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How to maximize your life with a $3,000 paycheck

With S$3,000 for a monthly salary, many fresh graduates do not think that is enough to spend nor save. But think again. As a bachelor or bachelorette earning $3,000, you are already better off than many others beset with hefty household bills. So, for someone fresh out of school with no dependants or minimal financial liabilities, maximizing your life with your $3,000 paycheck may be attainable and here is how we can approach this mathematical sum with the help of Maslow’s hierarchy of needs. According to Abraham Maslow, a renowned American psychologist, inherent human needs are fulfilled in the following priorities, starting from physiological needs, safety needs, love/belonging needs, esteem needs and finally, self-actualization needs.

Need(s) fulfilled: Physiological
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1. Spend 20% or $600 on irresistible meals that are simply affordable. Fortunately, it is never a hassle to find them in the heartlands or the CBD areas which serve to satisfy your hunger pangs after a half day of hard work! Alternatively, you can prepare your own nutritious and palatable meals within the budget!

Need(s) fulfilled: Love/belonging, safety
Image credit: en.wikipedia.org

2. Spend 10% or $300 on delighting your beloved family, partners and friends. Rope them in for a laugh by watching a hilarious movie, enjoy a hearty chat over a scrumptious meal or simply participate in a sport that all of you relish.

Need(s) fulfilled: Love/belonging, safety, physiological, self-actualization
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3. Save 50% or $1,500 for your upcoming big ticket items. In Singapore, your residential property is probably your greatest prized asset. Your lifetime of savings and efforts will be manifested in your small but cozy HDB flat. At the end of the day, it is the family warmth that truly matters in the home, not so much about the size. Depending on your risk appetite, a portion of the 50% may be used for investment purposes to earn a return over the inflation rate. As easy as this may sound, engaging in due diligence is key to making or breaking it.

Need(s) fulfilled: Love/belonging, safety, esteem
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4. Set aside 10% or $300 as an emergency fund. Life is filled with surprises. You never know what will happen tomorrow. Putting aside 10% of your income may seem wise to buffer yourself against uncertainties. Take for example an unexpected invitation to your superior or colleague’s wedding or baby shower. An emergency fund boosts your readiness and willingness to share the joys, build a stronger rapport and put you in a better position to win people’s hearts.

Need(s) fulfilled: Physiological, safety
Image credit: graphichive.net

5. The last 10% or $300 is reserved for miscellaneous expenses such as transport fares, therapeutic services and new merchandises. After a month’s worth of toiling, you definitely deserve some pampering. Indulge in a massage to relieve yourself of the piled-up stress from work. Recharge before moving on to the greater things in life.

The good news is that the higher level needs such as the esteem needs and self-actualization needs often do not pose a material constraint on your financial resources. By living within your means while maintaining optimism, you gain the understanding and respect of your peers and family members. Through demonstrating your forthcomingness in celebrating others’ blissfulness and successes while realizing the relentless quest for material wealth does not always lead to happiness, you would have already achieved the moral high ground.

You’d Be Surprised At How Much It Costs To Get Pregnant In Singapore

Once you have confirmed that you are pregnant, your mixed emotions will take a while to settle. Then, it is time to prepare for your much-awaited pregnancy. Before you deliver your child, it is vital to determine the costs related to your pregnancy here in Singapore.

PRE-NATAL

Expecting mothers need to visit the OB/GYNs or gynecologists regularly. As a result, you will have to pay about S$60-75 per visit. But to save more, you may take on the maternity package that costs about S$400 in the public hospitals. This already includes charges for consultation and needed supplements.

Routinely care for both your baby and you includes: monitoring blood pressure and weight gain, lab tests for blood and urine, and monitoring your baby’s position, heartbeat, and size. Additional tests include ultrasound and fetal health screening.

PRE-NATAL CLASSES

To prepare you physically and emotionally to giving birth in Singapore, you may join pre-natal classes that cost about S$150-250. These classes will impart knowledge on handling labor pain, post-natal exercises, and nursing for your newborn baby.

DELIVERY AND HOSPITALIZATION

Hospitalization for two days will cost you about S$3,000 in a private room at a private hospital. But, you can lower down the cost significantly by choosing a private room at a public hospital. Aside from the varied hospitalization fees, delivery fees vary depending on whether you have normal or C-section delivery. For normal deliveries, you can give birth with or without epidural. This costs about S$2,000-3,000 and the C-section only costs more.

POST-NATAL

Expect your bills to increase from the minute your give birth. You will have to pay not only for your gynecologist but also for the pediatrician of your baby. Also, you must get your newborn immunized against several diseases. All the compulsory immunizations are free but if you want to save more, then opt for the services by polyclinics.

CONCLUSION

Giving birth to a baby is a lovely experience. Couples may consider it as a miracle that they had dreamt of for long. But the reality is, getting pregnant in Singapore can bring hefty costs. Bills include pre-natal consultation, lab tests, fee for birth certification, baby immunization, baby clothing and accessories, and more. As a couple, you may prepare a minimum of S$10,000.

Fortunately, Permanent Residents and Singaporeans can deduct a percentage of the delivery costs through the Central Provident Fund (CPF) for their first four children. Furthermore, the Medisave Maternity Package allows you to use your Medisave savings to pay for the pregnancy and delivery expenses. Click here to know more.

Image Credits: John Spade via Flickr

Money Management Tips From Around The World

Diversity is rich in meaningful insight that extends to financial values and money handling practices. Know more about the 5 money strategies from around the world that you can use in your everyday life…

1. CHINA: MAKE FRUGALITY YOUR MANTRA

China has a strong culture of saving. Being raised by Chinese parents, you will feel that saving at least 50% of your income is normal. In fact, China’s government has saved about 51% of their GDP in 2013, according to the International Monetary Fund. Make frugality your mantra by saving electric bills through charging your hand phone at work and by unplugging everything after usage.

2. ASIA: TRY TO BARGAIN ON ANYTHING

I cannot be the only one who constantly asks if there are discount options or if there is a better price offer. In Asian countries, negotiating is a common practice especially for those who are purchasing in the market or flea. Whether it be computers, bed sheets, or apples…there is always a better price and all you have to do is ask politely.

3. GERMANY: SHY AWAY FROM CREDIT

Germany has a deep aversion towards debt and an emphasis on responsibility. This is why they prefer to pay cash than credit. Having to pay with the money you already have is a wise decision that is accepted by most. This preference for cash is evident as they use one of the most valuable currency denominations in the world – the €500 note.

4. JAPAN: VALUE ONE’S MONEY

In Japan, money is handled with respect and is kept clean and crisp. This is why it is common to give cash as a gift, especially for significant life events such as weddings and funerals. Interestingly, they value money so much that they sell anti-bacterial wallets to sterilize the bills. Treating money with profound respect helps the saver to resist the urge of spending.

5. GUATEMALA: ASK FOR THE FAMILY’S OPINION

Most countries of Spanish decent have close family ties.

Image Credits: Alfonso Lomba via Flickr

This is why before making huge purchases or monetary decisions, some Guatemalans ask for their family’s advice. This is a good tip because you never know who has a connection, a friends-and-family discount, or even an extra of the item so you do not have to purchase.

How To Teach Your Kids (Aged 3-10) To Be Financially Responsible

Aged 3-5

1. PEOPLE MAKE MONEY BY WORKING

Describe your job to your children. You may even bring them along one in your workplace and give them a tour. Then, introduce this video of a farmer that gets paid for supplying milk. This short video explains the concept of money to children in a simple and animated manner.

2. MONEY IS NEEDED TO PURCHASE THINGS

Like the farmer in the video, he needed money to buy what he wanted. Help your child understand the concept of being able to buy things by identifying items that cost money (e.g., house, car, table, or iPhone) and those that are free (e.g., hugs and kisses from Daddy).

3. THERE IS A DIFFERENCE BETWEEN NEEDS AND WANTS.

When you are shopping with your kid, highlight what are the essentials such as vegetables and fruits. Then, let your him pick the items that are considered as wants.

Tell your child that an individual must wait before buying something he/she wants. Make him realize this by putting money into two jars: 1 for savings, 1 for spending. Ask him to save a dollar of his allowance for savings and a dollar for spending every week.

Aged 6-10

4. IT IS GOOD TO COMPARE PRICES.

Teach your child how to look around the shops first before buying anything in order to get the best deal. In spending money, choices must be made. So, include your child in small decisions to increase their awareness.

5. THERE ARE DANGERS IN SHARING PERSONAL INFORMATION ONLINE.

Discuss to your child how dangerous and costly it is to enter personal information (e.g., address or bank account details) online because someone may steal it. Encourage purchasing online only when you are beside them.

6. INTRODUCE BANKING AND INTEREST.

Describe how the banking and interest works. Savings account will protect your child’s savings and it will also generate more money due to interest. You may open a junior bank account that you supervise. Let your child watch this video to understand the concept better:

5 Times Drugstores Take Your Money

If you enter a drugstore to buy a shampoo and a toothpaste but end up buying S$50 worth of nail polish, buy 1 get 1 offer of contact lens solution, and holiday decors along with your needs…keep in mind that you are not alone. Most drugstores employ sneaky and clever ways to entice you with their products that are rather unnecessary.

So, be a savvy shopper by educating yourself with the 5 Times Drugstores Take Your Money through clever strategies…

1. HUGE WINDOW DISPLAY

As you walk in the wall you see a flashy window display of a fever medicine and you immediately rushed in since that is what you needed and you thought that they are having a special offer on it. Not so fast! A special window display does not necessarily mean that the product is a good deal.

2. ENTICING ENTRANCE

The seasonal items such as Christmas balls for Christmas season or artificial flowers for Valentine’s Day are presented to entice the shoppers in the entrance. Even if you did not come to buy these holiday decors, you get excited because of the claimed price drops at that moment.

3. ALLURING AUTHORITIES

Some sales representative are dawned in special uniforms or even lab coats to entice you with sweet-swelling shampoos or dermatologically tested cosmetics that you did not come to buy. So, if you are there to buy sunscreen, dandruff or hair growth shampoo then go directly to the respective aisle and buy the less expensive brand, which usually contain the special active ingredient.

4. SHELF GAMES

Drugstores place complementing products together so you end up buying not just the duster refills but also new sweeper handles and other attachments. To avoid this, focus on the shelf cards and look for the special deals or the special rebate items.

5. FAR PHARMACY

Drugstores are usually designed to encourage consumers to walk in a circular layout where the “must-haves” are tempting you along the way. And the highly needed pharmacy is located the far end.

Image Credits: Mike Mozart via Flickr

So, head straight to what is on the list and stick to it. You can also leave your credit card at home and bring only the certain amount of cash that is sufficient.

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