Read and understand materials about self-empowerment, investment, and money management. Here are four books to get you started with:
“The War of Art” by Steven Pressfield
“Why Stocks Go Up and Down” by William Pike
“The Intelligent Investor” by Benjamin Graham
“Turning Pro” by Steven Pressfield
2. CONNECT AND DISCONNECT MORE.
Networking is very important especially if you will be dabbling in the field of business. Meeting people with shared interests will not only bring a life of fun but also a life of opportunities. Your network may refer you to your first job or even challenge you to be a business partner. On the other hand, you must disconnect with the distractions such as excessive amounts of alcohol or other vices that are harmful to your body.
IN YOUR 30s
3. BEGIN NOW.
The sooner you start, the more money you part with. In order to retire on 80% of an income, a 30-year-old must save 10% of his or her salary.
4. INVEST IN STOCKS.
Even if the economy suffers badly, your account will have time to recover. For instance, The Fidelity Select Software and Computer fund has yielded more than 11% a year since 1996. Keep it basic with a low-cost index fund.
IN YOUR 40s
5. PUT VALUE TO YOURSELF.
You may want to put your retirement savings into hold because of your child’s college fund. But, keep in mind that you cannot load for retirement yet you can loan for college fees or even get a scholarship.
6. SEEK THE EXPERT’S ADVICE.
To reach the maximum level of your retirement savings, sit down with a financial planner. Create a financial goal together and learn how to save more, spend wisely, and invest to reach it.
IN YOUR 50s
7. STAY WITH STOCKS.
You may increase your percentage of savings by investing in bonds but do not totally quit on stocks. To battle inflation, you must lean on the stocks’ higher growth potential.
When considering the topic of ‘Investment’, we almost always think about Equities, Bonds or Forex first. We hear questions like “What stock is good?” or “How should I begin investing?” The growing interest in investment here in Singapore is definitely growing and we can begin to see a new generation of investors who are more daring and knowledgeable than their parents. We all have heard of stories about how other people’s parents or even our parents had their hands burnt in the past due to buying stocks or mutual funds. This has left a bad impression on many of the kids of my generation and have grown to become interested, but afraid of the risk of losing their hard-earned money as well.
Every once in awhile, we hear people talking about how this stock is going to skyrocket or that stock is going the be the next big thing. Are these truly the investments worth chasing after, or is there an even bigger and more important investment that you can and might not have begun investing in? There are many proven cases even today that those who invest in this boasts of superior returns and is still experiencing compounded growth. I hope you’re interested in what this investment is, because you should. This investment has no barriers to entry, does not cost beyond what you can afford(possibly free) and can make you incredibly rich (both in monetary and non-monetary terms). However, this investment requires a lot of time, effort, and determination.
This investment is you.
Investment in yourself is the best and the most important investment everyone should make. Cliché as it might sound, it’s one investment that many people have overlooked. The younger you begin, the more time you have to compound this investment. The rewards can come in many form, depending on what you seek from this investment – Money, Happiness, Relationships, etc. You name it, you can have it!
You may not know where to begin, as it usually is the case. So here’s a simple step-by-step guide to get you started on your investment.
Step 1: Do a self-assessment of what you love doing or want to achieve 5-10 years down the road. This would create a purpose and a direction to work towards to in your life.
Step 2: Do an inventory check of what you have and what you are missing in your pursuit towards achieving an even higher returns on your investment. Knowing what you have (Tangible and intangible) and what you don’t have allows you to work more efficiently and purposefully since you can leverage on what you have and gather what you don’t have in your free time.
Step 3: Start off with baby steps. The idea is to keep things manageable instead of taking a leap of faith. Create habits that lasts rather than simply to achieve something at the spur of the moment and allow the flame to die off after minor achievements. This could range from borrowing a book from the library once a month to taking up classes on a regular basis.
Step 4: Along the way, find a higher purpose. Sometimes we are simply not focused enough to have the fuel to keep chasing after that one dream. While it is good to be focused, it can get tiresome at times to keep at it. When you continually find a higher purpose, you will find it more enjoyable to continue the journey! This could range from teaching others what you have learnt to having the current purpose fit into an even bigger purpose! The key to it is to make slight deviations instead of totally pursuing something new. It would have been wasted effort.
I hope this article has helped you to realise that the biggest investment of your lifetime is waiting for you to invest in it. Stop looking elsewhere because it begins with you. If you have time on your side, even better! Allow time to compound the knowledge and skills that you have gathered.
Some practical tips:
If you are an investor in the stock market, you would have experienced times when you are already fully invested in the market and there seem to be nothing else you can do except to wait. It’s easy to convince yourself that it is time to take a back seat and relax. However, I urge that you keep looking out for the next investment opportunity and sharpen your skills and knowledge by reading! Books are a great source of knowledge and inspiration for trade ideas. Just don’t stop investing in yourself and you’ll see the compounded fruits of labour in years to come. Make it a point that when others have yet to begin, you’re already leaps and bounds ahead of them by the time they begin!
Each year, hundreds of tax deductions and credits may go unclaimed due to the lack of taxing knowledge. To prevent that, here are 5 Tax Deductibles You Need To Know based on the Inland Revenue Authority of Singapore.
FOR THE EMPLOYEE
1. EMPLOYMENT EXPENSES
A good news for all employees—employment expenses can be claimed as long as they satisfy these three conditions:
a. Expenses are sustained when carrying out official duties.
b. Expenses are not reimbursed by the employer.
c. Expenses are not private in nature.
For instance, traveling expenses on public transportation that are not reimbursed by the company may be deducted from the tax. Also, entertainment expenses that occurred while pleasing the clients may be deducted from the tax.
FOR THE EMPLOYER
2. STARTUP TAX EXEMPTION (SUTE)
A start-up company, have enough financial worries in your plate. What should you do then?
Take on the SUTE. Suited by SUTE, a start-up company that meets the required conditions can claim for full tax exemption on the first S$100, 000 of normal chargeable income for each of its first three consecutive years.
3. CORPORATE TAX INCOME REBATE (CTIR)
Since 2013, all Singapore companies are eligible to take on the CTIR. No! There is no catch. This scheme aims to help companies to cope with the rising costs in businesses. Suited by CTIR, companies will receive 30% rebate or up to S$30, 000 off the tax bill from 2013-2015.
OTHERS
4. ANGEL INVESTORS TAX DEDUCTION SCHEME
Be an angel, invest in start-up companies in Singapore to receive a huge tax benefit from the Angel Investors Tax Deduction Scheme.
Enjoy 50% tax deduction on the investment costs at the end of a two-year holding period. This is up to S$500, 000 of investments in each Year of Assessment. Investments made from March 1, 2010 until March 31, 2015 are eligible for this scheme.
5. DONATIONS
Want to double your tax deduction? Be generous and donate in all forms. The following types of donations will qualify you for a double tax deduction (twice the amount of the donation):
a. Cash Donations
b. Shares Donations
c. Computer Donations
d. Artefact Donations
e. Public Art Tax Incentive Scheme
f. Land and Building Donations
For instance, a donation to the Singapore museums that have obtained the Approved Museum Status with the National Heritage Board is tax deductible.
Image Credits: TaxCredits.net via Flickr
Equipped with these tax deduction knowledge, prepare to be impressed with your managed taxes now!
Before anything else, reevaluate your saving objectives. Ask yourself why you want to save and what are your priorities. This is to ensure that you know which path to take to reach your financial goals.
Then, review your income and expenses and create an allocation plan. Move the excess funds you uncover to your bank account (preferably with the highest interest rate) to help facilitate discipline against impulsive spending.
2. SAVE ON YOUR VACATION
Follow the airline’s social media page to get updates of promos, free upgrades, and discounted fares. This will help you save money by getting the best airfare deal. You may also use your frequent flyer miles to save for your next vacation.
Another neat trick is to offer to purchase for others using your frequent flyer miles credit card and reimburse the money right away. For instance, if you are going to Bali with your friends, offer to book their flights too. This way you’ll earn more rewards or rebates than you could on your own, without spending extra money.
Use our hotel search engine that searches thousands of travel sites and aggregators to book the best price guaranteed hotels.
3. SAVE ON GROCERY SHOPPING
Use savvy shopping strategies in the supermarket such as using a coupon.
Image Credits: Chris Potter via Flickr
Also, you must beware of the marketing tricks they use such as “the numbers game” wherein they will put an irrational price of “$3.99 or $3.96”(instead of $4) to make you think that you saved more money by scoring a better deal. Read more in a Money Digest article entitled “Watch Out for these 6 Grocery Store Tricks!”.
4. SAVE CASH AROUND THE HOUSE
Reduce your electric and water bills by conserving water and switching off the lights when not in use. Use money-saving household cleaning hacks that enable you to make your own cleaning products.
Lastly, use the multi-purpose household items instead of specialty products since you can use it in many ways than one. For instance, you may use vinegar to cook and to remove blood stains on your sheets or use a toothpaste to clean your teeth and treat your acne.
Often enough, we find ourselves getting caught up with unpaid bills and empty wallets in the blink of an eye. We ask ourselves, “Where did all the money go?” We scramble to track back the cash outflow from our bank statements, collating the many receipts we could find stuffed in our wallets, and rack our brains to think back on where the majority of our money was splurged to.
The next moment, we spot something we desire and spend the money on impulse even with the knowledge of being short on cash at the back of your minds. And before we know it, we become cash-strapped.
So the question boils down to how do you think you can keep track of your personal finances and manage your spending well without feeling guilty or broke? We share some tips with you on ways to monitor your finances well.
(Source: moneypincher)
1. Start by Tracking Your Expenses
By means of a plain piece of paper or a computer spreadsheet, get the ball rolling by creating a Personal Projected Budget for each month of the year. Try searching online for free printable Budget Templates to obtain user-friendly and fuss-free spreadsheets.
We recommend that before you even begin jotting down a budget from scratch through filling in the areas with a guessed estimation, track down your current expenses beforehand to get a better overview of your spending. Record your every purchase down for a period of a month through as many forms of spending you can gather, such as your receipts and bank statements.
For example, you might have jotted down a reasonable sum of $150 for a budget hotel staycation. However, after doing a bit of online analysis, you might have realized that you require at least $250 for your preferred staycation. Do your research!
(Source: psoda)
2. Create a Budget
Now, you can get started with creating a budget you know you can stick to. You can further break down your list of expenses into sub-categories such as Transportation, Daily Necessities, Phone Bills, Insurance, et cetera and have a better overview of different areas your spending goes to. Start off aiming for short-term goals, before saving for your long-term goals such as retirement.
Begin to monitor and track your spending closely once you’ve decided to stick to your newly implemented Personal Projected Budget. Spend a reasonable amount of effort working on your target while resisting splurging on impulse. If you want something really badly, jot it down on your finances tracking list and work towards saving for the item.
For a more sophisticated approach, you can always track your expenses through the means of a software. Here are a few platforms that our team recommend. Of course, you can always choose a software you prefer and feel more comfortable with.
a) Mint
Mint is a free, web-based personal finance tool that allows users to plug in to their banks, investments and other financial accounts for an overview of your current financial position. We love their graphics that are not just easy to organize but also pleasing to the users’ eyes. Money saving just became a whole lot easier and more visually attractive to everyone!
b) You Need A Budget
Get off the financial roller coaster with an award-winning budget interface proudly presented by You Need A Budget. Although you need to pay for the usage of this software, it comes free for a month for anyone interested to try to see its suitability and whether it helps apply in your daily life.
c) BillMinder
Don’t worry about fumbling through your inbox for monthly statements now, because BillMinder helps organize statements into simple calendars to keep track of all due dates. It comes with charts and reports, notifications and more features that comes handy to users. Currently, the software doesn’t offer a free version, but you might wish to invest in a good software to save up better in the long run.
To perfect your Personal Projected Budget, make adjustments whenever necessary. For example, if a particular spending goal is easy to meet, try cutting it down further and saving a bigger sum or shifting that amount over to another category which requires setting a reasonably higher budget. To sum it all up, it’s all about setting your budget right and making effort to stick to your goals. We also recommend downloading the finance apps on your electronic devices to track your expenditure on-the-go!
