Cosmic Ways To Save Money Like A Jedi

Sometimes, useful financial advice can come from the unlikeliest places. Take Star Wars, for example. It is not only an epic Science fiction film series but also a good place for frugal inspiration.

Learn to save money like a Jedi with these five universal ways:

1. BUILD THINGS FROM SCRATCH

Luke Skywalker, one of the greatest Jedi in the galaxy, spend no expense by making his own lightsaber (laser sword). Like Luke, do not be afraid to Do-It-Yourself!

Start from simple crafts such as making your own shower cleaner or personalized key-chain. After which, turn the difficulty up a notch by making all the crafts for your dream wedding. This can help you save loads of cash.

2. SIZE MATTERS NOT

In “Star Wars:The Empire Strikes Back” movie, Luke was tasked to raise his X-wing (aircraft) from the swap and he complains that it is too big. This frustrates Yoda, a wise Jedi Master. Yoda then explains that size does not matter and excuses are not welcome.

In life, obstacles to saving money can seem unbearable at the moment but, it shall not stop you from pushing through. Furthermore, you must understand that the size of your salary does not matter. What matters most is how you spend and manage it.

3. SHARE AND BE BLESSED

A Jedi shares his knowledge and skills to others with no charge. Apply the hippie-like concept of sharing to your life. Share resources to your fellow classmates and you will not have to buy expensive reference books ever again. Also, you can carpool with your friends to save on gas.

4. KEEP YOUR WARDROBE SIMPLE

Much like Jedi Knights who mostly wear “brown sack-cloths with hoods” or Facebook’s founder Mark Zuckerberg who mostly wears grey shirts, you can save more money by keeping your wardrobe simple. You do not have to wear the same shirt or same outfit everyday! Just avoid hefty designer clothing by purchasing clothes from thrift shops or year-round sales.

5. DO OR DO NOT. THERE IS NO TRY.

When Luke was making excuses about his inability to levitate objects with his mind, Yoda told him these famous words: “Try not. Do or do not. There is no try.”

When you continue to make excuses to saving money or altering your spending habits, you can end up retiring broke. So, start accepting the responsibility and create a monthly budget that is suited for you. In due time, you will see that eliminating your excuses produces meaningful results.

Sources: 1, 2 , & 3

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Reduce Your Debts Dramatically With The Debt Diet

Ellie Kay once said: “Getting out of debt is like going on a diet — it may sound simple, but it sure isn’t easy.”

Debt takes a toll on your relationships, your family, and your future. Just as being obese leads to physical and emotional challenges, debt has its own negative consequences too.

Inspired by Oprah Winfrey’s Debt Diet, three financial experts namely: David Bach, Jean Chatzky, and Glinda Bridgforth were sent to help several families to solve their monetary dilemmas. They shared debt elimination tips and suggested practical ways for people to increase their income and reduce their spending.

Before anything else, here are the “signs” that you need to go to participate in the Debt Diet:

1. You depend on your credit card to pay for your living expenses.

2. You rely on overtime pay to make monthly expenses meet.

3. You utilize your credit card/s to pay for items that you used to pay for in cash (e.g., groceries or clothing).

4. You use your emergency savings to pay for your bills.

5. You borrow money from your family and friends to pay your bills.

6. You delay paying one bill in order to pay an overdue one.

7. You utilize credit card A to pay bills for credit card B.

8. You can only pay the minimum amount due on your accounts.

If most of the “signs” point to YES, you may employ the following steps of the Debt Diet:

1. Determine how much debt you have and what it is costing you.

2. Monitor your spending and look for ways to make extra money (e.g., by giving up certain expenses).

3. By understanding how credit cards work, use your credit card/s to your advantage.

4. Stop spending on unnecessary things.

5. Make a strategic monthly spending plan.

6. Determine ways to increase your income and identify the steps you need to achieve it.

7. Prioritize your debts.

8. Do your best to know yourself and your spending behaviors.

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

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

Sources: 1 & 2

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Work Smart: 4 Passive Income Strategies to Try

Passive Income

How many hours do you work in a day? Eight hours? Nine hours? More than that? We Singaporeans are normally tied to our jobs in the hopes we can earn some good income. But do you know there’s a way to work smart—that is, earn additional income with little to no effort? I am talking about passive income.

What is passive income?

There are two kinds of income: active and passive. Active income is the one you earn if you use resources such as time, talent, and even money. Your wages are a form of active income, and so are the commissions, bonuses, and allowances, to name a few.

On the other hand, passive income is how many get richer since it doesn’t require the same amount of effort and resources from you. In fact, many require only a minimum investment—that’s it! You just wait for your money to grow.

But where exactly can you get passive income?

1. Savings Account

Remember when finance experts tell you that it’s better to place your money in the bank than under your bed or anywhere else in the home? Well, here’s the reason why: it’s the quickest and easiest way to start earning passively. A typical savings account is interest bearing, the rate of which can differ among banks, so do your research well. But the more you put money in there, the bigger the interest income is.

Bank savings are also safe, investment wise, especially since these institutions are regulated and protected by insurance. However, it also offers the lowest return, which may not be enough to beat inflation. Needless to say, it’s a great start.

2. Real Estate

As a small country, Singapore has a very limited but highly valuable resource: land. So when something is scarce but the demand is high, you have a pretty good leverage. Properties can be either sold or rented.

Currently, the real estate market in the country is grim, but it’s also cyclical. In fact, you can use this to your advantage by buying a property when it’s still cheap. But remember, real estate is the hardest investment to liquidate. It can take months or even years before properties turn into cash unlike the other passive income options.

Meanwhile, if you don’t want to own a property, you can still invest through real estate investment trusts (REIT).

3. Stocks

Fancy owning some of the biggest companies in Singapore? Try your hand at investing in the stock market. Stocks come in two forms: common and preferred. Some of the stocks also give you dividends, which means you earn a profit from a sale or buy, plus get income from simply owning the stock.

So far, more than 600 companies are part of the Singapore Stock Exchange (SGX). As a start, place your money on blue chips, of which there are 30 of them. They are more expensive than the other stocks, but you’re assured of the company’s stability and reputation.

4. Mutual Funds

What if you don’t like to work personally with stock? Or perhaps you want to access other forms of investment but don’t know how? Then perhaps mutual fund is for you.

It works like a financial pool: people contribute to a certain fund, and an experienced fund manager with deep knowledge and understanding of markets determine where the money is going to be invested. Depending on the fund you’ve chosen, the manager can put it in many investment choices including real estate and bonds.

Hold Up!

Passive income is great for earning a side income, but it wouldn’t be if you allowed your other financial choices to ruin its good impact on you. A perfectly good example is unwise spending complemented by poor credit card features. A simple but powerful way to also protect passive income is to select the best credit card deals in Singapore.

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

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Important Things You Must Know About Women And Money

The spending and money management patterns of Singaporean men and women are intuitively different. But, if you surveyed people around on your own, you would realize that there are distinct differences between how these genders approach money. With that in mind, here are the common money mistakes women make and the essential financial steps they must take:

COMMON MONEY MISTAKES

1. OVERSPENDING ON CLOTHES AND MORE

According to a study by Boston Consulting Group, women take control of about 73% of the household spending. The control the wives have over the budget can lead to overspending. Overspending can occur in shopping for clothes, cleaning supplies, home decorations, bags, and more. This is why knowing when to save and when to splurge is an important distinction for financial security. Overspend only on products that are useful and long-lasting.

2. BEING FINANCIALLY DEPENDENT

Although more and more women are breadwinners nowadays, there are still a good number of women who are totally reliant on their husband’s income. This is bad because unforeseen events such as unemployment, divorce, and death can happen to anyone. Which is why women need to create and secure a financial future for themselves by having a career or skill they can depend on.

3. NOT PREPARING FOR LONGER RETIREMENT

Let us face the facts. Women outlive men on average and often remarry. This is why women should prepare for their additional years and long-term elderly care. It is always a good idea to be prepared.

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

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

ESSENTIAL STEPS TO TAKE

1. USE ONLINE MONEY-MANAGEMENT TOOLS

To prevent overspending, women shall use online tools that are interactive and time-saving. There are a lot of free help available on the Internet such as budgeting software called Money Dance or Mint as well as retirement resources called Vanguard Retirement Insights or Central Provident Fund Retirement Calculator.

2. TALK MORE ABOUT MONEY

Financial independence starts by talking about finances comfortably. This will create a community of friend who can turn to each other for advice on money issues and investments. Also, getting comfortable in the S$ topics should be applied when you are talking to your financial advisor.

3. UNDERSTAND YOUR INVESTMENTS

Prepare for your retirement and emergency fund by prioritizing your investments. Save money on near term needs such as the emergency fund first then, move on to the long-term investments such as retirement fund. Since most women tend to be risk-averse, the more you are comfortable with talking about money, the more you will be able to take calculated risks.

Original investments for the next 10 years

Image Credits: Ars Electronica via Flickr

Sources: 1,2 & 3

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6 Simple Ways To Organize Your Finances Now

In a sea of bills and taxes, its huge waves may drown one. Building a strong money boat to hold you and your finances together through organization is the key. Organizing your personal finances enables you to save more money and time. Start with these simple ways:

1. KEEP TRACK OF YOUR FINANCES DIGITALLY

Firstly, you must be aware of your spending patterns and exactly how much you are spending per month and per annum. A surefire way to organize your personal finances is to keep track of it by using a Smartphone App or computer software. Find the perfect (and Free) money management app for you here. Or, download reliable money management software called Money Dance or Mint. These digital tools will help you decide how much you shall save and help you to highlight the unnecessary expenses.

2. DESIGNATE A PLACE FOR BILLS

Never forget where you put the bills or what their due dates are by designating one place for them. Some bills arrive by electronic mail while some arrive by postal mail. You have to decide whether you are going to file all your bills in a tangible box or in a computer folder. For physical storage of bills, you may purchase the S$0.90 PAPPIS brown box from IKEA that is created to hold A4 size papers. Label the box accordingly and keep it in a safe place. While for virtual storage of bills, make scanned copies of those that arrive in the mail and put them into a labeled folder in your computer or laptop.

3. PREPARE FOR YOUR BILLS

At the beginning of the month, make a list of the bills you are expecting to receive. Put it on your working desk or create a file for it. This way, you will not pay a bill twice even if you received it simultaneously by e-mail and postal mail.

4. PAY THE BILLS IMMEDIATELY

Always charged for late payment? Try paying bills immediately. Since you are prepared for the bills earlier on, you may have available money in the bank to pay it the same day as you received it. If you have automatic payment scheduled and you still received a billing statement, call your bank or creditor.

5. CUT DOWN THE NUMBER OF YOUR FINANCIAL ACCOUNTS

In a world filled with a certain bank account card for all your needs, most people have several number of financial accounts. The complication starts when the credit card for travel, for petrol, and for shopping 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. This is why you must reduce the number of your accounts.

6. SET REALISTIC FINANCIAL 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 to 5 years. Track down your monthly progress.

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

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

Sources: 1 & 2

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