MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Are You On The Same Page About Money As Your Partner?

As a couple, discussing about finances can be a hard pill to swallow. After all, money is a common source of issue in martial relationships. It is not something you discuss casually without emotional attachments.

Whether you like it or not, being transparent about your finances is essential in building a strong relationship. Talking about money increases understanding and facilitates cooperation as you work on the same financial goals.

You and your partner probably would not get too in-depth about your finances in the early stages of the relationship. As your relationship gets serious, so does your conversations.

Conversations about money often takes places when a couple moves in together. When this happens, do tap the fundamental elements such as your income and debt.

The next step is to decide how you are going to manage your finances as a couple and as individuals. Decide whether you will combine all your finances or keep them separate. The decision depends on your preferences and spending habits.

If you decide not to combine your finances, you need to discuss how you are going to divide the household expenses. Usually, couples prefer to either split things down the middle or to divide the expenses based on their incomes.

You will realize how different it is to be completely on your own financially and to have somebody to help you. Discussing money with your partner will significantly reduce the likelihood of relationship issues cause by finances. Furthermore, you will be able to work out on your financial goals.

Common example of financial goals include paying off debt, saving up for a flat, and being able to retire at a certain age. Goals will depend heavily on where you are at financially.

WORKING OUT THE DIFFERENCES

Handling your financial differences starts with determining what you can agree on (e.g., setting aside some money for travel or paying household bills on time). Let me illustrate it for you as a spender and as a saver. The spender should be allowed some leeway while following a specific budget for disposable income. On the other hand, the saver should be allowed to satisfy his or her needs by putting away some money to his or her own account. Compromise is the key!

Image Credits: pixabay.com

At the end of the day, mutual respect can helps overcome any disagreements about money. You might not be on the same page all the time, but being able to honor each other’s individual needs can sustain your loving relationship.

Sources: 1 & 2

How Do Dollar Stores Make Money?

From ValuDollar to Daiso, how do these budget stores make profits from their extremely low prices? Is it by selling volumes over pricing? Or is it because they offer knockoffs?

Here are several reasons why budget stores can still survive!

#1: NEARING ITS END

The shockingly low prices offered by the budget store might be due to the expiration dates of its products. While S$1 for a liter of soda sounds too good to be true, you must be vigilant when it comes to its lifespan.

You get to purchase a product for an insanely low price and the budget store gets rid of a stock that they would otherwise throw away. It is a win-win situation. This strategy is not limited to budget stores alone. Many supermarkets and bakeries slash their prices as they close for the day.

Minor defects in the packaging may also contribute to the low prices. A small dent on a soap bar or a small tear on a box can contribute to its lower cost. Do not judge the item by its cover! Sometimes, the savings outweigh the appearance.

#2: REDUCING ITS SIZE

There is truth to the saying that size matters. Interestingly, retailers can mask the true cost of their products by changing its sizes. Some dollar store items are small samples sold for a dollar or less. This way, the retailer makes more money with each dollar you spend.

#3: SELLING THE OFF-BRANDS

Have you ever tried the Tim Tam chocolates biscuits from ValuDollar and noticed the significant difference in taste and packaging? I have! Well, this occurs because it is not from the original company itself! You see, dollar stores typically import items from other countries to get cheaper alternatives.

For instance, they may import Tim Tam biscuits made from Indonesia instead of importing it from the root source – Arnott’s Australia. This does not mean that the alternative is fake or inedible. It could just mean that the ingredients used for the off-brand biscuit varies and are typically of lower quality. Do a taste test and compare it to the supermarket’s Tim Tam to see for yourself!

#4: WINNING THE GREY MARKET

What are Grey Market products? For starters, Grey Market products are sold outside the authorized distribution channels by retailers which may have no relationship with the manufacturer of the products. Let us simplify things with an illustration!

Say that a laundry detergent distributor in Singapore sold its stocks to supermarkets such as FairPrice and Cold Storage. However, this distributor has extra stocks. How can it maximize its profits? It reached out to Grey Market dealers to offer its goods at heavily discounted prices. This is why dollar stores can get a hold of the same products and sell it cheaper than the rest!

Image Credits: Flickr Creative Commons via Random Retail

Be a smart shopper! Just because a store has the word “budget” or “dollar” in its name does not mean that you are getting a good deal. In fact, it is likely that you are paying more at a dollar store for certain products that you can find at supermarkets. On the other hand, you must discern whether a product (such as a toothbrush) can be better acquired in a budget store. Keep these in mind the next time you shop!

Sources: 1 & 2

The Hidden Costs Of Owning A Pet

There is a reason why cat and dog videos flood the trending pages of YouTube and Instagram! They are so irresistibly adorable and hilarious. Moreover, these fur buddies serve as the best companions for people of all ages.

Taking care of your beloved companion is nowhere near as expensive as raising a child in Singapore. However, costs go beyond food and shelter. Prepare your funds as we introduce the “hidden costs of owning a pet”…

#1: PET GROOMING SERVICES

Bathing your pet and cutting its nails can only go so far! Whether you like it or not, you cannot simply get away with an at-home grooming kit. Only professionals can properly trim your beloved pet’s fur. This is especially true for dogs.

My aunt owns two dogs – a Cocker Spaniel and a Pomeranian. I can vividly recall when she got a rather disappointing grooming experience from a personnel who trimmed the Cocker Spaniel’s fur too short. She regrets that she did not gave specific instructions beforehand. While most dogs are groomed once every 2 months, these breeds need more maintenance. It is best to discuss your preferences to the groomers. Otherwise, you would waste S$40 to S$70 for small dogs and S$90 to S$200 for bigger dogs.

#2: PREMIUM PET FOOD

As you explore the aisles of the nearby supermarket, you will notice how affordable their selection of pet food is. These brands may be cheap, but are they healthy for your beloved buddy?

Most pet owners switch to premium brands to provide food rich in nutrients. Moreover, some pets may have developed medical conditions that require a change in diet. Switching diets come with a cost!

#3: EXPENSIVE MEDICAL COSTS

As your pet ages, your veterinary bills will undoubtedly shoot up! Your beloved cats and dogs may suffer from the same conditions that aging humans experience. From tumors to epilepsy, your furkid is vulnerable to unexpected veterinary attention. What should you do?

For starters, you can expect to pay around S$20 to S$60 for a basic veterinary consultation. This is why, it would help if you had an insurance policy to back up the costs. Take a gander at these pet insurance policies: My Paw Pal by CIMB Bank, Paw Safe by AIA, and Happy Tails by AON. Choose which policy suits your needs the best!

Image Credits: pixabay.com

HOW TO MAXIMIZE YOUR PET’S BUDGET

#1: ESTIMATE HOW MUCH YOU NEED TO SAVE

The added responsibility of taking care of another being comes with a cost. Estimate the expenses of having a pet by breaking down how much you will need to save per month. For instance, you want to save around S$700 per year to cover unexpected medical bills. Consider saving S$60 per month.

#2: OPEN A SEPARATE PET FUND

A surefire way to separate your personal money to your pet funds is to open up a new bank account dedicated solely to it. Money inside this account is off-limits unless you are going to use it for the benefit of your furkid. Shop around to get the best savings account available in the market!

#3: CREATE A LINE BETWEEN NEEDS AND WANTS

Lastly, you must weigh whether an expense is necessary or not. Do you really need to buy a digital pet tag for your cat? Or, another bed to replace the one you just bought last week? What is important is that you take care of your pet’s health and wellness.

Sources: 1 & 2

Which Makeup Products Should You Splurge On?

A study has shown that women spend approximately S$20,000 on beauty products in their entire lifetime. That is a lot of lipsticks! With a shocking number like that, you must weigh whether a beauty product is worth splurging for or not.

LIPS THAT KISS

If there is one thing that you should splurge on when it comes to luxury cosmetics – it is lipstick! I am not saying this merely because I am obsessed with this product. A reliable lipstick is important because you can apply it as a vibrant eye-shadow or a pigmented blush too. For instance, I use my MAC Russian Red (about S$30) to give a flush of crimson on my cheeks and on my lips. You can use the same technique to Charlotte Tilbury lipsticks and others alike. Gone are the days when multitasking sticks do not exist!

Experts believe that anything put around or on the mouth can make or break your look. A subtle lips can give off a natural aura while a red lipstick can be a showstopper. Moreover, a good lipstick stays for a long period of time. Less purchasing equates to more savings.

BASE THAT STAYS

Whether you like it or not, it all starts with a good base. Make sure you splurge on skincare and a really trusty primer. Think of your face as a room’s platform, you will not be able to build the room you desire without a sturdy surface. Having a good base will enable you to get away with a drugstore foundation. Do not get me started with how drugstore products are becoming more competitive now. That is a different conversation. Anyway, let us go back to skincare.

Many Singaporeans turn to Korean beauty for their skincare regimen. You can follow this too! Or, simply cleanse and exfoliate regularly. Personally, I prefer the sensitive formula of Cetaphil as a cleanser. Afterwards, I would put the NUXE body oil. I may also partake in an all-in-one lactic acid treatment by Sunday Riley (retails for S$223 at Sephora Singapore). It is a product that many skincare obsessed people shell out for. It brightens, soothes, and reduces your blemishes and fine lines. It leaves you with an even-toned radiant complexion!

BROWS THAT BOWS

Many makeup artists believe that eyebrows are the most important facial feature next to the teeth. They go the extra mile to shape one’s brows for a variety of reasons. Firstly, a nicely shaped brow can make someone look more youthful and fresh. The volume in your brows can make you look rested!

Secondly, it gives a subtle change without having to splurge on other cosmetics. You can either look edgy or feminine by shaping your brows. Lastly, even the Royal Duchess of Cambridge believes in a set of perfectly shaped brows. She uses the Bobbi Brown Brow Kit that retails for S$85 at Sephora. A cheaper alternative would be the cult classic – Anastasia Brow Wiz for S$40 at Sephora. Brow Wiz is a holy grail to many beauty fanatics due to its user-friendly wand and its natural finish.

Image Credits: unsplash.com

Let me ask you one thing. Which luxury beauty products do you splurge on? Leave your comments below.

Sources: 1 & 2

The Best Prepaid SIM Card Options For Tourists

Let us be honest! In this day and age, it is hard to live without mobile data. Most of our daily lives center around the convenience of the Internet. Moreover, we find pleasure in sharing our adventures and experiences thru social media. This is why most jet-setters secure their pocket Wi-Fi before or after landing to their destination.

Having your own prepaid sim card with data allows you to navigate the area and to interact with the locals no matter where you are. If your foreign friends want to visit you in Singapore, here are some of the prepaid sim card options that you can suggest.

Image Credits: pixabay.com

Firstly, it is important to note that there are only three main telecommunication companies in Singapore. These three include Singtel, Starhub, and M1. Lastly, these telecos offer tourist sim cards that can last you for a week or so.

The good news is that tourists can enjoy about 100 GB worth of local data and 100 local texts from all the three telecos. You read that right!

M1’s Tourist SIM, valid for 7 days, is priced at S$12. You can indulge on 500 minutes of local calls and 20 minutes of international calls. However, this sim does not include the roaming data.

Next up is Starhub! Starhub Travel Prepaid SIM will also take you back by S$12. It is the cheapest option with the most value. Why is this so? For one, it includes 500 minutes of local calls and 30 minutes of international calls. Additionally, it includes 1 GB worth of roaming data.

Lastly, you must highly consider the Singtel hi!Tourist EZ-Link SIM Card. This merges the need for transportation and communication. You see, this prepaid card has a stored EZ-link value of S$3. Buying a separate EZ-link card would cost you an additional of about S$15. What’s more? You can get multiple benefits tied to this prepaid card such as 25% off the Sentosa attractions.

The price of this prepaid card is S$18 including 500 minutes worth of local calls and 30 minutes of international calls. Moreover, it has 1 GB worth of roaming data. Imagine how much savings you can acquire by fusing all these services!

The bottom line is that different people can have different mobile usage when they travel. Examine your priorities and preferences when choosing the best prepaid sim card for your foreign friend.

Sources: 1 & 2

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