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Unhealthy Personal Finance Habits That You Need To Stop

According to Dictionary.com, a habit is an acquired behavior pattern that is regularly followed until it has become almost involuntary. Since habits are done over and over again, it feels safe and normal to do it. However, some habits sabotage your financial health whether you are aware of it or not.

As “old habits die hard”, it takes patience, motivation, and effort to break these money habits:

1. NOT STICKING TO LESS CREDIT CARDS

When you are using more than two credit cards, you are allowing yourself to be financially vulnerable. It is not only harder to keep track of your spending but you will also owe more than you expected. Instead, stick to at least two credit cards that have minimal annual fee and a good rebates program.

2. NOT KEEPING TRACK OF YOUR SPENDING

Many of you do not keep track of your spending as you deem it to be time-consuming or unnecessary. However, making money management an habitual regimen is essential for every working adult.

You do not to adapt an extravagant lifestyle or earn millions to start a financial plan. Simply keep track of your daily spending and examine it every month. Then, accurately plan to meet your spending and saving goals.

3. NOT PAYING YOUR CREDIT CARD DEBT

Aside from splurging your money, another unhealthy habit that you have to stop is not paying off your credit card. The bad credit decisions you made while you were younger can haunt you in the future. For example, it can affect whether or not you are able to get a loan to buy a car.

So you must stay organized to keep up with your payments. Set aside some time in the beginning of the month to make a list of the bills you are expecting to receive. Put it on your working desk or create a file for it. This way, you will not pay a bill twice even if you received it simultaneously by e-mail and postal mail.

Alternatively, you can get your payments automated. Since you are prepared for the bills earlier on, you may have available money in the bank to pay it the same day as you received it.

4. NOT INVESTING

If you have a habit of ignoring investment opportunities due to the irrational fear of losing everything then, you cannot reach your fullest potential. If you are too conservative, you can still invest and grow a small amount of money! Just seek out the help of financial advisers or financial professionals first. This way, you can sit back and watch your money grow through time.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

Infographic: What is Causing Low Oil Prices?

Remember when oil was over USD100 per barrel?

Due to a combination of demand and supply factors, prices crashed below USD30 per barrel in 2016 and is still about 45% below its 2015 peak.

What caused the oil rout, and what opportunities are there in this low oil price environment?

We’ve gathered the key facts that every investor ought to know:

Want to find out more? Watch our video which explains the oil rout in detail and read our research reports for coverage of each sector and how they are impacted by oil prices.

Basic Guide To Estate Planning In Singapore

Estate planning advice often focuses on the creation of legal documents such as wills and trusts. The choices you make about where your assets will go after you pass can affect people’s lives profoundly. This is why you must familiarize yourself about the basics of estate planning.

DEFINITION

In simpler terms, estate planning dictates how you would like to distribute your estate after your death. Your estate encompasses your properties, savings, and money. It makes sure that the people you love and the causes you care about are covered even after the inevitable event of death.

TRUSTS

As said above, estate planning primarily includes the creation of a will by appointing an executor. For individuals with higher net-worth, they may choose to create a trust in order to transfer their assets to pre-determined beneficiaries. Singapore is a prime financial hub for individuals with higher net-worth to set up their trusts. It is because the country is characterized by:

a business promoting environment,
a comprehensive legal system,
a globally competitive infrastructures,
a strategic geographic location, and
a robust set of regulations for the financial sector.

As trusts are used as a long-term tool, you must closely evaluate the pros and cons before setting one up. For instance, trusts are a viable option for vulnerable beneficiaries such as minors. However they can be costly and difficult to maintain.

TERMS

Here are the common estate planning terms that may boggle your mind at first:

Alternate Beneficiary is an individual or an organization named to receive the assets in the unlikely event that the primary beneficiaries die.
Co-Trustees are two or more people who had been named to coordinate in managing a trust’s assets.
Durable Power Of Attorney For Asset Management is a legal document that bestows a person full or limited legal authority to sign your name on your behalf in your absence. Its validity ends at death.
Gross Estate refers to the value of an estate before the debts are paid.
Will is a written document that includes the instructions for allocation of assets after one’s death.
Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, 3, & 4

2016’s Best Credit Cards For Grocery Shopping

As businesses are adopting increasingly competitive prices, grocery shopping became costlier. And if you were to use a credit card, be sure to indulge on all of its rewards by paying the bill in full each cycle. That said, here are the 2016’s Best Credit Cards For Grocery Shopping (listed in no particular order)…

1. HSBC VISA PLATINUM CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$40,000

Do you want a card that allows rebates on your daily spending? HSBC Visa Platinum Credit Card may just fill your heart’s desire. It has rebates for grocery shopping, telecom bills, petrol, and dining. Waived for 2 years, the annual fee is S$180. Get 3% cash rebates on your grocery shopping with a minimum spending of S$400/month or 5% cash rebates with a minimum spending of S$800/month.

2. OCBC PLUS! VISA CARD

Minimum Annual Income (Singaporeans/PRs): S$30,000
Minimum Annual Income (Non-Singaporeans): S$45,000

OCBC Plus! Visa Credit Card will give you a whopping 5% off on all the items at FairPrice and FairPrice Online. What’s more? You can save up to 5% off at Unity, 3% off at Popular bookstore, and 18.3% off at Esso fuel stations. All you have to do is pay an annual fee of S$80 – waived for the first year!

3. UOB DELIGHT CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$40,000

Does 10% rebates at groceries and pharmacies sound tempting? Then, UOB Delight Credit Card is perfect for you. Enjoy up to 10% off house brands at Giant, Cold Storage, and Guardian. For the rest of the products, you can get 3% or 8% rebate at Cold Storage, Market Place, Jasons, Giant and Guardian (T&Cs apply). To qualify for this, you must pay S$85.60 annually.

Buying in bulk? Get free home delivery at selected Giant stores with a minimum spending of S$150 in a single receipt.

4. CITIBANK SMRT PLATINUM VISA CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$42,000

As the name implies, Citibank SMRT Platinum Visa Credit Card will give you good savings for your public transportation. Surprisingly, it is also good for grocery shopping. Get up to 7% savings on Fairprice, Sheng Shiong, and Giant. Just pay an annual fee of S$161.50, waived for 2 years.

5. CITIBANK DIVIDEND CARD

Minimum Annual Income (Singaporeans): S$30,000
Minimum Annual Income (Non-Singaporeans): S$42,000

Looking for a credit card that does not limit your grocery shopping? Look no more as Citibank DIVIDEND Card gives you up to 8% cashback at all supermarkets nationwide (e.g., Cold Storage, Jasons, Sheng Shiong, and more)! Aside from this, you shall receive 0.25% cashback on your other retail spending. The basic card annual fee is S$192.60.

Image Credits: www.citibank.com.sg

4 Retirement Myths That Singaporeans Should Scrap

A number of Singaporeans who are planning for their retirement tend to rely on myths without even realizing it! It can happen to you too. As believing in these retirement myths can be detrimental to your financial future, it is important to scrap these myths.

MYTH #1: THERE IS A CERTAIN PERCENTAGE TO QUANTIFY YOUR RETIREMENT FUND

Some financial gurus have set a rule of thumb regarding the percentage of income you need for your retirement. According to them, you need to have 80% of your current salary in retirement. This is utterly exaggerated! The actual amount of your retirement fund depends on your pre-retirement and post-retirement lifestyle choices.

For instance, if you choose to travel frequently during the early months of retirement, you will need to spend more. However, if you choose to live “kampong-style” for the rest of your life, you will spend less. The amount of retirement fund you need depends on what you want to do and how you want to live. It does not rely on a magical percentage!

MYTH #2: YOUR CPF SAVINGS IS ENOUGH

Contrary to the popular myth, your Central Provident Fund (CPF) savings may not be enough to sustain the lifestyle you desire during retirement. Keep in mind that your CPF savings depends on how much you earn during your working years. If your income is relatively low throughout the years then you can expect to receive lesser payouts than your “higher earning” friends. Thus, your CPF savings may not be enough. Also, if you exhaust your account earlier on to pay for your HDB flat then you shall expect to receive lesser payouts than those who bought flats within their “means”.

MYTH #3: RETIREMENT ONLY HAPPENS AT AGE 62

Do you know that some people retire as early as 30? Believing that 62 is the magical retirement age can harm your finances. If you limit yourself to 62 then you may procrastinate on growing your retirement fund, you may ignore the knowledge of bonds and stocks, and you may panic at the last-minute. Retirement actually happens when you have achieved financial freedom. Do not limit yourself to a magical number and regret planning too late.

MYTH #4: MY CHILDREN WILL SUPPORT ME IN THE LONG-RUN

According to the law, your adult child has the responsibility to support you in old age. Protected by the Maintenance of Parents Act, senior citizens who are unable to sustain their lifestyle can apply to the court in order for their children to provide a monthly allowance.

Here are the exact statements from the Maintenance of Parents Act:

“Any person domiciled and resident in Singapore who is of or above 60 years of age and who is unable to maintain himself adequately (referred to in this section as the parent) may apply to the Tribunal for an order that one or more of his children pay him a monthly allowance or any other periodical payment or a lump sum for his maintenance.”

However, the court will consider several factors including if your child is able to afford it. If your child has started a family of his or her own, you can only hope that your child is financially stable by then!

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1 & 2

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