In Standard & Poor’s recent Global Financial Literacy Survey, it was found that a lot less women in Singapore know their way around personal finance than men.
67 per cent of men surveyed hit the threshold for being financially literate while only 52 per cent of women did so. This difference is one of the largest in the world.
While women make up the majority of university graduates, they still fall behind in financial literacy in 128 out of 143 countries. The participants were given a 5-question test over financial concepts: numeracy, risk diversification, inflation and compound interest.
The survey, done over 140 countries with 150,000 respondents, is one of the most extensive surveys done on financial literacy in history.
It also showed that Singapore has the most number of financially literate adults in Asia, at 59 per cent. Only 1 in 3 people in Asia could correctly answer the majority of questions–a number that is lower than the global average.
“We might have the highest number of financially literate people in Asia, but that’s still not enough. Basic concepts like compounding interest and percentages should be understood by all,” said Rohith Murthy, Managing Director of personal finance comparison website SingSaver.com.sg.
“Everyone should take an interest in controlling their own finances. The first step is to be aware of your expenses and where your money goes, then creating financial goals for yourself. Don’t sign up for financial products without fully understanding how it works,” he added. “Through education, Singaporeans can become more confident about making financial decisions.”
With the wealth you possess right now, do you barely get by or do you live lavishly?
Realize your financial situation by actually calculating your net worth. It is pretty straightforward! Simply add up the value of your assets and deduct the value of your liabilities.
Assets include savings, investments, CPF balances, insurance, properties, cars, or anything you own with monetary value. While liabilities include loans, mortgages, credit card debt, or all the money you still owe.
To save you time and effort, here is a tool to help you calculate and benchmark your personal net worth: salary.sg/2007/calculate-net-worth-and-benchmark-it. Remember to measure your net worth every six months to a year as recommended by financial experts. Doing too often may lead to unnecessary stress and panic.
Interestingly, one might end up with a negative net worth due to taking on a number of loans and poor money management skills. Do not let this happen to you!
Consider these 5 Surefire Ways To Boost Your Net Worth:
1. BE A DEBT NINJA
Slice debts out of your life as soon as possible. You probably heard this tip before. But, it goes without saying that aiming to clear off the high-interest debts (e.g., outstanding credit card balance) will help you pay lower interests in the long run.
Minimize the negative effects of debt while increasing your wealth by taking part in the debt diet, as popularized by Oprah Winfrey.
2. SPEND LESS
Nobody, including me, likes to hear that they are spending too much. I know how delicious a cup of Starbucks caramel frappuccino is or how satisfying it is to get the latest IPhone but these things will catch up on your wallet. The small and big expenses can add up as fast as Kopitiam queues lengthen during lunch time.
This is why you must take down your expenses everyday for at least a week and realize your spending habits. By knowing so, eliminate or reduce the areas which are unnecessary. This act of cutting expenses can have a substantial impact to your net worth!
3. INVEST MORE
It only makes sense that making your money work for you can improve your wealth. If you have spare cash lying around your savings account (experiencing small interest growth), consider investing in index funds, unit trusts, bonds, or RIETs (Real Estate Investment Trust).
*Friendly Reminder: If you do not have enough knowledge or did not consult a financial adviser, please refrain from committing to any type of investment first.
4. GET A RAISE
Another way to increase your wealth is by increasing your income. If you have been in the organization for a period of time and feel that you had done some good, there is no harm in asking for a reasonable pay raise.
Do not open a discussion with your boss unless you are fully prepared. Consider these six things to help you prepare.
5. SEEK PROFESSIONAL HELP
One of the most underrated and overlooked step to growing one’s net worth is seeking professional help. Many people are ashamed of their current financial state and get sucked in their negative tracks. Fear not my friend as experienced professionals are able to guide you in budgeting and planning as well as provide you with the latest information on how to grow your assets.
Image Credits: pixabay.com (License: CC0 Public Domain)
There may be no secret formula to permanently increasing your wealth but every time you decrease your debt and boost your assets, your net worth certainly spikes up!
It’s common for Singaporeans to complain about the rising costs in this country, especially when Singapore has stayed on the charts for world’s most expensive city two years in a row. You can even call it a favourite pastime of residents and foreigners living here.
While it’s amazing how we’ve growth so much in a short span of time, it’s also taking a toll on us mere mortals, who can only dream about being one of the countless millionaires choosing to live here. We work hard, but it seems like we’re not going to see much increase in salary or bonuses in the year to come.
Still, it’s not impossible to save money in Singapore. The SingSaver team recently pulled together tips that have worked for us and published them in a free eBook, “100 Ways to Save Money in Singapore”. From shopping to dining out to general tips, we’ve covered every aspect of typical expenses the average Singaporean has.
Here’s an excerpt from their eBook:
Know Where to Save
Stuffing your money in a pillow is as good as losing it. Due to the inflation rate (about 3% per annum in Singapore), your cash is worth less each year.
Always compare the different rates between fixed deposits, or products such as Singapore Savings Bonds (SSBs), before deciding where to store your money. You will want the highest interest possible for your deposit. Speak to a financial advisor about the best options, as they change on an almost weekly basis.
Keep the Expense Ratio Below 40%
Your expense ratio is your necessary expenditures compared to your monthly income.
For example: say you earn S$3,000 a month. You have to pay at least S$300 a month toward utility bills, your phone line, loan repayments, etc. Your expense ratio is thus 10% (S$300 / S$3,000).
You should put a freeze on expenditures that raise your expense ratio above 40%.
Pay with an Optimised Credit Card
Dining with friends? Pick a credit card with the best rewards or cashback for the restaurant, then place the entire bill on it. After that, collect your friends’ shares in cash. Because the card is giving you a discount in some form (cashback, more reward points, vouchers, etc.), you will usually save money.
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There’s a lot more where that came from. If you want to save more or just want to cut down on your expenses, this guide will help you. Well, it’s definitely helped us.
Download your free copy of “100 Ways to Save Money in Singapore” here.
In the daily hustle of the city, being a busy bee is hard work but, that is not an excuse to remain untidy with your finances!
Simply spare at least 20 minutes of your time to manage your own finances with these four ways:
1. IDENTIFY YOUR FINANCIAL VALUES AND GOALS
Without underlying values and goals about money, you would not be able to fully integrate it to your life. Thus, the essential first step is asking yourself: What are the most important things to me (i.e., values) and how do I get there (i.e., goals)?
Develop a habit of financial goal setting to know where you are going and to plan how you can get there. Write down your financial goals with a trusted witness and contemplate the monetary milestone you would like to accomplish in the next 2 months to 2 years. Track down your monthly progress accordingly.
2. TIDY UP YOUR WALLET
Like your study or workspace, you will be able to clear your thoughts better when your wallet is organized and neatly placed. Fill the individual pockets with your bank and identification cards so you can easily take it out when needed. Then, spend a few minutes emptying your wallet of old receipts and other clutter.
3. REDUCE YOUR FINANCIAL ACCOUNTS
In a world filled with a certain bank account card for all your needs, most people have several numbers of bank or credit card accounts. The complication starts when the credit card for travel, for petrol, and for shopping sends bills at the same time. Also, you may have different bank accounts for higher interest, minimal fees, and rebates.
More than being complicated, the constant shuffling between these accounts can get messy. Simplify your life by closing out one account per week or you may consolidate all your accounts online.
4. BUILD AN EMERGENCY FUND
Do you have an emergency fund to protect you from unforeseen events? If you do, it is best to put it on a separate account with an online access so you can easily tap on it if the need rises.
If you do not, the best time to build one is now! Consider joining the 52-Week Money Challenge (available here). The challenge starts off by saving S$1 a week and by the end of the year, you will be able to save up to S$1,378!
Image Credits: pixabay.com (License: CC0 Public Domain)
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!
