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Why Budgeting Is Beneficial To Your Financial Health

Budgeting is a quantitative plan to manage your money. It has various benefits such as tracking your cash flow, controlling your expenses, and reaching your goals!

Be motivated to start budgeting by reading through its financial advantages:

1. TRACKS YOUR CASH FLOW

With budgeting, you can easily track how much you are earning and how much you are spending. It prevents you from wondering where your cash actually goes. Being aware of your cash flow enables you to know what you can realistically afford. With this purchasing power comes great responsibility, which is why you must aligh your cash flow to your financial goals.

2. HELPS REACH YOUR GOALS

A friend of mine was at a Tokyo flea market and she saw this beautiful Beige suede boots and tried it on. Her husband warned her that she probably would not wear it because she always goes for comfortable ballerina flats. She did not listen! She ended up donating the underused boots. This unnecessary item is an example of a purchase that is not in-lined with one’s financial goals.

If you are disorganized with your finances, there is tendency for you to spend your cash on unnecessary products and services. Budgeting helps you to reach and focus on your financial goals. It works especially if you have limited resources or live from paycheck to paycheck.

3. CONTROLS YOUR EXPENSES

When your budget is working efficiently, you are able to recognize how much you are spending in a month or a week. It requires you to refer to your existing bank statements and outgoings. This means that you will be able to see whether there are some expenses that need to be altered.

If you need to cut down on your spending, you can create a proper budget to make this financial activity easier.

4. IDENTIFIES POTENTIAL ISSUES

Aside from identifying the unnecessary expenses that you need to reduce or eliminate, budgeting enables you to identify the potential problems that can affect your financial health. Budgeting gives you the “bird’s eye view” of your current situation and enables you to make adjustments before issues appear.

5. ALLOWS YOU TO SAVE EXTRA MONEY

Budgeting goes beyond helping you with identifying and eliminating non-essential spending as it prevents you from penalties or late fees. By organizing your finances and allocating budget before the bill arrives, you are able pay your commitments on time. This will create more room for savings.

Not to mention, budgeting opens opportunities for investment. Passive income may grow your wealth even more.

Image Credits: pixabay.com

Despite all these benefits, budgeting has one huge drawback. It needs conscious effort for it to work! Are you ready to commit to a healthier financial life?

Sources: 1,2, & 3

POSB offers the Save-As-You-Earn (SAYE) programme to everyone, providing a bonus interest rate of 2% per annum (From 3 Aug 16)

Programme from 1970s makes a comeback, providing a bonus interest rate of 2% p.a. on customers’ monthly savings

In the latest media release, POSB announced today (3 Aug) that the iconic POSB Save-As-You-Earn (SAYE) programme will be reintroduced.

First launched in 1974, the programme was introduced to encourage Singaporeans to cultivate a habit of setting aside a portion of their salary as savings.

In June this year, POSB offered this programme exclusively to full-time national servicemen (NSFs) to recognise their contribution towards national building under the POSB “Save As You Serve” (SAYS) programme. This special scheme allows full-time national servicemen, or NSFs, to enjoy a bonus interest rate of 2 per cent per annum.

In the lead up to the nation’s 51st birthday, POSB, Singapore’s oldest and most loved bank, announced that they will expand the savings programme to include all Singapore customers, effectively bringing back the POSB SAYE.

To participate, customers simply need to have a DBS/POSB savings account where their monthly salary is credited to. They can then sign up for a POSB SAYE account where a stipulated amount (between SGD 50 to SGD 3,000) is transferred every month from their DBS/POSB salary-crediting account. The bank will then provide a bonus interest rate of 2% per annum on their monthly contributions in their POSB SAYE account. For more information or to sign up for an account, visit www.posb.com.sg/saye

“It was really convenient for me because our salaries were credited into POSB as well so it was very natural to open POSB SAYE which auto-deducted from my salary every month. My pay was very low then so without the scheme, it would be very easy to spend everything when it comes in!” – Jasmine Yeo, 44, POSB customer

POSB is also marking National Day this year with the launch of the POSB Gallery at the National Library Building. The POSB Gallery showcases how POSB has grown with Singaporeans through the years since its founding in 1877. Featuring precious artefacts from the past, ranging from old POSB passbooks from colonial times to the iconic POSB Lucky Draw Drum used in the 1970s, the gallery tells how POSB mobilised an entire national savings movement and played a key role in the development of Singapore. The bank also hopes the gallery will inspire Singaporeans to share their own POSB memorabilia to add towards its collection, which will go towards a larger exhibition for its 140th anniversary next year. More information on the POSB Gallery and how to contribute POSB memorabilia is available at www.posb.com.sg/posbgallery.

Finally, to thank Singapore customers for their support and to celebrate everything Singaporean, POSB will waive PAssion membership fees for Singapore’s fastest-growing card – the PAssion POSB Debit Card – for five years. On National Day, POSB will also offer 5,000 1-for-1 tickets to selected local attractions, as its gift to the nation. Customers can sign up for this card via DBS/POSB iBanking or visit any DBS/POSB branch for instant issuance.

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Images: POSB Singapore

What You Need to Know About Starting a Business in Singapore

When it comes to things that many people believe adults must achieve at a certain point in their lives, one of those things happens to be the ability to put up their very own business and earn a good amount of money each month successfully. While not everybody aspires to be an up and coming entrepreneur, it is hard to deny that this profession has its very own set of alluring benefits, such as the prestige that comes with being the owner of your very own company as well as the fact that you could make quite a killing in terms of profits if your business manages to take off. The thing is that businesses are not easy to start up. In fact, they can be downright difficult, if not seem nearly impossible to pull off. But with the right know-how, you should be able to overcome all the odds and start a very successful business. In this article, we will give you a lot of handy tips so that you can make better decisions when it comes to starting your very own company in this very prosperous country.

Deciding What Industry to Break Into

Of course, as with any venture, you will need to consider what type of product or service you will be offering your customers. You cannot offer it all, not unless you were a superhuman businessperson who could flit from one category to another. It would be incredibly tough to try and figure out a marketing strategy for every single type of target market that you wanted to reach and sell to. If you are more creatively inclined, you might want to start an ad agency or a creative studio that provides great visual content to a lot of other businesses by using a business-to-business (otherwise known as B2B) strategy. One of the problems you might have to overcome is the fact that a lot of businesses have started outsourcing to freelancers because they often charge less than a huge ad agency would for a marketing campaign.

You could also just go into the food industry by putting up your very own restaurant and serving the recipes that only you have come up with. However, that would come with its own set of problems, too, such as deciding how much of each ingredient you should buy each week so that you are sure that you are providing your customers fresh components each time you serve them a meal. Having tons of food expire on you before you could even use them could put your bank account in the red much faster than you expected.

You can take into consideration a lot of recent property news from Singapore while you browse for good locations on the super useful sight called Property Singapore. Which industries seem to be booming right now? What are the forecasts by the experts when it comes to the field that you want to try building a career and a name in? What are the things you need to consider for the specific field that you want to build the business in?

Finding the Right Business Space

Whether you need to put up an office or want to build a retail space from scratch, you have to consider a ton of things, including how big the shop should be, as well as where you should put it. If you are just trying to start an office and you do not really need to invite clients over that much, then you can probably get away with starting your office in a location that is not as busy or expensive. However, you will have to contend with the fact that you might have a hard time hiring people if your office is too out of the way for a lot of people who have the skills that you are looking for. On the other hand, if you would like to put up a small store that features all of the products that you would like to offer, then you might want to choose an area that is very close to your target demographic, according to an article by Entrepreneur. Of course, the fact that you are considering Singapore to be your base operations can offer you a ton of benefits, according to the Ministry of Manpower. The country has many free trade agreements that might work to your company’s advantage, and they have laws that can protect your original ideas, too.

Starting a business can be tough, but it does not have to be impossible. As long as you make wise decisions, you should be able to break into whatever type of industry you want, and be successful while you are at it, too. Keep these tips in mind and you will surely make waves across the country with your offerings.

Financial Moves That Recently Divorced Men Shall Take

Much like any other major life transitions, you shall seek support if you and your spouse recently part ways. This may seem like a simple task for some but it can be really difficult for the “macho men” who want to keep their own matters private. As David Blaylock, a LearnVest Planning Services Certified Financial Planner, once said: “Divorce is difficult for everyone involved, but it can be especially challenging for men who don’t typically express their feelings.”

Lucky for you, I collated some of the best financial moves that a person in your challenging situation shall take.

1. CREATE A NEW BUDGET

Recently divorced men usually think about the immediate financial responsibilities such as payment for divorce lawyers and monthly child maintenance. However, they forget that they are basically single again!

With your circumstance, it is best to remind yourself that you are starting a fresh chapter in your life. You have to think about your family expenses (e.g., child’s school fees) as well as your daily expenses (e.g., grocery costs). This is why it is important to create a post-divorce budget that incorporates these two types of expenses.

2. DIVIDE YOUR BANK ACCOUNTS EQUALLY

Allowing your vengeful ex-lover to withdraw all your money is the worst thing that can happen when you have joint bank accounts. Avoid this by honoring your prenuptial agreement. Alternatively, you can discuss the matter as two mature adults.

Given that your former spouse is trustworthy and understanding, you can talk about dividing your joint bank accounts in half. Dividing your wealth equally will entail that you have the welfare of your family and children in mind. If you are the breadwinner in your previous household, it is ideal to make financial arrangements so that the monthly bills are covered.

Image Credits: www.pixabay.com

3. REDUCE YOUR PERSONAL EXPENSES

It can be more expensive if you are living in two separate households unlike before. You may have to pay for two mortgages, two utility bills, and so on. This is why you must cut down your expenses everyday for at least a week and realize your spending habits. Eliminate the areas which are unnecessary such as cable television.

4. AVOID COSTLY IMPULSIVE BEHAVIORS

Sure, binging on alcohol can help you drown the sorrows of yesterday but your problems will not disappear with every bottle you chug! It is not only an unhealthy way to move on but it is also a costly behavior in the long run.

Avoid self-destructive behaviors such as spending too much money on sex, drugs, and drinking. Evidence of said behaviors will only strengthen the case of the other camp.

5. DECIDE ON WHO KEEPS THE RINGS

Since Singapore is a cultural melting pot, we have different beliefs and traditions when it comes to wedding rings. Most people are accustomed to return the gifts that their previous lovers had purchased for them. However, if the ring was an heirloom from your former spouse’s family then you must let her keep it.

Image Credits: www.pixabay.com

If she refuses to give back the rings that you purchased then, be the bigger person and move on! They are merely Earthly possessions after all.

Sources: 1 & 2

What Stock Should I Buy?

Warren Buffett once said, “it is not necessary to do extraordinary things to get extraordinary results.” When it comes to finding stocks worth investing in, we simply need to ask the right questions.

We share 3 of these questions with you, and 3 financial ratios that can help answer your questions.

What if you don’t have a stock in mind? After all, there are over 9,000 stocks on the Singapore Exchange (SGX), New York Stock Exchange (NYSE), NASDAQ and Hong Kong Stock Exchange (HKex) alone and brokers like us offer access to many more markets including Thailand, China, Indonesia, Malaysia and the Philippines.

There are tools out there that can help you identify stocks using ratios like the ones above. Click here to learn how stock screeners can help you identify trading opportunities.

Images: POSB Singapore

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