Foolish Things People Do With Their Money

We have all made mistakes in the past, especially when it comes to money and relationships. While some are knowingly reckless, others are less obvious. That being said, here are some foolish things that people do with their own money.

Awareness is the key to change!

BEING OVERLY CONSERVATIVE WITH ONE’S INVESTMENTS

Whether you are terrified to max out your savings or to dive into uncharted territories, Millennials are not investing hugely in the stock market. Consider your risk tolerance while you are in your early 20s as this is the best time to bounce back after a decline. Compound interest entails that it is beneficial to stay in the market as early as you can. Simply put, a risky investment while you are young has time to correct itself.

Apply this ideal towards your retirement fund. Set a diversified portfolio directed to your retirement fund and ensure that the risk exposure is based on your age and timeline.

ABSORBING THE INTERNET SCHEMES

Let us face it! The Nigerian Prince you have waiting for may never come. Although Internet scams have become more sophisticated than ever, you must not give your sensitive bank information to anyone that pleads for it.

Some people carelessly give out their account passwords in the name of love. You have to think twice! You are merely opening yourself to identity theft by doing so. Mark suspicious emails as spam and leave them alone.

MAKING FINANCIAL DECISIONS ON YOUR OWN

A family is a unit and it is helpful to have an open communication with your partner. As financial decisions and career paths affect multiple people in the relationship, you must discuss these as a unit. Relocating, childcare, long working hours, or converting to entrepreneurship are examples of factors that involve the sole earner as well as other family members.

If you belong to a dual-income household, do not make the daft decision of managing your ambitions on your own. Ensure that you are on the same page when in comes to managing your household and your career goals to avoid conflicts.

DISMISSING YOUR CREDIT CARD REPORT

Despite being a free service, checking one’s credit card report is not something that people do religiously. It is important to check your report to help you catch suspicious activity, prevent identity theft, and report unauthorized purchases.

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In addition to keeping an eye on fraud, you can track your credit score progress.

Sources: 1 & 2

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Australian dollar hits decade low against the Singdollar: S$1.00 = AUD1.08

The Australian dollar is at its lowest since 2009

The Australian dollar has dropped to its lowest level against the Singapore currency since the 2008 Global Financial Crisis. The Aussie dollar is weaker this morning after it traded at an intraday low of 1.0816 against the Singapore currency, according to Investing.com

The Australian dollar plummeted after a huge rate cut from the Reserve Bank of New Zealand as investors now expect the Reserve Bank of Australia to follow suit, as it did with rate cuts earlier this year.

It is about time to plan a holiday to Australia with the attractive exchange rate.

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How To Set Better Financial Boundaries

Establishing boundaries is important in living a happier and healthier life. For starters, boundaries can help you protect yourself from emotionally draining people or help you build stronger relationships. Limitations are also vital in creating professional relationships founded by efficiency and awareness.

However, there is one area in our lives that some are not so keen to establish. I am referring to the financial boundaries. It is easy to overstep our own financial boundaries and keep making mistakes that will hurt our goals in the long run.

KEEP THINGS HEALTHY

Restrictions go hand-in-hand with creating boundaries. These are most evident in creating a budget. Use this budget to work around your spending, but you have to be gentle with yourself.

Avoid having too many restrictions as you may torment yourself in the process. Holding on to an impossible budgeting standard can lead you to falling off the wagon.

INCREASE YOUR AWARENESS

Everyone makes mistakes. When it comes to finances, I learned this the hard way! Do not get me started with setting up financial limits while traveling! What is important is that I learn from these experiences.

You need an honest and nonjudgmental reflection whenever you cross a financial boundary. Otherwise, hiding your mistakes increases the likelihood of it happening again.

Abraham Lincoln once said, “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.” This is exactly what time spent reflecting on your life is. You need to sharpen the ax in the decision-making process of your financial journey.

GET PROFESSIONAL HELP

Let us face it! Setting up financial boundaries can be tough. This is why some people seek the help of their partners, their trusted friends, or their financial planners. Having a financial planner can help you to make sound decisions with a goal in mind.

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Furthermore, there are several financial planners in Singapore. Make your life easier by searching thru the financial planner directory of Financial Planning Association of Singapore (FPAS). It is a non-profit association dedicated to promoting unbiased financial advice to the Singaporean public.

Sources: 1 & 2

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6 Helpful Tips To Put A Halt On Impulsive Purchases

As you dig thru the pile of the items that you regret purchasing, you realize that you have one recurring problem. You keep on engaging on impulse purchases! Your credit cards do not seem to help you either. Instead, it invites you to shop more as if it calls out your name.

How can you reduce this tendency to shop without forethought? Well, start by planning ahead.

#1: IT PAYS TO PLAN AHEAD

When it comes to eliminating your unwanted expenses, it pays to plan ahead. Make a list of all the items that you need to purchase before shopping. Make it a habit to plan for upcoming occasions, birthdays, and other large purchases.

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Equipping yourself with this list as you shop around ensures that your purchases are more deliberate and less spontaneous. Furthermore, you may anticipate the upcoming clearance sales and other promotions.

#2: PINPOINT YOUR TRIGGERS

Take control over your shopping habits by monitoring your urges. Using a piece of paper or your handphone’s notes, mark each time you experience the urge to purchase. Describe the situation and the feelings attached to it. This helps you to increase your awareness while you shop.

Be aware of the different symptoms such as faster heart rate or a change in breathing. Becoming more aware of the changes in your body and mind can help you control the urge.

#3: IT TAKES 30 DAYS

You heard about contemplating for 24 hours before committing to a purchase. However, have you heard about the 30-day waiting period? Yes! You read that right. Stick your wish-list on your refrigerator and put a date to each item. You must wait for a month before making a purchase.

The mechanics may sound easy, but it takes a lot of patience and self-control to overcome the urge at first. These feelings are valid and can fade soon. You will take delight sketching out items off the list! The only exemptions to the 30-day period are groceries and other necessities.

#4: AVOID THE TEMPTATIONS

A surefire-way to reduce your impulse buys is to avoid going to shopping areas or shopping websites. Do not even go to dollar or budget stores as you might get trap in the process.

When purchasing, follow a list religiously. Get out as quickly as you can afterwards. Avoid walking around the shopping center for entertainment and find other ways to stimulate fun.

#5: IT IS ALL ABOUT THE BUDGET

Trimming down your expenses does not mean that you have to take out the fun. Give yourself a “splurge budget” that you can follow thru each month.

Decide whether you are willing to allot a budget for a new clothing item or a fancy restaurant date each month. Whatever it is, ensure that you are willing to spend a discretionary amount every once in a while. Take it as a way to reward yourself for straightening your finances. It is healthier that way!

#6: DO NOT MIX WITH THE WRONG CROWD

Surrounding yourself with people who are addicted to retail therapy may not be the best idea. It is easy to get out of track when your shopping buddies convince you that all the outfits you have tried looks great!

Image Credits: pixabay.comIf you want to shop with your friends, do it with people who have savvy spending habit. This way, you will be able to tell spend your money in a frugal manner.

Sources: 1 & 2

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How To Make Money While You Sleep

What is your idea about passive income? For most people, passive income provides an opportunity for freedom and independence. It gives an escape from our 9-5 jobs that occupy most of our week.

There are different ways to generate income while you are “sleeping”, here are just some of them:

START A BLOG

If playing with words comes naturally to you, you may find passion in writing. Establishing your own blog is quick and easy to do. Simply purchase your own domain or create your own website at no-cost thru website builders such as Wix.

Equipped with your glistening blog, you can either sell your stuff or share your expertise to earn some legitimate cash on the side.

CONSIDER P2P LENDING

Let’s face it! Banks do not lend money out of sheer kindness. They do it because it is profitable. Get a taste of the action by joining P2P websites, which allow companies from around the world to loan money from private people.

P2P Lending is highly attractive to both the borrowers and the lenders. Firstly, P2P Lending loan qualifications are more relaxed than that of given by the banks. On the flip-side, lenders can reap the benefits of up to 20% per annum.

INVEST YOUR MONEY

If you have money to spare, consider investing your funds to grow your nest. Let the company work for you as you receive dividends from them. Directly owning a stock in a company or through a fund enables you to receive dividends. A dividend is a cut of a portion from a company’s profits.

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The amount of money you receive depends on how much stock you own and how much profit there is to divide. Ultimately, the rewards that you will receive are decided by the board of directors. Do prior research before committing to a company.

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