MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Clever Ways To Build A Sufficient Emergency Fund

Emergency fund is an account utilized to set aside funds in the event of personal financial dilemma such as unemployment or theft. It is a safety net that will cushion emergency expenses against high interest debts and bankruptcy. It is not entirely for you as you can use it to provide for your family members who are in need.

In a fast-paced nation such as Singapore, a sufficient emergency fund is worth at least 6 months of your income. Build that by following some (or all) of these savvy ways:

TWICE THE CHARM

One of the major roadblocks to a workable emergency fund is your monthly salary. Earning below the minimum wage makes it difficult to save. Not to mention, you need to consider the CPF deductions. To leap through the hurdle by seeking a part-time job or additional sources of income.

Making extra hundreds on the side is enough to make a difference. You may work as a weekend receptionist or as an Uber driver. Use your creativity to grow your fund. You can even try pet sitting.

RELAX, IT’S AUTOMATED

As the age-old saying goes: “out of sight, out of mind”.

Avoid committing much of your willpower toward deciding whether to save or to spend by automatic your finances. Some institutions allow the employer to automate your salary in a bank account that is solely for your savings. Patronizing this method will lessen the temptation of immediate spending. Be able to grow the size of your bank account that is solely for emergency fund by embracing the power of technology.

BRING BANK THE COIN BANK

I, for one, dislike carrying a heavy wallet filled with coins. They just add a significant weight on my purse and my shoulder. Fortunately, my sister understands the value of loose change because she cultivated a coin bank. I started to contribute for my sister. We put all the unexpected cash (e.g., S$2 found in her pants) and the small change (e.g., S$0.50 from the Kopitiam) inside the jar. After 6 months of dedication, the jar is full!

Do the same thing for your prize winnings, rebates, and bonuses. You will be delighted to see your emergency fund grow as the weeks pass by.

SELL WELL ONLINE

Stop hoarding unnecessary items! Start selling these underused or unwanted items on online marketplaces instead. Gather them together and decide whether you want to toss, donate, or sell each one. Put all the cash that you will earn into your emergency fund.

If you want, you can host a garage sale this weekend!

WHAT SSB?

Once you have established an emergency fund, consider keeping it under the Singapore Savings Bonds (SSB). If you maintained your emergency fund for 10 years, you will earn about 2.6% per year. SSB allows you to cash out the money without losing the accumulated interest. Qualify for SSB by opening a bank account with DBS, POSB, UOB, or OCBC. Also, you need to have an individual CDP Securities account linked to any of your bank accounts through direct crediting service.

For more information, please visit: sgs.gov.sg.

INFORMATIVE SHORT

Learn the basics of emergency fund by watching this informative video:

Sources: 1, 2, 3, & 4

Make A Lasting Impression To Land Your Dream Job

The minute that you walk into the door, the pressure is on! You have to make a standout first impression.

Be remembered in the best way possible with these helpful tips:

DRESS THE PART

Whether you are in favor of it or not, we live in a society where we are constantly judged by how we look and how we carry ourselves. This is why it is important to dress for success before entering the interview room.

For women, it is recommended to wear moderate makeup. Women who decorate their faces with makeup seemed to rank higher in trustworthiness and competence according to several studies. Moreover, a study in the American Economic Review found that women who wore makeup made 30% more than their co-workers who did not wear makeup.

For men, appearing to workout regularly makes boosts your appeal. Topping it off with the sleek clothes that you are comfortable with can affect the way that people perceive you.

HAVE A FIRM HANDSHAKE

As a sign of politeness, handshakes are internationally accepted and encouraged. Start the interview with a bang by having a firm handshake that lasts for 2-5 seconds. A firm handshake is in between the incredibly tight and limp handshakes. You want to convey that you are confident and excited.

ARRIVE ON TIME

It is ideal to arrive about 10 minutes in advance for an interview. This allowance will give you enough time to settle in, calm your nerves, and lounge at the reception area. Arriving too early makes you seem excessively eager. On the other hand, arriving late for an interviews makes you seem unreliable and irresponsible. You do not want that!

Commit to the optimum time by visiting the location before the big day. Identify the appropriate travel time and adjust your schedule.

SPEAK WITH CONFIDENCE

Many individuals are very much prepared for the different interview questions. They have wonderful ideas and significant points to impart. However, some of these people speak either softly or loudly. These candidates tend to be skipped or overlooked.

Give your interviewer a reason to listen to you by speaking calmly and confidently. Interestingly, studies have shown that people who talk in a deeper voice are taken more seriously.

ACT CURIOUS AND INTERESTED

Acting that you are curious and interested can help you engage the attention of the interviewer. Share your ideas and experiences.

Image Credits: pixabay.com

Then, ask stimulating questions to learn more about the organization. Doing so will help you determine whether you must pursue the position or not.

Sources: 1 & 2

Let Your Child Learn Beyond Textbook Knowledge With These Enrichment Centers

As a holistic nation, Singapore has a competitive spirit. Most (if not all) Singaporean parents start to shape the academic skills of their children early on due to the fear of falling behind the fierce system. To accomplish this, they employ the services of several enrichment or tuition centers.

Searching for the “perfect center” seems like a hunt for the most delectable candy at Candylicious. There are hundreds of attractive options! Choosing a singular center is often a confusing, uncertain, and difficult task. You can either send your child to a competent center that breeds Ivy league students or to a mediocre institution taught by incompetent teachers.

You need to be able to spot a diamond among the duds. To do so, you must analyze if the center is suitable for your child and if the teachers impart things that are beyond what the textbook says. Few enrichment centers in Singapore offer just that! The short list includes The Learning Lab, Mathnasium, SmartLab Education Centre, and ThinkersBox.

Let me start with the The Learning Lab. The Learning Lab is a premier provider of tutorial programs for primary, secondary, and pre-tertiary levels. Aside from stimulating academic excellence, they are in the business of cultivating world-readiness. You see, the center conducts a series of events including creative writing workshops and Ivy Summit Series. The creative writing workshops were run by media personalities while the Ivy Summit Series were run by Harvard undergraduates. These efforts help establish a good reputation among parents, students, and educators in Singapore. Do not get me started about their alumni who studied in prestigious universities such as Princeton and Oxford! All these come at a relatively costly price tag. Expect fees of about S$30 per hour for primary students.

The next center has a niche as it focuses on Mathematics. The Mathnasium is not your average Maths tuition center! In fact, it has a reputation of being less stressful and more enjoyable. The people behind Mathnasium aim to increase the child’s appreciation for the subject in order to improve his or her academic performance. They use a unique way of teaching that was developed over 30 years ago. If you are skeptical about it, you will be happy to know that they have several branches all over the globe! So, browse their courses that range from Primary 1 to Secondary 4 Maths.

The third center is called SmartLab. What started off as a humble classroom in Bishan has expanded to providing quality tutorial classes that incorporates Information Technology. SmartLab was one of the early adopters of modern technology by equipping their classrooms with computers. More than regular classes, SmartLab offers FREE support sessions twice a month for students who need the extra hand. What separates it from other centers is its “Results Guranteed Programme” whereby parents pay a lump sum of money in exchange for an agreement (e.g., achieving a certain grade). You will get your money back if the agreement is not achieved. The lump sum is between S$2,500 to S$5,850.

The last, but not the least is ThinkersBox. It is a specialist center for brain development that caters to children aged 5-12 years old. The teachers at ThinkersBox impart the most fundamental aspect of schooling, which is rarely taught in schools. That aspect is cognitive or thinking skills. The dynamic duo behind the ThinkersBox believe that “textbook knowledge and grades will not be sufficient in a fast-changing and unpredictable environment”. I certainly agree!

Enrichment centers are becoming more of a necessity than a luxury. As parents, you must find the most suitable center to improve your children’s learning. Look not only at the reputation of the brand but also at other factors such as class size, tutor’s competence, and testimonials.

Good luck on your search! 🙂

Sources: 1 & 2

Extremely Entertaining Games To Educate Your Kids About Money

Before diving into the rising world of freelance, I previously worked as an early childhood teacher for children aged 5 to 12. I can encapsulate my teaching experience with a single word – fulfilling. One of the most profound lessons that I absorbed was that children learn best when they are having fun. You may let them think they are playing a game with an underlying agenda. For instance, you may turn counting into entertaining games for your family.

Games like these act as great teaching tools for parents and guardians alike. It ignites a kids’ curiosity and encourages them to ask questions about money.

1. ASSORTED CURRENCY MAGNETS

Many Singaporeans have a hobby of collecting magnets from the countries that they previously visited. Mimic this concept by plastering currency magnets into your fridge. Begin by purchasing self-adhesive magnets online (for about S$28.39) or on Daiso (for as low as S$2). Attach the adhesive to the back of the 5, 10, 20, and 50 cents. Make another set by attaching the adhesive on the coins’ front side of coins with the same denominations. You can complete different activities with these currency magnets.

On the first challenge, you may ask your child to match the coins’ backs with their fronts. The second challenge may entail your child to “pay” for every favor or toy that he or she asks.

2. AMAZING UNO CARDS

Teach your kid about the basics of counting and recognizing numbers by buying the UNO cards. UNO is not your average matching game! It is a card game that entails color, number, and symbol coding. The premise is too straightforward that your child will be able to absorb it right away. Alternatively, you may modify the instructions to suit your child’s level of thinking.

Image Credits: besttoys4toddlers.com

For instance, you may ask your 3-year-old child to match the cards that have the same number and color. Keep track of the winner by employing a point system.

3. MAKE YOUR OWN CASH

Art is one of the children’s main modes of communication. So, communicate to your children in a language that they understand by letting them design their own versions of the dollar notes. Whose faces shall they feature? What buildings or infrastructures shall they put at the back?

Provide different art materials and get them to think creatively!

4. SHOP ‘TILL YOU DROP

Gather at least 8 toys and place a price tag on each one. Divide your Singapore notes and coins to your children and let them decide which toys they want to “buy”. In this round, you are the cashier or the owner of the shop. Mix and match the prices of the items and the roles of the players (e.g., your children are the co-owners while you shop).

Image Credits: pixabay.com

This fun activity will help your kids to figure out the best way to divide and spend their cash.

Sources: 1 & 2

Is The Alarming Zika Virus Covered By The Insurance Companies?

It is highly likely that infections of Zika virus will continue to elevate in Asia, according to the recent statement given by the reputable World Health Organization. This statement encourages heightened awareness as 70 countries were already affected. Zika virus has been endemic in Thailand, Malaysia, and Singapore. In our country alone, there have been over 400 reported cases this year.

For those of you who are not familiar with this illness, let me enlighten you! The first case of the Zika virus was reported in the 50s. It is transmitted by the Aedes mosquito (much like dengue). What is unique about it is that only 1 in 5 infections are symptomatic. That is alright because Zika is generally mild and self-limiting. However, it is dangerous for pregnant women due to the congenital Zika syndrome. Rare cases showed that some individuals developed serious neurological complications. This can potentially harm an unborn child. Unfortunately, there are no vaccines or anti-viral drugs to treat this illness.

Due to this alarming outbreak, many Singaporeans were quick to purchase protective measures such as mosquito repellents and insecticides. Further protection led for some people to pursue insurance policies. To their favor, more and more insurance companies are now offering extensions for Zika virus. These extensions are under personal accident or travel policies.

Among the five insurance companies that offer Zika coverage, NTUC Income came first. NTUC Income’s Personal Accident Assurance policy included Zika virus in the optional infectious disease coverage back in April. Ms. Annie Chua, the VP for personal lines at NTUC Income, once said: “This could be extended to other products with infectious disease cover.”

Great Eastern allows its previous and new Personal Accident policyholders to claim up to S$300 for medical expenses and S$30,000 in the event of death due to the virus. A pregnant woman who has been diagnosed with the illness is entitled to twice the amount of medical reimbursement. Furthermore, Great Eastern will pay a total of S$3,000 if the baby is born with an abnormally small head or with a Zika-related microcephaly.

Other insurance companies that provide Zika coverage are Prudential Singapore, Sompo Insurance Singapore, and AIA Singapore.

Mosquitos that cause Zika and dengue breed around homes in small amounts of clean water. This is why it is important to dispose waste in flower pots, discarded tyres, and other vessels that may accumulate water. Watch this short video to learn more about the efficient preventive measures:

Sources: 1, 2, 3, & 4

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