money Archives | Page 7 of 16

How To Solve The Most Embarrassing Money Experiences

1. WHEN THE BILL COMES

In Singapore, a passion that bonds us together is our love for food. Naturally, you will find yourself at the center of a large gathering in a restaurant or an eatery. But there is always a tad of confusion once the bill comes. Do you split the bill evenly or do you pay separately (only for what you ordered)?

Light can shine into the situation if the organizer of the gathering speaks up beforehand about the payment arrangements. Otherwise, speak up for yourself before you order. This way, you will not be shocked if you end up paying more that S$50.

2. WHEN YOUR IRRESPONSIBLE FRIEND BORROWS MONEY

In a big clique, there will always be that one person who seldom pays for the money he owes. Although your irresponsible friend is always present during his time of need, he immediately vanishes as the due date of payment comes.

The situation may seem complicated at first but you can surely get out of it. Simply say that you wish to help however, you do not feel comfortable in lending that “amount” at the moment.

3. WHEN YOU ARE OUT WITH A RICH FRIEND

Aside from the irresponsible friend, there will always be a “rich” friend. Whenever you hangout, you end up spending more than you desire because you feel pressured to keep up with your friend’s lifestyle. The situation gets worse if you promised to treat that friend out and he orders the most expensive thing on the menu. I only hope that you have enough money!

To solve this embarrassing dilemma, be honest to your friend about your financial capacity. Explain that you really want to hang out but your tight budget does not allow you to. If he is a real friend, he will understand.

4. WHEN YOU GET DECLINED

There is nothing worse than having a sales clerk or a waiter tell you that your credit card has been declined. In fact, a 2013 survey by CouponCabin.com rated this as the “most awkward money moment”. I can attest to how unpleasant this money-related experience is.

A couple of years ago, I was working as an administrative officer at a fitness studio. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful.

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You can handle this situation better by keeping your cool. Talk to the personnel privately and arrange an alternative form of payment. Consider going to the nearest ATM to withdraw some cash.

Sources: 1 & 2

Personalities That Affect Your Success At Wealth Management

A wealth manager offers a high-level professional service which combines investment advice, accounting services, tax services, retirement planning, and legal planning. Generally speaking, wealth management is more than just about investments as it encompasses all the areas of one’s financial life.

Because of the pervasive nature of wealth management, a crucial factor affecting its success is your personality. Understanding your own personality toward money will help you identify the factors that are beneficial and harmful to your wealth. Start identifying which personality category you belong to. This can increase your self-awareness as well as take the right wealth management plan.

THE IMPULSIVE BUYER

A prey to bargains and sales, an impulsive buyer is a person who hates shopping lists and likes to go with the flow. He or she achieves psychological gratification through spending money on things that are often unnecessary. The urge to spend is usually regretted.

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Solution: Remove the immediate ability to spend by keeping all your credit cards at home and by bringing nothing but a substantial amount of cash.

THE UNCONTROLLABLE DEBTOR

Falling under the umbrella of spenders, the uncontrollable debtor borrows money that he or she will readily spend. They are at risk of incurring high amounts of debts, impaling their credit score, and bankruptcy itself. With an outstanding amounts of debts, no successful wealth management can take place.

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Solution: Identify all your debts and rank them according to interests. Start by ceasing the debts with higher interests and progress from there.

THE CAUTIOUS MANAGER

Unlike the two personalities mentioned above, the cautious manager likes lists and plans. People in this category also love to spot the greatest deals for their money.

Personally, I consider myself as a cautious manager. I keep track of my monthly expenses in order to analyze my spending habits. In terms of my wealth management efforts, I am very conservative that I invested my money on Mutual Funds (Bonds) alone.

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Solution: As you take lesser risks, look for the savings account that offer the highest interest rates.

THE SMART INVESTOR

The smart investor is capable of managing his or her own money well. People under this category have a clearer understanding of their financial situation and they are actively putting their money to work.

Solution: Improve your knowledge on in-depth topics on investments and wealth management through several resources such as books and online articles.

Image Credits: pixabay.com (CC0 Public Domain)

Sources:1 & 2

Honestly, Why Are You Buying Insurance?

Insurance is a safeguard against unfortunate and unforeseen events. It is a strategic way to manage various risks. Insurance companies offer individuals or policyholders protection from potential losses in exchange of payments called premiums.

Aside from guaranteed coverage, what are the honest reasons why people buy insurance? On the flip side, what are the insurance company’s objectives as they offer their services?

OBJECTIVES OF INDIVIDUALS

As you age and progress along the stages of life, you become more and more aware of how necessary insurance is. A number of factors may lead to this realization such as seeing your elderly parents and starting your own family. While you know that you are supported by your CPF account as well as your Medishield Life, you can realize that it may not be comprehensive enough to meet your lifetime needs. This can serve as your wake up call to evaluate your present financial situation and plan for your future and that of your loved ones.

The exact reasons why people buy insurance is unique and highly subjective. However, here are some of them:

a. Worried about critical illness – consider health insurance.
b. Worried about permanent disability – consider life or term insurance.
c. Concerns about the loss of belongings – consider general insurance.
d. Concerns about death (as a breadwinner)- consider life or term insurance.

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OBJECTIVES OF INSURANCE COMPANIES

Nowadays, insurance companies offer a wide array of insurance products and policies that cover areas from property, health, and travel. Insurance companies must satisfy certain objectives to effectively function and meet their clients needs. Before purchasing one, know some of their objectives:

a. Pooling Money

By collecting premiums from a number of individuals or businesses, the insurance companies are able to pool their money together. They then pay out for the relatively few claims filed each annum. Keep in mind that majority of the policyholders do not file claims over the same period.

b. Financial Competence

Another objective is to ensure the policyholders that they are financially stable. Once one or more policyholders report that they were not duly compensated, society’s confidence in the system may be gone.

c. Influencing Behavior

One of the most important aims of insurance companies is to reward and promote responsible behavior. For instance, individuals with lower records of vehicular mishaps are more likely to be quoted with a lower car insurance premium than those with unsafe driving records. Rewarding safe driving practices can increase the likelihood of such desirable behavior.

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

Sources: 1 & 2

6 Essential Things You Must Have In Your Wallet At All Times

1. BRING IN THE MOOLA

No matter where you are planning to go, it is always a good idea to keep some cash in your wallet in case of emergencies. A general rule of thumb that I employ myself is to store as much money as I am willing to lose (i.e., no more than S$50).

Aside from this, there are other advantages if you carried spare cash such as avoiding ATM service fees and controlling your spending. Purchasing items in cash is Psychologically beneficial than paying with credit cards because it makes you more aware and cautious of your spending.

2. USE WHAT YOU HAVE

Use the money you have while avoiding the inconvenience of carrying loads of cash by bringing your debit card along with you. Maintain security by refraining from putting notes of your PIN or password beside it. Believe me, some careless people do this!

3. RECEIVE THE REWARDS

Having your credit cards handy will only tempt you to shop for more. But if you pay off your credit card balance consistently each month, you might as well maximize its rewards and discounts.

For instance, use your credit card for grocery shopping. Grocery shopping can be costly at times especially because businesses are becoming more competitive. And if you were to use a credit card, be sure to indulge on all of its discounts. Check out this list for more information.

4. KEEP THE COUPONS

Couponing is a strategy used by a consumer to pay less in shopping for groceries, tickets, and more. You may shy away from coupons but once you see the real value of their savings by looking at the receipt, you would realize how great it is.

In order to receive its benefits, you must always put the coupons of your favorite stores inside your wallet. Aside from the coupons handed by the salesperson, get coupons for dining, leisure, toys, pets services, and just about anything at cuponation.com.sg or groupon.sg.

5. STORE LOYALTY/MEMBERSHIP CARDS

One of the surefire ways to save money while you shop is by organizing your loyalty or membership cards in your wallet. These types of cards deliver discounts and rewards points that will lead to bigger savings in the long run.

If you frequent Sephora, do sign-up for their loyalty program and receive up to 10% discount and other exclusive benefits – for free! Simply fill up quick form by approaching the cashier or by politely asking their staff.

6. PASTE YOUR CONTACT INFORMATION

In case of emergencies such as accidents or loss of belongings, a kind stranger will be able to help you if you keep a list of your most important contacts. This list must contain at least three of the phone or handphone numbers of your most trusted peers or family members.

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*Simple Reminder: Do not place all of your personal information inside your wallet as it can lead to identity theft if it falls into the “wrong hands”.

Sources: 1 & 2

Interesting Ang Bao Facts Every Singaporean Shall Know

It is that time of the year again! We are about three weeks from the festivities of the Chinese New Year. Family reunions, abundant food, and small red packets called “Ang Bao, Hongbao, or Ang Pao” shall grace Singapore once again.

The color red embodies luck that is supposed to ward off the evil spirits. Along with its potent color, here are 5 Ang Bao Facts Every Singaporean Shall Know:

1. AMOUNT TO GIVE OUT

There is no specific standard on the lowest or the highest amount to give but the amount definitely reflects your character as a person. A simple survey on TheAsianParent Facebook Page showed that readers usually give out S$2 – S$80 to children in 2014. Although, Singaporeans usually give out S$6. If you are truly in touch with your Chinese roots, you will give out an amount ending with an even digit as odd digits are traditionally associated with funerals.

2. NOTES TO PUT IN

Generally, the number of notes you put it does not matter as long as the amount you gave is in the range of what is expected. Most Singaporeans do not mind if you opt for putting four S$2 or two S$5 notes! However, leaving even-numbered notes is believed to bring out future success!

3. NUMBER FOUR

Some people are likely to avoid giving amounts in fours such as S$40, S$44, and S$400. This is due to the fact that the number “4” is similar (or rhymes) with the word “death in several Chinese dialects.

4. DIFFERENT NATIONS

Since Singapore is a mixture of different cultures, we as a nation have created practices centering red packet gifting. It is not uncommon to have marriages between two different races, leading to traditional practices being modified or ignored. But aside from the Chinese, nations such as Vietnamese, Japanese, Filipinos and South Koreans have similar customs.

5. DIFFERENT CELEBRATIONS

Aside from Chinese New Year, red packets are given to religious practitioners and lion dance performers as a payment for their excellent service. Also, it is given to couples during wedding banquets. The minimum Ang Bao amount for this event is about S$50. It certainly is “little” compared to the minimum of S$150 handed out in Taiwan.

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

Let us be the first to greet you, advance Happy Chinese New Year!

Sources: 1, 2, & 3

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