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Financial Moves That Recently Divorced Men Shall Take

Much like any other major life transitions, you shall seek support if you and your spouse recently part ways. This may seem like a simple task for some but it can be really difficult for the “macho men” who want to keep their own matters private. As David Blaylock, a LearnVest Planning Services Certified Financial Planner, once said: “Divorce is difficult for everyone involved, but it can be especially challenging for men who don’t typically express their feelings.”

Lucky for you, I collated some of the best financial moves that a person in your challenging situation shall take.

1. CREATE A NEW BUDGET

Recently divorced men usually think about the immediate financial responsibilities such as payment for divorce lawyers and monthly child maintenance. However, they forget that they are basically single again!

With your circumstance, it is best to remind yourself that you are starting a fresh chapter in your life. You have to think about your family expenses (e.g., child’s school fees) as well as your daily expenses (e.g., grocery costs). This is why it is important to create a post-divorce budget that incorporates these two types of expenses.

2. DIVIDE YOUR BANK ACCOUNTS EQUALLY

Allowing your vengeful ex-lover to withdraw all your money is the worst thing that can happen when you have joint bank accounts. Avoid this by honoring your prenuptial agreement. Alternatively, you can discuss the matter as two mature adults.

Given that your former spouse is trustworthy and understanding, you can talk about dividing your joint bank accounts in half. Dividing your wealth equally will entail that you have the welfare of your family and children in mind. If you are the breadwinner in your previous household, it is ideal to make financial arrangements so that the monthly bills are covered.

Image Credits: www.pixabay.com

3. REDUCE YOUR PERSONAL EXPENSES

It can be more expensive if you are living in two separate households unlike before. You may have to pay for two mortgages, two utility bills, and so on. This is why you must cut down your expenses everyday for at least a week and realize your spending habits. Eliminate the areas which are unnecessary such as cable television.

4. AVOID COSTLY IMPULSIVE BEHAVIORS

Sure, binging on alcohol can help you drown the sorrows of yesterday but your problems will not disappear with every bottle you chug! It is not only an unhealthy way to move on but it is also a costly behavior in the long run.

Avoid self-destructive behaviors such as spending too much money on sex, drugs, and drinking. Evidence of said behaviors will only strengthen the case of the other camp.

5. DECIDE ON WHO KEEPS THE RINGS

Since Singapore is a cultural melting pot, we have different beliefs and traditions when it comes to wedding rings. Most people are accustomed to return the gifts that their previous lovers had purchased for them. However, if the ring was an heirloom from your former spouse’s family then you must let her keep it.

Image Credits: www.pixabay.com

If she refuses to give back the rings that you purchased then, be the bigger person and move on! They are merely Earthly possessions after all.

Sources: 1 & 2

Stop Worrying About Making Ends Meet, Know Where Your Money Goes

Living barely within your income is not a laughing matter! When you are living from paycheck to paycheck, your life is filled with constant stress, worry, and dread. It is a struggle to gain control of your money and your commitments.

How did you end up like this?

For starters, you not be planning for your future and only thinking about the current situation. With this attitude, do not be surprised if you will be working beyond the retirement age! Another reason maybe due to your history of overspending. Perhaps you were spending too much before that you fell into an avalanche of debt and can never move pass it.

In order to cease your worries, a huge turnover can be money flow management. You must give conscious effort to know about where your money flows in and out. Once you have control over your money flow. Then, you will be able to create a systematic financial operating system that consists of: money flow management and budgeting.

Start by identifying your fixed expenses (essentials), variable expenses (non-essentials), and savings (investments) first. Organize these items in a physical ledger or a budgeting App such as EXPENSIFY, MONEYWISE, POCKET EXPENSE PERSONAL FINANCE, and MINT.

Allocating your money to fixed expenses shall be your top priority. Fixed expenses include the goods and services that you cannot live without. Your rent, utility bills, school fees, and transportation costs fall under this category. Since our spending habits and personal needs are different, you must include the categories that are relevant to you. For example, a hand phone is a necessary means of communication. However, the type of hand phone that you bought makes all the difference.

Do you really need the latest Smartphone released by Apple when your current hand phone is working just fine? If you are purchasing it for vanity’s sake then it becomes a non-essential.

Non-essentials or variable expenses include the goods and services that do not compromise your survival. This category includes your clubbing costs, shopping sprees, and overseas vacations. Always save your non-essentials fund for last to prevent becoming broke.

The last category is your savings. Your savings not only protect you from unwanted events but it also prepares you for the future. It includes your investments in stocks, bonds, properties, or mutual funds (items that generate profit). Once your done with your fixed expenses, come up with a well-thought-off amount for your savings that you can consistently maintain.

Some people believe that purchasing a car is considered as investment but in respect to the categories of the “money flow management”, it is not. You see, every time you drive your new vehicle, its value depreciates. It is more of an asset that can sometimes be used as a collateral when you take out a loan.

Image Credits: www.pixabay.com

Always ensure that pay your bills on time, otherwise it will defeat the purpose of the above system. With a smart way of prioritizing your expenses and budgeting your money, you will find yourself in a more stable position in no time!

Smart Financial Resolutions To Kick-Start 2016

What better way to usher in the New Year than by making smart financial resolutions to improve your wealth?

1. ELIMINATE YOUR UNHEALTHY HABITS

Unhealthy habits, such as excessively drinking alcohol or smoking tobacco, that you enjoy on a regular basis can not only increase your insurance premiums but also your daily expenses. Another unhealthy habit that may be costing you a lot is regularly eating junk. Junk food is called junk for a reason as excessive consumption can lead to obesity, diabetes, high blood pressure, and so on.

When you decide to stop drinking, smoking, and eating unhealthily this 2016, you will see your bills going down and you will feel improvements in your health in no time!

2. WIPE OUT UNNECESSARY EXPENSES

As you review your annual statement, there is probably an expense or two that you can trim from your budget. Mine is my mobile phone plan. Due to accessible Wi-Fi connection almost anywhere in Singapore, I am able to refrain from using the allotted local calls and SMS on my plan. Yet I am still paying for it. What a waste!

How about you? Go through your past purchases. After seeing the bigger picture, it is time to cut down your expenses. Reduce the unnecessary expenses such as mobile phone plan, designer bags or costly coffee beans and turn a new leaf.

3. BE MORE ECO-FRIENDLY

Fix, refurbish, or recycle your furniture, decor, or appliance that are still in good condition instead of spending money to replace these. As you revamp your stuff, use lighter colored paints to reduce the heat and energy consumption. As you recycle, you may consider turning your old drawer into a shelf. There are many ways to cheaply decorate your home and saving Mother Earth in the process…just keep your creative juices flowing!

4. LOSE WEIGHT

Every January, a huge queue of people flock in fitness studios and gyms. These members soon to disappear as months go by. Instead of wasting your money on costly gym or fitness studio memberships, workout for virtually free at your own home or at the town parks. Do yoga, jog outdoors, run in the stadium, or try any workout routine that you can do for free.

5. TIDY UP YOUR LIFE

Being messy with your space and time can cost you!

For instance, being untidy with your billing statements can result to late payments and penalty fees while being unorganized with your cooking time can result to overspending on take-out food. The list just goes on.

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

It is important to organize your life…have a physical storage for your bills and schedule your tasks. As long as you are on track, you will be able to save!

Sources: 1 & 2

Income versus Expenses: How Are We Faring?

Singapore is not cheap, which makes you wonder, how do we thrive? To help us understand better, let’s talk about our cost of living.

Housing

In general, the property prices in Singapore are going down, thanks to the efforts of the government, including reducing the loan-to-value ratio and capping home loans up to 35 years. Moreover, you have several property options, although more than 75% of us live in HDB flats, of which the cheapest can be a 2-room home with a possible net selling price (after grants) of $52,000.

But this would need a median income of $1,500 and a monthly instalment to income ratio of 11%. So far, as of 2014, the median income calculated during the mid-year was $3,770. If you can’t afford to buy the property yet or you have no intention of doing so at least within a few years, you can take this time to start saving, managing your debt for a better total debt servicing ratio (TDSR), and comparing mortgage loans.

Healthcare

Singapore promotes a universal healthcare program. Under this are Medisave, Medishield, and Elder Shield, to name a few. A part of our CPF contributions is intended for healthcare by the time we’re old (and, yes, our population is getting way older than before). Other countries have commended our healthcare system for having some of the best hospitals and well-trained staff with training and expertise comparable to that of European and North American countries.

But our healthcare isn’t immune to inflation, and premiums for coverage such as Medishield are expected to go up. Moreover, the government provides only subsidies, which means you still have to pay for the remaining healthcare costs. If there’s some good news, it’s that many companies do provide healthcare and even life insurance at no extra cost on your end.

Education

Singapore stresses the huge importance of education, so much so that it allocates at least 20% of its annual budget to it. It is also compulsory for children between 6 and 15 years old, but it’s not unusual to see children as young as 4 to go to school, which means education expenses can also start early, and a nursery class may cost $900 per year. University is expected to go up by as much as $30,600, but subsidies can greatly help by decreasing tuition fees by as much as 26%.

Food

A huge chunk of a family’s budget goes to food, and the expenditure keeps on increasing every year. In 2013, the average food expenditure was $1,188, an increase of $239 from 2008. There are two possible explanations for this: inflation and our penchant to eat out. We are the highest spenders in the Asia-Pacific region in terms of dining out with a monthly expense of around $324.

Can We Afford It?

The high cost of living, however, is just a partial way of evaluating our capacity to thrive in the country. The much bigger question is if we can afford our necessities. Thankfully, the answer still remains yes.

More households are earning $20,000 and above a month (including CPF contributions), and even if our total household expenditures have gone up through the years, they’re still lower than our average monthly wages.

This doesn’t mean, though, you won’t go bankrupt or continue to live from paycheque to paycheque. Your own spending habits and financial decisions can have a significant impact on your expenses and income. As an example, while you have many choices for credit cards, going for the ones that help you earn rewards with your credit card is more sensible as you can take every dollar you spent further.

To conclude, whether you’re living in Singapore or anywhere else in the world, being financially smart can shield you from all the money woes.

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

4 Ways To Save Big On School Supplies

I can still remember the time when my mother distributed school supplies to me and my other siblings. It was a rush that I get every time I fill my bag with new stationery items. But, behind that joyful rush is a mother that just spent her hard-earned cash on supplies!

This is why it is important to save as much as you can while shopping. Start by setting aside extra cash each week before the school starts. Then, follow these 4 tips:

1. KIDS MATTER

Children play a huge role on what goes inside your basket. If you have the option to leave your child at home with a family member or a babysitter then, do so. Going on a shopping trip alone will ensure that you do not have to give in to what your kids wants. Furthermore, you would save a lot more in your bill.

2. KNOW WHAT TO BUY

Come prepared to avoid getting overwhelmed with the abundance of school supplies available. Make a shopping list that is in lined with your budget and stick with it. If you are shopping for more than one kid then, organize the list by making a column for each. And, if the school provided a list of mandatory school supplies then, it will give you an opportunity to save money beforehand.

3. SHOP ONLINE

Be patient and purchase online. There are many retailers that offer promotions and clearance sales on their own website. Also, you get to save on gas or transportation fee. Lionstationery.com.sg and Evergreen.com.sg are the two stationery websites you can visit.

4. QUALITY OVER PRICE

If you are only focused with the cost, you will end up replacing a bunch of items in the near future. Save more in the long run by buying quality items that you think your children will overuse for the whole school year such as backpacks and binders. Moreover, some of these excellent quality items can last for the next school year.

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

This is why you must buy supplies that have basic colors to stay on trend!

Sources: 1 & 2

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