Going Head-to-Head With Your Financial Fears

Fear, a primitive human emotion, refers to the physiological and psychological response to threatening situations. The sources of fear may have evolved throughout the years, but I am putting focus on the Singaporean’s financial fears.

FEAR #1: FEAR OF LOSING ONE’S JOB

Unemployment is a global phenomenon. Our economy continues to narrow down jobs at an alarming rate. Do you know what is worse than that? Being unemployed in one of the most expensive cities in the world. Losing your job can trigger anxiety as it opens doors to uncertainty. However, you may conquer this fear by improving your “job seeking skills”.

A good place to start making connections is LinkedIn (i.e., a professional networking site). Moreover, you may ask your family and friends if they can recommend you to work for their companies. Do not hesitate to approach your resources!

FEAR #2: FEAR OF LOSING EVERYTHING

Devastating and crippling – these two words are not enough to encapsulate what you will feel when a catastrophic event wipes out your entire fortune. The abundance of disaster stories on social media and on the paper media supports this fear. It is undeniable that the society highlights negative stories (e.g., bankruptcy, divorce, or scam) due to its significant impact.

How do you turn the tables around? For starters, you must assess whether your fear has supporting evidence or objective data. Moira Somers, a renowned Clinical Neuropsychologist, once said: “If you focus your energy on what you can control, then all of the things that you can’t control will have less of an impact if the worst were to happen.” Establish control by building a sufficient emergency fund and by reviewing your insurance policy coverage. Work with what you already have!

FEAR #3: FEAR OF GETTING RIPPED OFF

Getting swindled by an individual or a corporation is not something that you should take lightly! From soaring handphone scams to tempting dating scams, it is easy to fall prey to exploitation. Awareness of the process is the first step. You need to get involved in your financial plan.

Figure out your current monetary standing. Then, map out a future by setting at least 5 financial goals. You may even hire a professional adviser to understand the process better. Remember that getting rich does not happen overnight!

FEAR #4: FEAR OF BEING AN OLD MAID

A recent government survey shed a light on the public’s attitudes toward marriage and parenthood. The participants were 2,940 singles and 2,861 married Singapore residents, ranging from 21 to 45 years old. Majority of the single participants intend to marry. Although, 6 in 10 are not dating with marriage in mind. Finding the right partner and diving into a serious relationship seems to be more challenging now. Thus, several people left the romantic game to chance.

marriage

When the cards of chance is not on your side, you may be considered as a woman who is “too old for marriage”. Some women are not comfortable with being an old maid. They believe that marriage is critical to fully supporting themselves. Overcome said fear by building a financial plan based on your income. The written projections show that you can rely on yourself for financial security.

FEAR #5: FEAR OF NOT AFFORDING A HOUSE

Reality check, please! Property in Singapore is far from cheap. Younger generations of working Singaporeans are coming into the realization of how hefty housing has become. The prevailing sentiment among people in their thirties surround how unaffordable condominiums are and how costly HDB flats are.

Diminish your fear toward housing by determining how much you will need to save and invest for the future. Be sure to adjust for inflation.

Image Credits: pixabay.com

Image Credits: pixabay.com

The first aid to your financial fears is strategic planning. Analyze your current financial circumstance and the supporting objective data. Make a plan that is reflective of this. Getting started is as easy as having a plan.

Sources: 1, 2, & 3

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Important factors to consider before trading the live assets

What is crucial in trading? Is it trading? Definitely, it is not trading. There are many other things which should be considered as crucial. As examples, selecting a broker is crucial, selecting a platform is crucial, selecting a trading method is crucial, and there are many other things which are crucial. Sadly, most of the traders give less attention to the crucial parts. If you consider the Singaporean traders they are not as the ones we have mentioned above. They have given 100% attention to the crucial part of trading as they knew that the platform plays the major role in Forex. So if you want to trade the market as a successful trader you should learn to take the important decisions. How do you make the right decision? What will a naïve trader do? What are the key factors to be considered?  If you read the article you will definitely understand the importance of a platform and you will understand the ways to make a decision.

As we said above platform is one of the crucial things in your trading career so you should give the necessary attention to it. If the platform does not suit your trading style then it will be difficult for you trade the market. When you are not comfortable with the platform you cannot trade successfully so you should make sure that the platform is comfortable enough. You should not consider the decision of selecting a platform as a minor thing because it is not. Read the article to understand better.

Wider accessibility

You know that mobile phones are something which everyone one of us carry anywhere we go so it’s important to find a platform which can be accessed through your mobile phone. From booking a hotel to reserving tickets to movies will be done through the mobile phones so why not the platform? If the platforms are accessible through the mobile phones it is a great exposure for the traders. In fact, it will enable you to trade online meaning you can place trades online. Every professional trader takes the time to select the best platform as they need a platform which offers the wider accessibility. If the platform offers wider accessibility it is advantageous for the trader’s career and knowledge.

Essential Information

The essential information should be obtained from the platform so it can be called as the best trading platform. So keep in mind when you are searching for a platform it should be something which offers you standard experience and essential information. If you want to know the price-earnings ratio, income statement, stock quote, dividend yield, or anything you should be able to obtain it from the platform itself. If you are able to get hold of a platform as we mentioned above you will be able to succeed in the market easily. You should understand that platform is something which acts as a basement for your trading so it’s in your hand to select the strongest basement. Moreover, you should not select a RANDOM platform to trade as it will impact heavily on your trading career. Keep in mind that each and every successful trader has achieved success due to being intelligent when selecting the platform. If you want to trade like a pro trader and if you want to become successful you should not treat crucial things as a minor factor.

Tools for trading

You will be able to obtain the trading tools from the platform so make sure to pick the perfect platform by analyzing thoroughly. If you have the smart tools you will be able to execute trades in a successful way. For instance, if you trade with SaxoTraderGo platform then we can assure you that you will have all the cutting trading tools to do your technical analysis. Most importantly you will be able to execute your orders at a lightning speed.

 

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3 Ways To Make The Most Out Of Your SRS

Prudent individuals go through great lengths in order to build retirement fund. Many Singaporeans completely rely on the government-mandated Central Provident Fund (CPF). It is a savings plan to fund important expense categories such as retirement, housing, and healthcare. Unbeknownst to some, there is a scheme that is meant to complement the strength of CPF. I am talking about the Supplementary Retirement Scheme (SRS). SRS flourishes your retirement savings by providing tax relief and investment options. Unlike CPF, SRS is a voluntary scheme. SRS members are free to contribute varying amounts which are subjected to a specific limit.

Make the most out of your SRS account by employing these tips:

MAXIMIZING YOUR TAX REDUCTIONS

While helping you cultivate your future, SRS simultaneously reduces your tax expenses at the present moment.

There are different types of tax relief that you can claim, such as the Earned Income Relief, Qualifying Child Relief, NSman Self Relief, and Parent Relief. The first one refers to the deduction of taxable income for every dollar deposited into the SRS account. Furthermore, you can reap tax-free investment gains made through your SRS account (i.e., not applicable to Singapore dividends).

SCHEDULING YOUR WITHDRAWALS

Let us be honest! You can withdraw funds from your SRS account even before you retire. Unfortunate instances such as medical emergencies and bankruptcy are among the significant reasons why this happens. Withdrawals can be completed in the form of cash or investments.

You must strategize your withdrawals to receive the most profitable scenario. You see, there is a chance that you will end up paying more tax if you withdraw the entirety of the SRS account upon retirement. By “more”, I am referring to the comparison between the “withdrawal tax” and the income tax savings. Consider scheduling your withdrawals spanning the period of 10 years.

GROWING YOUR INVESTMENTS

SRS is more than just a scheme to reduce your tax as it is an efficient tool for growing your retirement funds. It is meant to supplement your retirement money by embracing investment options. An increasing number of Singaporeans had been making contributions to their SRS accounts. For instance, the contributions made until December 2015 reached more than S$4 billion.

Why are people drawn to investing their SRS funds? For starters, gains are non-taxable. Furthermore, the long-term returns are higher when invested as compared to leaving your SRS fund in idle. From the retirement age and beyond, only 50% of your withdrawals will be taxable. It goes without saying that your bigger risk appetite is subject to the volatility of the stock market.

Image Credits: pixabay.com

Image Credits: pixabay.com

A local institution that allows using SRS funds for unit trusts, index funds, unit trusts, or blue chip shares is OCBC.

Sources: 1 & 2

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5 Reasons to Invest in P2P Lending Now

P2P lending, popularly known as crowdfunding, provides individuals and institutions an opportunity to earn passive income through investing in business loans to growing and deserving SMEs. Returns on investment are in the form of repayment of periodic interest along with the principal, based on the amount that investors have put in. In a single loan, there could be hundreds of investors who co-invest and share the risks and returns of investment.

This concept first appeared in 2005 with Zopa  (founded in the UK), and has become a proven investment product globally. In 2016, more than US$330 Billion has been invested in P2P lending with China, US and UK as market leaders.

Can you guess where’s the next region of growth for P2P lending? That’s right – Southeast Asia. Funding Societies (based in Singapore, Indonesia and Malaysia) is one of the leading platforms in this region with licenses/approval by regulators in all 3 markets.

Here, we give you 5 compelling reasons to put your money into P2P lending :

1. Returns are higher than most traditional investment products

One of the key factors in any investment is what you get in return.

In Singapore, investing in P2P lending can potentially earn you up to 14% per annum returns on your investment. This is much higher than 1%-2% per annum on Fixed Deposits or 2.5% per annum on your CPF account.

2. And you don’t need to wait for years to see your returns

The typical tenure for these business loans range between 1-12 months, so unlike fixed deposits or insurances, you don’t need to lock your money in for years to see the returns. In addition, you get the interest as well as principal back on a monthly basis, allowing you to unlock the cash and provide opportunities to reinvest the money and creating a compounding effect.

3. You can invest even if you’re a fresh grad or NS man

Funding Societies is the only platform that allows investments starting from as low as $100 (minimal investment on other platforms is usually $1,000 per loan), which means literally anyone can invest. It allows one to test the platform before increasing the amounts and also provides opportunities to diversify into multiple loans even with a small starting capital.

4. It’s a simple product that doesn’t require any technical knowledge

Some investment products require a high level of technical knowledge plus a close watch on the market movements.

P2P lending is simple and straightforward. It’s easy to understand the factsheet (prepared by the platform) which covers the SME’s business model, track record, financials and purpose of loan. Investors can make decisions based on the factsheet. If you are too busy to review every factsheet, Funding Societies has an auto investment feature which lets you select your investment criteria and make the investments automatically.

5. Southeast Asia’s leading P2P platform is in Singapore

Most Singaporeans prefer to invest with companies with (i) a solid track record, (ii) operations in Singapore.

Since starting its operations in Singapore, Funding Societies has already expanded to two more Southeast Asian countries over the last two years – Indonesia and Malaysia. It is the only P2P lending platform to have won Monetary Authority of Singapore (MAS) Fintech Award in 2016 and was recognised as one of the Top 250 Fintech companies globally. It is backed by world class venture capitalist Sequoia Capital who have invested into companies like Google, Apple, Airbnb and Carousell amongst many others.

More than 19,000 investors are already on Funding Societies’ platform regionally, and the reasons:

  • LICENSED AND REGULATED: Funding Societies is licensed in Singapore by MAS and is a regulated entity. It uses escrow account for investor funds managed by a licensed trustee ensuring safety of investor monies.
  • HIGH QUALITY INVESTMENTS: Because of the rigorous risk assessment that Funding Societies does on the companies before offering the business loans for crowdfunding, the investments are good quality and at the lowest default rates in town.
  • EASY TO INVEST: Investors can make their investments and review their portfolio on the go with Funding Societies investor mobile app. With Auto-Invest, investors just need to define their preferred parameters and let the system do the work.
  • SKIN IN THE GAME: The top management at Funding Societies believes in ALL the business loans that they give, they invest in every single loan. As CEO Kelvin Teo says, “We co-share the risks and rewards of investments with you.”

Sign up for your investor account with Funding Societies now.

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.

Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. 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.

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Stop Procrastinating And Start Accomplishing Goal$

One of the greatest English novelists, Charles Dickens, encapsulated the unpleasant prowess of procrastination. His advice was “to never do tomorrow what you can do today. Procrastination is the thief of time.” Procrastination feeds into your weakness by following immediate gratification.

You are aware that it affects some areas of your life such as being late for a meeting or missing the billing deadline. However, you might not realize that constantly avoiding responsibilities can cost you money. Start changing your ways! It may seem trivial now, but keeping your financial goals on hold will affect your long-term savings plan.

LEARN TO ACCEPT YOUR BOUNDS

“I do not feel like doing it right now!”
“I will be more prepared tomorrow.”

How often have you used these excuses to put off the tasks that you can easily accomplish today? For some people, avoiding the difficult tasks by making excuses became a form of coping (i.e., an unhealthy response). It is time to face the music! You will never be fully ready to tackle your financial goals.

The best thing that you can do right now is to examine your financial situation. Identify the amount of cash that comes in and goes out. You may either download money tracker apps or seek the help of the professionals.

CONSIDER THE PRESENT TIME

A study from the University of Chicago found that participants were more likely to initiate action if they view that the task happens at the present. Apply this thought by determining what phase you are on.

Image Credits: pixabay.com

Image Credits: pixabay.com

It is easier to track your tasks by making a simple “to-do list” that even includes the tasks you are avoiding to pursue. Then, write the deadlines together with every task. Even if the deadlines you set are sooner that necessary, it will help your cause.

BREAK IT DOWN INTO SMALL CHUNKS

One of the reasons why individuals put goals aside is its intimidating and overwhelming nature. Listing vague or huge goals can immediately discourage you. Breaking down your financial goals into action items is a good idea. Make these items realistic, manageable, and concrete.

Image Credits: pixabay.com

Image Credits: pixabay.com

For instance, you aim to make S$2,000 by Christmas instead of saying that you envision having S$500,000 by retirement. Set up a reward system after you finish an action item.

Sources: 1 & 2

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