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How to maximize your relationships with $300

Most of us know the immense power a strong social relationship can unleash. Social ties can have a colossal impact on our thinking, experiences and behaviors and they form a pivotal social support for our physical and mental health. Nonetheless, in the course of building a relationship, ensuring its sustainability is key where we do not overstrain our financial resources.

This article – the second in a five-part series that continues from “How to maximize your life with a $3,000 paycheck”- will thus be looking at the different ways to optimize a $300 monthly “bonding budget”.

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Offering inexpensive treats in office

Spending at least 8 hours every workday in the office is not an exactly enjoyable and eventful affair. Every initiative to keep your colleagues’ chins up – no matter how insignificant in your opinion – is in fact a great form of encouragement. And it does not cost much, probably 10% of the $300 “bonding budget” or $30? Offering to pay for drinks or buying your co-workers snacks or sandwiches could be your first crowning move. It kick-starts the culture of reciprocity and good things will naturally come your way.

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Play a sport

Studies have shown that exercise may play a therapeutic role in addressing psychological disorders such as depression and prevent chronic diseases such as cardiovascular diseases. But that is not all. Sports can also yield vast social benefits and help to strengthen interpersonal relationships through the myriad of fun-filled interactions. Allocating $100 to the booking of courts, admission tickets to sport facilities, participation in running events and energy drinks and bars should be more than sufficient. Taking part in the POSB PAssion Run for Kids 2015 could be your first step to embarking on a healthy and fulfilling lifestyle while contributing to the fund-raising efforts for the less fortunate children.

A free ActiveSG membership is an icing on the cake. All Singaporeans and Permanent Residents who sign up for it are credited with ActiveSG$100 to be used for sports programmes and entrance fees for the swimming pools and gyms at various Sports Centres island-wide.

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Invest in get-together meals and games

Weekends are perhaps the perfect time for friends and families to relax and unwind by indulging in a food and drink galore while playing the popular board games. Classic board games like Monopoly, Scrabble and UNO are still great fun. But the number of new games has exploded in recent years as a community of independent designers and publishers has been steadily producing innovative, intriguing and alluring games offering experiences emulating the most sophisticated gaming hardware. So put the remaining $170 to good use by purchasing board games which possess enduring benefits and inviting friends over for a potluck.

In reality, there are many more ways to create special and lasting memories with the people you love and care about. What is more important is often not the means to do it, but the willingness to do it.

How Does One Become Bankrupt And How To Avoid It?

According to the High Court, an individual becomes bankrupt if he or she owes at least S$10,000 and has no means to pay it.

Filing for bankruptcy can be done by the creditor or the debtor. A deposit of S$1,600 to the Official Assignee (OA) is required. The OA is the authority that is responsible for selling as many of your assets as possible to repay your creditors. Credit bureaus will display your bankruptcy date for five years after the date of discharge.

Aside from this, it is essential to note that there are assets that are protected by the creditors such as furniture, HDB flats, compensation awarded for legal actions, and life insurance policies.

The effect of bankruptcy does not only take a toll on your finances but also on other aspects of your life. For instance, there will be restrictions in travelling overseas and in looking for a job especially as a director of a company. Truly, it drastically affects your lifestyle, your career, and your relationships.

This is why it is important to avoid falling to this “black hole” by being financially knowledgable. To put it in perspective, here are 4 Ways To Prevent Bankruptcy…

MANAGE YOUR DEBTS

First, be aware of how much your debts and assets total to. Include every billing statement, every document, loans, and mortgages you may have. Take immediate action when you notice that it is getting hard to pay for your debts.

CUT DOWN YOUR EXPENSES

After seeing the bigger picture, it is time to cut down your expenses. Reduce the unnecessary expenses first such as designer bags or costly coffee beans. Then, add the minimum payments of your debts and the cost of your necessities to your monthly budget.

SELL YOUR STUFF

To aid your budget, you must sell your unnecessary items among others. Selling whatever you can spare can help pay off your multiplying debts.

SEEK HELP

Calculate the money that you need to prevent bankruptcy. Examine how much money you are able to get. Then, consider seeking help from your family and friends to make up for the difference. Yes! Asking your friends and family for money maybe a shady area but this situation is an exception.

If you still find it uncomfortable to seek their help then, consider hiring a professional (e.g., credit counseling agency or debt management firm) to help you reduce your interest rates and penalties at friendly time frame.

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Sources: 1 & 2

5 Wallet-Friendly Ways to Beat The Heat

The scorching hot weather is gracing at Singapore and other parts of Asia. Too much heat can cause exhaustion, cramps, or heat stroke. Luckily for you, you can beat the heat even without the access to air conditioning. Save on huge expenses by following these simple yet helpful tips…

1. USE FANS

Fans are less costly than air conditioners. It can help you feel fresh and breezy as you walk around your house. Make sure the fans are strategically placed to cool the entire area. While you are at it, close the curtains and the blinds to reduce the heat by approximately 45%.

2. DRESS DOWN

Wear loose and light fabrics (e.g., white cotton t-shirt) as these are more breathable. Invest in a few tank tops for only S$5 or less to keep you cooler for the entire day.

You can also consider Uniqlo’s range of AIRism tops, designed to provide extra comfort in humid Singapore. There is an ongoing promotion where you can get 2 piece of AIRism innerwear for just $24.90.

3. EAT COLD TREATS

Indulge in cold treats such as frozen fruits, ice-creams, or iced Milo. Homemade Popsicles made with simple ingredients such as a can of coconut juice for as low as S$1.10, can help you beat the heat for less. Simply put the juice in your ice-cream molds (available at Daiso for S$2) and freeze it for more than an hour. Or, you may make your own ice cream by following this tutorial.

4. GOOD HYDRATION

In order for your body to remain cooler, you need to keep it well hydrated. When plenty of ice is not enough to keep your water cool, try to freeze it inside the milk carton containers. This will enable you to preserve the coolness of your water due to its block-like figure. A cheaper solution indeed!

5. LEARN YOUR QUICK-COOLING SPOTS

Master your personal bodily temperature by focusing on your quick-cooling spots first. For instance, applying ice pack or cold water on your neck and wrists can make your body cool instantly. Know the other quick-cooling spots here.

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Sources: 1 & 2

How to keep your food budget below $600

Continuing from the article on “How to maximise your life with a $3,000 paycheck”, this article will be focusing on the ways to stretch a $600 monthly food budget. This is the first in a five-part series on how to optimise the use of funds allocated to each of the budgets.

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1. Indulge in hawker fare

The most economical way to tempt your tastebuds would be to indulge in hawker fare. The average price for a meal complete with a drink is approximately $5. Given 23 working days in a month and 3 meals a day, the total expenditure for this category would thus round up to $345. While Singapore’s climate may be unforgiving to hawker fans, we should not be quick to dismiss the perks of having affordable yet scrummy delights at our convenience while being loud and comfortable with our friends sharing plates of delectable food.

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2. Hunt for food deals & be a fan of credit cards

Nowadays, hunting for the latest food deals is an easy feat. Websites like deals.com.sg and moneydigest.sg have sprouted up to help consumers stretch their every dollar. At the same time, credit card companies are collaborating with food retailers to bring greater value to the table. Do not ever belittle the bang for the buck you can actually accumulate from these massively discounted meals.

For an income earner of $3,000, while it is unrealistic to dine in lavish cafes and restaurants every single day, it does not hurt to spoil yourself on weekends with the various credit card dining promotions. Imagine the euphoria from treating yourself to half-priced cakes or main courses on a budget of $240 for the 4 weekends?

While the sum of $30 to be spent on meals on a relaxing Saturday/Sunday may seem inadequate, it is actually double the weekday budget, meaning you have the discretion to spend more. Also, don’t forget that you have the privilege of waking up late on a lazy weekend and skipping your breakfast. Go for brunch instead!

Alternatively, you can spend your weekend budget customising your home-cooked meals with your loved ones. The truth is, if everyone in the family were to pool their weekend budgets together, the spending power would increase tremendously. This would translate to a wide variety of mouth-watering foods presenting a tantalising spectrum of flavours, sights and smells for feasting.

Preparing For Retirement: Should You Spend Less Or Earn More?

In order to make your dream of retiring early a reality, you generally have two options: to spend less or to earn more. If you are an avid reader of personal articles, it is no surprise that spending less is included in “Ways To Save For Retirement”. But, when you want to focus on maximizing your earning potential then, you will have to do several measures to earn more.

SPENDING LESS

Pros:

Spending less gives an a more instantaneous result compared to earning more due to its direct nature. It is easier to accomplish because of money management and budgeting techniques.

Cons:

There is a limit to when you can spend less before you hit a boiling point. For instance, some people restrict their way of life to the point that it is extremely uncomfortable and unsatisfactory.

Tips:

Lower your utility bills by unplugging cables, turning off the lights, and minimizing the air conditioner temperature.
Cancel your hand phone plans and switch to prepaid in order to regulate your telecom bills.
It is important to track where your money is going through the last month’s bank statements and receipts. Notice what you have spending too much on and reduce it.
Cut down your T.V. bill by canceling your cable subscription and opting for watching at Toggle.sg. Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – for free! But, viewing of premium content is on a subscription basis.
Lastly, if you are buying a new appliance, make sure that it is an energy efficient model. Smaller appliances not only help you save more on space but on bills also.

EARNING MORE

Pros:

The ways you can earn are endless. Ultimately, it is based on your good financial choices, a ton of effort, and a sprinkle of luck. Additionally, here is no limitation in the amount you can possibly earn.

Cons:

Making more money takes time and effort. You will need to find a better job or to work more hours in order get a start-up capital for your small business. The flow of profit after the initial business launch takes time too.

Tips:

Increase your earnings by upgrading your skills. To upgrade your skills, you can enroll to workshops or courses. Consider going down to your community centre (CC) and find out the affordable courses they offer. Transform the awesome skills you learned into viable freelance businesses or part-time occupations.

Start your own small business such as an online clothing shop. Online business allows you to sell your product or service at the convenience of your own home and your own time.

Lastly, contemplate on proposing a salary increase or a leaving the company for a better company.

WHICH ONE WEIGHS MORE?

On your way to save for your retirement fund, frugality or spending less is the first step. Once you are financially stable, it makes more sense to seek for higher income.
You can earn millions of dollars but if you are spending irrationally, you can get into financial problems. And, even if you are cutting down your spending, you may not reach your goal if you do not earn a decent amount of money. So, the best way to reach your retirement goal is to have a combination of both options.

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Source: 1

1. Indulge in hawker fare

2. Hunt for food deals & be a fan of credit cards

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