The essential benefits (e.g., health insurance or retirement contributions) indulged by the freelancers are their primary responsibility. It comes along with a variety of other expenses including operating costs. It comes with a variety of problems including late payment from clients. As a result, freelancers must save more money.
#1: EMPLOY THE ZERO-BASED BUDGETING SYSTEM
Zero-based budgeting entails telling each dollar where it is going to go. Simply put, the money that comes in (net income) minus the money that comes out (expenses) must equate to zero. How will you assign your money efficiently? Well, you must prepare for the fixed and unexpected expenses. Assign an amount to fix expenses and variable expenses first. Then, the rest of your money will be put to savings.
For instance, you earn S$4,000 a month after taxes and you spend S$3,500 on your monthly expenses. Let your extra money be transferred to your savings account. Ensure that you have somewhere to place it with each month.
#2: ASK FOR A RAISE
Say that you cannot afford to cover all your expenses or you cannot commit to your savings. Consider asking for a raise from your loyal clients.
Working with a client for a couple of years can help you prove your worth. There is no harm in asking for a raise as the worst thing that can happen is rejection. You are putting yourself if the position where you are on the present time. So, negotiate your salary. Having an increase of a few dollars per hour or per project can help you save money each month. Trust me, it will add up!
#3: PAY YOURSELF FIRST
One of the most influential factors that will enable you to save is paying yourself first. Transfer a portion of your income to your savings account to cover insurance and retirement plans. Since your income varies per month, having a cushion will help you worry less. Have a minimum savings amount to keep track of your saving goals.
Making sacrifices along the way entails that you will not have to struggle during retirement or during the next big crisis. Be responsible with your finances!
#4: AVOID CREDIT CARD DEBTS
As much as possible, you must not participate in credit card debts as it is bad for your credit score. Friends of mine who carry credit card balances pay hundreds of dollars per annum in interest alone.
Image Credits: pixabay.com
Re-frame your mind! Never purchase anything that you cannot save up for. Following this statement will help you avoid flushing down your money due to interest. Cash should go to your savings and not your debts.
There are many ways to gain extra income by selling your old or new items. All you need is a good strategy!
CONCEPT STORES
The new wave of retail came in the recent years due to the boom of concept stores that integrate different types such as blog-shops or locker pop-up spaces. Concept stores or consignment stores fuse different brands in one house. Be advised that the store will take up rent fees as well as a cut from your sales. Many people are attracted to concept stores due to the convenience of having items sold in one place without worrying about various listings. You have to decide whether this works best for you.
PAWN SHOPS
When I was in Bangkok, I noticed that our driver watched The History Channel’s Pawn Stars during his downtime. The show revolves around a family spearheaded by owner Rick. People bid some of the most unique collectibles they hid in their basements. Pawn shops are good places to sell your ancestral jewelry, musical instruments, and other collectibles. You would get the most out of your money when you have your item appraised in person. Nonetheless, it is convenient to have others sell your items in an immediate period of time. Some of the Pawn shops in the country include Toa Payoh’s Min Tai and Tanjong Pagar’s Ban Joo.
GARAGE SALES
Whether you want to get rid of several items or you want to share your unused items, you could house a garage sale at your house. Prepare a space in your flat to showcase your items in a pleasing manner. Make invitations to give out to your friends and neighbors. Garage sales entail a traditional way to eliminate unwanted items.
Alternatively, you may rent a space for cheap. I found a website that offers cheap spaces for as low as S$10 per day. It is an eleven sq. ft. display counter at Suntec. Or, you may rent a forty-dollar per day space at Orchid Hotel.
ONLINE APPS
One of the easiest ways to sell your new or old products thru a smartphone is with Carousell. Simply snap a product, include basic information, and post it thru the app. Items on Carousell are presented in an Instagram-style grids. Buyers can leave public or private comments when they are interested. The only downside is that Carousell does not support any form of payments. Most users either meet up or do bank transfer to fulfill a deal.
Many investors may find investment in Peer-to-Peer (P2P) lending attractive due to its potential benefits, such as higher returns and shorter tenors. The barrier to entry is also one of the lowest amongst all types of investments, from just $20.
First-time investors who are not yet familiar with the details of P2P lending may be hesitant to start this investment. We have compiled a list of 4 things you should look out for when investing with P2P platforms to help you avoid common mistakes made by first-time investors.
1. Investing only in loans with high returns
Investors may often be incentivised to participate in P2P investments due to the high returns they potentially provide. To receive greater returns, some investors may end up only picking loans with higher interest rates. However, interest rates are priced based on the credit risk and higher interest rates are an indication of higher risks. Interest rates should not be the only determining factor for investing in a loan. As an investor, you would be better off diversifying you investments across loans with varying interest rates.
2. Not diversifying your investments
In any type of investment, it’s crucial to diversify your portfolio so that you won’t end up putting all your eggs in one basket. When you concentrate your investments and don’t diversify them, your portfolio may go south quickly if there are non-performing loans.
Expanding on the first point, a balanced mix of high and low interest rates is a way to diversify your investments. Additionally, you can also invest across different SMEs, industries, products, loan tenors as well as investment amounts.
An easy way to diversify on Funding Societies’ platform is to set up Auto Invest. The Auto Invest bots can be customised based on your investment preferences. That said, you have the flexibility to opt out of loans in which you are not interested before the crowdfunding starts.
Secondly, you can diversify across different types of investment assets that align with your investment risk profile. This can include savings, insurances and the traditional investment vehicles such as bonds and stocks.
3. Withdrawing returns when you receive them
It may be tempting to withdraw your returns once you receive them. However, experienced P2P investors typically don’t do that to potentially benefit from the compounding effect from re-investments. You can re-invest your monthly repayments to potentially receive a higher compounded interest. Your returns (in the form of interests) also start to form part of your capital which you can utilise to re-invest in upcoming loans.
By leaving the repayments in your account, you are ensured that you have funds which can be readily invested when opportunities arise, even without pumping in fresh funds.
4. Not being familiar with P2P lending platforms & the details
While the concept of P2P lending is not difficult to understand, it is important to equip yourself with knowledge of the P2P lending platforms that you wish to invest with. Investing with a stable and responsible P2P lending platform will help you minimise unnecessary risks and inconveniences. Ensure (and expect!) that the platform is responsive, transparent in its processes and stable to carry out its operations and duties for investors.
A good platform to consider is Funding Societies, the largest P2P lending platform in Southeast Asia that holds the Capital Markets Service Licence issued by the Monetary Authority of Singapore (MAS). As of March 2019, it has crowdfunded more than $450 million in the region across more than 300,000 loans. This statistic also reflects the number of opportunities for investors.
Understanding the details of each investment will also allow you to make informed investment decisions. At Funding Societies, a loan fact sheet will be provided on every investment opportunity. It contains details of the loan, its repayment schedule, a summary of the company and guarantors, the company’s financials, and comments from Funding Societies’ very own credit team.
What’s the ONE thing you should do?
Seriously consider P2P lending as part of your investment portfolio! 😀
P2P loans are a form of alternative investments that hold many benefits, especially for new investors that would like to start small or with experienced investors looking to diversify their portfolio. An investment with Funding Societies starts from just $20.
By watching out for these 4 listed things that you should not do when investing on P2P lending, we hope that you’ll be able to have a smooth and successful P2P investment journey!
Ready to start your P2P investment journey? Sign up with Funding Societies today, or live chat with their Customer Experience team to understand this investment better.
Disclaimers
This article is contributed by Funding Societies and is adopted from this blog article.
It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.
Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.
Taking a much-deserved vacation is supposed to be relaxing. However, traveling on a tight budget can reduce the excitement. It does not matter if you get paid vacation leaves! Planning for a trip is an expensive undertaking. Money should be placed in a practical position whereby you can still pay for your bills when you come back home. Earning money while on a vacation can be a simple solution to your financial woes.
Ninjas are warriors known for their speedy and sneaky attacks. Much like a ninja, you may earn money in the fastest way possible by following these tips.
SELL YOUR PHOTOGRAPHS
The Internet has a plethora of websites that buy and sell stock images from public users. Fotolia is one of the websites where you can make money by selling your digital photographs. Simply upload your best photos for the approval of the website’s administrators. Once your photos have been approved, it will be added to the marketplace where individuals or businesses can buy them.
You earn royalties which can vary from a few cents to a couple of dollars every time your photos are downloaded. Please be warned that Fotolia is closing on November 2019. Use it will you still can!
CLEAN YOUR CLOSET
While I was packing for my Bangkok getaway, I noticed how much clothes I should clear out. I remember the sleeveless tops and jeans that I no longer wear. Instead of tossing these, I can donate or sell some on Carousell. Carousell is an app that will enable you to connect to many local buyers. It can provide you a venue to negotiate with your potential buyer to get the best deal.
You will not have to worry about it while you are away. When you come back, you will be able to cash in on all of your offers and send all of your items.
SIGN-UP FOR REWARDS
Before jetting off to your dream destination, consider making an appointment to your nearest credit card issuer. Sign-up for travel-driven credit cards to reap its benefits. Some cards, like Citi PremierMiles Visa Credit Card,
will give you sign-up bonuses and points for every travel (e.g., 2 Citi Miles per S$1 on overseas travels).
Continue using said card to accumulate more points leading up to a better cash back experience. Who knows? Your next trip might be free!
Image Credits: pixabay.com
There are many ways to earn money with little to no effort at all. Do your research and stick to what you are good at. Have fun on your exciting trip!
With a burnout heart, my friends and I decided to go on a week-long vacation to Bangkok. We have been working so hard for the past months that our bodies craved for a break. There is nothing wrong with giving yourself a reward from time to time. We all need and deserve it.
However, you may hit a financial iceberg when you go overboard. This happens to many Singaporeans who are on a vacation. They think that they can throw caution out of the window and spend like there is no tomorrow!
During our trip, we maximized each day by going to several tourist attractions from day to night. We spent more money than our perceived expenses. After our week-long sabbatical, I decided to fuel up my funds.
STEP # 1 – EXAMINE THE DAMAGE
As with everything, the first step is awareness. Find how much your vacation has cost you. Accept the fact that you cannot undo the expenses you have drained while you were on a vacation. You cannot bring back the time you bought a new sarong to comply with the temple’s dress code! While you cannot take back the S$200 you spent in a posh bar, you must still know how much you spent during your trip.
Ask yourself the following questions:
a. How much did I spend on a daily basis?
b. How much is my credit card bill?
c. Can I afford to pay in full?
d. When will my next paycheck arrive?
e. Will I need to take some money from my emergency fund?
You may not realize how overwhelming your financial state is while you were on a vacation. So, now is the time to see the total damage. Knowing where you stand financially can help you to recover with ease.
STEP # 2 – TAKE NECESSARY ACTION
After identifying the financial holes, it is time to take action. Rewrite your budget in accordance to your current financial situation. Allot a portion of your funds to repayment of your credit card bills or lost savings. Make things easier by downloading budgeting apps such as Mint.
During the recovery period, you must do your best to tone down your spending. Eliminate or cut down optional expenses for the next few months. Dine out less and take fewer trips to the shopping malls. Minimize your spending by steering away from temptations! Do not worry about bending down as your financial diet will not last forever.
You may also earn money by taking up a part-time job. Get extra money without sacrificing your main source of income.
STEP # 3 – LEARN FROM MISTAKES
You have learned your lesson by facing its consequences. The next time you go on a vacation, you will know better. Use what you have learned to strategize your itinerary. Perhaps you can dwell on experiences rather than buying too many souvenirs for your family. In Bangkok alone, souvenirs start at S$5. Besides, these souvenirs may end up as clutter in someone else’s home. Do not get me started with the overpriced food in tourist spots!
Before going on a vacation, you can start writing down a budget that will include your expenses and a cushion (i.e., emergency funds). I remember when we were shocked by the S$215 boat ride in the Floating Market. I had to withdrew more money on that day. Providing a travel cushion can prevent this. Stick to the budget as much as you can!
Image Credits: pixabay.com
There are many ways to fuel up your overused wallet such as creating a new budget or eliminating optional expenses. Follow these tips to recover financially from your vacation splurge! Ensure that going overboard does not happen again.
