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”.
Image credit: diet.gtatoplay.com
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.
Image credit: greatdeals.com.sg
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.
Image credit: amazon.com
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.
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.
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.
Image credit: theonlinecitizen.com
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 workingdays 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.
Image credit: 123rf.com
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.
With S$3,000 for a monthly salary, many fresh graduates do not think that is enough to spend nor save. But think again. As a bachelor or bachelorette earning $3,000, you are already better off than many others beset with hefty household bills. So, for someone fresh out of school with no dependants or minimal financial liabilities, maximizing your life with your $3,000 paycheck may be attainable and here is how we can approach this mathematical sum with the help of Maslow’s hierarchy of needs. According to Abraham Maslow, a renowned American psychologist, inherent human needs are fulfilled in the following priorities, starting from physiological needs, safety needs, love/belonging needs, esteem needs and finally, self-actualization needs.
1. Spend 20% or $600 on irresistible meals that are simply affordable. Fortunately, it is never a hassle to find them in the heartlands or the CBD areas which serve to satisfy your hunger pangs after a half day of hard work! Alternatively, you can prepare your own nutritious and palatable meals within the budget!
2. Spend 10% or $300 on delighting your beloved family, partners and friends. Rope them in for a laugh by watching a hilarious movie, enjoy a hearty chat over a scrumptious meal or simply participate in a sport that all of you relish.
3. Save 50% or $1,500 for your upcoming big ticket items. In Singapore, your residential property is probably your greatest prized asset. Your lifetime of savings and efforts will be manifested in your small but cozy HDB flat. At the end of the day, it is the family warmth that truly matters in the home, not so much about the size. Depending on your risk appetite, a portion of the 50% may be used for investment purposes to earn a return over the inflation rate. As easy as this may sound, engaging in due diligence is key to making or breaking it.
4. Set aside 10% or $300 as an emergency fund. Life is filled with surprises. You never know what will happen tomorrow. Putting aside 10% of your income may seem wise to buffer yourself against uncertainties. Take for example an unexpected invitation to your superior or colleague’s wedding or baby shower. An emergency fund boosts your readiness and willingness to share the joys, build a stronger rapport and put you in a better position to win people’s hearts.
5. The last 10% or $300 is reserved for miscellaneous expenses such as transport fares, therapeutic services and new merchandises. After a month’s worth of toiling, you definitely deserve some pampering. Indulge in a massage to relieve yourself of the piled-up stress from work. Recharge before moving on to the greater things in life.
The good news is that the higher level needs such as the esteem needs and self-actualization needs often do not pose a material constraint on your financial resources. By living within your means while maintaining optimism, you gain the understanding and respect of your peers and family members. Through demonstrating your forthcomingness in celebrating others’ blissfulness and successes while realizing the relentless quest for material wealth does not always lead to happiness, you would have already achieved the moral high ground.
SINGAPORE, 19 May 2015: Economic growth and a healthy older population are rapidly expanding the affluent middle class in Singapore. New global research from Collinson Group reveals distinct motivations and attitudes amongst this group which go beyond traditional demographic and geographical boundaries. Today’s affluent consumers place a higher priority on family, altruism and enriching experiences, ahead of luxury products and short-term satisfaction.
Providing for family, spending time with family and saving for the future are the top three priorities for Singapore’s mass affluent consumers. Giving back to charities and the community and protecting the environment also rate higher than buying leading brands and driving a luxury car. Spending on grandchildren, children and partners is the main indulgence for Singaporeans when investing their money (22%), followed by holidays (17%), and dining out (13%).
Christopher Evans, Director at Collinson Group says: “The quality of experience is increasingly the new currency for today’s affluent middle classes. Where previously the affluent middle class was more motivated by luxurious trappings, they now place a higher priority on family and life experiences such as travel, as well as experiences offered by the products and brands they choose. This is an important distinction for businesses trying to attract this growing and influential group.”
Collinson Group commissioned research with 4,400 consumers within the top 10-15% of global income in Brazil, China, India, Italy, Singapore, the United Arab Emirates, the United Kingdom and the United States. The global research identifies four “tribes”, or groups of people, who share some common traits which cut across age, gender and international boundaries.
Mid-Life Modernists are the most prominent tribe in Singapore and are characterised by their enthusiasm for technology. Prudent Planners are motivated primarily by family and trying to help others. The Stylish Spenders do still yearn for the finer things in life. Finally, there are the Experientialists who put money-can’t buy experiences at the top of their priorities.
Christopher Evans says, “The affluent middle class are the most valuable customers for many brands, particularly in the financial and travel sectors. As well as having high disposable income, this group shape the aspirations, buying habits and behaviour of other consumers.”
“Traditional definitions tend to define the middle class by income, spend or the products they buy” continues Evans. “Our research identifies tribes which span geographies and in fact share common behaviours and attitudes. Understanding these motivations and offering tailored experiences, rewards and communications is key to winning the hearts and wallets of the affluent middle class.”
Tribal attitudes to travel
Travel is a common motivator for the affluent middle class and they all expect travel enhancements such as airport lounge access, fast track security and upgrades from their banks or credit card providers but there are different expectations between the tribes.
Stylish Spenders travel in luxury, viewing services such as airport lounge access, concierge services, airport valet and pick-up by limousine as “essential”. Travel to the most luxurious locations with the opportunity for them to “show” their status is also important. Hence we are seeing hotels and airlines such as The Mandarin Oriental and Delta Air Lines “Delta 360” invitation only club offering very exclusive rewards which are not widely publicised to attract this group.
For Prudent Planners and Mid-Life Modernists, which represent 69% of the affluent global middle class, offering more flexible travel related rewards, such as the chance to transfer points to family members or provide access to lounges or priority airline seating for family, will appeal the most.
To attract Experientialists, brands should consider expanding the rewards and benefits offered in their programmes to include more international content to reflect the motivations of this segment. For example a credit card could give travellers priority access to the world’s best restaurants or the opportunity to experience local cultural events.
The affluent middle class in Singapore travel more for business than pleasure and as a result rate having more leisure time as a priority compared to the global average. When travelling on holiday, the focus is on recharging and being pampered and keeping in touch with friends and family.
Use of technology differentiates the tribes
The research shows a strong correlation between the most active users of technology and willingness to recommend and endorse brands they trust. A group of ‘technophiles’ spend over 20 hours a week of their leisure time on the Internet and are avid users of apps, social media, online shopping and streaming of digital content. Within this group, 72% are willing to make a repeat purchase from a brand they feel loyal to, 70% would recommend that brand to friends and family and 53% will choose this particular brand even if it is more expensive.
There are however clear differences in how the tribes prefer to use technology.
For example Stylish Spenders particularly value information which is personalised to them as well as the opportunity to tell others about access to exclusive destinations, hotels and restaurants via social media channels.
Smartphones, apps and digital experiences are valued by Mid-Life Modernists and offering promotions and price comparisons via mobile devices, particularly those that can benefit a whole family, is an effective way to engage with them.
Prudent Planners continue to value face-to-face interactions and retaining this as an option, rather than solely focusing on digital channels, is important for this sizeable segment.
Experientialists “live for the moment” and expect brands to regularly update digital content and offer unique experiences to maintain their interest.
Pen portraits of the four tribes
Prudent Planners are the largest tribe representing 41% of the overall sample. This group is motivated primarily by family and altruistic goals and is most prevalent in the United States and United Kingdom. Three quarters of this tribe (76%) cite spending time with family as their top indulgence and they have a higher than average interest in giving to charity (31%) and protecting the environment (30%). As the largest proportion within the affluent middle class at 41%, they are particularly valuable customers but are less motivated by material products and spend less time using technology such as smartphones or apps. Prudent Planners travel less than the other tribes but still take an average of six business and leisure trips a year. As a result, airline loyalty programmes are popular with this group, particularly if they extend benefits to the cardholder’s family. It is clear that to win over this group, companies need to think and act differently than they are today.
In contrast, Stylish Spenders seek the finer things in life. This tribe is most common in China and the United Arab Emirates and is four times more likely to buy leading brands than other affluent middle class consumers (76% compared to 22%) and drive a luxury car (70% compared to 25%). This is the group which invests the most in travelling in style across all aspects of the travel journey. Stylish Spenders are a small but very influential tribe with over half under 34 years of age (55%) and 32% earning over $190,000 per annum. Despite their high spending power, this group is the most loyal to brands they trust, participating in an average of five loyalty programmes and feeling loyal to up to eight brands.
Mid-Life Modernists stand out for their enthusiastic use of technology, with 61% citing gadgets as their biggest indulgence, 90% spending more than five hours a week using their smartphone and 45% spending over 20 a week online via a computer. Mid-Life Modernists are well represented in India and Singapore. Digital experience has a significant influence on this group and businesses which invest in this area can create powerful advocates amongst Mid-Life Modernists. This tribe is willing to endorse and promote a brand they feel loyal to via social media, with three quarters prepared to recommend a company to their friends and family; 74% more likely to make a repeat purchase from a trusted brand and 67% saying they are engaged members of loyalty programmes.
Unique, money can’t buy experiences and exclusivity rather than standard products and services motivate the Experiential tribe. This group is prevalent in China, the United Arab Emirates and the United Kingdom and are most likely to enjoy experiencing a different culture (76%) and use travel as a way of keeping in touch with friends and family (67%). Experiences such as spending on holidays (81%), dining out and luxury foods (64%) are also a priority. Engaging these customers demands flexible rewards that includes attainable travel redemption options and enriching lifestyle benefits.
MoneyDigest
Anna Agoncillo
