Anna Agoncillo, Author at MoneyDigest.sg

When is it a Good Idea to Take a Personal Loan in Singapore?

Are you caught in a sudden financial situation? To alleviate the severity of your problem, you can consider taking a personal loan.

Personal loan allows you to borrow money to pay for personal expenses, which you must repay over time. Things can quickly turn into a nightmare when you do not have the capacity to pay it back. This leads us to these questions: Is a personal loan nonideal? When is bad and when is it helpful?

How It Works

A personal loan is an installment loan that gives a fixed amount of money to the borrower. Its most appealing feature is its ability to provide funds for any purpose. You are not limited by one purpose alone.

When it comes to repayment, you can expect that the interest rate will be fixed. This repayment plan ensures that you get a relatively lower or more affordable interest rate compared to the interest rates offered by credit cards.

When Is It Harmful?

A personal loan can turn into a borrower’s nightmare when the funds are used for the wrong reasons. It is important to think about the consequences of borrowing instead of only focusing on addressing the unpleasant financial situation.

For instance, basic needs are supposed to be covered by your monthly income. You should not use a personal loan to cover your basic needs because these are recurring expenses. Imagine what will happen if you use your personal loan to finance your weekly grocery trips!

When Is It Helpful?

1. When you borrow money for a meaningful purpose such as medical emergencies or major occasions

Despite being a joyous occasion, weddings are expensive. From your wedding dress to your venue, an average wedding in Singapore can cost about S$30,000. With a personal loan, you will get to ease your cashflow by spreading out the payment at a friendlier pace.

2. When you have a strategic plan to pay the loan back

As a borrower, it is your responsibility to plan how you can pay back the amount. If you already know how you are going to spend the money, you should also know how you will be able to repay it. Moreover, it is important to only borrow what you need!

3. When you have the discipline to pay your loan/s on time

Commit to repaying your loan on time. Most personal loans become a burden for the borrowers when they fail to pay their due dates on time. Negligence can lead to penalties, making your personal loan seem unbearable.

4. When you want to consolidate your debts

Do you have multiple loans at high interest rates? If so, it is a practical idea to consolidate these outstanding balances into a personal loan with a lower interest rate. Doing this will enable you to choose your repayment terms and ensure that you can afford the monthly installments.

5. When you want to take the less complicated borrower’s route

Personal loans are less complicated to avail compared to other loans. In fact, many banks and financial institutions in Singapore allow you to apply for it online.

6. When you want to boost your credit score

You can get a small personal loan to improve your poor credit score. Just make it a habit to pay the installments on time and commit to your repayment plan! This works because your payment records will show lenders how trustworthy and reliable you are.

CONCLUSION

Personal loan allows you to borrow money to pay for personal expenses, which you must repay over time. It can either be harmful or helpful, depending on how you use it.

On one hand, personal loans can be used as tools for the right circumstances such as paying for your wedding day. On the other hand, personal loans can be harmful when you do not have a strategic repayment plan or when you use it for the wrong reasons. Weigh your options before committing to a personal loan.

Sources: 1, 2, & 3

4 Telltale Signs that You Don’t Make Enough Cash

It can be immensely frustrating to feel stuck in a financial rut with no means out. You may think that you earn decent money, but still struggle each month. Whether you are overspending or not making enough money, these problems can lead to big trouble!

Consider these financial issues and how to solve them.

#1: CONSTANT FINANCIAL WORRIES

There is a difference between worrying about covering your necessities and worrying about unexpected car repairs. Constant worries about money can keep you up at night.

Put these worries to rest by creating a realistic plan. A budget allows you to plan out your purchases within a certain period. Moreover, an emergency fund can help you cover unexpected costs.

#2: RELIANCE ON CREDIT CARDS

One of the surefire signs that you are having financial problems is your reliance on credit cards to cover all your finances. If you need the help of credit cards to manage between paychecks, your balance can trap you. The solution is easier said than done – stop using your credit cards and leave within your means.

#3: UNABLE TO COVER BILLS

It is important to act quickly when you are not able to pay the bills on a monthly basis. Look for ways to reduce your bills and increase your income.

Start by cutting down your unnecessary costs. Trimming back luxuries across the board such as bringing your mobile plan down and canceling your cable television can help. Instead of eating out, you can cook at home to follow your meal plan.

#4: INABILITY TO HANDLE EMERGENCIES

It is difficult to grow your savings when you are stretched tight each month. However, the inability to create an emergency fund can lead to reliance on credit cards. Eventually, your credit card payments will grow detrimentally.

Image Credits: pixabay.com

Set up an emergency fund by starting slow. You can put aside an extra S$50 per pay period and build from there.

Source: 1

What is Generational Wealth?

Generational wealth pertains to assets passed by one generation of a family member to another. Assets can include stocks, bonds, and other investments such as real estate and family businesses.

Other terms for generational wealth include family wealth, legacy wealth, multigenerational wealth, and intergenerational wealth. Many people may associate generational wealth with financial wealth such as cash, bonds, real estate, and family businesses. However, generational wealth can include valuable possessions, heirlooms, educational legacy, traditions, and connections.

Generational wealth transfers after death by passing it down in the form of an inheritance. A generation does not always have to die off in order to enrich its heirs. Families can transfer much of their wealth in other ways such as gifts, educational expenses, and medical expenses.

For instance, your grandparent died. The Last Will and Testament specifies that the S$2 million fortune be divided evenly to five grandchildren. The funds and assets passed to these grandchildren would then be considered generational wealth.

BUILDING GENERATIONAL WEALTH

Creating generational wealth to hand down to future generations starts with establishing a solid financial footing. You can build your generational wealth by investing. Buying stocks, bonds, and other investments can help your money grow through the power of compound interest.

Image Credits: pixabay.com

Moreover, you must have an emergency fund that will prepare you for short-term goals such as down payments on a home. Eliminating high-interest debt such as credit cards can be a helpful strategy to build your savings too. Lastly, opening lucrative family business can provide opportunities for you to create a financially successful life. Pass these down to the future generation!

“When money realizes that it is in good hands, it wants to stay and multiply in those hands.”
― Idowu Koyenikan, Wealth for All: Living a Life of Success at the Edge of Your Ability

Sources: 1 & 2

Why Celebrating Small Triumphs Matter

Of all the things that can increase inner professional life, the most important is making progress in meaningful work. Celebrating small wins can give you the boost you need to be reminded that you are constantly making steady progress. Furthermore, it highlights that you are not behind on your goals and that what you are doing is enough.

This is how it works:

Action –> Result –> Feeling good –> More action –> Continued result

Small triumphs come in exist in different forms such as learning a new language, helping others in need, witnessing growth in a houseplant, working out for the first time, and cooking with ingredients that you grew yourself. Celebrate these small triumphs using the following creative ways.

#1: TAKE A WELLNESS BREAK

There is an urgency culture that exists in our current society. We often hear “hurry”, “be quick”, or “too late”. It is no wonder that many people find it hard to rest.

Rest is vital. You earned a day off! We are not meant to be rushing all the time. Having a personal day will help avoid burnout, realign your goals, and prioritize self-care.

#2: SHARE YOUR SUCCESS

Create a group chat where you and your friends can share work-related stories of successes and failures. When anyone shares a small triumph with the group, you can react in a celebratory fashion. If you are having an unpleasant day, your friends can provide you support and understanding.

#3: WRITE DOWN YOUR FEELINGS

Bust out your journal and write down all your feelings regarding your progress. Do not forget to include the important details of your triumph such as the issue that you solved. You can use this journal entry to motivate you or to help you land the coveted promotion.

#4: ACKNOWLEDGE YOUR PROGRESS

Acknowledging your progress requires a change in your thinking. It is alright if you fail to produce the results you want or if you make mistakes along the way. If you are doing something to make a progress, you should be proud of yourself.

Image Credits: pixabay.com

#5: GIVE A YOURSELF A SIMPLE GIFT

Singapore’s longest-running annual sale called GSS ran from June 6 to July 7, 2021. During this period, Singaporeans were able to pamper themselves while enjoying great deals. A good way to reward yourself is to get a simple gift.

Whether you want to purchase a box of cupcakes or a new shirt, preferences will play a role in what is perceived as valuable. Remember that the value of the gift must be congruent with your point of progress.

#6: CREATE HELPFUL HABITS

You need to learn how to win consistently to make progress on a daily basis. This can be accomplished by using helpful habits. These habits come naturally to you because you have programmed your mind and body. Thus, you must strive to establish habits that ensure daily wins.

It is essential to acknowledge and celebrate your small triumphs to fuel your mental strength and keep going despite what you are facing. These triumphs will help you lean into the joy of why you are doing what you are doing.

Sources: 1 & 2

Have a Magical Shopping Experience at Singapore’s Disney Store

Lion City dwellers can experience the magic of Disney as they shop its online store. Sadly, Disneyland Singapore is not opening anytime soon. However, Disney fans can rejoice for the opening of the new shopDisney store. It is an online store filled with character-themed merchandise such as Frozen pillowcases and Star Wars apparel. This shop spans from the classic Mickey & Friends and Winnie-the-Pooh to Pixar, Marvel, and Star Wars characters.

Image Credits: Walt Disney

OPENING ON 14 JUNE, 2022

According to the media release of the Walt Disney Company Southeast Asia, the first collection will be released on 14 June, 2022. This collection will feature more than a thousand items across different Disney franchises featuring collectibles, home and living products, stationery, gifts, baby items, toys, adult fashion and accessories, and more.

You will be able to shop merchandise and other products from the actual Disney Park Shops overseas. New arrivals will come each week.

Image Credits: Walt Disney

This first collection includes limited edition collaborations and global collections. Limited edition collaborations will see the likes of Disney x COACH leather goods and handbags, Asia Pacific-exclusive ranges, and other fan-favorites such as Mickey Mouse and Winnie the Pooh. Global collections include the Sakura series. This is an exclusive series designed by The Disney Store in Japan.

LAUNCHING HIGHLIGHTS

1. AUTHENTIC DISNEY PARKS PRODUCTS

A variety of Disney Park products can be bought at shopDisney such as Ear Headbands, Spirit Jerseys, and Loungefly Backpacks. Keep on the lookout for the famous “Mickey Mouse: The Main Attraction” series, which is inspired by the Disney Park attractions like Mad Tea Party and Space Mountain.

2. GLOBAL COLLECTIBLES

Limited edition dolls from Mickey & Minnie Doll Set, Ultimate Princess Celebration, and Disney Designer Collection can delight you. The trending pocket-sized Disney nuiMOs plush toys are also available.

3. FASHION AND ACCESSORIES

Themed shirts found in the store are based on the latest movies and Disney+ series. It features the Avengers, Buzz Lightyear, Star Wars, and more. Designer favorites include Disney x COACH collection and other major collaborations.

Image Credits: Walt Disney

4. HOME AND LIVING ITEMShttps://www.instagram.com/shopdisneysg/

Home and living items include dinnerware, mugs, planters, bed accessories, bath essentials, desk and office supplies, and other lifestyle products. Imagine decorating a child’s room with all things Frozen! Stay updated by following their Instagram account here.

Sources: 1 & 2

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