5 Things to Consider Before Getting a Personal Loan

Personal loan is one of the most sought-after loans in Singapore. With a personal loan, you can borrow funds from a financial institution and pay them back in fixed instalments over an agreed period. However, you typically need to meet a minimum income requirement and to pass a background check on your credit history.

Generally, it is much cheaper to get a personal loan rather than borrowing money from a moneylender. Moreover, you will need to submit a lesser number of documents compared to other types of loans such as car or home loans. These factors contribute to the popularity of personal loans.

Apart from these, consider the following points before getting a personal loan.

#1: PERSONAL LOAN HAS A MINIMUM INCOME REQUIREMENT

The eligibility for personal loan incorporates your income and your age. You need to pass the minimum income requirement (e.g., S$30,000 per annum) and the age requirement (i.e., usually under 60 years old). These strict requirements ensure that you will be capable of paying off the loans and that you will be paying on time.

#2: PERSONAL LOAN IS NOT FOR EVERYONE

Now that you know the basics of personal loans, you must remember that it is not for everyone. You need to contemplate the purpose of the loan before getting one. Compute for the monthly fees and other charges.

You see, it is better to use your extra funds if you intend to use the loan for lifestyle desires. Lifestyle desires include purchasing a new gadget or booking an international cruise. On the other hand, you need to carefully assess your business plan and financial situation if you intend to use the money for business and investment.

#3: PERSONAL LOANS CAN MAKE OR BREAK YOUR CREDIT STANDING

Examine your credit standing as it affects your personal loan application. Paying your dues on time is one way to keep your credit score on the good side. In contrast, accumulated monthly charges and overdue payments add red flags to your credit score. As a new applicant, carefully consider the terms and conditions of the bank.

#4: PERSONAL LOANS COME WITH SERVICE FEES AND OTHER CHARGES

Do not be fooled by the attractive loan prices flashed by the banks and financial institutions. You can end up paying more money due to service fees and other charges. You will pay the monthly fees along with the effective interest rates. If you plan to pay by cheques, returned checks can also be charged. Thus, new applicants must consider other forms of payment such as mobile banking.

#5: PERSONAL LOANS SHOULD BE YOUR LAST RESORT

Building an emergency fund is a part of the fundamentals of being financially savvy. When an unfortunate event takes a toll on your finances, you still have reserves. If your emergency funds have depleted, personal loans should be your last resort.

Avoid spending your personal loan to impress other people with your new gadget or with a grand getaway. Spend your extra funds on your lifestyle desires instead of borrowing money.

Personal loans have a variety of advantages and disadvantages. We hope that you can manage your finances well if you decide to avail yourself of a personal loan in the future.

Sources: 1 & 2

 

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6 Tips to Attract Luck during Ghost Month

What is Ghost Month?

Ghost Month is the seventh month of the Chinese Lunar Calendar. Because the Lunar New Year falls on a different day each year, the start of Ghost Month also varies. For 2022, Ghost Month started last July 29 and will end on August 26.

The Ghost Month, according to Chinese tradition, is the period when souls are given a “one-month pass” to roam among the living. This festival also pays respect to the homeless spirits, or those without families. China, Singapore, Taiwan, Malaysia, India, Thailand, Vietnam, Japan, and Cambodia are just some of the countries that observe Ghost Month.

Many people take precautions during Ghost Month to avoid running out of luck. After all, there is no harm in being extra careful. On that note, here are 6 Tips to Attract Luck during Ghost Month.

#1: POSTPONE YOUR MAJOR PURCHASES

Ghost Month typically brings uncertainty. Use this time to plan your purchases, especially on major items that you do not urgently need. If you are thinking of purchasing a new camera or gadget, postpone your purchase to the following month when you are more certain about your funds. Plan your budget and allocation ahead of time.

#2: STAY AWAY FROM UNNECESSARY DEBT

Apart from impulsively spending significant amounts of money, borrowing money during Ghost Month may not be the best idea. If you are planning to use the money on unnecessary purposes, you have to slow down. Prioritize your needs and pause any huge spending until things start picking up.

#3: EVALUATE YOUR BUSINESS PLAN

Starting a business during Ghost Month is often ill-advised as many investors take a break during this time, which can influence the economy. Use this period as an opportunity to recalibrate your business plan. Ensure that you have everything ready before you finally launch your business.

#4: DO BURN PAPER MONEY, INCENSE, AND CANDLES

The candles and incense will help light the spirits’ way. While paper money will give them wealth in the afterlife. If you have budget to spare, you can treat them to other creature comforts like paper car.

#5: LIGHT UP YOUR HOME

It is said that spirits tend to lie in wait in dark and rarely used corners of a home. Bring positive energy to the space by adding lights. Put lights in hallways and corners. If the space does not have a lighting fixture installed, here is your chance to put a decorative floor or desk lamp. You can opt for energy-efficient LED bulbs. Apart from being earth-friendly, this option is also economical.

#6: WEAR BRIGHT COLORS

Hungry Ghosts are attracted to muted or dark colors such as black, gray, and dark blue. Bright colors may keep them at bay. Pick cheerful colors for your sheets, curtains, pillowcases, and more. Shades of yellow, orange, pink, green, red, and pastel encourage positive energy and uplift the mood.

Image Credits: pixabay.com

Sources: 1, 2, & 3

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6 Money-Saving Tips for Singaporean Teens

 

Let us face it! Saving money as a teenager is challenging, especially when you have friends who are constantly buying new clothes or are going on yearly overseas trips. However, it is possible. Here are 6 tips on how teens can save money despite the temptations and less income.

#1: OPEN A SAVINGS ACCOUNT

Opening a savings account with the help of your parents or guardians is a good idea as it will train you to manage your money. It is a surefire way to boost your educational savings and to cover your other expenses. There are multiple junior accounts available in Singapore such as the CIMB Junior Saver Account, OCBC Mighty Savers Kids Account, and UOB Junior Savers Account. These banks offer about 0.05% to 1% interest p.a. and minimal initial deposits.

#2: SEPARATE YOUR NEEDS FROM WANTS

Organize your finances by separating the money for spending and the money for savings. Although you have stashed the money away in your savings account, it might be tempting to touch it when your cash runs out. Stop! Refrain from doing this.

Your savings are for emergencies and essentials, not for straightforward purchases like food and clothes. The smart thing to do is to have a direct deposit account which you can access on demand.

#3: CREATE A REALISTIC BUDGET

Keep track of where your money is going by creating a budget. You can either write everything down or have software that stores all the data. Be diligent when it comes to encoding what you spend in a week or in a month. Most of us tend to spend more cash on the weekends, so you can start encoding during this time.

Once you have an idea of where your money is going, you can set limits and targets next.

#4: TAKE ADVANTAGE OF THE STUDENT DISCOUNTS

Your student ID is more than just a card that enables you to go to school. It is your means of getting discounts such as cheaper public transport or cheaper books. Many businesses and services offer student discounts throughout the year. Do your research to get more information.

#5: ASK YOUR PARENTS FOR HELP

There is no shame in asking your parents for help while you are starting to build your wealth. You can ask your parents to match your monthly savings by contributing to your account. If you put aside S$25 a week for a month, you can ask your parents to contribute S$100 at the month’s end. Do household chores in return for this favor.

Do not be afraid to ask! Once you have shown your parents that you are serious about saving money, they will reach out and offer their support.

#6: CONSIDER GETTING A PART-TIME JOB

For many young Singaporeans, having a part-time job is a rite of passage. Students can be able to find part-time jobs in the administration, hospitality, or retail fields. Investigate to see who is hiring in the area.

If these are outside of your interests, you can use your passion to create your own online shop. Use your extra income to grow your savings even more.

Sources: 1 & 2

 

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Hidden Costs of Using Credit Cards in Singapore

You may not be able to pay for items in full cash, but you can certainly swipe your card! Credit cards offer convenience to afford larger purchases anytime. It can also help you establish a good credit history.

However, it is important to understand the actual cost of credit cards when fees and interest are factored in. The actual cost of using a credit card can add up!

#1: THE COST OF PAYING MINIMUM DUE ONLY

There are consequences to only paying the minimum fee. Firstly, it will take longer to eliminate your balance. Secondly, your interest continues to accrue steadily in what you owe. Your minimum payment may not be enough to cover the interest charges for the month.

#2: THE LATE PAYMENT FEES

If the payment is passing your due date, the late payment charges vary by bank. This charge is usually between S$60 to S$80. A late payment may cause you to forfeit some of your credit card rewards or cause your interest rate to spike significantly higher than your regular purchase.

#3: THE COST OF CASH ADVANCE

Did you know that you can use your credit card to withdraw cash through a cash advance? Cash advance on credit cards can be awfully expensive, with interest rates going as high as 30%. You can be charged about 6% of the amount withdrawn per transaction or a minimum of S$15.

Apart from that, you will also receive an interest rate charge of around 28% per annum, subject to compounding if the charges are not repaid in full on the amount withdrawn.

#4: THE COST OF OVERSEAS TRANSACTIONS

These days, more and more people are shopping online using their credit cards. When shopping from an overseas website, it is important to know that there are fees. Two types of fees that can be charged are foreign transaction fee and dynamic currency conversion fee.

#5: THE ANNUAL COSTS

While some annual fees can be waived, others cannot. The next time you receive your credit card statement with the annual fees charged, try calling your bank to ask for a waiver. Doing this may save you more than a hundred dollars!

Image Credits: pixabay.com

Sources: 1 & 2

 

 

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Jackson Wang & TEAM WANG Arrive in Singapore

K-Pop sensation Jackson Wang has arrived in Singapore to an enthusiastic crowd of screaming fans. The star arrived in Changi Airport last August 2. He waved, gave out high-fives, and accepted a letter from a fan as he walked out of the Changi Airport Terminal 3 arrival gate.

Wang is a Hong Kong-born singer/songwriter, rapper, and record producer who gained global recognition after debuting with the South Korean boy band Got7 by JYP Entertainment. He is here in the Lion City until August 10 to help promote the SingapoReimagine campaign by the Singapore Tourism Board (STB).

To top off the celebration, he will host a party in Marquee nightclub at Marina Bay Sands with his record label Team Wang on August 6. This sold-out event is entitled Team Wang Records (Human Remix), which will feature pop and hip hop music.

Other acts that will delight its guests include Marquee’s DJ Fvder, beatboxer Dharni as well as other artists such as Laurie, Xenzu, and Boytoy. This will be the first event hosted by an international artist at Marquee since its opening in 2019.

Image Credits: instagram.com/marqueesingapore/

If you miss out on this event, do not fret! You can catch him in a series of lifestyle vlogs featuring wellness, food, music, as well as arts and culture spots in Singapore. Furthermore, he will open a concept space for his streetwear label – Team Wang Design.

The concept store is open in voco Orchard hotel. The voco Orchard Singapore is under the IHG Hotel umbrella and is located at 581 Orchard Road.

TEAM WANG DESIGN

Whether you admire Jackson Wang or not, you can still get a piece of his art through his TEAM WANG Design “MUDANCE” Concept Space. Located at the new upscale hotel voco Orchard Singapore, this free-entry concept space is a treat to the eyes. The theme here is tropical paradise where decorations are decked in floral prints, pink decor, and luscious plants.

This concept space is filled with Team Wang’s newest summer collection. Expect a selection of beachwear in floral prints and clothing pieces in the hues of pink and white.

Running until August 31, this concept space has items for both men and women. You will see some floral shirts, pink tops, jackets, and more. Couples who love to wear matching outfits can surely achieve a flawless #OOTD!

If you are curious to know which pieces are Wang’s favorites, you better take this down. Jackson has revealed that the floral print bikini and pink gradient tank top are his favorites.

Sources: 1 & 2

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