Why Rewarding Yourself Is Important

John Maxwell once said: “Everybody wants money, yet seldom will anyone budget or control their spending.”

Setting financial goals is an easy task! Reaching these goals is another story. You may intend to purchase your first designer bag or to go back to school this year, but you are still building your funds for it. Moreover, you may have set some financial goals that are harder than you anticipated. Putting these goals into action is the first hurdle that you have to pass.

The second hurdle is reaching the finish line without losing your motivation. The solution to your problem is placing an efficient reward system. Rewards and actions have close association. Think about it! You perform an action expecting an outcome or a reward in the end. Though rewards do now always show up as a trophy, you can expect some form of return. Every time you receive a reward, your body releases a neurotransmitter called the dopamine. It plays important roles in executive functions, motor control, motivation, arousal, reinforcement, and reward. It also plays a role in lower-level functions including lactation, sexual gratification, and nausea. Simply put, it affects how we feel pleasure.

Dopamine spikes in your brain when something important is about to happen. It gives you a surge of pleasure as you finish a task. In turn, it increases your motivation and productivity. Use this knowledge to your advantage. Give yourself small rewards along the way to achieve a bigger goal. You may indulge at the end of the month by rewarding yourself with 5% of your hard-earned savings. Use this money to get a well-deserved treat after the whole month’s work. It will surely keep you going!

As long as you set aside a responsible amount of money, take your mind off the expenses that come with your small reward. Relax! Take these suggestions:

1. Take yourself out to breakfast or brunch.
2. Read a book for 15–30 minutes.
3. Watch an episode of your favorite Netflix series.
4. Listen to your favorite playlist for 15 minutes.
5. Buy a delicious dessert.
6. Enjoy an at-home spa day.
7. Paint, sew, or knit something.
8. Turn off your devices for an hour.
9. Indulge in a long shower.
10. Diffuse your favorite essential oils.
11. Write in your journal.
12. Watch the sunset.
13. Jog for 15-30 minutes.
14. Get a new water bottle.
15. Get a manicure or a pedicure.

Every action is tied to some outcome. The problem is, the result is not always immediate. You will not lose weight overnight. You will lose body fat over time. While waiting, you may lose the motivation to keep going. Hence, putting a simple reward system may help.

Rewards can act as psychological enforcers when you use it as a means of motivation to reach a particular goal. When done right, the natural process in the brain can be used to help you stay on track with your financial goals. The magnitude of the reward is not directly proportional to motivation. Even the smallest treats can get you pumped up for the rest of the month. Use the abovementioned list as a guide to help you put your reward system in place.

Sources: 1 & 2

Read More...

Tips on overcoming analysis paralysis in investments

investment risks

Many people face analysis paralysis when making decisions. Do you know what the term means?

According to Healthline, analysis paralysis is a type of overthinking which results in a neverending loop of “what if this, what if that” scenarios.

Vicki Botnick, a therapist from California, shares that our decision-making process usually involves a list of options. As we progress, we begin narrowing this list down, removing choices that are unfeasible. But a person with analysis paralysis will often find themselves trapped.

“They feel ever-expanding, endless, and all equally probable,” she adds.

What is analysis paralysis in investments?
a stressed man in front of a laptop

Image Credits: esquireme.com

Putting things into perspective in the financial realm, analysis paralysis makes perfect sense too. In this case, it refers to a situation where you overanalyse investments so much that your ultimate decision becomes paralysed. You end up freezing and are not able to make a move.

Sounds familiar? Do you find yourself not acting on the plan you have made after all those time spent in planning? If you are stuck on making a decision, then it is about time you stop being in a state of analysis paralysis.

Investing is not that difficult if you’ve done your due research. The only thing you probably need right now is the courage to jump in and start! While it’s not guaranteed that you will make money or succeed, take heart if you have a promising investment strategy.

For those who are still sitting on the fence and waiting for the right moment to take the first step, this article will help you. It’s time to hold back no more and get your head in the game.

#1: Don’t be a perfectionist

via GIPHY

Those undergoing analysis paralysis often end up waiting for the perfect scenario. You need to know that such occasions don’t come by often, and you will only end up wasting time and effort.

For example, some investors were sitting on the fence of Netflix Inc (NASDAQ: NFLX). Yes, while it’s true that they have burnt billions to build the business, with many questioning their business model, 2021 might be their year to becoming self-sustainable.

If you’d trusted your guts with Netflix against what other investors thought, then maybe you wouldn’t have to deal with their recent share price spike of over 10%. Be a perfectionist in investing, and we assure you there will be a slow success.

#2: Narrow down on what matters
priorities

Image Credits: romania2019.eu

Many time, overthinking happens when you don’t have an idea of what to focus on. That is why we’re suggesting that you narrow down on what matters. In other words, prioritise the main objectives regarding your investment strategy.

Let’s say you’re considering between these three:

  • ETFs that track benchmarks
  • Growth technology companies
  • Value consumer discretionary companies

Rather than going with all at one go, it would be wise to start investing with just one or two to get your engine moving.

This perfectly leads us to the next point.

#3: Scale as you go

via GIPHY

Whenever you are thinking about investing, try to start with a small amount. Don’t get fooled by “experts” who advise you to go big or go home.

So, what is the right amount to start with? We think a few hundred dollars is an ideal sum if you’re new to the venture. Once you’re comfortable dealing with the market fluctuations, you can gradually increase the stakes with higher-risk investments.

Starting small is a direction that works not just in investments but life in general too. This is especially true if you’re entering as a greenhorn.

#4: Cut out neighbouring negativity
two-business-people-having-serious-discussion-in-the-office

Image Credits: The Balance Careers

It also pays to not dwell too much into the negative news about losing your money.

The main point here is that if you have a sound strategy, then all is well. You don’t need to listen to friends or neighbours who are discouraging your idea of investing money in the stock market.

While other people’s pitfalls are good to know, shut it out if you know it will only hold you back. Ultimately, it’s your money you’re playing with, and you possess the key to unlocking the door of investments.

#5: Welcome a little impulsivity

via GIPHY

Don’t get us wrong when we say to welcome a little impulsivity. We assume that you’ve spent a considerable amount of time crafting a solid investment strategy. If so, then maybe what you need is that little nudge of impulsivity to get started.

Research done by automated investment firm Stashaway revealed that impulsive investors who withdrew their money during a market correction lost about 2.2% on average. That’s why we want to reiterate that hasty investments will do you no good in a general sense.

Please don’t take this piece of advice out of context.

Final thoughts

The stock market will not stop for you. As Professor Karyl Leggio of Loyola University Maryland rightly points out, “The reality is you aren’t able to time the market. Over time, you miss more opportunities than you save by trying to time the market.”

Continue letting analysis paralysis grab hold of you, and you will be missing out on several golden investment chances. Recognise that you don’t have to be a perfectionist to begin. Focus on what matters, start small, and don’t get buried in negativity.

Take that little spontaneous step forward, and good luck!

Read More...

How to stay focused on your financial goals

green plant in a pot of coins

We’re down to the final week of February. Do you already find yourself struggling to put away some money for the upcoming months ahead?

You’re not alone. It’s harder than most people think to stay focused on their financial goals, and we’re here to lend a hand in finding your way forward.

Stay on this page if you want to find out more on ways to stay focused on your financial goals amidst the prolonged pandemic.

Factor in your dreams for the future

Do you know that many people don’t plan for the future because they don’t take enough time to dream about their financial goals and what they can hold?

Pondering over what you want to achieve this year and beyond can help you stay on track to reach it. For instance, are you looking to buy a house? Or are you looking to pay off your loans in two years?

Figuring out what you want to achieve will assist you in crafting a game plan to get there.

Be realistic and take concrete steps
planning a budget

Image Credits: TLNT

Some of us come up with lofty dreams when planning for the future. Perhaps you’re trying to achieve your goals too quickly without considering the finances you have available. Or it could be that the dreams themselves aren’t that reachable based on your current financial status.

If your dreams aren’t attainable, you will find yourself sidetracking on your financial goals down the road. So, plan your next steps based on your available budget and be practical about what you can or cannot do.

For example, if you have plans to buy your first home in the future, these are some real questions to ask:

  • How much do I need to save?
  • How to set aside this big sum?
  • Do I need to create an emergency fund?
  • How to grow my pot of savings?
  • Should I maximise my CPF?
  • Can I maintain a healthy credit score?

Take concrete steps (no matter how small) if you want to stay focused on achieving your financial targets.

Tweak your plans if necessary

If there is anything that the COVID-19 situation has taught us, it’s that life throws us lemons sometimes unexpectedly. Always be ready to rethink your financial goals should more lemons be thrown your way.

Maybe you’re expecting an unplanned baby, which means there will be changes in money priorities in the years to come. You don’t have a lot of time to make adjustments because once the baby arrives after 40 weeks, there will be significant changes to your lifestyle.

With that said, your immediate focus should then be on how to survive the first year financially. Take it one step at a time, and you will eventually get there.

Keep your eye on the finishing line
finishing line

Image Credits: scientificamerican.com

You’ve designed your financial future for a reason. When you forget what that reason is, it’s easy to get distracted and go off course. To stay focused on your financial goals, make sure you keep an eye on the finishing line. That’s what you’re working towards.

Several banks in Singapore like OCBC and DBS allow you to save a sum automatically each month. This automated savings will be a great tool to help you gather your money for that big purchase in the future.

Final thoughts

Your financial goals matter, and to keep that at the forefront of your mind, you will want to consider the tips mentioned in this article. Read this if you require more motivation to reach your saving targets!

Read More...

How to steer clear of financial infidelity against your partner

young-couple-sitting-on-their-bed

Money plays a vital role in all relationships. When it comes to finances, secret-keeping, impulsive spending, and poor money management habits often spell trouble for unsuspecting couples.

For those who aren’t exactly sure of what financial infidelity means, it simply refers to “cheating financially”. Here are a few necessary steps you and your partner can take to avoid financial infidelity in your relationship.

#1: Communicate openly and honestly

“Operate in complete transparency and communicate as frequently as possible,” advised Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth in New York City.

While it’s not necessary to bring up finance topics on the first date, it’s important not to shy away from money conversations. This is especially so when your relationship starts moving towards a long-term commitment. 

Sidestepping these sometimes-uncomfortable talks will have a snowball effect that can lead to expensive consequences.

Though it can be difficult initiating the first discussion surrounding finances, take heart that you’re working towards a healthier relationship. These conversations will eventually become routine.

#2: Be transparent about incomes
a couple discussing about money

Image Credits: The Independent

Whether you have a stable salary or your income is dependent on commissions, bonuses, or unpredictable clients, share it upfront. You owe it to your significant other to be transparent about what you bring to the table or can offer in the future.

Being candid about pay will allow you and your partner to budget accordingly. This might mean cutting back on frivolous spending or forgoing impulsive purchases, but your relationship will benefit from financial security.

#3: Settle for joint or separate accounts

Make sure you and your partner are on the same page when it comes to your bank accounts. Are there plans to merge accounts or split your incomes down the middle? Be sure to make a point of discussing your plans and intentions with your significant other.

If you decide to keep everything separate (which is okay), it might be a good idea to keep one account joined for paying shared expenses. This way, you can be sure your budget is being put to good use, and both are paying their fair share.

#4: Play a part in financial responsibilities
a woman looking at her bills

Image Credits: pymnts.com

When both members take part in the household budgeting, the secrets and deception that lead to financial infidelity are less likely to happen.

For example, one of you can take care of the bill payments while the other keeps track of retirement savings. Just be certain that each of you is involved in the process and the loop of your financial status.

Splitting the responsibilities also help prevent placing all the burden on one party, who might feel like the “bad guy” if they have to say no to that staycation or lifestyle purchase in the future.

#5: Never hide your spendings

If one partner is a spendthrift and the other is a saver, it can lead to rifts in your relationship. Be honest with your partner about the desire for big purchases and discuss whether you can afford it.

Likewise, avoid expensive shopping trips without your significant other’s knowledge or agreement. While a little retail therapy may seem like harmless fun, the credit card bills can add up fast, and the deception will often drive a breakdown of trust in the relationship.

Final thoughts
an asian couple arguing

Image Credits: Asia Wedding Network

According to a financial therapist in North Carolina, there are many reasons why financial infidelity happens. It could be due to a financial trauma in the past, a conflicted relationship with money, or insecurity.

Whatever the reason might be, be mindful that small things add up. A lie told today will lead to more lies and secrets going forward. Don’t let money issues be a deal-breaker in your relationship. It’s not worth the heartbreak.

Read More...

How To Deal With “Maskne”

Masks play a vital role in reducing the spread of COVID-19. However, prolonged wearing of masks can cause skin irritation and acne for individuals with sensitive skin. Maskne or Acne mechanica has never been a problem of ours with the exemption of healthcare professionals who have been wearing masks on their hospital duties. These healthcare professionals can attest to this irritating skin problem that has become more widespread among the general population.

Dr. Harry Dao, a dermatologist for Loma Linda University Health, explains what Maskne is.

“Masks impose heat, friction and occlusion on the skin and when combined with a moist environment from breathing, talking or sweating, this is a recipe for breakouts,” he says. The three main ways masks can cause breakouts are thru friction, occlusion, and irritation. Firstly, masks impose friction and chafing. The areas most at risk for breakouts are the bridge of the nose and behind the ears.

Secondly, pores get clogged and can become acne cysts or pimples. Your breath trapped beneath the mask makes the skin surface warm and moist. This environment can lead to a breakout called folliculitis, which happens when yeast or bacteria infect hair follicles.

Lastly, the material of a mask absorbs the skin’s natural oils. This leads to dryness and sensitivity for some people. When irritation becomes inflammation, you will see redness, dry patches, peeling, or dark marks. Acne is not the only skin condition reported by mask wearers. Other common skin problems include Seborrheic dermatitis, Rosacea, and Allergic contact dermatitis.

WAYS TO PREVENT SKIN PROBLEMS CAUSED BY MASK WEARING

1. Wash your face. It goes without saying that washing your face with a gentle cleanser and rinsing it with lukewarm water can help prevent dirt and oil from being trapped on the skin’s surface. Do this before and after you put your mask on.

2. Do not apply makeup. Who will see your entire face anyway? Wearing makeup under a mask causes clogged pores and breakouts. Makeup residue will also soil your mask.

3. Apply moisturizer. The moisturizer will not only act as a barrier between your face and your mask but, it will also keep your skin hydrated. This can reduce friction. Apply moisturizer onto a cleansed face before and after wearing a mask.

4. Wash your mask regularly. If you are wearing a cloth mask, ensure that you wash it after using. Otherwise, the dirt can become a breeding ground for bacteria. Choose a fragrance-free laundry soap because fragrances can irritate your skin.

5. Do not reuse surgical masks. Surgical masks are not meant to be reused. Throw it after using

6. Protect your ears. Elastic strap loops on the mask can cause friction burns on the back of your ears. If your skin is sensitive or if you will be wearing a mask for a long period of time, use ear savers. You can attach the straps on the ear savers’ buttons. You can buy yours from Lazada or Shopee.

When should you see a doctor?

If you have breakouts or skin damage that do not respond to skin care changes, you should see a dermatologist. Spreading redness or draining pus can be signs of infection too. Seek immediate medical attention, if this happens.

Image Credits: unsplash.com

Sources: 1 & 2

Read More...