MoneyDigest - Personal Finance, Lifestyle, Money Saving Tips

Wanna Be Self-Employed? Here’s 5 Realistic Jobs That Can Transform You Into Boss

If you give yourself an opportunity to freelance or by being your own boss, you may be able to do the things you love and get paid for it. Also, you can have the freedom to design a schedule that works for you and still be able to nurture your loving children!

Yes! Sometimes, stepping out of the cubicle to be a self-determining entrepreneur or a freelance worker gives you the opportunity to find yourself while bringing money in the bank. Nonetheless, it will give you self-benefiting outcomes. Start with these 5 jobs that take purposeful risks…

1. OWN AN ONLINE SHOP

Do you love to make cupcakes, jewelry, or essence oils? Turn your hobby into your own business. Be your own boss by thinking about your skill set and hobbies then, start making an online business out of it. Popular platforms for selling or making your own online shop such as: Carousell and Tictail, are available for free. Furthermore, these platforms have a growing following of audience or customers already.

2. BE A SALES REPRESENTATIVE

Sales representatives or brand ambassadors sell household, beauty, or health products in their own ways. Join millions of independent ambassadors of Herbalife or MaryKay worldwide by visiting their respective websites. Here are added information that you can benefit from:

a. Herbalife : website here!

b. Mary Kay: website here!

3. VENTURE INTO BLOGGING

If you enjoy writing or sharing your ideas then, becoming a blogger might just be for you. There are many ways to monetize a blog such as advertising, memberships, selling books, product affiliations, becoming speakers, and so on.

A blog may lead to success with a combination of hard-work (e.g., countless hours of writing articles and editing videos), networking during events, media affiliations, luck, and building a fan base. A job as a full-time blogger can be so persistent in your life that you can be working everyday without noticing it!

4. BE A FINANCIAL CONSULTANT OR ADVISOR

In general, Financial Consultants or Financial Advisors are professionals who guide their clients to manage their money, investment options, and asset relocation. But, what they do is far more complex than that. A career as a Financial Consultant gets to enjoy the flexible working hours and the privilege to get the job incentives.

It involves a lot of paperwork, preparation, and building relationships. It can not only be challenging as they face a lot of rejection but also rewarding as they see their clients improving their monetary lifestyle. There is a job growth in this field as long as you go through continuous training with determination and openness.

5. PURSUE AS A PROPERTY AGENT

Early this year, a young property agent by the name of Shirley Seng sold a penthouse in Le Nouvel Ardmore for S$51 million. With that, she gained a commission of a whopping S$1.5 million! It’s like winning the jackpot!

Image Credits: pixabay.com (License: CC0 Public Domain)

Truly, the top richest people in Singapore have been involved in either the property business or the property development. But, what is a property agent exactly? A property or a real-estate agent is someone who arranges the selling, renting, and management of properties. So, be prepared to be creative in your marketing strategies and to be able to build a good network of people to aid in financial crises.

Sources: 1,2, 3, & 4

Is Your CPF Enough to Retire On?

Many Singaporeans look to their CPF to provide for retirement. As the General Election draws close however, some critics have panned the retirement scheme, saying it no longer suffices. Have a look at some of the realities of the CPF, and decide for yourself:

What is the CPF?

The Central Provident Fund (CPF) is a mandatory savings scheme for Singaporeans. This fund is used to provide for a range of crucial financial needs, such as healthcare, retirement, and home ownership.

Your CPF is automatically deducted from your wages, and your employer is also required to pay a portion into your CPF. Compulsory CPF contributions are as follows:

Age	Your contribution	Your employer’s contribution
Up to 50 years old	20% of monthly income	17% of monthly income
From 51 to 55 years old	19% of monthly income	16% of monthly income
From 56 to 60 years old	13% of monthly income	12% of monthly income
From 61 to 65 years old	7.5% of monthly income	8.5% of monthly income
Above 65	5% of monthly income	7.5% of monthly income

Your CPF is divided into an Ordinary Account (OA), a Special Account (SA), and your Medisave account. The interest rates for these accounts (as of 2015) are:

OA – 3.5% per annum
SA – 5% per annum
Medisave – 5% per annum

You do have the option to invest your CPF money in other schemes, based on an approved list. However, the returns are not guaranteed, and the government will not replace any losses you incur. You can see further details on allowable investments here.

Once you reach the age of 55, you will be able to withdraw all the money except for a required Minimum Sum. The Minimum Sum is placed in a Retirement Account (RA). From the age of 65, savings in your RA are disbursed to you in monthly payouts, which should ideally last till you are 90.

The Minimum Sum (as of 2015) is S$155,000. From the age of 65, this should provide monthly payouts of around S$1,200.

Is the CPF Alone Enough to Retire On?

The answer for most Singaporeans is “yes, but…” Here are some of the factors you need to consider:

Your CPF depletes very quickly when used to pay for your flat
The CPF rate barely keeps pace with inflation
A lot depends on how comfortable you want your retirement to be

1. Your CPF Depletes Very Quickly When Used to Pay for Your Home

Buying a home is one of the ways Singaporeans use their CPF. When you take out a HDB concessionary loan, the entirety of the down payment can come from your CPF*.

(*This does not apply to private bank loans, in which only 15% of the down payment can be made with CPF.)

CPF can also be used to pay for certain fees, such as the legal paperwork for the purchase. Mortgage repayments can be taken from your CPF rather than your bank account.

But this means that, if you use too much of your CPF money purchasing a house, there is a real possibility of it running out.

If you use HDB loans, the interest rate is 0.1% above the prevailing CPF rate (3.6% at present). If you use a private bank loan, the rate fluctuates according to an index, such as SIBOR or SOR. Both options can wipe out your CPF, and leave too little even for the Minimum Sum.

So if you want CPF to provide for your retirement, never overreach and buy a property beyond your means. If you buy the biggest house you can possibly qualify for, be aware that you could be forced to sell it to fund your retirement.

2. The CPF Barely Keeps Pace with Inflation

Singapore’s core inflation hovers at around 3%, which is on par with most developed countries. This means that the general cost of living goes up by 3% with each passing year, and your wealth is being depleted if it can’t grow as fast.

Given the CPF’s return of 3.5% and 5% (for OA and SA respectively), your real returns are only around 0.5% for OA and 2% for SA. This means that relying on CPF alone will provide for a very modest retirement.

Should you have plans after you stop working (e.g. travel the world, look after your grandchildren financially), it may not be a good idea to rely solely on CPF. You should speak to a financial advisor or a wealth manager about different investment products, which can complement your CPF.

3. A Lot Depends on How Comfortable You Want Your Retirement to Be
A pay out of S$1,200 a month is comfortable for some people, but painful for others. We are all used to different standards of living. If you enjoy a high income of S$15,000 a month, for example, switching to S$1,200 a month will be extremely painful.

As such, it is important to work out your desired Income Replacement Rate (IRR). This can be done with holistic financial planning, which also takes into account the amount you will need at retirement, and how long you have to get there (your investment horizon).

Do not believe any arbitrary “rules”, such as sayings that you must have a million dollars to retire in Singapore, or that S$500,000 is enough to quit your job. Such figures are not grounded in your specific needs. Speak to a qualified wealth manager or financial advisor to identify the sum you need.

A Note on Debt
Personal loans range from 6 – 8% per annum, and credit card loans reach around 24%. Your CPF interest rates (or the rates of even the most phenomenal financial products on the market) will never “outgrow” your debt. It is almost impossible.

If you want to retire well, you must pay down your debts early. Be an extreme miser with loans. Make comparisons every time you need money from the bank. You can find the best loans on SingSaver.com.sg.

In Summary:
The CPF is enough to provide the bare basics, when it comes to retirement. However, your retirement will not be lavish if you rely on CPF alone, especially if you are used to a more expensive lifestyle.

(This article is brought to you by SingSaver.com.sg)

MTI Launched Islandwide List of Budget Hawker Food

Hawker food is part of Singapore’s heritage, and is the place to go to for a spread of local delights without the price tag.

From your favourite Chicken Rice to Wanton Mee and Mee Rebus, wouldn’t it be good to find out the stall that sell the cheapest local fare in Singapore?

The Ministry of Trade of Industry (MTI) has launched a Hawker Guide early last month where you can search for the cheapest hawker dish in Singapore island-wide.

It is user-friendly and you can simply select the hawker dish from their list of budget hawker food.

In this example, Chicken Rice has been selected.

You can then search their database according to their location:

The search results will show the cheapest chicken rice in ascending order.

This is a pretty handy guide that is worth sharing with your friends, or for any visitors that are coming to Singapore! Now at least you know where to get the cheapest Nasi Lemak in Singapore.

Check out the guide here.

Universal Things You Must Consider When Buying Insurance In Singapore

According to Investopedia, insurance is a binding contract or policy in which an individual receives reimbursement or financial protection against losses.

When purchasing for an insurance policy in Singapore, look for the best-priced deal that is suitable for you because prices can vary from one company to the next. Furthermore, the policies these companies offer are different. So, beyond the price, it is important to consider other factors as well.

1. FIND THE APPROPRIATE TYPE OF INSURANCE

Determine the situation you are in then, decide what type of insurance is appropriate for you. For instance, you are flying to the other side of the world for 30 days and you are worried that you might fall sick there. Do you get a medical insurance or a travel insurance? Well, if you must know, most travel insurances cover emergency medical bills during your trip too. This is why it is important to make sure you know what you want and you know what the insurance policies entails.

Click to read some tips if you will get…

a. Car Insurance

b. Life Insurance

c. Travel Insurance

2. KNOW THE AGE CRITERIA

The easiest way to know if you qualify for the insurance policy is to check the age limits placed. If you do not then, you should ask the insurance company if there are flexible steps you could take if you do not meet the age criteria.

Age criteria determine the price and size of the premiums as well as the validity of your claims. Therefore, you must see to it that the policy terms can work for you and your dependents in the long run.

3. STUDY THE POLICY’S EXCLUSIONS AND INCLUSIONS

Before purchasing the insurance product, you need to study what the policy covers and what it does not. For instance, if you are going to buy a life insurance for your family, ask about the beneficiaries. Can you include your children and your spouse but not your parents? Again, flexibility of the policy is a factor to consider here.

4. SAVE MORE WITH ADDITIONAL BENEFITS

You can save more money if there are additional benefits attached to the insurance policy. For instance, MSIG Insurance Singapore is offering an additional 10% discount if you purchased a Travel Insurance as a group of 6-10 persons while you will get up to 15% off as a group of 11-20 persons (Terms & Conditions apply). Isn’t that amazing?

5. EXAMINE THE WAITING OR DEFERMENT PERIOD

Waiting period is the period of time before you can receive the insurance compensations after you made your claims. For example, if your motorcycle is crashed during the lengthy waiting period, you will have to find other methods of transport until it is replaced.

While, deferment period is the period of time you cannot make a claim because the insurance company has yet to make payments. For example, you fall ill in the midst deferment period then, you will have to fork the payment yourself.

Image Credits: Alan Cleaver via Flickr

These situations highlight the essence of examining whether you are comfortable with the waiting or deferment period set by the insurance company.

Sources: 1 & 2

What are the car attributes that suit me best in Singapore?

Given the legion of car models available in Singapore, settling on a final purchase decision is no easy feat. Indeed, it is both time-consuming and cumbersome to test-drive the myriad of cars to make an informed choice.

However, relying on time-honoured brands, word of mouth and (preferably independently produced) statistics could effectively pose as practical shortcuts to the lengthy decision-making process.

Additionally, the flowchart below serves to aid you in identifying the specific car attributes that fit your personal wants. Nonetheless, it is imperative to understand and assess yourself such that your behavioural, social and physical wants can be adequately supported by your financial ability.

Click to enlarge:

Notes: The desired car attributes for each consumer segment are hashtagged. You can compare the key attributes between car models on www.sgcarmart.com/new_cars/newcars_compare.php.

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