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It’s time to consider having a money date

Even the strongest couples can experience tension when the topic of money presents itself. Money can bring hidden differences in opinions, priorities, wants, or needs to the surface. Though in all honesty, it can be pretty uncomfortable to talk about it with your partner.

However, avoiding the topic altogether will not solve any problems. Money touches every aspect of our lives since we need it for our daily living. We also require cash for well-deserved luxuries such as staycations or cruises.

It’s crucial to allocate the right amount of money towards expenses, savings, and splurges to thrive. And in a committed relationship, we cannot do it alone. That is why what you might need is a money date.

What is a money date?

Simply put, it is a date with money as the main highlight. Yes, we know it’s tough even to start. But Kathy Entwistle, the founder of Entwistle Partners, a financial specialist team, says that it gets more accessible and comfortable with every little step.

Having a constructive conversation with your partner about your monetary resources and financial goals can bring both of you to better wealth management and freedom in the future.

One of the best ways to have this conversation is to set up a time with your partner, just like how you would do for a typical date invitation. A scheduled time and safe space where you and your partner can talk openly and honestly about money issues is the first vital step to take.

When should we arrange for a money date?

You and your partner should begin having money dates when you are ready to build a future together or you’re moving towards a committed relationship.

However, even if you’re already married, it’s not too late to start. You know the famous phrase, right? Better late than never. Regular money dates are essential, so you can adapt to changing financial circumstances and chart your progress towards your current goals.

Why should you consider having one?

a white mug with the word 'conversations' printed

Image Credits: unsplash.com

Mentally, don’t you agree that it’s easier to look forward to a date than a discussion? Scheduling a date ahead of time gives you and your partner time to reflect, get into the necessary mindset, and prepare yourself for potentially problematic money issues surfacing in your conversations.

A money date is also an apt time to gear yourself to discuss your values, goals, plans, and existing resources. Being willing to discuss any finance-related problems freely can help you and your significant other feel less stressed about the topic of money, in general, going forward.

Is there an ideal spot?

Unlike a traditional date, a money date requires an atmosphere conducive for serious discussions. It should be set at a time and a place where you and your partner can be comfortable and enjoy some privacy at the same time.

With that said, the latest cafe, rooftop bar, or restaurant may not be an ideal environment for a meaningful talk surrounding money. Your home can be the right place, and you could even choose to have your discussion over a glass of wine or a cup of tea to set the mood right.

If you have children at home, find a way to get privacy by considering dropping them off at your parents’ house for a few hours.

How do we kickstart the conversation?

Entwistle recommends that we begin with the bigger picture. These questions could guide both of you to find out what matters to you in life and the role of money in it:

What are our priorities?
Is it taking care of our parents?
What’s important to you when it comes to money?
Is it that you can provide for the family and put our children through university?
Does it have to do with security? Or is it knowing that you have enough to “get by”?

If your priority is to pay off credit card debts, you may want to examine your debts and decide how to approach them systematically. On the other hand, should your partner’s aim be caring for his ageing parents, both of you may wish to set aside an agreed sum of money for this purpose.

Or it could also be that both of you have started thinking about saving up for retirement. If that’s the case, then the conversation could revolve around minimising unnecessary expenses and maximising saving opportunities.

What about financial stresses?

Image Credits: unsplash.com

Having a negative net worth or financial struggles can be upsetting. This emotional distress can spill over into your money date. Thus, it is vital to avoid getting into an overly aggressive discussion on your first money date.

As you and your partner gradually move towards subsequent money dates, you know it’s probably a good time to focus on more specific details. This could surface one’s irrational fear about a particular area. From there, start digging deeper and decide if there’s a solution to work towards.

Final thoughts

While it may feel uncomfortable to talk about money with your partner at first, it’s ultimately an essential thing to have. In fact, you might even surprise yourself by how easy it is to get into the flow of things. If you’ve yet to start, we urge you to consider taking that first step. It’s not as scary as you think it to be.

Read this if you find yourself always buying “crap”

It’s easy to be enticed with non-stop ongoing promotions online.

Thanks to the pandemic, more companies are also urgently shifting from brick and mortar to embracing digital means to sustain their business. This means customers like us can view a product instantly and make a purchase within a few taps or clicks.

But this also means it’s now easier to shop and buy “crap”. Please don’t get us wrong when we say “crap”. We’re not necessarily referring to a product as worthless but more towards whether it’s indispensable.

If you find yourself constantly buying “crap”, especially since it’s hard to say no to that dollar deal, read on.

#1: Stocktake your junk

Unless you are already living a minimalist lifestyle, chances are you have plenty of surplus stuff lying around at home or in your car boot.

The first step to help you stop buying items you don’t need is to do a stocktake on your current junk. A detailed record of your household items will help you realise how many things you already own.

Chances are, you will also find lost and misplaced items long forgotten over the years. Take these items and set them aside. Before donating, discarding, or reusing, look at it and do a quick sum-up of the costs. This exercise will reveal the potential savings you would have had if not for the purchase of those miscellaneous products.

And as a bonus, take it as an opportunity to declutter.

#2: Set a financial goal

Image Credits: moneycrashers.com

Financial goals are important because they help us make informed decisions with our money. Perhaps you want to save for retirement, get a new car, or take a luxury staycation soon.

Figure out how much money you need for your goal and consider opening a savings account to fund it. Next time you are at the shops and thinking of spending S$10 on something random (just because it’s on discount), consider putting that money in your savings instead.

You will be amazed at how quickly all those seemingly small purchases add up.

#3: Engage in an inexpensive hobby or activity

Shopping is a fun hobby, but it is an expensive one. Consider finding another activity to replace that.

Instead of going to the shopping centre, logging in to your favourite shopping app, or ordering stuff you don’t need during a time sale, do something else. Maybe you could go for a walk, read a book, or develop an artistic interest.

There are many engaging and inexpensive hobbies, such as bird watching or sketching, that can be very rewarding. Having an activity to fill your time can help you stop mindlessly carting out online. This could translate to more savings in the long run!

#4: Implement a 24-hour pause strategy

Image Credits: cobizmag.com

Even if you find a replacement hobby to keep you from shopping too much, you will undoubtedly find yourself back at the shops from time to time.

To prevent yourself from getting into the shopping routine, implement a 24-hour pause strategy. Before you buy that new phone cover or that shiny baking tray, put it on hold and think it over for 24 hours.

If you think it would significantly add value to your life or you would be using it for a long time to come, buy it. However, if you realise it’s possible to live without it until the current item you own wears out, skip it.

#5: Unsubscribe from marketing emails

Even the strongest among us can succumb to the temptations of promotional emails. New products, attractive coupon codes, and special deals are what marketers use to get inside our heads and tempt us to spend that money.

One of the most effective ways to avoid this temptation is to get it out of sight. There is little to no value in these messages if you’re on the road to stop buying “crap”. Unsubscribing from such marketing emails will help you regain control of both your inbox and your wallet.

#6: Create firm budget limits

Image Credits: Vulcan Post

It would be unrealistic to say, “I am going to stop shopping”, and then hope it would work the next moment miraculously.

While we’ve worked hard to earn money, and it’s perfectly alright to spend it, the idea here is to spend less of it on “crap” that we don’t genuinely have a use for. The best way to attain this goal is to set a fixed budget in debit or cash.

Giving yourself an allowance in debit or cash helps you exercise more control over overspending. Spending debit or cash feels different than spending money on a credit card or through an app. Having to count and part with physical bills in exchange for an object helps us observe the trade differently now that we see the money disappearing from our possession.

#7: Pen down specific goals

As we come to a close, just saying “I am going to stop buying items I don’t need” may not work as you intend it to be. You want to pen down a more specific and measurable goal that you can attain.

For example, “I will only shop online on weekends,” or “I will only hit the stores on Saturdays with a cash budget of S$50 with me”. Preparing yourself with precise and realistic goals like these will aid you in reducing your excessive spending and break the chain of buying unnecessary “crap”.

Read these 10 well-rated books if you want to be a millionaire

So, you want to be a millionaire? Sure! But first things first, make sure you’re not spending too much money way over your budget.

For folks looking to attain financial freedom, we recently wrote on some challenges to save more money which might be of powerful assistance. Some concepts, like the 1% trial or 52-week challenge, can be new ideas to try out.

Meanwhile, for today’s article, we will look into 10 well-rated books to read if you want to be a millionaire. Let’s roll with the titles!

#1: “The Simple Path to Wealth” by JL Collins

Most of us want to become millionaires. But the questions we may not know how to answer can include:

How do I get started with investing?
Why is debt a must-avoid, and what should I do if I’m heavily indebted?
Is it possible to use my money wisely and not gamble it away on fluctuating stocks?

Simple, engaging, and informative, this book delivers solid advice on investments, the stock market, and real-life implementation tips.

#2: “The Millionaire Fastlane” by MJ DeMarco

“The Millionaire Fastlane” is a straightforward guide to wealth generation written by a self-made entrepreneur who has learned from both his successes and his failures.

A fan of non-conservative approaches, DeMarco explores the theory that success is tied to effort. You are the vehicle, and the fuel, engine, etc., can be tailored to your specific route. The author’s advice is concise and valuable for those seeking to grow their wealth via the expressway.

#3: “The Bogleheads’ Guide to Investing” by Taylor Larimore, Michael LeBoeuf, and Mel Lindauer

Do you know what Bogleheads are? It’s a term referring to investing enthusiasts who hold fast to the investment advice of John Bogle, the founder of Vanguard and an investor advocate.

This guidebook provides the reader with straightforward investing and financial advice designed to help the average person profit from long-term wealth creation. This book also advises readers on how to survive economic downturns and keep their footing rooted.

#4: “The Richest Man in Babylon” by George S. Clason

More a parable than a textbook, Clason’s work revolves around the subject of thrifting, financial planning, and personal wealth.

The lessons presented in this bestseller are timeless and easy to follow. You will learn how to save, spend less than you earn, and make money earn more money through seven simple rules. If you want to know, start flipping.

#5: “The Intelligent Investor” by Benjamin Graham

Known as the father of value investing, Benjamin Graham was a well-known economist and professor whose students include legends such as Warren Buffet.

Readers of “The Intelligent Investor” will focus on learning the fundamentals of value investing. Graham teaches us how to guard our investments and make them successful.

If you want to avoid common investment pitfalls like channelling too much energy to the changing sentiments of the market, this book will do the trick. Updated by famous financial journalist Jason Zweig, this edition will keep Graham’s lessons appropriate for modern demands.

A must-read for any aspiring millionaire!

#6: “How to Win Friends and Influence People” by Dale Carnegie

What does winning friends and influencing people have to do with getting rich? Plenty!

To achieve success, one must learn to work with others. They could be your friends and family members, investment advisers, business partners, or even salespeople.

Nobody who aspires to become a millionaire can afford to ignore Carnegie’s advice on how to win people over with your way of thinking. The tips conveyed in this book will help you think in fresh ways and cultivate relationships that lead to unlocking your maximum potential.

#7: “Conscious Business” by Fred Kofman

The author explains the term conscious business as the practice of expressing your passion and values through your work.

Rather than blindly chasing after profits, the conscious business person leverages their values into helping business stakeholders attain happiness.

Kofman explains that business people who approach their work with integrity, responsibility, and genuine leadership are more likely to achieve personal and financial success beyond the workplace.

#8: “Secrets of the Millionaire Mind” by T. Harv Eker

“Secrets of the Millionaire Mind” concentrates on identifying internal traits that can lead to financial success.

Eker does that by identifying one’s money and success blueprint hidden deep within the subconscious mind. For those whose blueprints are not built for success, the author offers a chance to reset one’s mental patterns to improve the likelihood of financial triumph.

#9: “The Millionaire Mind” by Thomas J. Stanley

Peeps who are keen to explore further the interaction of mindset and wealth, Stanley’s writings can offer a glimpse into the millionaire’s headspace.

While many may assume that millionaires are well-connected graduates of prestigious schools who flaunt their wealth, the truth might be more surprising. Those who want clear road maps on how millionaires found their niches, look no further.

#10: “Think and Grow Rich” by Napoleon Hill

We will close our list with one of the classic books on wealth creation and financial success. Hill’s “Think and Grow Rich“ lets you in on money-making secrets inspired by Andrew Carnegie’s magic formula for success.

The book will share with you 13 steps towards riches. From the attainment of desire to influencing the subconscious mind and putting it into action, you will get the fortune you want if you’re ready to welcome it.

A brief look at debt settlement options in Singapore

Do you know that the average household debt in Singapore is about S$55,000 per capita?

With a value that high, there’s no doubt that it’s about time to learn how to manage your debt and minimise it as much as you can. Financial freedom is within reach if you’re able to settle your debt in time the right way.

Here’s a brief look at various debt settlement options available on our sunny island.

#1: Self-Administration

One of the easiest ways to manage your debt is to directly discuss with your creditors to see if you can potentially negotiate or appeal for a cheaper instalment repayment plan.

However, you need to approach them with some research done beforehand. In your written appeal, fully flesh out your financial situation and suggest a repayment amount that’s okay for you.

Don’t forget to include documental proof like income and CPF statements whenever applicable to bolster your appeal.

#2: Discounted Lump Sum Settlement

Image Credits: business-standard.com

Once you’ve accumulated enough financial capital, you can ask your creditors about repaying your debt in a discounted lump sum.

A quick way to build up your lump sum is to consider selling off several assets or taking a low-interest personal loan from a reputable company or financial institution. Then, pull out those negotiating skills to seek a discount.

#3: Debt Consolidation Plan (DCP)

Under this refinancing program, you’re able to pool together all your unsecured debts using one financial organisation.

You should note that some unsecured debts are not allowed, such as medical loans, joint account debts, and more. Unless you don’t fit the DCP criteria, you’re eligible to apply directly at your participating financial institution.

Once your application passes, your unsecured credit facilities will close, and a revolving credit facility will open to aid you in payments.

#4: Debt Management Program (DMP)

Image Credits: incharge.org

Whenever heavy financial stress hits and you’re unable to pay your debt back, not all hope is lost.

The Credit Counseling Singapore (CCS) runs a DMP that provides financial counselling sessions to examine your payback ability and ideally settle your debts in one decade.

The CCS will help create a repayment plan with lower interest rates and more extended repayment periods to enable you to pay back those debts. Among other benefits, the program is perfect for you only if you qualify.

#5: Bankruptcy

As an individual or a business, you can file for bankruptcy with the High Court if you’re unable to repay a debt. This is commonly the last resort because you will face some strict consequences if you pursue this option.

You will be assigned a Private Trustee-in-Bankruptcy (PTIB) or Official Assignee (OA) who can help assess your situation and figure out a target contribution on your behalf to repay your creditors.

#6: Debt Repayment Scheme (DRS)

Image Credits: myfrugalhome.com

As we come to a close, there is a way to avoid bankruptcy – your OA can lead you through a DRS.

But because you’re not allowed to apply for this option directly, only your OA can approve you after previewing your bankruptcy application. Upon fulfilling the necessary criteria, you will not be labelled as bankrupt.

However, you must commit to a repayment plan that spans at least five years. For more information on DRS, you may head to the Ministry of Law Insolvency Office’s webpage.

Final thoughts

Debt settlement can be scary if you do not possess sufficient knowledge on the topic. Why not speak to a trained professional if you need help resolving your debt problems?

Folks who need 1-to-1 financial counselling can book an appointment with the CCS. Do note that there’s a one-time fee of S$30, but no further fees required for subsequent meetings (if necessary).

Nothing is impossible to solve. Take heart!

Peer-to-Peer or more commonly known as P2P lending started in the US and UK in 2005, and has since taken the world by storm. Back home in Singapore, P2P lending contributed to approximately USD 207 million in financing offered to businesses here in 2020. Investors on P2P lending platforms can participate in these financing and earn returns in the form of interests.

Take for example Funding Societies, a popular P2P investment platform amongst Singaporean investors. It is currently licensed in Singapore and has operations in 3 other SEA countries. Backed by Sequoia India, Softbank Ventures Asia, SGInnovate amongst many others, the platform has grown at a rapid pace since launching in Singapore 6 years ago. Here are some things to note when investing with Funding Societies:

Low barrier to entry: Investors can invest as low as $20 per loan
Short tenor: Investment tenors are quite short ranging from 1 to 12 months
Returns on Investment for each Product Type: Interest rates usually range between
- 3% – 5% per annum for a Guaranteed Investment product;
- 6% – 8% per annum for a Property-backed investment product;
- 8% – 18% per annum for Invoice financing and Working capital related investments products

Risks and Returns of P2P lending in Singapore

Investors are able to invest by crowdfunding the business financing available on the platforms and potentially earn returns in the form of interests typically ranging in the mid to high single digits. The investment amount starts as low as $20 at Funding Societies, which investors can leverage on for their portfolio diversification. Depending on the loan product, payouts can be done monthly so investors get their investments and returns in a shorter time frame. Compounding returns, as well as a rather short learning curve, are also attractive incentives as well.

That said, repayments can be delayed or go completely unpaid. This is why it is imperative for the P2P lending platform to first do a preliminary round of due diligence and present the facts comprehensively to investors, before allowing investors to decide whether or not to proceed. There is also a risk of the P2P lending platform shutting down if it is not financially stable on its own. To mitigate this risk, P2P platforms regulated by MAS can engage an independent escrow agent to handle all investor funds separate from its business account, such that the escrow agent will hold the funds even if the platform goes under. Funding Societies does just that to provide peace of mind to investors. As such, there is a need to do your due diligence and ensure such investments match your risk appetite.

Get a S$20 cashback when you sign up on Funding Societies with the exclusive promo code “MONEY21” and make a total investment of S$200 by 30th April 2021.

How can Diversification help to minimise risks in P2P lending?

One of the largest risks in investing in a P2P lending platform like Funding Societies is the risk of a SME defaulting. Portfolio diversification by means of investing into a good mix of notes and industries on the platform is one way to mitigate concentration and default risks and optimize your portfolio returns in the long run.

Taking the above scenario as an example, we see that Andy invested S$800 into a single deal and this single investment makes up 50% of his overall portfolio. Whereas in the other scenario, Emma invested S$50 uniformly across 100 deals, making a single investment just 1% of her overall portfolio. In the event that Deal A defaults, Emma’s potential loss will only be 1% of her overall portfolio whereas Andy might face a potential loss of half of his overall portfolio.

Conclusion

Although P2P lending is still a fairly young industry within Singapore, the demand is ever increasing. Given that 99% of businesses in Singapore are SMEs and that the returns on investments typically range in the mid to high single digits interest rate per annum, P2P lending in Singapore serves both the needs of SMEs and investors. With all that said, it is important for investors to do their own due diligence and measure the risks involved against their own risk appetite.

Get a S$20 cashback when you sign up on Funding Societies with the exclusive promo code “MONEY21” and make a total investment of S$200 by 30th April 2021.

Terms and Conditions apply

Investors must sign up with the aforementioned promo code and make a total investment of at least S$200 by 30th Apr 2021 to be eligible for the $20 cashback. Cashback will be credited into the eligible investors’ accounts by the end of May 2021. Funding Societies’ investor T&Cs apply.

Funding Societies is the largest SME digital financing platform in Southeast Asia. It is available in Singapore, Indonesia, Malaysia and Thailand, and backed by Sequoia India, Softbank Ventures Asia Corp and SGInnovate amongst many others. It provides business financing to small and medium-sized enterprises (SMEs), which is crowdfunded by individual and institutional investors. Investors can invest from as low as S$20 with a tenor of no more than 12 months.

Disclaimers:

This article is contributed by Funding Societies.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

Actual returns may be lower than the expected rates of return, and historical rates of returns may not reflect future returns. The Product type interest rates indicated in the article are derived from historical rates of returns and are exclusive of service fees.

All information in this article is accurate as of 29th March 2021