Unhealthy Spending Habits To Kick To The Curb

How you spend your dollar is just as important to your financial health as your decision to save or to pay for debt. Savvy spending habits keep you from overspending on an item or a service. Nobody needs a stack of infomercial items paid for by impulse buying.

Spending smartly by kicking your bad habits to the curb allows your dollar to go further. Lead a resolute year by leaving these spending habits in 2019! A better 2020 is up ahead.

ADDITIONAL ATM FEES

I am guilty of paying for out-of-network ATM fees at the expense of my convenience. I withdraw money from other banking institutions from time to time as it is more favorable proximity-wise. The service fee may be minimal, but it adds up. A good solution is to open up an account at a bank that is more favorable to where you live in or where you work at.

SPENDING MONEY YOU DO NOT HAVE

Many Singaporeans are guilty of spending money that they do not have. How is this so? They spend money through taking loans, cash advances, or credit cards. Spending money you have yet to earn creates a pile of debt for year 2020. It will continue to grow, if you do not fully repay your debt each month.

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Solve this bad habit by cutting down your expenses and relying on your debit card or income to pay for your essentials and wants. Prioritize your needs first.

BOTTLED WATER EXPENSE

Speaking of expenses that pile up, you must look into your bottled water expenses. Water is a necessity, which we cannot escape from. Your daily water consumption can cost you more than S$1,000 per year. Reduce this number by drinking from the just-as-healthy tap water from the tap. In the long run, a little savings goes a long way.

CREATING MORE DEBT

Using debt to pay off your debt is not healthy. You are lying to yourself when you think that you are solving your problems by paying your initial debts with other cards. You are simply shuffling your debt around and incurring more interest in the process.

Using debt to “pay off” debt can only be beneficial if you can transfer a balance from a high-interest rate credit card to a lower limit one. Be careful when you do this. Transferring balance to take advantage of a good rate is different from continually dodging your credit card payments.

LIVING WITHOUT A TRACKER

Last year, I refrained from using a money tracking app. I lived without a financial tracker to see how my finances will be affected. Interestingly, I spent more within the year than I ever did in the past couple of years. Keeping up with your expenses is a healthy way to ensure your financial health.

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You can either whip out a ledger or download a money tracking app. Start using a budget tool such as Mint or Spendee to stay on top of your spending habits and to eliminate unnecessary expenses.

Sources: 1 & 2

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Budget-Friendly Ways To Spice Up Your Love Life

Does money and partnership mix well in the game of love? I have to admit, intimacy can be expressed in different ways. Some people showcase their affection through the money and the gems it can buy. Nonetheless, your financial well-being affects your intimate relationship.

Put a spotlight on your finances to increase your bond this 2020.

PAY YOURSELF FIRST

Much has been said about loving oneself first, before loving another. I cannot stress how your capacity to love affects the way you behave in the relationship. Think of it as sourcing water from either a full or an empty pail. The same sentiment applies to paying yourself first.

Aim to grow a robust savings first, before extending your funds to your partner or spouse. I know how tempting it is to invest all your money in your business or your family. So, start small and gradually increase the amount that you will keep for yourself.

CREATE A PLEASURE ACCOUNT

When you and your partner continue to deprive yourselves on a regular basis, you will find yourselves overspending at some point. Avoid being caught in this situation by determining your couple goals and saving for these.

Aside from setting aside a portion for yourself, you must allocate money for the both of you. Use your “pleasure account” to fund entertaining activities that both of you will enjoy. You each must put an amount that is fair to you and your partner.

GO ON FRUGAL DATES

Dates should not always be lavish and expensive. You can spice up the romance by indulging on frugal dates such as a movie-night at home or having a rooftop dinner.

You can also take your partner out for some outdoor activities. Spend some time in nature to refresh your mind and body. You can go to the nearby parks, nature trails, or the Sentosa beach. Keep things simple by unplugging completely whenever possible. Cycling or jogging around can give you a whole new bonding experience. Take this time to immerse yourselves in the present and in the company of each other.

DISCUSS MONEY OPENLY

Open communication without judgment is the best way to work through challenges without fostering resentment. Do not let your partner’s unpleasant feelings build up by communicating crucial parts about your finances.

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Discuss your current debt and professional state at least once a month. Go over your finances to determine your financial problems and figure out how to solve these problems. Moreover, you must plan out how you will achieve your financial goals. This will strengthen your relationship in the long run.

Sources: 1 & 2

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6 New Ways To Save Money In Singapore

Improving your financial well-being does not only involve your earnings as it also involve your spending habits. The latter is important as we live in one of the most expensive cities in the world.

Despite this, there are some creative ways you can employ to save money in Singapore.

SWITCH TO KOPI

Yes! I know how a brewed cup of joe can wake up your sleeping spirits. However, you do not have to frequent a signature or a “branded” cafe in order to reap its effects. Save S$6 or more by purchasing a cup of coffee from a local kopitiam. Cut down your savings by letting your Starbucks loyalty card have its break.Or better yet, make your own coffee at home.

DISABLE YOUR AUTO-FILLED INFORMATION

Recently, I was trapped by how quick it is for me to purchase shoes online through the auto-fill feature. You see, smartphones have the seemingly safe auto-fill feature. This allows you to skip typing your credit card and other personal information. I am still not sure whether this modern feature is entirely foolproof. Nonetheless, it heightens the temptation of online shopping.

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Remove this temptation and increase your cyber-security by disabling your auto-fill feature.

PRACTICE SAYING “NO”

When faced with peer pressure and budget constraint, remember that you can always say “no”. You may feel bad for rejecting or disappointing someone. However, politely saying “no” can ensure that you spend within your means. You can join your friends next time or give a token of appreciation instead.

AVOID SMOKING

I cannot imagine how hefty it is to maintain a smoking lifestyle in Singapore. The country charges so much tax for it. Not to mention, there is a possibility to get fined when caught in a “No Smoking Zone”. As of the time of writing, smoking cigarettes is banned in Orchard Road (No Smoking Zone). Individuals can only light up their sticks in designated areas within the precinct. Smokers who are caught can be fined with a minimum of S$200 and a maximum of S$1,000 once convicted in the court. Being caught smoking is one of the fastest routes you can take to deplete your budget. Are you willing to risk that?

TAKE ADVANTAGE OF THE FREE ENTERTAINMENT

The Red Dot may be expensive, but there are still a myriad of free stuff to enjoy. For starters, you may indulge in the scenic views that Gardens by the Bay and Fort Canning Park have to offer. These spots have been pleasing locals and travelers alike.

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Aside from the natural attractions, you can search through the island for some free entertainment. Esplanade, Singapore’s performing arts center, hold interesting exhibits and concerts on a regular basis. Free concerts take place within their small amphitheater outside the main building. Search through Esplanade’s website to learn more.

SKIP ON THE BOTTLED WATER

It comes as no surprise to many locals that a bottle of water can cost anything from a dollar or more. Do not get me started with the artisinal bottles that come with the luxurious branding! With this in mind, you must fulfill your needs without having to deplete your daily budget. Drink perfectly safe water by consuming the tap water available around the country, especially in the tourist attractions. Singapore tap water is colorless and odorless. Bring along a tumbler or a collapsible cup to quench your thirst whenever you feel. Check out 10 best reusable water bottles – Globo Surf that comes with filter so you can enjoy smooth tasting water.

Sources: 1 & 2

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Save Big By Cooking Your Own Meals

On average, it is about five times more expensive to order food from a restaurant than cooking your own meal at home. It is no secret that eating out can snip your budget in a short span of time. However, many opt to place their orders online through food delivery apps due to their busy schedules or lack of talent in the kitchen. I cannot deny the convenience that Food Panda or GrabFood sells!

Eat better food and save money in the process by following these kitchen suggestions.

#1: PREP MEALS IN BULK

My significant other’s mother leads an efficient life by prepping meals on Sundays. She cooks three to four dishes, which can be reheated whenever one pleases. Try cooking boiled eggs and steamed vegetables that will last for two to three meals. This way, you and your family will be able to enjoy your cooking even when in a hurry.

Simply label the food accordingly and pop it in a freezer bag or a microwaveable container. Serve this pre-cooked meal with fresh sides and you are ready to go!

#2: USE A SLOW COOKER

On the other hand, my partner’s father seems to be fascinated with the slow cooker. He cooks ribs and fish using a slow cooker and vacuum seals these meals to last for a little over a month. Imagine that!

Using a slow cooker is a money saver. You can cook larger meals with enough leftovers to freshen up your second meal. Moreover, it enables you to purchase less expensive and tougher meat because it acts as a tenderizer.

#3: CREATE WITH WHAT YOU HAVE

Challenge your creative juices by cooking food with the ingredients available in your kitchen. It is easy to build your meals through daily grocery shopping. However, regularly cooking what is already at hand enables you to maximize your resources and minimize food wastage.

Curb your spending by scavenging the vegetables and meat available in the fridge. Consume food that will go bad soon before if it is too late!

#4: BUY WHAT IS ON SALE

Last but not the least, you may travel through the grocery aisles to purchase items that are on sale. Use this opportunity to purchase chicken breast or salad dressings, which are on sale. Purchase extra pack or pieces whenever possible to secure your future cravings.

I cannot deny that our modern generation consumes things in an instant! When we want things, we want them now. This increases the chances of ordering out and slimming your funds. Hence, you must learn the power of delayed gratification.

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You cannot always eat what you want, but you can make most of what you have.

Sources: 1, 2, & 3

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Beginner’s Guide To Credit Cards

DEFINITION

Swiping a credit card is the polar opposite of using a debit card. The latter allows you to spend the money that you already have in your checking account. While, the former lets you borrow money from a financial provider. You have to pay an interest at the end of every billing statement.

Be forewarned that having a credit card does not equate to having “free” cash around. It only means that you are expected to pay back whatever you borrowed at a given period of time. Furthermore, you are held responsible to check whether you are spending within the maximum limit.

MECHANISM

How do credit cards work? As a responsible owner of a credit card, you must know the mechanism behind owning one.

Firstly, you must apply for a credit card. Research on which type of card suits your needs the best. Choose a card based on your eligibility, your credit score, your annual income, and your lifestyle. One credit card may have an annual fee, while the other may have a discounted fee for the first year.

Secondly, you must wait for the financial provider’s approval. Major credit card companies often use online services for their card applications. Thus, you will he able to review your application results immediately. Once approved, your financial provider will send you a physical card.

Thirdly, you must make purchases with your card. To spend online, simply enter your credit card number and other additional information (e.g., CVC at the back of the card). Your balance will add up as you spend. Remember to keep an eye on your credit card limit.

The last step is for you to review your billing statement and pay promptly as you have agreed.

SUGGESTION

For beginners, some of the best credit cards this year are as follows. You can count on the American Express Platinum Credit Card for rewards, OCBC 365 Card for dining benefits, and Citi VISA PremierMiles Credit Card for travel miles.

A. American Express Platinum Credit Card lets you reap these benefits:

* Receive 1 Night Stay at Swissôtel The Stamford Singapore worth S$529 upon Annual Fee payment.
* Receive an additional Samsonite Sigma 76cm Expandable Spinner worth S$600 when you spend S$4,500 within the first 3 months of Card Approval.
* Receive S$20 CapitaVouchers each, for the first two approved Supplementary Cards.
* Enjoy Love Dining @ Restaurants privileges which offers up to 50% savings on food orders at a handpicked selection of popular restaurants.
* Love Dining @ Hotels offers you exceptional year-round privileges and savings of up to 50% on food bills for unlimited visits at selected 5 star hotels around Singapore.
* Enjoy a complimentary drink with purchase of at least one item from the merchant’s menu at over a dozen fashionable bars in Singapore.

To qualify, you must have a minimum income requirement of S$50,000 per annum for Singapore Citizens and Residents and S$60,000 per annum for Expatriates. Terms and conditions apply.

B. Citi VISA PremierMiles Credit Card lets you collect travel miles, which you can use in renowned airlines’ frequent flyer and hotel loyalty programs. These include Krisflyer, Asia Miles, and Qantas. You will be rewarded fast as you spend with your card. Terms and conditions apply.

C. OCBC 365 Card is best used for dining. It has a cashback promo that allows you to reap rewards whether you dine internationally or locally. Here is a layout of the rewards:

* 0.3% cashback on ALL spending
* 3% cashback on TELCO bills, local supermarkets, and online purchases
* 3% to 6% cashback when you dine in restaurants island-wide
* 5% cashback on petrol purchases
* Up to 18.3% discounts at petrol stations
* 3% cashback on medical spending – under Child Development Account
* Complimentary travel insurance (up to SGD $800 coverage)
Terms and conditions apply.

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Be wise when choosing your first plastic card! 🙂

Sources: 1 & 2

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