What Is Financial Well-Being And How Does One Boost It?

Early this year, the U.S. Consumer Financial Protection Bureau conducted a study on 59 consumers as well as 30 professionals to define what financial well-being actually is. Through their in-depth interviews they found that your income does not matter; consumers can experience financial well-being or the lack of it because it is highly personal. Therefore, financial well-being is defined as having financial freedom of choice and financial security in the present and in the future.

FACTORS THAT INFLUENCE THE FINANCIAL WELL-BEING

a. Social and economic environment,

b. Personality and attitudes,

c. Decision context,

d. Knowledge and skills,

e. Available opportunities,

f. and Behavior.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

FINANCIAL WELL-BEING’S FOUR ELEMENTS

1. PRESENT SECURITY

You are able to pay your bills on time and do not have to worry about having enough money. You manage your finances and not the other way around.

2. FUTURE SECURITY

You are prepared to handle any financial emergencies or shocks that when it strikes, you have sufficient insurance, savings, and support from your family and friends.

3. PRESENT FREEDOM OF CHOICE

You have control over your life because you have financial freedom. Taking holidays, going out for dinner, and being generous to your family are done as you wish.

4. FUTURE FREEDOM OF CHOICE

You have short-term and long-term financial goals and you know how to meet them.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

WAYS TO BOOST YOUR FINANCIAL WELL-BEING

1. EARN  IT

Many people cut expenses but only a few examine ways to increase income. In the event of job loss, it is still important to do whatever it takes to provide for yourself and your family.

2. PROTECT IT

Do research (e.g., from newspapers, Internet, and financial experts) to ensure that all your monetary efforts are not wasted.

3. MANAGE IT

After you retire, the bottom line is not how much you make but how much you keep.

4. GROW IT

With careful financial planning, money will grow even in a slower economy.

5. ENJOY IT

A comprehensive plan will allow you to go for vacations, new car, and so much more. With this, you can transfer some funds to your heirs or to charitable causes.

Take each day as an opportunity to work towards improving your financial well-being! 🙂

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4 Brilliant Ways To Worry Less About Money

They say nothing lasts forever but, our relationship with money is so pervasive that it feels like forever. The mechanisms that keep our lives in tact are almost always surrounding money.

In his book entitled: “How To Worry Less About Money”, British writer and philosopher John Armstrong shared many ideas on how to look at money in a different light in order to lead a better life. He understands how deep our relationship with money is which is why he wants to examine how we relate to it and how we attach meaning to it.

First we have to understand that money problems and money worries are two different things. According to oxforddictionaries.com, a problem is a situation or a matter regarded as harmful or unwelcome and needed to be dealt with and overcome. While, worry is a the state of being troubled and anxious and real or potential problems.

Therefore, problems ask for urgent and direct actions while worries as created by oneself due to disturbing thoughts. Fortunately, disturbing thoughts or unhealthy patterns of thinking can always be changed! Here is how:

1. MONEY CANNOT BUY HAPPINESS

It is no surprise that Armstrong believes that happiness cannot be quantified by money. Money can only buy the symbols that produce happiness and serenity but it does not purchase the positive emotions itself. In fact, studies show that you will get more satisfaction if you spend your cash towards memorable experiences such as family vacations than towards material things such as a new designer bag.

2. KNOW THE DIFFERENCE OF PRICE AND VALUE

What differentiates value from price is its nature. Value is a personal matter while, price is a public one. Value is personal because the meaning of money and the object is assigned by the individuals themselves based on their perception, culture, wisdom, and character.

On the other hand, price depend on the majority because it negotiates between supply and demand. For instance, the price of the refrigerator depends on how ready is the manufacturer, how much people want it, and how much they are willing to pay. People who are frugal give importance to the value while people who are cheap primarily follows the price. Know which side you want to be on.

3. IT IS GOOD TO GIVE BACK

There is a deep and innate fear that one’s life will be lived in vain without making a contribution or a difference in the lives of others. This is why you may generate happiness and kill those worries by doing good things for other people through the money you have. Lending out possessions can help you enjoy the material things that your money bought while, volunteering or donating can always trigger positive emotions.

4. CULTIVATE YOUR RELATIONSHIP WITH MONEY

For your relationship with money to flourish, you must understand that it involves the two of you. When things go badly, it is partly because of what you brought to the situation and partly because of what the money (i.e., power of spending) brought. Do not let the power of spending govern you.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Temperance, moderation, and frugality are essential to alleviate your worries about your money. You achieve this by distinguishing your needs from wants. So, if your bike works perfectly fine then there is no need to buy a new one. Be wise in purchasing and resisting impulse by getting what you really need.

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Procrastination Costs You Money! Here’s How You Can Stop It.

You probably know how procrastination impacts some areas of your life such as being late for a reunion or getting scolded by your boss because you missed the deadline – again. However, you might not realize that constantly avoiding responsibilities can cost you not only with opportunities but also with money.

There are various reasons why people procrastinate with money and one of them is fear – fear of getting stuck or lost in the path. Then, the “avoider” in you will just make excuses in order to delay the tasks for a while or for a lifetime.

To illustrate how procrastination cause money loss, here are some examples:

1. WHEN PENALTIES PILE UP

Late payment fees, late return fees, reconnection fees, and other penalty charges may seem small at the moment but these things add up. For instance, if you borrowed a book in your school’s library and you failed to return it 1 month after the deadline then, the price you paid for late fees might be more costly than the book in the first place.

Also, being late in paying your credit card can cost you each day. Add that to the interest!

2. NOT TAKING PREVENTIVE ACTIONS

Preventive actions such as regularly going for health screening especially when you are in your 40s, can help detect or treat serious diseases. Waiting will do nothing but cost you for medical bills later. Some expensive repairs that can also be prevented by check-ups are: air conditioner’s filter maintenance and car’s tires maintenance.

3. LAST MINUTE SHOPPING

People are often to be less conscious of the price tag if they are shopping under pressure. Waiting the last-minute to purchase for anniversary gifts or weekend travel tickets can make you opt for the high-priced ones just to get it over and done with!

These examples are just some of the reasons why it is important to beat procrastination with all strength! Do it by following these tips:

1. AWARENESS

Constantly remind yourself that there are tasks to be accomplished and determine what phase you are on. It is easier to track your tasks by making a simple “to-do list” that even includes the tasks you are avoiding to pursue. Then, write the deadlines together with every task.

2. REMOVE THE DISTRACTIONS

The quickest way to stop procrastinating is by eliminating the possible distractions. Learning to reduce, ignore, and remove the unnecessary choices can be beneficial as you are able to make better choices.

For example: if you want others to read your blog, stop distracting them with buttons and ads. Also, if you want stronger arms, stop wasting your energy on Single-Leg Glute Bridge or other exercises that are not in lined with your goals.

3. REWARDS AND PUNISHMENTS

Create a reward and punishment system. Rewards (e.g., eating your favorite dessert) should only be given if you finished a task while consequences (e.g., no access to ice cream for a week) should be given whenever you avoid your task.

4. GET SERIOUS

Ask a your friend or your partner to help you complete the task. They should guide you and warn you when you deter form the task at hand. Focus on the success and happiness you will achieve after you finished your “to-do list”.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

Sources:1 & 2

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Should I be an employee, a self-employed or an employer?

Many people aspire to be an employer as it entails freedom, independence and wealth. However, the path to entrepreneurship is hardly a bed of roses. In fact, a successful entrepreneur has to possess great fortitude and foresight in order to overcome all the uninvited obstacles coming his/her way. On the contrary, while employees generally do not enjoy as much flexibility as the company owners, they actually face significantly lower (downside) income risks. In addition, employees are often relieved of the heavy emotional and psychological burden that is tied to the complexity of overall business management.

Therefore, whether you are an employee, a self-employed or an employer, there are always pros and cons for any track you choose. At the end of the day, it boils down to what truly defines you and the resources you wield. The approach to searching for your personal identity (and supposed employment status) has thus been highly condensed into the diagram shown below.  

Click to enlarge:

employerDisclaimer: This is just for easy reference.

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Free Investment Resources Singaporeans Can Benefit From

1. BORROW BOOKS FROM THE PUBLIC LIBRARIES

The best way to fish in an unfamiliar territory is to research about it first. Know the basics in investing and trading by visiting your local or regional public library and borrowing their books. A few examples of the books you may find are “The Resilient Investor”, “Trading Options for Dummies”, and “7 Simple Strategies of Highly Effective Traders”.

The National Library Board (NLB) ensures that the information given in the public libraries are trusted, accessible, and comprehensive. Their genuine aim is to build a knowledgeable nation with generations of readers.

What is great about NLB’s website is that you can browse the availability of the book as well as find the list of libraries where it is located. This way, you do not have to go to a nearby library only to find out that what you are looking for is not there. For instance, you can find the 7 Simple Strategies of Highly Effective Traders book in 12 public libraries including Toa Payoh Public Library – our nearby library. Start searching by yourself, here.

2. ATTEND A NO-COST WORKSHOP ABOUT INCOME INVESTING

Last Tuesday, I had an opportunity to attend a workshop named: “Get Rich Slowly, The Income Investing Way”. Terence Tan led it. Terence Tan is the creator of the first Income Investing Programme in Asia-Pacific called Income Mastery Programme (IMP). Also, he is the chief investment strategist in Giants Learning Technologies as well as the founder of First Traders Network.

With a guy whose experience in stocks spans over 16 years, I thought to myself that I could certainly learn a thing or two. To get things straightened out, if you are looking for a method to get rich quickly through investing, this talk is not for you. Instead, this is for people who seek financial freedom by patiently and diligently pouring their resources for years on end.

Image Credits: facebook.com/IncomeMasteryProgramme

Image Credits: facebook.com/IncomeMasteryProgramme

What you can expect from this free 2-hour workshop is to gain a glimpse of the mindsets of some investors such as the renowned Warren Edward Buffett, to uncover the principles of income investing, and to determine the right stocks in 15 minutes or less. Furthermore, he will introduce you to his own methodology called the Income Mastery Programme. My impression of IMP after the workshop was it was a feasible yet gradual way to generate profits while in the midst of low-risk trades. By lowering down the risk, you will be confident that the stocks make money over time. If you are interested to know more, you can register for their upcoming talk on August 18, here.

3. TAKE PART IN A HUGE INVESTMENT FAIR – FOR FREE

Dating back from 2007, Invest Fair Singapore is ShareInvestor’s annual event for investors and traders alike. Enjoy the presence of world-class speakers, key stakeholders, and other experts in the financial industry by registering here.

The list of featured speakers include Marc Faber (Investment Expert and Best-Selling Author), Kathy Lien (World-renowned Currency Strategist and Best-Selling Author), Roger Monthomery (Chairman and CIO of Montgomery Investment Management), and one of Forbes’ 2014 list of Singapore’s 50 Richest men – John Lim.

The seminars start with “Simple Trading Strategies for Fast Profits” on August 15 and ends with “Portfolio Allocation” on August 16. Best of all? You can get exclusive promotions from their exhibitors and stand a chance to win prizes at their lucky draw.

Image Credits: facebook.com/ShareInvestorSG

Image Credits: facebook.com/ShareInvestorSG

 

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