6 Types of Friends That Are Bad for Your Finances

It’s human nature to compare ourselves to those around us. In theory, it seems reasonable enough, but in reality, it can be a slippery slope, especially when we’re surrounded by friends who unknowingly (or knowingly) harm our finances.

Maybe your friends are getting married and applying for their BTOs, while you’re still single, navigating the transition into a new career. You might start wondering what the “normal” timeline for life is. But here’s the catch: comparisons only work if you’re using yourself as the benchmark.

You see, even if you were raised to mind your own financial business, that doesn’t mean all your friends or acquaintances follow the same rules. This is why self-awareness is crucial. By identifying which friends might be messing with your financial stability, you can better neutralize their impact on your wallet.

#1: THE ENABLER

The Enabler is that friend who points out how hard you’ve been working and tells you, “You deserve nice things!” and even if those nice things are way beyond your means. Their intentions are sweet and they just want you to feel special because they care about you. In many cases, the Enabler is someone close to you. Sometimes, though, it could even be you enabling others.

How to handle it? Carry only the amount of money you’re willing to spend when you’re with this friend. Once the cash is gone, you won’t be tempted to go beyond your budget. Furthermore, avoid activities like window shopping together as it’s a trap for overspending.

#2: THE BORROWER

We’ve all had that friend who shows up only when they need financial help. They’ll hype up your latest travel pics or drop comments on your IG stories, only to later DM you with a request for money, promising to pay you back at the end of the month. Spoiler alert! It’s rarely easy to get your money back from a Borrower.

To protect yourself, be clear about the purpose of the loan and have a structure in place, especially for larger amounts. A written agreement with terms like interest, repayment deadlines, and late fees can go a long way toward ensuring you get repaid.

#3: THE CONMAN

This friend is always up to date with the latest “get-rich-quick” schemes or “once-in-a-lifetime” investment opportunities, which are complete with vague business plans and shady multi-level marketing structures. This friend will try to convince you that this scheme is the golden ticket.

Your best move? Be direct! Tell them upfront that you’re not interested and explain that your funds are tied up in more important matters such as childcare, student loans, or HDB improvements. The key is setting firm boundaries and not getting sucked into their scheme.

#4: THE DRAMATIC

Drama seems to follow this friend wherever they go. Their life is always full of chaos, including financial disasters they refuse to address. While your instinct may be to help, friends like these often can’t be helped until they decide to help themselves. Pouring time, effort, and money into them may only result in disappointment.

Sometimes, the best way to help is by stepping back and allowing them to face their financial problems on their own terms.

#5: THE BULLY

A financial bully is that friend who makes you feel small for your financial choices. I had a friend once who would say things like, “Girl, you pick the place, since you’re the poorest among us.” It took me years, but eventually, I cut her out of my life.

Financial bullies thrive on feeling superior, but their teasing often stems from their own insecurities. They might mock your budgeting habits, yet they could be the ones struggling to pay their bills. If you find yourself in this situation, speak up! Remind your friends that sticking to a budget is part of your plan for financial stability.

#6: THE OPTIMIST

Much like the Enabler, the Optimist has a skewed view of reality when it comes to finances. They live by the motto, “You only live once! C’mon, YOLO!” which can lead to risky behaviors like spending your rent money or draining your emergency fund on a lavish vacation.

How do you manage this? Keep the conversation focused on your financial goals. By sharing concrete, achievable targets, you not only keep yourself grounded but might also inspire your optimistic friend to take a look at their own financial habits.

Image Credits: unsplash.com

By being mindful of these types of friends and their influence, you can make better choices for your financial well-being, without sacrificing your relationships.

Sources: 1 & 2

 

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Just Got Married! Now What?

Marriage is about teamwork and compromise. Whether you have been married for two weeks or two decades, it is essential to be able to work together with your partner. The reality is that working together can be challenging, especially when it comes to your finances. In fact, the majority of divorced adults cited money as the reason for their separation.

You can tackle money as a team with honesty, communication, and dedication to a shared plan!

#1: CREATE A HOUSEHOLD BUDGET

A budget should tell you how much money you anticipate having and where it will go. Your income and expenses will change once you are married. It is important that you create a new combined household budget and revisit your Indvidual budgets to adjust to the marital shift.

#2: SET SHARED PRIORITIES

What do you value the most as individuals? What do you value the most as partners? Personal management begins with understanding your priorities and what you want. As you come together, you will need to merge those priorities and ideas to filter what you both believe in. These priorities will help influence your most crucial money decisions.

#3: SIT DOWN TO DISCUSS

It is unpleasant to talk about money during inappropriate times or when your spouse is not ready to discuss serious matters. Do not discuss money at random times! Pick a specific date to talk deeply about money. This mutual time for a meeting will enable you to stay on the same page. Feel free to raise your concerns to produce a shared solution.

#4: EMBRACE YOUR DIFFERENCES

Everyone has a different relationship with money. It is not a requirement that you understand how your spouse feels the way they do, but it is important to recognize and respect those feelings. Accept that differences are inevitable.

#5: ESTABLISH A JOINT EMERGENCY FUND

Once you and your partner are living together, you can both work on setting aside funds for any potential emergencies such as unemployment and sudden home repair. A high-yield savings account can be the perfect place to build this joint emergency fund. Set aside cash savings that is equal to about six months’ worth of your joint fixed expenses.

#6: HAVE A SHARED CREDIT CARD

Maximize the rewards you can earn on all your joint purchases by opening a joint credit card or having your spouse become an authorized user on your credit card. If you sign up for a rewards credit card, you can use your newly established joint checking account to pay off that credit card every month. This will increase your bonuses and rewards along the way.

Image Credits: pixabay.com

#7: TRACK YOUR SPENDING

Another way to avoid fights about money is to track your spending. There are no surprises when you track your spending together. There is many personal finance management software available for free such as the Expensify, Spendee, Money Lover, or Mint app. You can also do the old school method by creating a ledger. Knowing where your money is going is just the first step! Working together is all about transparency.

Sources: 1 & 2

 

 

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Adequately Managing Your Business’ Finances In The Digital Age

Everyone knows that the professional landscape is always evolving and shifting, adapting and relining with the way that the world around it is functioning and thriving at any given time. We have seen an incredible amount of attention to detail and overall emphasis that is focused primarily not just on what works for the industries at any given time but also what is going to be most effective for the moving forward. There is a lot to be said about the fact that while there is significant interest and investment in powering for the current era in this particular field, there are always ways to enhance and improve. And now that we are moving into a modern age that is all about embracing modernisation like never before, this is truer than ever.

How the digital age impacts businesses

In the digital age, there is genuinely so much to be said about the fact that it has truly impacted and entirely revolutionised every aspect of life as we know it every corresponding industry in their own ways. For businesses of all natures, shapes, and sizes around the globe, there is quite a lot to be said about understanding not only how businesses are able to navigate their way through the beginning stages but also how they are able to do so on an active and ongoing basis moving forward from here on out. What has always worked so well for businesses is perhaps no longer as relevant and so the digital age is impacting businesses of all natures, shapes, and sizes by inspiring them to embrace modernisation and work towards finding better ways to move forward, onward, and upward.

Adequately managing your business’ finances in the digital age

Each and every aspect of how business functions and thrives today has been and continues to be impacted. This of course includes the business’ finances. Adequately managing your business’ finances is all about understanding that while there have been significantly successful innovations in the past, the best way to embrace they are moving forward is to figure out how they can be impactful in the future. Business finances today can be made more convenient and efficient by being streamlined online. For your business expenses, you can pay bill online for faster transactions and easy tracking of payments.As a result, adequately managing business finances in the digital era is all about embracing the digital landscape and utilising it to your distinct advantage in a way that allows you to come and pursue the longevity and success of your company.

Why this is always going to be of the utmost important

Without a doubt, the finances of a business is one of the most important meeting pieces. The corporate account of a business ultimately says a lot about how the business operates and functions on a daily basis as well as how it is able to withstand change overtime. And this is always going to be incredibly important to understand. Regardless of how the nature of business is going to evolve over the years, the importance of being able to manage professional finances for the business and surrounding the business is always going to have a significant role to play.

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What On Earth Is A Fiduciary?

DEFINE

Recently, my significant other opened the idea of discussing about whether it is worth getting a fiduciary and a financial adviser. I focused on the former. A fiduciary’s duties and responsibilities goes beyond directing the individual (i.e., beneficiary) to his or her financial goals. The fiduciary acts for or on behalf of the beneficiary in certain circumstances. This is a bond established by utmost confidence and trust.

A fiduciary is either a person or an organization who has the highest legal duty of being ethically bound to act in the beneficiary’s best interest. Fiduciary relationships include:

* Trustees (of a beneficiary);
* Directors (of a company);
* Agents (of a principal);
* Lawyers (to the client); and
* Partners (to each other).

Aside from this, the Courts may find a fiduciary relationship exists when the beneficiary is dependent on the fiduciary, when the fiduciary has the discretion to act unilaterally for the beneficiary, and when such power affects the beneficiary’s legal or practical interests.

Do you qualify for any of these? Are you a fiduciary? If so, here are your duties.

DUTIES

#1: First and foremost, the fiduciary needs to avoid conflict of interest and duty. For example, a company director must not put himself or herself in a position where personal interest will conflict with that of the company’s. Do everything in good faith.

#2: Secondly, you must avoid unauthorized profits. For example, your position as a company director may be in breach of your duty if you acquire a business opportunity (i.e., belonging to the company) for yourself.

#3: Lastly, the fiduciary must manage the assets of an individual for the benefits of the beneficiary himself or herself. You cannot benefit personally from the management of the beneficiary’s assets.

LAW

According to research, Singapore is part of the common law legal tradition. Thus, the decisions of precedent cases in the superior courts are binding on the lower courts. Moreover, the decisions in other Commonwealth jurisdictions (e.g., in UK, Australia, or Malaysia) can be persuasive in the Singapore courts.

Image Credits: pixabay.com

“When a fiduciary relationship is established in one of these cases, future cases are bound to follow what has been established before. Statutes that are passed by Parliament may also impose certain statutory duties akin to fiduciary duties between parties.”

Consult legal agents to know more.

Sources: 1 & 2

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How To Make A Financial Vision Board

Consumed by the demands of your daily life, it is easy to lose track of the bigger picture. What are your financial goals? What are your dreams made of? A simple representation of all your hopes, dreams, and goals is a Vision Board.

A Vision Board helps you to clarify your financial goals to enable you to achieve them. Its mechanism is powered by the idea that if we put our desires out there, the universe will be able to bring it to us. It is powerful because it forces the person to be clear and decisive about the kind of life they want to lead. Visual images serve as daily reminders of what we really aspire to become.

A study showed that people were more likely to achieve their goals if they write them down. Vision boards take this notion one step further. It enables the person to be specific when it comes to his or her dreams. It makes your financial goals more concrete and detailed. Better results can be achieved by putting your vision board in a place where you constantly see it. Choose five to ten goals to focus on (e.g., getting a new job or paying all your debt). Put these financial goals on your vision board.

Here is an example of a financial vision board:

To create a vision board, you need:
* Poster board/Cork board
* Pins
* Colored markers
* Glue
* Tape
* Scissors
* Old magazines

Aside from these materials, it is important to follow these steps.

#1: DREAM A LITTLE DREAM

Social media and advertisements have conditioned us to want things we see around us. Material things can bring your short-term delight, but what can really bring you happiness? It is time for you to think about that. Daydream the improved life that you want for yourself and your family. A financial board needs to reflect your ideal reality.

#2: COLLECT AND SELECT

Begin flipping through your stack of old magazines and newspapers to cut anything that speaks to you. Use images or words that embody your goals. You can sort all these later once you get a sizable amount of cutouts.

Edit your cutouts into five to ten goals. Then, paste them on your board as you fit the puzzles together. You can even organize the images per theme or per time-frame.

#3: WISH YOUR HEART MAKES

Mentally commit to your financial goals by gluing or pinning them down on your board. This vision is cemented for the year. It may feel weird at first, but this is the first step toward making your dreams a reality.

Hang your vision board in a place where you can revisit your financial goals. Or, you may consider setting it as your wallpaper on your phone or your laptop.

#4: PLAN AND ACHIEVE

Lastly, you must reflect on your financial vision board and think of ways to achieve each one. Choose to focus on one goal at a time or on the smaller goals first.

Image Credits: pixabay.com

Good luck!

Sources: 1 & 2

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