MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Married With Benefits: 6 Financial Advantages Of Matrimony

Just as much as money crumbles relationships apart, it can also bring two people together.

As you settle down to the married life, here are some of the financial benefits matrimony can bring:

1. CHEAPER HOME EXPENSES

It takes no doctorate degree to realize that it is cheaper for two people to live together than to live apart. When living together, you are consolidating a singular mortgage or rent expenses. Not to mention, married couples enjoy the advantage of sharing the responsibility for the utility bills. Thus this arrangement can save you hundreds of dollars each month.

2. DOWNSIZED FURNITURE AND APPLIANCES

When married couples move in together, they get to keep some of their old furniture and appliances as they only need a set. Having one set of furniture and one set of appliances will reduce your maintenance costs.

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To make more money, you can sell your unused or underused furniture and appliances that are still in good condition.

3. INCREASED FINANCIAL STABILITY

It is easier to cope with the financial woes if you are married. For instance, if you get fired from your job but your spouse is still working, your partner’s income can support your family for the meantime.

4. PROTECTION OF THE ESTATE/S

If you are married, you can protect your partner’s properties and other assets once he or she dies. First, you must get the Will and contact the executors to ensure the smooth distribution of the estate/s to you and other family members. Then, you need to formally transfer the assets as well as the investments to your name.

5. IMPROVED RESOURCES TO PAY OFF DEBT

It is often challenging to pay debt with one income. By combining your income and your spouse’s, you get to expand your resources and increase your savings. Budget your combined income to pay off your credit card debts and other loans.

6. BETTER FINANCIAL ADVICE

In respect to your marriage, your spouse is supposed to know about your spending patterns and your cash flow. Aside from the financial expert, who can you turn to for reasonable and empathic financial advice other than your spouse?

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So when making important money decisions, it is best to reach an agreement with your partner first.

Sources: 1 & 2

9 Smartest Ways To Save Money As An Individual Or An Entrepreneur

IMPROVE YOUR PERSONAL FINANCE

1. ELIMINATE AN EXPENSE

Spend at least 5 minutes on examining your last month’s utilities bill or last month’s credit card statement. Use your hawk eyes to look for one unnecessary expense that you can reduce. Whether it is the unusable gym membership or the expensive dinners at the restaurants, you must commit on eliminating it and saving more.

2. KEEP THINGS SIMPLE

Save more on clothing and handbags by keeping your closet “simple”. You do not have to wear the same outfit everyday like Facebook’s founder Mark Zuckerberg or Apple’s late founder Steve Jobs, just save money by avoiding costly designer clothing and purchasing during year-round sales.

3. SHOP AROUND FOR MEDICATIONS

When prescribed with medications, carefully compare the prices from the different providers to get the best price. According to Ministry of Health guidelines, every patient must get an itemized medication bill. To save more, ask your physician if there is a cheaper yet equally efficient alternative especially if you are taking medications on a long-term basis.

CUT DOWN YOUR HOME EXPENSES

4. DE-CLUTTER AND EARN

Save money by increasing your income through de-cluttering. Clean the clutter in your closet and find the things that you deem to be unused or underused because you can sell them online. The old clothing articles of your children as well as your old devices that are still in good condition can be sold too. Sell your items to the global marketplaces such as eBay, Carousell, and Gumtree.

5. CONSUME THE LEFTOVERS

Save the unconsumed food when you either ordered too much restaurant food or when you cooked excessively. Regularly label these leftovers so you can keep track of how long it has been in your refrigerator.

6. UNPLUG REGULARLY

Even if you turn off the switches, your appliances and electronics will continue to consume energy and spike your tariff. So reduce your bills by unplug your cables and electronics when not in use.

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Instead of leaving the TV on as a background noise, consider using your hand phone as a radio. This small daily act can save you a month’s worth of major electricity.

LOWER YOUR BUSINESS COSTS

7. TAKE ADVANTAGE OF CHEAP ADVERTISING

Use free websites to post your ads. Online classifieds are a good choice as these are cost-effective, convenient to relay contact, visible to a large-scale of consumers, and the you are able to edit a listing anytime. Browse a list of good advertising websites here.

8. EMBRACE MODERN TECHNOLOGY

Instead of buying bulky desktop computers, invest on laptops as they are not only less expensive but they also consume less energy. Whenever possible, use these laptops and Internet tools to communicate effectively. For example, if you are planning to call your international client, call them through Facebook’s free video chat.

9. IDENTIFY THE TAX DEDUCTIBLES

As an entrepreneur, it is important to know the types of tax breaks, reliefs, and deductions you can take. In fact, budding businesses can avail the Tax Exemption Scheme For New Start-Up Companies as well as the Angel Investors Tax Deduction Scheme.

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Educate yourself about the tax deductibles by visiting iras.gov.sg.

Basic Guide To Taxation In Singapore

Individuals, corporations, trustees, and partnerships that are carrying on profession, trade, or business in Singapore are chargeable with tax. Fortunately for you, the country offers one of the lowest tax rates in the world.

Whether you are entering the country’s working scene as a local citizen, a fresh graduate or a foreign worker, you must familiarize yourself with the taxation regulations. Start by reading this guide…

AUTHORITY

The Inland Revenue Authority of Singapore (IRAS), formed in 1960, is the statutory board responsible for collecting personal income taxes, corporate taxes, goods & services taxes, property taxes, betting taxes, and stamp duties. In short, it integrates all the revenue collection agencies into one place in order for the processes to be managed better.

The governing laws include Income Tax Act, Goods & Services Tax Act, Stamp Duties Act, and Property Tax Act.

TYPES

For your reference, here are some of the most common types of taxes in Singapore:

INCOME TAXES are charged based on the income of individuals and companies.
GOODS & SERVICES TAXES (GST) are the tariff paid when you spend on merchandise, services, and imported goods.
PROPERTY TAXES are charged to the owner/s based on the expected rental values of the said properties.
BETTING TAXES are paid when betting on the lottery, sweepstakes, or alike.
STAMP TAXES are imposed on legal and commercial documents.

TERMS

To avoid confusion, here are some of the most common terms related to income taxes:

NOTICE ASSESSMENT (NOA)
– NOA shows the amount of income subjected to tax, calculates the tax amount you have to pay, and displays the credit balance that needs to be refunded to you. Simply, NOA is your tax bill.
YEAR OF ASSESSMENT (YA)
– YA refers to the annum in which the income tax is charged and calculated. It is a no brainer!
BASIS PERIOD
– Basis period refers to the previous YA that is relevant to the current YA.
PERSONAL RELIEFS
– Personal reliefs are good news as they are the deductions that help you to save tax.
ASSESSABLE INCOME
– Lastly, the assessable income refers to your total income after subtracting the approved donations and allowable expenses.

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For more information about what is taxable and what is not, please visit www.iras.gov.sg.

Sources: 1, 2, & 3

Sneaky Costs Of University Education In Singapore

Everyone knows that saving money for tertiary education is not an easy task. With fees totaling to about S$8,000 a year, getting into your dream school takes effort and creativity. Not to mention, fees are graver if you are an international student.

Be forewarned that aside from the tuition fee, here are the “hidden or sneaky” expenses that can take a toll on your budget:

BOOKS

When you are studying at the university, you will realize that textbooks can get really expensive The prices of books you need to purchase depend on the modules you have to take per semester or quarter. A single reference book costs about S$45-100 based on my experience.

Despite these hefty expenses and as much as you would like to skip buying them, most of the required textbooks are crucial to pass the course.

SUPPLIES

When choosing your course, remember that you are making an important investment. You are investing for your future career in many ways including your supplies. For instance, if you are taking up a course in Media and Communications, you may be required to purchase a professional high-resolution camera. And if you are taking up architecture, it is uncommon to spend more than S$1,000 (per year) on tools and materials needed for model-making tasks.

SOCIAL GATHERINGS

For you to meet other people and expand your circles, it is almost necessary for you to join the school’s social gatherings. If you are a member of a club, you have to be ready for the registration fee as well as the special events fees. You can expect to pay within S$10-100 per event.

For example, since previous university club was hosting a workshop, we were required to share at least S$15 for the food and materials.

EXCHANGE RATES

If you are an international student in Singapore, you must consider the dynamics of the foreign exchange rate when budgeting your money. Whether you are exchanging your Indian Rupee or Philippine Peso, the current exchange rate can affect your total tertiary education expenditure.

An increase in the value of the Singapore Dollar will result to paying more than you had expected earlier on. In contrast, an increase in the value of your “nation’s currency” will result to you paying less.

ACCOMMODATIONS

Sick and tired of travelling for more than an hour from Woodlands to NUS? Or are you a foreigner studying in the Lion City? Consider renting a room in the HDB flat or living in the campus hostel.

NUS and NTU students can save more money in transport and rent by opting for the hostels that cost about S$220-580 per month.

Image Credits: facebook.com/nus.singapore

Sources: 1 & 2

5 Efficiently Quick Ways To Beat Financial Stress

These days, there is no shortage of reasons why people are anxious about money. From higher unemployment rate to expensive school fees, everyone has their own share of financial stressors. And these accumulated stress can be detrimental to one’s health when not managed.

On that note, here are simple ways to conquer your inner beast:

1. DETERMINE WHAT STRESSES YOU OUT

Spare at least 10 minutes of your time to identify what triggers your financial stress. Whether it is dealing with your horrific credit card balance or realizing that you are barely hanging onto your job, write down your three greatest financial stressors at the moment. It is important to keep the list short to avoid feeling overwhelmed.

2. CHANGE YOUR MINDSET

Staying positive in a seemingly challenging financial situation can help you get your thoughts together and motivate you to change. Rather than mourning about your piles of debt, visualize how great your life can be with less of them. Then, repeat an internal dialogue that aims to conquer that stressor. For instance, you may vow to spend about S$100 less each month in order for you to pay more for your debts.

3. FOCUS ON SMALL AND SUSTAINABLE GOALS

You do not have to beat your financial stress head-on immediately. Just as crash diets can lead to burnout, overly ambitious financial goals can lead to quitting. So sustain your goals by identifying what you can actually achieve each day and each month.

4. REWARD YOURSELF

Set a realistic budget and reward yourself for sticking by it. Alvin Hall, an author and a financial commentator on BBC TV, once said that a helpful way to lower your stress is to purchase something that has a long-lasting positive personal effect…for the least amount of money. Personally, visiting museums that display exceptional art uplifts my spirits while costing me S$0-20 only!

If you cannot think of any rewards right now, consider reading this guide: “36 Things You Can Do In Singapore, Aside From Spending Too Much Money”.

5. WRITE DOWN WHAT YOU ARE GRATEFUL FOR

Before you fall into a deep slumber, write down at least three things that you are thankful for. This changes your focus from your financial stressors to the beautiful things that you might have taken for granted throughout the day. It does not have to be a big thing!

This quickie activity is focused on giving you a positive strategy to cope with life’s difficulties.

Image Credits: pixabay.com (CC0 Public Domain)

If all else fails, do not hesitate to seek help from your friends, family, or financial professionals.

Sources: 1, 2, 3, & 4

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