8 Shopping Traps That Make You Spend More

Have you ever experienced going into a shopping mall or an online shop with a list in mind, and ended up buying more? Whether you shopped with an empty stomach or got entangled with several marketing strategies, stores can employ tricks to make you spend more. It is best to increase your awareness on the subtle, psychological, and clever marketing traps to help you save more money on your next bill.

On that note, here are 8 Shopping Traps That Make You Spend More:

#1: CHILDREN’S OPINION

As the Yuletide season approaches, many stores offered colorful options for children. Children have a strong influence on what goes inside the carts. Supermarkets purposely place cereals, toys, and sugary treats at a kid-friendly level. Avoid giving in to your child’s desires by leaving him or her at home when you are grocery shopping.

#2: VICTIMS OF FREE SHIPPING

The truth is, free shipping is not “free”. Retailers have already factored in the shipping costs before they release their prices. It is easy to be lured with “free shipping”, especially when you are purchasing several items online. You just have to pay an extra S$5 to S$10 on an item just to get the free shipping option. This ensures that you end up buying more than what you expect.

#3: HIDDEN NECESSITIES

Daily necessities such as dairy, bread, eggs, etc. are placed at the back of the store and far away from each other so you will be encouraged to travel the whole store to get it. Once you have travelled, you probably got more that what you initially needed. Consider going straight to the back of the store and keep your shopping list on hand.

#4: LURED BY THE NUMBERS GAME

Retailers are smart! Instead of putting a price of S$5 on a product, they will put an irregular price of S$4.99 or S$4.96 to make you think that you have scored a better deal. What’s more? They will also add the illusion of saving more money by buying more of their products. These seemingly small details actually work.

#5: ATTRACTIVE SALES

When you see the word “sale” advertised in a physical or an online store, you automatically think that you are getting a better deal. This may not always be the case. Just because something is on sale, does not mean that you have to buy it. Purchasing sale items overtime can get you on a trail of consistent overspending.

Sale traps include: “receive a free give when you spend…” and “buy 1, get 1 free”. The former may be giving away free items that the store could not sell. While, the latter is only useful for essential items such as food and toiletries.

#6: ENTICED BY THE AROMA

Imagine the smell of baked breads mixed with the fresh smell of flowers. Very attractive, right? This is why newly baked goods and fresh flowers are placed near the front door. The goodness of smell will surely make you feel hungry and keep your mood up!

Image Credits: pixabay.com

#7: RIGHT DAY TO SHOP

Interestingly, there is a “right” day to shop. Prices seem lower than usual during Tuesday and Wednesday. Moreover, you can get better discounts in the month of November. This month is so close to the Yuletide and year-end sales. You can also score good deals on January as retailers are trying to clear their stocks.

#8: RIGHT SIDE TO SHOP

Many grocery stores place popular items on the right side of the shelves to move shoppers from the left to the right. This is because all items throughout the store are strategically placed to follow the right path. Are you really saving more money by moving from left to right? Keep that in mind!

Sources: 1, 2, 3 & 4

Read More...

Boost Your Savings With These Lifestyle Changes

Much of the world has been given a small portion due to the grave effects of the pandemic. Sickness, unemployment, budget cuts, and other painful transitions can give us a taste of poverty. Being in this situation allows to take a closer look at our finances.

How is your financial health? Before anything else, evaluate your financial objectives and assess your spending and saving patterns. Ask yourself why you want to save and what your priorities are. This is to ensure that you know which path to take to reach your desired goals. Afterwards, review your cashflow and create an allocation plan. Move any excess funds to a bank account to help facilitate discipline against impulsive spending. Choose a bank with a high interest rate.

Other lifestyle changes include automating your finances, shopping smartly in supermarkets, switching to generic products, discussing about household finances, and going on a cash-only diet. Let us start with automating your finances.

Most bills can be paid online and many establishments have the option of setting up automatic payments. Try automating consistent payments for fixed costs such as your telecom, insurance, Netlix, or Spotify bill. This way, you will not miss a billing statement and will not incur late fees. You may also apply automation to your credit-card bills, if you want smoother transactions.

Secondly, you must use savvy shopping strategies in the supermarket such as using a coupon. Coupons can help you save a lot, especially when you are buying in bulk. Grocery tricks such as employing the numbers game – wherein they will put an irrational price of “S$3.99 or S$3.96” (instead of S$4) can trick your mind into saving more. Watch out for this!

If you are grocery shopping, it is best to shop on a full stomach. Shopping on an empty stomach may cost you a lot. Your feelings of hunger can make everything enticing, including junk food and other unnecessary items. Try eating a healthy snack before heading to the store. Your wallet and your tummy will thank you for that.

Thirdly, you may switch to generic products whenever possible. My sister and I recently went to the pharmacy to pick up some antibiotics. Interestingly, the generic brand was three times cheaper than the branded ones. You have to weigh your options and consider generic products for items such as toiletries and pet supplies. What is important to you? What are you willing to sacrifice? Only you can answer these questions.

Fourthly, you must discuss your finances with your spouse or partner. Knowing each other’s spending patterns and financial plans can help you set a life of success. Dealing with financial issues is something that most couples have to do. However, you have to do it as a team. Get comfortable talking about money, because a single conversation will not suffice. Reduce your electric and water bills by conserving water and switching off the lights when not in use. Use money-saving household cleaning hacks that enable you to make your own cleaning products.

Image Credits: pixabay.com

Lastly, you may go on a cash-only diet. This entails that you will ditch you plastic cards for a month or a certain period. It takes a lot of self-control and patience. Buy things that can only be bought through your allocated cash. When your cash runs out, you will be out of funds until your next scheduled withdrawal. Spend and plan wisely!

Read More...

How To Save For Retirement As A Young Adult

Time is of the essence. Crippled with all the uncertainties brought by the pandemic, having reserved funds can help cushion the blow of unforeseen events such as pay cuts and layoffs. Saving money is important, especially when your finances are limited. Consider saving money to grow your emergency and retirement fund.

Retirement may seem like a long walk ahead for someone in his or her 20s or 30s. However, it is best to start saving for retirement before you hit 35 years old because your priorities will change at that time. Financial priorities such as spending for a wedding, an education loan, house loan, and other major transitions may occur once you hit your 30s. Typically, you spend more money on yourself during your 20s. Why not consider spending more money for your future?

In your early 20s, you may save at least 5% of your income or sign up for your employer’s Retirement Plan. Avoid debt as much as possible and get educated about your finances. Widen your financial knowledge by reading financial books on investments and business opportunities. Pay off your debt, if necessary. It makes sense to pay off your debts or at least your high-interest debts before you save for your retirement. Not all debts are created the same. Pay off your high-interest debts first followed by the lower-interest debts.

The next step is to set up a budget. Systematically allocate your income onto distinct categories and stick to that budget. Do not spend beyond what your budget is for that month. This allows you to save regularly rather than arbitrarily. Make critical decisions about your expenses and cut down the unnecessary, especially when you hit your late-30s. Ideally, this is when you hit maximum savings. By this time you should have at least S$50,000 to your Retirement Savings.

Image Credits: unsplash.com

The third step is to seek for an employer that supports your goals. If your employer offers Retirement or Pension Plan then embrace this company benefit. As a young adult, you may also invest your money in accordance to your financial goals.

Lastly, you are saving money for your retirement to prepare for the unexpected. Contemplate and reconsider the realistic measures that are suited for you and your lifestyle. Seek the financial experts’ help as much as possible. Then, plan your exit with joy because you are well prepared for it.

Read More...

You are eligible for a S$3,000 cash grant if you have a baby born between 1 Oct 20 – 30 Sep 22

More support for Singaporeans to start and raise families

The government has announced a one-off S$3,000 grant for parents of Singaporean children born from 1 October 2020 to 30 September 2022.

The Baby Support Grant is introduced to lend additional support for families amid the Covid-19 pandemic. This will supplement the existing Baby Bonus Cash Gift which can goes up to $10,000 for each child. The cash will be deposited into the nominated bank account from 1 April 2021 or within 1 month of enrolment in the scheme.

For more information of the scheme, visit www.madeforfamilies.gov.sg

Baby Bonus Cash Gift

The Baby Bonus Scheme, which was introduced on 1 April 2001, supports parents’ decision to have more children by helping to lighten the financial costs of raising children.

via msf.gov.sg

Parents will receive the enhanced Cash Gift in 5 instalments, over 18 months.

via msf.gov.sg

Read More...

Singapore residents may look forward to ‘air travel bubbles’ for general travel soon

Singapore Changi Airport departure times

Transport Minister Ong Ye Kung announced on Tuesday (Oct 6) that ‘air travel bubbles’ with countries with low COVID-19 infection rates may soon be possible. Negotiations are on the way though he advised the public to manage their expectations.

“I need to manage expectations here. For members who are hoping that I’m about to announce some air travel resumption and even possible December holiday destinations, I am sorry I will disappoint you,” he said.

No requirements for a strict itinerary

‘Air travel bubbles’ differ from reciprocal green lane arrangements because there are no requirements for a controlled itinerary. Also, reciprocal green lanes are used mainly for official and business travel.

What to expect?
changi-airport-passengers-check-in

Image Credits: AFP/Roslan Rahman

Singapore will only establish ‘air travel bubbles’ with safe countries and regions. Other than abiding by the COVID-19 test protocols, authorities might look into setting a quota on the number of travellers per day.

“We also require travellers to apply for an air travel pass before their journeys, to allow us to plan for their arrivals, and throttle down the numbers, reduce the quota, if the epidemic situation changes,” Mr Ong added.

Which country is top on the list?

Hong Kong has revealed its intention to establish such ‘air travel bubbles’ with Singapore alongside other countries. As such, Singapore will most likely begin discussions with Hong Kong and other partners soon.

COVID-19 testing capacity no longer a major constraint
travellers entering Singapore amid COVID-19

Image Credits: The Straits Times

Mr Ong shares that about 27,000 people in Singapore are tested daily and the numbers are set to rise. By November, Singapore may be able to increase testing capacity to 40,000 tests a day.

There are also plans to set up a dedicated COVID-19 testing laboratory at Changi Airport. This is so as to support aviation recovery in the coming months. Currently, Changi Airport has an existing facility to swab up to 10,000 passengers a day.

Travellers must get used to being tested before departing. This additional step is very much similar to us going through security and having our bags checked before we board a plane. Most importantly, it’s crucial to kickstart general travel.

Other plans in place to safely reopen borders
travellers checking-in at a hotel amid COVID-19

Image Credits: The Straits Times

Countries which are economically important to Singapore but with higher infection rates will be considered with “practical schemes”.

“For example, we can replace the 14-day (stay-home notice) in a hotel with new requirements, such as a more stringent and repeated test protocol… we can segregate them from the rest of the community… we can closely track their movements while they are here,” said the minister.

Apart from ‘air travel bubbles’, Singapore will continue to pursue reciprocal green lane arrangements with other countries or regions. At the moment, Singapore has such arrangements with Brunei, China, Japan, Malaysia, and South Korea.

Read More...