 50 of the world’s most delicious food is the satay. Satay is a dish with meat, cucumbers, and onions served with a thick peanut sauce on the side. Suggested places are as follows:

a. Chomp Chomp Satay

Chomp Chomp Satay’s satay is juicy and generously marinated. Besides that, they offer local street food dishes like fried oyster, carrot cake, and Hokkien mee. The price of satay is about S$0.50 per stick.

Location: 20 Kensington Park Road, Singapore 557269

b. Chuan Kee Satay

Since its inception in the 1970s, Chuan Kee Satay has been serving its traditional Hainanese satay. Its pork satay is complete with flavorful spices, tasty peanut sauce, and pineapple gravy. The price of satay is S$0.40-0.50 per stick but the minimum order is 10 sticks.

Location: Block 51 Old Airport Road, Singapore 390051

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

5 Questions Educated Consumers Ask Before Purchase

Dreaming of a movie theatre-like experience at home? Few people turned that dream into reality by purchasing 3D television that includes 3D glasses, lifelike images, vivid colors, and 3D effects. But majority of these owners (i.e., almost 80%) in United Kingdom, regret their purchase. The leading complaint is that there is not enough 3D content to make ownership of the device worthwhile.

Image Credits: pixabay.com (License: CC0 Public Domain)

To avoid making regrettable purchases like the example above, you must use the available resources to educate yourself on the consumer data and product information before buying something. The power of communication will help you make quicker and smarter consumer decisions. Ask yourself these questions before purchasing something:

1. DOES THIS PRODUCT COME WITH WARRANTY?

In case an unforeseen event happens and your item does not function anymore, do you have to fork your own savings for repair or return it to the manufacturer under the warranty terms? We all know that the latter is better especially if your purchase is a costly one (e.g., a washing machine or an Apple laptop). Invest in products with warranty and confidence in its manufacturer’s shoulders.

2. DO I HAVE ONE OF THIS?

Some people forget where they place a certain item and would go to the store just to purchase one – again. If this happens to you often, it is about time that you organize your space. Toss or donate the stuff you do not need anymore then, discover useful items that you already own.

3. CAN I JUST BORROW THE SAME ITEM FROM SOMEONE ELSE?

Say you live in a small flat with 1 bedroom and you needed to vacuum. If the product is as common as a vacuum cleaner then, opt for borrowing the vacuum cleaner of your neighbor or friend. Why bother if the item is not really necessary to your home anyway? Furthermore, you can assess whether buying a secondhand version of the product is a brilliant idea.

4. DO I HAVE TO USE THE MONEY I DO NOT HAVE FOR THIS ITEM?

Using the credit card for your purchases should be your last resort. No matter how great a deal may seem, it may still add up to your credit card interest. So, ask yourself if the item is really worth it.

5. CAN THE PRODUCT’S USEFULNESS LAST FOR 6 MONTHS OR MORE?

Be realistic while envisioning yourself and the product. If you are still using it for six months and more then…it is a good purchase. You do not want to waste too much money on something that you would use for a day (e.g., Halloween costume)!

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

7 Budget-Friendly Ways To Organize Your Kitchen

Imagine a disorganized kitchen with tools clustered and mess everywhere. You might be motivated to cook more if it was not so disorganized. Okay, perhaps not. But, you wouldn’t it be nicer to have a clean and organized kitchen space? Upon realizing this, keep in mind that although this is time-consuming…it is all worth it!

1. MAKE AN INVENTORY

To get organize, start by determining what you have and arranging these items based on their functionality. Create an inventory wherein the items on top are the ones you use often and the ones you need the most.

2. EVALUATE THE ITEMS

After making an inventory with specific ranking, look at the items on the lower end and evaluate whether you are going to toss or donate them. Toss items that are helplessly broken or cannot be repaired. Then, donate the items that you underused or have too much of (e.g., three pots of the same size and color).

3. BRING OUT THE ESSENTIALS

Increase accessibility by placing the essential items and products such as knives, cutting board, and oil, near the stove and sink. It does not make sense to put these overly used items inside the drawer.

4. MAKE IT REACHABLE

I generally hear homemakers say: “You must put the kitchen items within reach. If you do not see them, you would not use them.” It is totally sensible. Avoid losing money to rotten potatoes or other expired products by making these items reachable. For instance, you my keep the potatoes in a basket near the cutting board.

Image Credits: pixabay.com (License: CC0 Public Domain)

5. GROUP ITEMS BY TYPE

Keep the kitchenware of the same kind together. All the pans should be in the same cabinet or drawer as well as all the baking sheets. Arrange items from smallest to biggest and cluster their “group mates” close by. This way, it will be easier to locate items without messing with the kitchen.

6. USE THE WALLS WELL

Create space by making use of the kitchen walls. Hang up shelves or pegs to keep your utensils, dish towels, spices jars, small bowls, and pot holders on plain sight. You may purchase IKEA’s GRUNDTAL shelves that range from $15.90 to $19.90.

7. CHECK YOUR KITCHEN REGULARLY

After you arranged everything to your liking, value your efforts by regularly going through your drawers, shelves, cabinets, and cupboards once every 2-3 months. Make sure everything is on its right place. This shall only take up a few minutes of your time.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Prevent High Turnover Rate By Knowing 4 Common Reasons Why Singaporean Employees Quit

I do not have to throw statistics to claim that some Singaporean companies are experiencing trouble in retaining their employees. Losing money to hire a new talent over and over again seems to be inevitable because of the perceived dissatisfaction in the workplace. Last year, the aspects of work of 5,000 Singaporean employees were studied by Singapore Human Resources Institute. They found that on average, the employees were considered “Under Happy” at work.

Prevent the high turnover rate by instilling alterations in the working conditions. Often times, employees are just hungry for change. Start with these 4 issues that you can juggle on:

1. HORRIBLE BOSS

The competitive cost of living in the country affected the demand for faster output. In return, this can create a toxic workplace wherein employees suffer from burnout or depression. Adding a horrible boss into the mix will only worsen the situation.

Image Credits: Vocab Ninja via Flickr

In 2012, JobsCentral conducted a survey including the responses of 3,299 employees and 256 hiring managers. A whopping 31% of the respondents said that they do not have satisfying boss-worker relationship. This is because of the following reasons: lack of advancement opportunities (87.5%), lack of autonomy (80.6%), and work demands (71.1%). So, if you want your priced employee to stay, warn the boss against these poor practices.

2. LOW OPPORTUNITIES FOR CAREER GROWTH

Career growth does not only help the employee personally but also financially. An employee maybe happy at his or her current position but in need of bonuses to cover the rising costs. A limit in growth can decrease the motivation and purpose of the employee to strive for more. For some the limit is unacknowledged and it is famously called as the “glass ceiling”. Therefore, companies shall create tangible career paths.

3. LOW SALARY

I cannot deny the fact that salary is a common factor for an employee to draft his or her resignation. In fact, 61% of Singaporean employees felt that were underpaid and overworked compared to the existing market rates. CPF deductions and domestic expenses will be deducted to the baseline salary afterwards. This leaves no room for retirement funds or any type of savings.

Solution! Companies: make room for increments no matter how small it may seem. Individuals: do not hesitate to ask for a raise.

4. OFF-BALANCE BETWEEN WORK AND LEISURE

When we work as hard as we do, we only deserve to play hard too! According to a survey, 57% of Singaporeans said they would rather have a work-life balance over higher pay. Take notes from the CEO of I-Search Worldwide – Mr. Richard Hoon who sets aside the Friday evenings for the staff to gather and chat with complementary food and beverage. It is his way to help the employees ease into the relaxing weekends ahead.

Image Credits: pixabay.com (License: CC0 Public Domain)

Search the site