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8 questions to ask yourself before getting a personal loan

Are you in need of quick cash for an emergency? One of the most important factors when considering applying for a personal loan is the interest rate.

Whether you’re planning to go for the Standard Chartered CashOne Personal Loan (as low as 3.48% p.a.) or CIMB CashLite (3.5% p.a.), pause for a moment to think it through.

Ask yourself these questions before getting a personal loan.

#1: Why do you need the money?

There are many reasons you may wish to borrow money. Maybe you’re faced with medical bills or unexpected home renovations.

For those looking to pay off high-interest debt, applying for a personal loan would make sense too. For example, if you have a credit card debt at a 25% interest rate per year, it would be wise to take up a personal loan with a 7% interest rate to consolidate your debts and pay it off first.

Go ahead and get that personal loan if you know it’s for a good cause, such as reducing the interest.

#2: What is the interest rate?

Image Credits: Investopedia

Speaking of interest, here’s our next point.

Before you borrow money, understand that the lender will make a profit by charging you interest. According to Investopedia, interest is a charge applied to you, expressed as a principal percentage. And, of course, a lower interest rate is better for you as the borrower.

However, it’s not as simple as it seems. There are two rates to consider: Applied Rate (AR) and Effective Interest Rate (EIR). In short, AR keeps the loan principal as a constant over the life of the loan. In contrast, EIR calculates the reduction in principal as you pay down the sum.

Do more research if you are unsure of the terms.

#3: Are there other charges?

In addition to interest, there may be additional fees.

Possible charges include a fixed annual fee tagged to borrowing, a late payment fee if you miss a payment, or a change fee if you need to renegotiate your loan terms.

Some banks even charge an early repayment fee as early repayments affect a portion of their predicted profits. Be aware of these possible charges before you move forward with the application.

#4: Can you manage the loan repayments?

Image Credits: The Economic Times

When considering whether to take up a personal loan, you must decide if you can handle the repayments.

Once you know the interest rate, extra fees, and anticipated monthly repayment amount, make necessary calculations from your income to see if you can afford to pay it back.

To do so, you want to write out a detailed budget including your spending needs on groceries, household bills, and miscellaneous expenses. From the breakdown, see if you have enough leftovers to weather an unforeseen financial storm.

Yes, that’s for your rainy days.

#5: How will it affect your credit score?

Lenders use credit scores to decide whether to issue you a loan. Credit scores affect loan terms such as interest rates, tenure, and principal limits.

Your payment history, the ratio of debt to credit, the age and quantity of your accounts you own, and any derogatory reports such as loan defaults can affect your credit score.

If you think you can do without a personal loan this time around, then skip it. Ensuring that your credit is in good shape will help you get a better loan in the future when you seriously need it.

#6: What is your borrowing limit?

Image Credits: Yahoo Finance

Are you aware that The Monetary Authority of Singapore (MAS) has established a Credit Limit Management Measure (CLMM)?

It prevents financial institutions from lending new credit facilities to borrowers with debts greater than six times their monthly income. This credit limit helps to protect borrowers from getting into high debts too much to bear.

And of course, other than CLMM implemented by the authorities, other factors will also affect your borrowing limit. This includes your credit score, monthly salary, and the relationship you have with the bank.

#7: How reliable is the lender?

Be mindful that some people and institutions may not be worth your time and transaction in any situation involving money.

If a lender fails to run a credit check, seems disorganised, or cannot answer basic questions, be wary. You want to deal with a reputable banking institution and not one that agrees to a loan without reviewing your credit history.

#8: When will you get the funds?

Image Credits: Jmc Accounts

Most people seeking personal loans are racing against time. If that is a factor, you want to find out how long is the approval process. From approval to disbursement of the loan, speeds will vary from bank to bank.

Here are three personal loans promising instant processing times:

Final thoughts

The decision to borrow money should be considered carefully. Evaluating and understanding your loan’s reasons, the interest rates, loan repayments, and more mentioned in this article can help you make the best decision possible when seeking a personal loan.

How To Save Money While Online Shopping

Online shopping has been a norm long before pandemic struck! However, its growth was exponential as many of us are forced to adhere to strict social distancing measures. With a myriad of services available at one’s reach, it can be hard to know where to start. Take this list as your guide when you are looking for ways to save money on your virtual cart.

DO NOT MAKE IMPULSE PURCHASES

According to Psychologist Graham Jones, author of Click.ology, making buying decisions when you are drunk, tired, or emotional can lead to regretful purchases. Avoid feeling regret by reserving the item overnight and putting it in your cart. Revisit your cart the next day and contemplate on whether you still need to buy this item. You will be able to make better decisions once you are aware of your online shopping patterns.

BE AN ACTIVE READER OF NEWSLETTERS

Get ready for 4.4 or the Good Friday cyber sales! Signing up for the store’s mailing list makes you a priority customer. This means that you will be the first to know if there are upcoming exclusive discounts or special events. A great example is Lazada Singapore. As a new subscriber to Lazada, you will be welcomed with a gift coupon for your first purchase. You will also be notified when there are free shipping and other main events.

Image credits: unsplash.com

IDENTIFY THE LOCAL WEBSITES

A savvy consumer encourages the habit of comparing prices online. This way, you will be able to get the best deals possible. Say that you are eyeing for a sleek and functional bag for work. ZALORA Singapore comes to my mind whenever I think of workplace suitable bags that create a balance between shape, function, and affordability. It is one of the premier online retailers that sell bags, accessories, shoes, apparel, and beauty products. You may also check out the local brands such as Charles & Keith.

Another option is to look for pre-loved designer bags at websites such as Reebonz. If you are conscious about brands, you can hop to Reebonz as it sells affordable designer bags. From Chanel, YSL, to Louis Vuitton bags – they have it all for a fraction of the original price!

USE YOUR CREDIT CARDS

It is no secret that browsing the pages of an online shop is more convenient than strolling the crowded shopping malls. Not to mention, products are often much cheaper online. This is why many Singaporeans find online shopping hard to resist. Fortunately for you, you can turn to credit cards for attractive rebates. Ask your credit card provider about the rebates and their participating merchants.

For instance, HSBC credit card holders can enjoy the WOW Weekend deals including access to retail therapy and wellness treats to save up to 90%. For more information, please visit: cardpromotions.hsbc.com.sg/rebate.

Image credits: unsplash.com

There are numerous ways to maximize your hard-earned money while shopping virtually. Simply follow these strategies diligently on your next spree!

What to do if you’re a victim of gaslighting

Emotional conversations and confrontations are never easy for people to manage. Whether it be angry partners or challenging parents, often when things get tough, it seems easier to shrink away and accept what the other person is saying even if you know it’s not true.

There’s a name for this type of manipulation, and it’s called gaslighting.

Not sure if you’re a victim of gaslighting? See if you can identify with these phrases:

“You must be imagining things.”
“Why so serious? I was just pulling your leg.”
“You have no idea what you’re talking about.”
“Are you insane? You know that’s not what happened.”

According to The Sociology of Gaslighting, a journal written by the American Sociological Review, gaslighting is defined as a type of psychological abuse aimed at making individuals feel crazy. It forces the victim to doubt their sense of reality and judgment after repeated psychological attacks from the abuser in question.

Responding to gaslighting can be both triggering and exhausting, depending on the intensity of the abuse you’re enduring. The issue has drawn attention across the years and even portrayed in the early years of cinema.

While there is still an ongoing debate on the proper response to gaslighting and how to prevent it, we’ve put together some ways to counter unfair manipulation from a friend, loved one, or even a colleague.

#1: Take a breather

Gaslighting usually brings on extreme emotions from both the abuser and the victim. If you’re suffering from its effects, you might cycle through an entire round of emotions including anger, fear, worry, and pain.

To not let those feelings overwhelm you, focus instead on giving yourself some space to calm down and take a breather. To regain focus at the moment, go ahead and take a short walk. Do whatever it takes to give you the strength to push back against those emotions.

#2: Gather proof along the way

Image Credits: abc.net.au

Collecting records or data of the times and things the person who’s often gaslighting you is a great way to help validate your feelings during and after the experience.

Begin by keeping pictures, screenshots, texts, emails, and even any property your partner damages while they’re with you. Keep a note of your conversations with gaslighters so you can look back as evidence when the situation calls for it.

In severe cases, you may even want to consider using your phone to record them talking so you can have something concrete to back you up where necessary.

#3: Voice your concerns calmly

For the Chinese-educated peeps, we’re sure you’ve come across this phrase – “老虎不发威，你当我是病猫”. It is an apt phrase to demonstrate how gaslighters might step all over you if you don’t speak up.

Voicing your concerns openly and calmly is a great way to let others know that you’re not going to put up with their abuse or disguised insults anymore. Don’t allow such people to confuse you or shake up your confidence.

#4: Trust your memory

Image Credits: unsplash.com

If your partner is labelling you as crazy or unstable for remembering a particular encounter clearly, trust your memory. Misremembering typically involves smaller details, not larger ones. Thus, learn to trust your gut and responses before you trust anyone else.

But it would be wise not to get drawn into the conflict. Instead of saying “I know I’m right” and get whirled up in the argument, say, “It seems like we recalled things differently, but I don’t want to bicker over it.”

#5: Practice self-care

Constantly being in the loop of gaslighting scenarios can significantly affect your nervous system. Give yourself a break by sleeping it off or focusing on overall self-care.

Engage in activities that can help you establish a good routine that prioritises your needs and makes you comfortable, so you can ready yourself to stand up against gaslighting.

Here are some general ways to improve well-being:

Journal down your feelings
Include positive self-talk or daily affirmations
Spend some quality time with your loved ones
Try aromatherapy yoga or attend a meditation session
Do something you enjoy (e.g. ice skating, crossword puzzles etc.)

#6: Talk to someone

Image Credits: unsplash.com

As a victim of non-stop gaslighting, you might be too emotional to view things objectively. As such, it would be wise to seek a second opinion. Talk to someone you trust and seek their insight or input on the situation.

Since they aren’t directly involved in the problem at hand, the chances are that they can offer you an unbiased perspective. Even if they aren’t able to provide any advice, having someone there for you physically or emotionally can help a bunch.

For those facing gaslighting at work, it’s best not to meet with the person alone. If time permits, invite a neutral and trustworthy coworker alongside the meeting to just sit-in and listen to the conversation. Limit your contact with the gaslighter as much as possible.

Final thoughts

Gaslighting can be tough to bear. Don’t face it alone! Besides heeding the above tips to help ease the situation, it’s also advisable that you seek a professional opinion. You can speak to a counsellor or a therapist about your issue and gain insights from the psychologically trained.

All will be well again! Take heart.

Do these 10 things if you want to achieve financial freedom

It is fair to say that most of us want to achieve financial freedom. To have enough savings and solid investments to afford the lifestyle you wish to can sound really attractive. Unfortunately, finding that freedom can be challenging.

Many people hold debt, overspend, or encounter challenges that make financial freedom challenging to achieve. However, all hope is not lost. Develop and maintain these simple financial habits if you want to attain financial freedom.

#1: Set specific goals

A goal like “I am going to be rich one day” is vague. A better way to set targets is to use the SMART technique. They should be Specific, Measurable, Achievable, Realistic, and Time-focused.

You should be working towards a SMART aim like “I am going to increase my savings by 1% a month for twelve months.” Write your desire down in a journal, and make it your mantra. Specific goals lead to accurate results, so cut out that fluff thinking.

#2: Write a budget

Image Credits: pixabay.com

Budgeting is essential for wise money management. Instead of squandering money away and realising reason why i’m broke, it’s better to start analysing your spending habits.

Ensure your bills are promptly paid and your savings are funded before allocating money to luxury expenses or feed your lifestyle inflation. Understanding where your money goes each day is the best way to control your urge to splurge.

#3: Clear your debts

With existing debts looming over your life, financial freedom seems like a faraway dream. When you owe financial institutions money, don’t forget that the interests are rolling.

To eliminate debt, you may want to try the pyramid strategy. Pay off your smallest debt first, then allocate that money to your next-smallest bill, and so on until you have paid your debts off altogether.

You may also be interested in reading our recent article on “top tips on how to pay off credit card debt quickly”.

#4: Automate your savings

Image Credits: Medium

We can’t emphasise enough because it’s one of the stablest ways to grow your savings. If you have a direct salary deposit from your employer to your bank account on payday, ensure a percentage of your income goes into savings right away.

It’s easy to set up recurring transfers to send money to a specific saving account every time you get paid, so you shouldn’t be giving any lame excuses. Once the automation is in, the routine will ease you into saving, so resist the urge to withdraw.

#5: Educate yourself on finances

We may be mistaken, but many of us do not have a good understanding of personal finances. Well, we can’t blame ourselves since it’s not taught in schools?

Wrong.

Take ownership to have at least a basic understanding of how money works – be it in the topic of debt or investments. Read books written by experts or consider taking some courses to develop your knowledge of money.

Speaking of which, do you know that Seedly is organising a Personal Finance Festival 2021? The most extensive personal finance event in Singapore is happening on Saturday, 10 April 2021, from 10am to 5pm. Read more about it here.

#6: Invest when you’re ready

Image Credits: Forbes

Investing in the stock market can seem scary, and it’s no wonder why some people have analysis paralysis.

Yes, the market is volatile and can occasionally crash. Unforeseen circumstances can cause even the most robust markets to shrink. But without risk, there is no return. As such, the stock market is one of the greatest ways to grow your wealth.

If you know not where to get started, how about beginning your journey through Robo-advisors? From OCBC RoboInvest to DBS digiPortfolio and Stashaway, there are several local options for Singapore investors.

#7: Monitor your credit scores

Your credit score is the first thing lenders will examine when you wish to make a major purchase, such as a car or a house.

Do you know how to grab hold of your credit report? You can get a copy from the Credit Bureau (Singapore). Each CBS Credit Report is chargeable at S$6.42 (inclusive of GST). Simply make a purchase online, at any SingPost branches, at the Credit Bureau office, or CrimsonLogic Service Bureaus.

Read up more information on credit scores and why they matter here.

#8: Maintain your health and assets

Image Credits: Medium

If you achieve financial freedom but then neglect your health, your hard work could go to waste due to unexpected healthcare costs. Constant exercise, eating right, and avoiding unhealthy lifestyle choices will benefit you in the long run.

While you take of your health, don’t forget to keep an eye on your things. Making sure that they last longer can help you save money.

This is true for everything, from mobile phones to laptops and cars. Keeping them well-maintained is likely to increase their lifespan and save you money on costly repairs or replacements down the road.

#9: Don’t exceed your means

Frugality is frequently on our radar, and you might have read about it in several money-themed blogs too. But you know what? It is an excellent trait for achieving financial freedom, and we’re going to play it like a broken record.

The ideal way to live within your means is to distinguish between things you want and the things you need. Just because you can afford something does not mean you need to buy it. If there’s a cheaper option out there, go for it.

#10: Talk to an expert

Image Credits: Great Eastern

Once you have accumulated some savings, talk to a professional about how to manage your money. Picking the right financial advisor who is legally obligated to act in your best interest instead of theirs is vital.

Final thoughts

While financial freedom may seem like a daunting goal to reach, it is well within your means to achieve it! Taking a disciplined approach and developing the abovementioned habits over time will help you get to your desired state of financial freedom in no time.

5 Unique Japanese Products That Actually Work

The Land of the Rising Sun shines brightly on many things, including unusual and creative products. “Made in Japan” may be a staple on quality electronics, but it is also visible in limited-edition items. This is why people queued up during the opening of the first Japanese dollar store Daiso in Singapore. Moreover, people have been showing their Daiso hauls in YouTube and other social media platforms.

On that note, here are five unique Japanese products that actually work.

#1: REFA FACE ROLLERS AND BODY MASSAGERS

ReFa’s platinum rollers harness microcurrent technology that mimic the natural electric current circulating in your skin and the kneading motions of an esthetician. It is designed to relieve, brighten, and rejuvenate the skin as it helps to reduce fine lines and contours the face naturally. It is cordless and battery-free because it draws power from the indoor solar light.

ReFa was established in Japan in 2009 and has since expanded to Singapore and other Asian countries. One of their bestsellers is the ReFa 4 Carat, which costs around SGD420 on Sephora Singapore. It is said to replicate the “double kneading” action of a skilled masseur. Roll your aches and troubles away by checking out its product offerings.

#2: FRIXION ERASABLE PENS

I remember when I was a university student. I used to have different Pilot Frixion pens on my bag and used it to take down my notes. From the trusty pen brand Pilot come these erasable ballpoint pens that can be erased using friction. It uses special ink that turns invisible when heated. They are available in rainbow of colors, and come in packs of ink refills. Moreover, you can pair your Frixion pens with your Frixion highlighters. Since the ink disappears at high temperatures, do not use it for signing important documents.

A pack of colorful Frixion pens retail for about S$24.60 at Lazada.

#3: TAMAGOTCHI DIGITAL PET

How old were you when you had your first Tamagotchi? A Tamagotchi is a handheld digital pet that was created in Japan by Akihiro Yokoi and Aki Maita. Since its inception, it had different versions such as the Eevee Tamagotchi and the Tamagotchi x PAC-MAN edition. Nurture your Tamagotchi character with the help of PAC-MAN for as low as S$59.99 at toysrus.com.sg.

Image Credits: facebook.com/virtualpet

#4: DAISO BANANA KEEPER

Daiso has a range of over 100,000 unique products and 40% of which are imported goods. Many of these products include household items and kitchenware. One product that caught my eye was the banana keeper. The S$2 banana keeper helps you to retain the shape and quality of your snack. You will never experience having a squished banana at the bottom of your bag ever again!

#5: PURE SMILE CHOOSY LIP GEL MASK

Have you ever felt like your matte or liquid lipsticks are sucking all the moisture out of your lips? Does your lips look chapped all the time? I have a solution for you. Unlike other face masks out there, there is a mask that is solely designed for your lips.

Image Credits: nymag.com

The Pure Smile Choosy Lip Gel Mask sheets allow you to have smoother lips with its ingredients like Vitamin E, collagen, hyaluronic acid, and jojoba oil. You can select the scent that you like most from the available flavors: peach, milk, fruit, herb and honey. Simply leave the mask on for 5 to 30 minutes and say hello to smoother, plumper lips. It is S$1.40 per sheet at Althea.