According to Gordon Achtermann, a Virginia-based certified financial planner, you have to ask yourself these three questions and give a solid yes before you decide to start investing.
#1: Do I have an adequate emergency fund?
Take a good look at the amount of cash you can fall back on if the need arises. According to experts, it’s generally wise to build short-term savings and then invest with the extra cash you have left.
You have to also be aware that your money can fluctuate depending on the daily changes in the market. So, there is much more risk to bear than compared to a savings plan.
Adequate emergency fund varies from person to person but Achtermann provides these guidelines to determine the amount you should have:
3 months of expenses: For couples with two incomes and very secure employment
6 months of expenses: For couples with two incomes but less secure employment or one partner not working
1 year of expenses: 1 year of expenses for one income that is less than very secure
#2: Am I committed to leaving the money in place for 2 to 5 years or longer?
“Investing the cash in a diversified portfolio will usually yield a higher average return than leaving it in a savings account,” says Sebastian Rollén, a senior investing researcher at Betterment.
But to do so, you should be prepared for some shifts in your balance and expect your money to remain invested for more than a couple of years before you withdraw.
#3: Can I weather the ups and downs of the market?
Here, we’re talking about risks. You must be confident enough to handle the rapid and unpredictable changes in the market.
According to Scott Cole, an Alabama-based certified financial planner, what you want to avoid is having your money subject to risk when you actually need the money.
If you think you will need the money within less than two to three years, then avoid investing it. Instead, use whatever you have to build up savings that offer more security. But if you do not require the current funds in the next 10 years, then put that money in the market.
What were your answers?
At the start of this article, we mentioned that you have to give a solid yes before venturing into investments. If you’re sitting on the fence for even one of the questions stated above, then you’re clearly not 100% ready to get your head into the whole investment game.
But that doesn’t mean all hope is lost. First and foremost, focus on your savings. Without it, you will never ever get to invest. Maybe a year or two later, you can recheck your financial status and take a step into low-risk investment portfolios.
According to the Merriam-Webster dictionary, frugality is characterized by being careful in the usage of one’s resources. Those who are frugal are unwilling to lavishly enjoy the fruits of their labor. It may come as a surprise to you to know that the word frugal derives from the Latin term “frux”, meaning “fruit” or “value”.
In Behavioral Science, frugality is defined as the resourceful use of already economic goods and services to achieve a long-term goal. If you are keen to adapt this multi-dimensional consumer lifestyle trait in order to save money during the pandemic, you may read the list below to see how many frugal choices you have been doing.
#1: YOU CREATE A GROCERY LIST AND STICK TO IT
Instead of grabbing whatever attracts your eye at the counter, you prefer to create a grocery list and stick to it. It is easy to increase awareness when it comes to your grocery spending when you plan ahead. It may be challenging at first and you may forget several items, but you will find yourself becoming more intentional with your listings as time passes by.
The grocery list is essential because frugal people plan their meals and frequently eat at home. You may avoid the temptation of dropping by a fast food chain by keeping a container of snacks in your bag or in your car. Calm your rumbling tummy as you travel back home.
#2: YOU DO NOT CARRY CREDIT CARD BALANCES
Frugal people are not dictated by their credit card purchases. While some have the discipline to pay off their credit cards every month in full, others choose to stay away from these entirely.
Self-awareness and control play play huge roles in a person’s success with credit cards. If you have been in debt for years, consider to cut down on your credit card spending and pay them off once and for all.
#3: YOU DO NOT COMPROMISE YOUR HEALTH
Being frugal does not mean that you will only invest on cheaper alternatives and low-quality food items. Many frugal people choose to eat healthier greens and legumes and keep meat to a minimum. Frugality does not compromise health to save money. Frugal people have strategically plan their meals and have invested on insurance plans that will benefit them in the future.
#4: YOU DO NOT WASTE FOOD
Frugality entails that you use what you have until you need to replenish it. Frugal people eat leftovers until they are non-consumable or inedible. Eating your leftovers also cuts down on your food expenses and environmental waste.
You may create new meals from your leftover food. For instance, your leftover chicken can be shredded and turned into chicken sandwich. While, leftover rice can be used for your egg fried rice. Just ask Uncle Roger!
#5: YOU LEARN FROM YOUR MISTAKES
Frugal people are not perfect. No one is. Frugal people make financial mistakes and learn from it. You may have spent too much on your holiday shopping last year or caved in to your monthly food cravings.
It is important to be aware of these financial mistakes. If going over budget becomes a habit, you need to re-evaluate your spending patterns and your budget.
#6: YOU KEEP TRACK OF YOUR BILLS
Frugal people look for ways to save money by keeping track of their bills. Other than eliminating unnecessary plans or subscriptions, you may find it easier to pay off your dues through auto-pay programs.
Search through the profiles of your service providers and ask if they have automatic payment schemes. For instance, some telecommunication plans offer automatic payment schemes through online banking. This way, you will be able to save on time and avoid paying late fees.
#7: YOU NEGOTIATE ON A PRODUCT OR A SERVICE
Frugal people love to negotiate to get a good deal. Whether they are purchasing a gadget or an appliance, they excel in the art of negotiation or spotting the best deal. They do not shy away from purchasing second-hand or pre-loved items to get a good deal. And, they certainly do not want to spend S$85 on a cup of coffee.
#8: YOU COMPARE PRICES FIRST
In order to save more money, frugal people tend to search high and low for the best prices and free upgrades. Helpful price comparison apps and websites have flooded the market these days. Some popular price comparison websites in Singapore include pricepanda.com.sg and iprice.sg. Use these tools to help you decide on an item, before adding it to the cart.
#9: YOU SHOP OUT OF NEED
Making shopping a hobby can cause a significant hole on your wallet. Frugal people shop out of need and save money whenever they can. Finding an inexpensive hobby is easy, when you are open to the possibilities. I, myself, am learning how to play a new instrument. I have picked up a Kalimba (Thumb Piano) online for a little over 20 dollars. This inexpensive instrument has provided countless hours of entertainment for me and my family. Now, my entire house knows how to play the Kalimba.
#10: YOU DO NOT SHOP BASED ON YOUR EMOTIONS
Shopping based on your mood may lead to buyer’s remorse and impulse purchases. Frugal people can get into emotional circumstances too, but they usually are not emotional spenders.
You can be the most disciplined person under normal circumstances, but be heavily impacted with unfortunate circumstances. We are not exempted from the effects of the global pandemic. When this happens, you have the choice to throw all the structure out of the window or to slow down and examine possible solutions.
#11: YOU CONTINUE LEARNING
Personal development is important across all fields. Frugal people continue to learn from others and their own financial mistakes. It is beneficial to listen to educational audiobooks and enroll to (free or paid) online classes to boost your professional and personal growth. You may browse through the free courses by Google Digital Garage to start growing and learning.
Right from the start, I commenced my gold investment journey with Everest Gold by downloading its mobile application. With the mobile app, it offers supreme convenience as I am able to trade 24/7 from the comfort of my home. This is something that banks cannot offer since gold has to be purchased over the counter.
The mobile app was designed with “ease of use” as the intention in mind as investors can access their investments anytime, anywhere. I really appreciate the instant liquidity and the option of trading on the go. It also negates the need for long hours of monitoring so that I can focus my time on other activities in life.
Low Investment Threshold
Whether it is purchasing gold jewellery or gold bullion from banks, the traditional way of investing in gold often involves high entry barriers. The amazing feature set by Everest Gold is that investment threshold starts from as low as 1 EGU= 0.01g of gold. This means that retail investors eager to get started on investing in gold no longer need to wait till a sizeable amount of funds have been accumulated before beginning.
Furthermore, any savvy investor would realise that fees eats into returns. The lower the fees, the higher the returns. Therefore, it definitely helps that there are no transaction fees involved when purchasing gold over the Everest Gold platform.
Safe and Secure
With all the amazing features outlined above, it is just as important to know that my investments will be safe and secure. At Everest Gold, all transactions are fully encrypted with the use of 256-bit SSL. This means that my transactions are safeguarded and personal information protected. Privacy is respected since it is compliant with requirements of the Personal Data Protection Act of Singapore.
I am also impressed with the robust verification process which is supplemented by biometric authentication. Prior to trading, a compulsory personal verification process is required to prevent financial fraud and identity theft. An auditor conducts regular audits to ensure the clear delineation of investor funds with Everest Gold’s own funds for business use. With stringent audits in place, all transactions at Everest Gold are transparent, constantly updated and fully accounted for.
Conclusion
As a retail investor, I am really glad that Everest Gold is here to streamline outdated procedures of investing in gold. In return, I know that I am getting higher liquidity, better efficiency and lower costs for my gold portfolio by trading and owning my gold on the Everest Gold platform.
In line with National Day, enter referral code “WAVTW” when you register your Everest Gold account and receive 55 SGD worth of reward points. Be rewarded with 400,000 reward points for each successful account verification. Reward points can be converted into EGU during Gold Subscription Events. Promotion is for users residing in Singapore only. Valid till 31 Aug 2020.
Having money allows you to live the life you desire to live, if you spend it wisely. You have to weigh whether an item is an essential (need) or a non-essential (want) expense. In some cases, you have to spend more at the moment to save more in the long run.
Certain items are worth splurging on to help you earn more money or experiences in the future. Here are just some splurges that are actually wise savings:
#1: PURCHASING AN INVESTMENT FOR YOUR CAREER
Purchases that help you advance in your field are good investments. Know which tool you cannot work without and list them down. For instance, you must invest on a high quality camera and a reliable laptop as a photographer. There are also online classes and software programs that a photographer can benefit from on a daily basis. If an item supplements your future growth, it could be a smart move to spend extra cash on it.
#2: PURCHASING ITEMS THAT YOU USE A LOT
Before spending your hard-earned money on a product or a service, think of how long you are likely to use it. Then, breakdown the price using these factors (e.g., cost per wear). You may realize that the iPad you have been eyeing for so long may only cost you S$1 per day due to your current academic needs.
Home appliances and cookware are just some of the items that we use frequently. You can save so much money by cooking at home. Splurging on quality kitchen items such as knives and refrigerator can make a difference. It is recommended to invest more money on home appliances and cookware that you will use heavily because you will only end up spending more on repairs with low-quality appliances.
#3: PURCHASING ITEMS THAT YOU WILL CONSUME
Now more than ever, it is important to consume items that can strengthen our immune system. You really are what you eat! So, do not feel guilty about spending more money on fresh produce and healthier food items. What you spend on these items may help reduce your hospital bills.
Along with grocery shopping comes the ability to save more time. You may get your groceries delivered to your doorstep instead of going to the store. This will minimize your contact with the crowded places and will enable you to have more time to enjoy your day.
#4: PURCHASING SOMETHING YOU HAVE SAVED UP FOR
It is alright to splurge on an item that you have strategically saved up for in advance. For instance, you may have kept a portion of your monthly salary to splurge on a good laptop or a luxury bag at the end of the year. Some non-essential items are worth spending money on as long as you have saved enough funds to cover your significant expenses. Furthermore, it is a rewarding and a joyful experience to see the fruits of your labor.
Image Credits: pixabay.com
It is more than fine to get spend your hard-earned money on the finer things in life as long as you are smart about your purchases. Consider the points that were previously discussed above.
Everest Gold is a Singapore fintech company working to make gold trading and investment accessible and affordable for retail investors on a secure online platform. It employs advanced technology which allows clients to track real-time gold prices as they seamlessly build, invest, trade and sell their gold portfolios.
Investors do not need any specialised trading experience to yield higher profits when investing in gold via Everest Gold. Simply buy when the price of gold is low and sell when price is high to get instant profits! With zero transaction fees and no minimum amount required, take advantage of price movements to execute unlimited trades! Everest Gold is truly the most affordable and accessible platform for retail investors to start investing in gold today.
Even more reassuring is the fact that Everest Gold recognises that being able to invest in a safe and secure portfolio is often the utmost important criteria in the minds of investors. Therefore, it has made investment safety and security its top priorities. To ensure that its customers have peace of mind while trading gold, it has entered into a tripartite supervision agrrangement with Pacific Trustees Singapore and Malca-Amit. This ensures that no party can unilaterally exercise its rights over the gold. Here is how each party plays a part in ensuring investment safety for clients trading on Everest Gold’s platform.
Third Party Custodian
Pacific Trustees Singapore is appointed as the gold custodian in the Everest Gold and the appointment. After users purchased gold on the platform, the ownership of the gold is transferred to PTS. Investors can rest assured that Everest Gold has no authority over gold assets.
With over 25 years in business under the Pacific Trustees Group International, Pacific Trustees (Singapore) Ltd (“PTS”) has over 4 years of experience in the corporate and individual trust. PTS provides a comprehensive end to end clearing and Trustees services for global and domestic equities and fixed income securities. As a fully licensed Trust Company by Monetary Authority of Singapore, PTS has full capabilities to provide for full range of trust and other related services thereto for major domestic corporates and regional corporates and financial institutions.
Third Party Storage
Malca-Amit, an international vault chain established since 1963, provides storage of luxury goods for high net worth individuals and internationals banks. Its global team of experts have vast experience over logistics, security, customs house and special operations. Malca-Amit has over 70 offices in 40 countries worldwide and uses highly secured and strategically located facilities.
Gold purchased by customers on Everest Gold’s platform is fully insured and stored securely in Malca-Amit’s state of the art facility located in the Singapore Freeport.
Regular Audits by Professional Company
Everest Gold has appointed a professional firm, Crowe Horwath First Trust LLP (“Crowe Singapore”) to perform independent verification of its gold supply, gold reserves and gold collection, on a quarterly basis, in accordance with Singapore Standard on Related Services. This is to ensure amount of digital gold issued on the platform is equivalent to amount of physical gold stored in the vault.
Crowe Singapore is part of an international professional services network, Crowe Global. Ranked as the eighth largest global accounting network, Crowe Global consists of more than 200 independent accounting and advisory services firms in close to 130 countries around the world.
The tripartite supervision arrangement between Malca-Amit, Pacific Trustrees Singapore and Everest Gold will allow retail investors to trade safely and securely while building up their dream gold portfolio. Investing in gold has never been safer.
In line with this year’s National Day celebrations, Everest Gold will be giving 400,000 reward points (worth 55 SGD) for every new-sign up upon successful account verification. Reward points can be converted to gold during Gold Subscription Events. Enter referral code “WAVTW” when you register your Everest Gold account. Promotion valid from 8 to 31 Aug.
