MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

New to investing? 5 tips and tricks to get you started

If you’re the sort of person who stays up at night worrying about the price of milk, or who would rather hide cash under the mattress than open an account, investing might not be for you. For the rest of us, though, the sensible, well-researched use of investing can be a way to maximise your money. If you are keen to make your money work harder and have long-term/short-term goals than need funding, it might be time to check out the IG glossary of trading terms and start making some well-informed decisions to grow your wealth.

Of course, if you’re new to world of investing it can all seem a little wild and confusing, but below are five essential tips and tricks to get you started.

Do your research

While you might decide to contact a financial advisor or speak with numerous investment experts about what they think you should do with your money, ultimately it’s your decision. For this reason, it’s absolutely crucial to do your own research and ensure you know the difference between the many different kinds of investments from opening a savings account to buying stocks and shares. Whatever you do, don’t start investing without reading up on the jargon (much of which will sound complicated but is actually rather straight forward, see the glossary linked to above) and make sure you weigh up your options.

Moreover, before investing in any particular company, always do your homework so you know what you’re getting into.

Think about your goals

When it comes to investing, thinking about your personal goals will help you to decide how risky you want to be with your hard-earned cash. If you have a little spare money and are willing to take a gamble in a bid to get high returns, you may decide to act on an exciting trade signal or market boom. If, however, you are looking to prepare for retirement, you might prefer to make a longer-term investment such as buying bonds or property that could bring high returns down the line. You may even decide not to put all your eggs in one basket, making numerous investments to avoid a complete gain or loss. Your investment plan should reflect your personal circumstances and outlook.

Know your limits

Investing can be addictive, particularly if you get hooked on watching the fluctuating currency on the foreign exchange or are continuously being sent signals from brokers telling you now is the perfect time to act based on the current price of gold. That’s why it’s essential to have a budget. You must know exactly what you want to do with your money before you make a move and stick to the plan to avoid doing something you later regret.

Keep an eye out for investment fees

If you’re an investment novice, choosing a fund manager may be the easiest option. After all they’ll help develop and manage a portfolio on your behalf and help guide you in the right direction with regards to making sensible financial decisions. That said, fund managers almost always charge more fees than an account you manage yourself and this will, of course, eat into any profits you may make. Similarly, if you’re buying individual entities such as stocks, you may be charged per order, so keep a look out for sneaky fees and try to keep your outgoings down.

Consider exchange-traded funds

The markets change at such a rapid rate that, unless you have copious amounts of free time to analyse what’s happening in the business and financial world second by second, it’s probably best to consider exchange-traded funds (which follow a wide range of stock, or sometimes then entire market). As a rule, this type of investment tends to be less volatile than individual stocks as they tend to grow over the years and reduce the risk of you losing out should a singular company crash and burn.

Investing may seem like a brave new world if you’ve never done it before, but with plenty of research and guidance it can be productive – just take it slowly and don’t make any moves without having all the facts to hand.

3 Ways To Become A More Disciplined Investor

It’s fairly indisputable that discipline is one of the most vital attributes for a person looking to establish financial security. But it’s also particularly important for those who are looking to invest their money, whether in stocks, commodities, or some other venture. A reckless or carefree approach can get you lucky now and then, but will ultimately prove unreliable or at least unsustainable. On the other hand, a more practiced, careful, and strategic approach to investing can result in a stable long-term outlook and steady growth of funds.

Some of this depends on personality and experience, but here we’ll look at three tips anyone can follow for how to become a disciplined financial investor.

1. Divide Your Expectations Into “Buckets”

If you haven’t heard of the “bucket approach” before, you may want to learn a little bit about it before reshuffling your financial strategies. Basically, this is the approach of dividing your money into buckets for specific goals. For instance, if you want to buy a car, you’ll have a set venture dedicated to your car fund; the same might go for a home, an engagement ring, tuition, or even something a little smaller like a vacation. The point of doing this is to gain a more comprehensive understanding of what money you need for which purposes, and when you need it. You can then plan investments accordingly, and if necessary break up your strategies from one “bucket” to another, allocating risk as seems appropriate.

2. Keep A Trading Journal

If that sounds like it might be a technical term, don’t worry, because it’s not. There’s no exact format or method for a trading journal, but it’s been described as a comprehensive record of data related to a trader’s performance over time. Basically, that means it’s a detailed set of notes on everything that’s gone into your trades. Ideally, it’s not just what the asset was and whether it was a gain or loss, but also what the conditions were upon entry and exit, why you invested, why you pulled out, etc. It can be as thorough or simple as you like, but the underlying point is that past performance can help you to learn a great deal about your own habits, and what your best conditions for success have been. The best traders are unemotional but still introspective!

3. Eliminate Your Emotions

We just mentioned that the best traders are unemotional, but this bears further attention in its own category. Simply put, it’s been expressed by innumerable experts and publications that reacting emotionally can lead to poor decisions at the worst times. You might panic and pull out of a perfectly stable investment simply because of a downturn, or you might get excited and pump more money into a rising asset that isn’t poised for long-term success. Those are very basic examples, but they illustrate the larger point that too much happiness, excitement, sadness, or worry with regard to investments can lead you to make decisions that aren’t based on logic and knowledge. Of course you’re going to be thrilled when your investments are making money and frustrated when they’re not—just don’t let these or any other “feelings” dictate your actions.

How Much Money Do Singaporean Olympic Athletes Make For Each Medal?

Olympics is the world’s biggest international multi-sport event that is conducted every four years. Officially known as the “Games of the XXXI Olympiad” and popularly known as “Rio 2016”, the 2016 Summer Olympics takes place in Rio de Janeiro (Brazil). More than 10,500 athletes will compete for the prestigious medals that are up for grabs from August 5 to 21.

The games features 28 sports including Archery, Fencing, Diving, Table Tennis, Golf, and Rugby Sevens. 33 venues across 4 regions of the city were allocated especially for these sporting events. The dedication of the Rio 2016 Organising Committee expands beyond venues allocation as they aim to “deliver excellent Games, with memorable celebrations that will promote the global image of Brazil, underpinned by social and urban sustainable transformation through sport, contributing to the growth of the Olympic and Paralympic Movements.”

Olympic athletes who are able to bring home the bacon can reap the sweetest rewards of their victory. By sweetest rewards, I pertain to the cash payouts. The money that Olympic athletes receive for each type of medal varies by country.

You may be surprised to know that most Southeast Asian countries including Singapore are pretty generous when it comes to winning this global distinction. For instance, Feng Tainwei’s Olympic bronze medal in 2012 (Women’s Single – Table Tennis) earned her a quarter of a million dollars.

Image Credits: www.facebook.com/fengtianwei

This amount is in accordance with the Multi-Million Dollar Awards Programme (MAP). MAP is an incentive scheme set by Singapore National Olympic Council in 1990s. In the recent years, MAP provides monetary payout to the winning Singaporean athletes of the Olympic, Asian, Commonwealth, and Southeast Asian (SEA) Games.

According to the MAP 2012-2015, here were the payouts given to the successful Olympic athletes:

INDIVIDUAL MEDALS

GOLD: S$1,000,000

SILVER: S$500,000

BRONZE: S$250,000

TEAM EVENT MEDALS

GOLD: S$1,500,000

SILVER: S$750,000

BRONZE: S$375,000

TEAM SPORT MEDALS

GOLD: S$2,000,000

SILVER: S$1,000,000

BRONZE: S$500,000

Image Credits: pixabay.com

These attractive awards were sponsored by the Tote Board and the Singapore Pools. Instead of having five rings as a symbol for the Olympics, perhaps five dollar signs are more suitable! 😉

Why Budgeting Is Beneficial To Your Financial Health

Budgeting is a quantitative plan to manage your money. It has various benefits such as tracking your cash flow, controlling your expenses, and reaching your goals!

Be motivated to start budgeting by reading through its financial advantages:

1. TRACKS YOUR CASH FLOW

With budgeting, you can easily track how much you are earning and how much you are spending. It prevents you from wondering where your cash actually goes. Being aware of your cash flow enables you to know what you can realistically afford. With this purchasing power comes great responsibility, which is why you must aligh your cash flow to your financial goals.

2. HELPS REACH YOUR GOALS

A friend of mine was at a Tokyo flea market and she saw this beautiful Beige suede boots and tried it on. Her husband warned her that she probably would not wear it because she always goes for comfortable ballerina flats. She did not listen! She ended up donating the underused boots. This unnecessary item is an example of a purchase that is not in-lined with one’s financial goals.

If you are disorganized with your finances, there is tendency for you to spend your cash on unnecessary products and services. Budgeting helps you to reach and focus on your financial goals. It works especially if you have limited resources or live from paycheck to paycheck.

3. CONTROLS YOUR EXPENSES

When your budget is working efficiently, you are able to recognize how much you are spending in a month or a week. It requires you to refer to your existing bank statements and outgoings. This means that you will be able to see whether there are some expenses that need to be altered.

If you need to cut down on your spending, you can create a proper budget to make this financial activity easier.

4. IDENTIFIES POTENTIAL ISSUES

Aside from identifying the unnecessary expenses that you need to reduce or eliminate, budgeting enables you to identify the potential problems that can affect your financial health. Budgeting gives you the “bird’s eye view” of your current situation and enables you to make adjustments before issues appear.

5. ALLOWS YOU TO SAVE EXTRA MONEY

Budgeting goes beyond helping you with identifying and eliminating non-essential spending as it prevents you from penalties or late fees. By organizing your finances and allocating budget before the bill arrives, you are able pay your commitments on time. This will create more room for savings.

Not to mention, budgeting opens opportunities for investment. Passive income may grow your wealth even more.

Image Credits: pixabay.com

Despite all these benefits, budgeting has one huge drawback. It needs conscious effort for it to work! Are you ready to commit to a healthier financial life?

Sources: 1,2, & 3

Top Travel Agencies In Singapore That You Can Trust

Although more and more people are booking their itinerary by themselves, there is still a substantial amount of Singaporeans who firmly believes in services provided by the travel agencies.

If you want to discover new amazing destinations in a cost and time efficient manner, simply pick up the phone and contact these top travel agencies:

1. DYNASTY TRAVEL

Kicking off this list is a travel agency that understands the modern generation. It is none other than the Dynasty Travel. Dynasty Travel continuously improves its service in order to serve their clients better. In fact, its comprehensive website is supplemented with a free smartphone app. Imagine how convenient it is to book a tour with a few taps of a finger!

This well-recognized travel agency boasts with various awards such as Singapore Service Excellence Medallion 2015, Singapore Service Class 2015, TTG Travel Award’s Best Travel Agency Singapore 2014, and Enterprise 50 2013. It was even awarded outside of Singapore as it received the “Top Agent” award from the Hong Kong Tourism Board.

Dynasty Travel provides a myriad of services including Free & Easy Tours, MICE Tours (Meetings, Incentives, Conventions and Exhibitions), Group Tours, and Customized Tours. Speaking of Group Tours…there is an going sale to Macao!

Visit this link to know more.

IMPORTANT INFORMATION

Location: 35 New Bridge Road, Dynasty Travel Hub, Singapore 059395
Contact: (65) 6338 4455
Website: dynastytravel.com.sg

Price Comparison: 7D6N Enchanting Korea + Jeju Island Tour starts from S$2083.

2. SA TOURS

Do you want peacefully plan an all-inclusive vacation for your family? Or, do you need to arrange a corporate package for your entire company? All these concerns can be resolved by SA Tours.

SA Tours has an appealing reputation of providing competent travel services to both the individuals and the organizations. They are best known for their reasonably priced “long-haul” tours, which can last for more than 10 days! It is one of the largest tour operators in the country.

Image Credits: facebook.com/SATours.SG

It offers different services such as Group Tours, Free & Easy Tours, China Tours, and Customized Tours. You are sure to find a touring package which suits your needs!

Moreover, it is a good idea to consider SA Tours if you are planning to tour in Europe. Group packages to Europe lasts from 8 to 14 days. In this period, you will be delighted by their sincere staff and their highly knowledgeable tour leaders.

IMPORTANT INFORMATION

Location: 1 Park Road, #04-62 People’s Park Complex, Singapore 059108
Contact: (65) 6535 2611
Website: satours.com

Price Comparison: 8D Korea Discovery + Jeju starts from S$1568.

3. HONG THAI TRAVEL

Hong Thai’s longstanding history and strong experience spans more than 30 years. Said potent experience includes assisting government agencies, schools, community centers, corporations, and individuals. It is affiliated with the renowned Hong Thai Travel in Hong Kong. Other supporting branches are scattered across China, Macao, and Hong Kong.

Hong Thai takes pride in its entertaining tour itineraries, pleasing hotels, and helpful tour leaders. Its sought-after “8D All in Korea Deluxe” package had been awarded as one of the eight “Best Korea Tour Programmes in the World” by Korea Tourism Organisation.