Personal Finance Archives | Page 62 of 147

Why Is It So Hard To Save?

With the surge of expenses from left to right, many find it difficult to save money on the side. The difficulty arises not only due to the lack of self-control, but also due to our perception. Harvard Economics Professor Sendhil Mullainathan tells CNN Money that “it is human nature not to save, but we can get better at it”.

#1: ACCEPTANCE

The first step to building your savings is acceptance. Accept your current financial situation and today’s economy. Whether you admit it or not, saving money is harder than ever. As prices in Singapore increase, we have less “disposable” income that we can allocate to our financial goals.

Acceptance of these will enable you to focus on the future priorities rather than focusing on the urgent expenses. You can automate your savings and allocate it to your retirement or education funds. I suggest you start small with the “52 Week Money Challenge”. This challenge encourages a slow and steady approach to saving money.

#2: REMOVAL

The second step to building your savings is to remove unnecessary elements such as your multiple credit cards. It is no surprise that saving money is hindered by the accessibility of credit. You see, our cashless society diminishes our appreciation for every dollar that we spend. Credit cards enable us to spend money before we save. And, there is no going back!

Not to mention, credit cards enable us to subscribe to monthly services such as video and music streaming. Our subscriptions add up! Every dollar you spend on meal delivery or Taobao delivery add up. What’s more? It can be difficult to cancel a monthly service that you forgot to sign up for. Just take caution with your plastics!

#3: RESET

The last piece of the puzzle is our perception towards savings. Many Singaporeans think that saving is challenging because it requires a heroic feat of tightening one’s budget. In reality, saving money can be done gradually. It should not be driven by sacrifice. Instead, it should be driven by opportunities harnessed by self-control.

For instance, you may save money without being conscious about it all the time through automation. You can automate a specific amount of your salary for it to go straight to your savings account. You cannot spend what you cannot see!

Image Credits: pixabay.com

Reset your perceptions about saving money. There are benefits to moving forward. And, moving forward you must do!

Sources: 1 & 2

S$1.00 = AUD1.05: Singapore dollar stronger than Australian dollar

1 Singapore dollar can now get you 1.05 Aussie dollar

Planning for a trip to Australia? This is a good time to visit the money changer.

The Singapore dollar rose to a 4-month high against the Australian dollar since the last time it hits S$1.00 = A$1.051 in January this year.

If we look at the 10-year chart, you can see that it is near its peak.

The decline of the Australian dollar is probably due to the result of the trade war between China and US. Australia’s economy is dependent on exports of its natural resources and a dampen China’s growth prospect will definitely affect the dollar.

If you are a prospective student going to Australia for your studies, good for you.

Teen-Friendly Books About Investments

Whether you like it or not, you are expected to know what you want to do for the rest of your life the minute you graduate from secondary school. It is understandable to strive for the highest paying field or job possible. However, that is not always the case.

If you were to invest money at a young age, you can build a nest that is enough to sustain a comfortable lifestyle in your adult years. This may lessen the pressure you feel when choosing a career path. To begin your investment journey, you must read books aimed at young investors.

PERSONAL MONEY MANAGEMENT

Cary Siegel put an interesting twist to money management with the book entitled: “Why Didn’t They Teach Me This in School? 99 Personal Money Management Principles to Live By”. To Siegel, proper money management in accordance to the economy is an important lesson that the youth shall know. He imparts this knowledge by dividing his lessons into 99 principles. Said principles include investing, housing, spending, debit, credit, and budgeting. I, for one, am curious why these practical life skills are not taught in today’s curriculum.

You will get a sense of how to handle the financial aspects of your life as you read along. By combining solid advice on money and adulthood, your curiosity will be widened.

COMMON SENSE INVESTING

Looking for the perfect investment book for young adults? Search no further as John Bogle’s “The Little Book of Common Sense Investing” details the fundamentals of investing! It describes a plain approach that anyone can implement to achieve above average returns.

For people who are risk-takers, his methods may seem too simple. Consider studying further. After all, Warren Buffett included this book on his recommended reading list.

THE WARREN BUFFETT WAY

There is a reason why Warren Buffett’s name cannot be erased in the list of legendary investors. You see, he adapted his own investing style that lasted throughout the years.
It goes without saying, his results have been extraordinary!

His strategy was encapsulated in a book entitled “The Warren Buffett Way”. This books highlights how he invested in the past and in the present. For the young adult who wants to invest in businesses, the insight into Buffett’s thought process is of tremendous value.

MAKE MORE MONEY THAN YOUR PARENTS

Before Christmastime, a financial book from The Motley Fool entertainment was released to serve as the perfect Christmas gift for young adults. First and foremost, The Motley Fool is a “multimedia financial services company that has made investing fun and easy for millions of people since it was founded in 1993”. It aims to share information on how to efficiently manage your money.

David Gardner’s “The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of” is not as funny as it sounds. It is a piece of literature that gives you a guide to outperform your parents’ current professional success. It provides teens with a road map for sketching a financial journey from investing to saving or from budgeting to spending. Ultimately, it reminds the youth that every money spent is an investment. You have to make it count!

Image Credits: pixabay.com

The books listed above offer practical and understandable suggestions, solutions, and hacks about finance. I hope that these books may serve as an inspiration when you start your investment journey. Good luck!

Sources: 1 & 2

Surefire Ways To Save Money As A First Time Parent

Congratulations on becoming a new parent! Welcoming another human being into this world can change your life in many ways. Most of these changes are for the better. While, some changes are challenges too.

I am referring to the hefty price tag attached to child-bearing and child-rearing. You have to spend about S$8,000 to S$18,000 a year for that.

You read that right! You will be spending five figures on groceries, clothes, toys, diapers, hospital visits, and daycare. With a growing list of expenses, you must rethink how to manage your financial life after having a baby. Here are some tips to help you out:

SHAKING THINGS UP

You and your partner have had a working budget for years. And this household budget seem to work fine. However, you have to reset your budget once the baby comes. Your pooled incomes, savings, and investments shall cover your child’s expenses.

Begin by saving for the delivery by taking up Medisave’s Maternity Package. Using Medisave for childbirth can help offset the cost of your hefty delivery. Roughly, you can claim about S$450 per day on hospital stay, S$900 on prenatal expenses, and S$750 to over S$2000 on surgical procedure.

For instance, you wife had a Cesarean delivery and was hospitalized for two days, you will be able to claim about S$900 on prenatal expenses, S$900 on hospital stay, and S$2,150 on surgical procedure. This sums to about S$3950 worth of claims.

FILLING THE PIGGY BANK

It comes as no surprise that education will take a huge toll in your expenses for the years to come. Thus, setting up an education fund for your beloved can help you in the long run. While taking up an education loan is always an option, the cost of schooling gets higher each year. You must start saving money along with the arrival of your little one.

A scenario close to my heart is the effects of my uncle’s death. My uncle is the breadwinner and his son has not yet finished his schooling. As he continue his secondary education, he finds it difficult to fuel his financial resources. If only my uncle set up an education fund beforehand!

Saving up for your child’s education can cushion potential financial bumps. This way, your child will not have to compromise his or her education.

SETTING UP A CAPSULE WARDROBE

Along with the trends of minimalism and sustainable living comes the existence of the capsule wardrobe. A capsule wardrobe enables to the owner to keep key pieces that he or she can mix and match in the years to come. The only challenge when it comes to toddler is that they grow up so fast!

Matching outfits or assorted clothing can be adorable to look at! However, your infant does not need twenty sets of outfits! He or she will grow out of these clothes faster than you can post about it on Instagram. Thus, you must limit your child’s wardrobe. Allow a set of basic items with interchangeable colors and patterns to full your drawer. You do not want to spend on designer clothing that your child will surely ruin with stains and other mishaps!

Image Credits: pixabay.com

Here are just some ways to save money as a first time parent. Make it a habit to check children’s websites and forums for ways to create your own baby food or to conduct your own reading class. Nothing is impossible with a little determination from a parent!

Sources: 1 & 2

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1 Singapore dollar can now get you 1.05 Aussie dollar

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