personal finance Archives | Page 37 of 39

Marriage With Credit: ‘Till Debt Do We Part?

Whether you like it or not, along with your marital vows comes the union of your finances. Your partner’s financial habits can either boost or ruin your financial future especially if he or she has a pile of debt. One’s credit history can affect several facets of your life such as loan eligibility, loan rates, and job applications. This is why it is important to openly discuss about your credit history and to plan your future finances together.

Here are some steps you may take…

1. HAVE A TRANSPARENT DISCUSSION

To prevent unforeseen monetary issues, understand each other’s view by explicitly discussing your differences on financial issues. For example, if your partner is a saver then, he or she may view money as an important currency that shall not be wasted.

Then, for honesty’s sake, show a copy of each other’s credit report. Know what your debt and income are actually worth so that you can realistically plan on how to pay for the remaining debt. Your partner’s lack of credit history will reflect on your credit score if you combine accounts.

2. PRACTICE THE ART OF MINDFULNESS

Gone are the days when Mindfulness is practiced solely for meditation. You heard that right! Actively paying attention to the present situation can affect your finances. As you are aware of what is happening in the present, you can make better decisions about money no matter how important it is. For instance, you will keep your credit score healthy because you are aware of the billing schedules. Also, having a present mind will allow you to be vigilant in checking whether the statement breakdown (e.g., phone bill’s data usage) is accurate.

3. LIMIT THE USE OF CREDIT CARD/S

It takes no genius to conclude that overusing your credit card will jumpstart your credit. So, if you cannot say farewell to the plastic card, you might as well limit your usage. As much as possible, keep your usage to a minimum, 25% below your credit limit is a good start. Then, pay off the balance monthly. Examine your progress together as you end the month.

Image Credits: Gareth Williams via Flickr with Creative Commons License

May these simple steps pave way for a happy and credit-free marriage!

Sources: 1 & 2

Be Financially Smart With These Incredibly Free And Useful Websites

Educating yourself on your finances is just a keystroke away with these incredibly Free and Useful Websites…

1. SPENDING WISELY

Spend wisely by budgeting your money and saving more through the awesome money management website called Mint.com. Mint.com, accompanied its free mobile Apps, allows its users to track their spending, develop a monthly budget, receive bill reminders, and take control of their financial life. What’s more? It sends online alerts if you had gone over your budget.

2. MAKING MONEY

Whether you have a special knack in writing, engineering, administrative work, advertising, legal work, marketing, illustrating, and web design…there are secure websites that provide opportunities for online freelance work.

Searching through various freelance websites, the two most globally popular are Fiverr and Upwork. Fiverr.com enables its users to earn money through Paypal payment services. However, the company keeps a small portion of your earnings before handing it out to you.

On the other hand, a similar platform called Upwork.com (previously called Odesk.com), captures the work-in-progress and snapshots your screen. Payment is painless because Credit Cards, PayPal accounts, and Bank Accounts are accepted.

Image Credits: SEOPlanter via Flickr

3. USING FINANCIAL PLANNING TOOLS

Financial planning is an active choice to take charge of your finances and to ensure your financial well-being is in top shape. Among others, Bankrate.com and CCS.org.sg are two websites you can use to support your financial plans.

Bankrate.com aids with the consumer’s debts, loans, and taxes. It was crafted in 1976 for a print publisher in a banking industry. These long years of experience had them frequently referenced on major news outlets such as CNN, ABC News, and FOX Business News. As Bankrate.com allows publishing of personal financial stories, you can make more informed monetary decisions.

And, if you are looking for an in-depth plan to repay your debts, you can avail the resources and services of Credit Counselling Singapore at CCS.org.sg. Credit Counselling Singapore is a non-government and charity organization driven to help people to overcome their debt dilemma. Unlike some debt advisors, they are not driven by profit.

4. BOOSTING FINANCIAL LITERACY

Increase your financial literacy by regularly browsing through Money Digest‘s totally free and user-friendly website. As you may know, MoneyDigest.sg is dedicated daily news, tips, and guides relating to money and financial issues. But, beyond that, it focuses on the localized view so as to support the financial literacy of any individual living in sunny Singapore.

Image Credits: facebook.com/MoneyDigest

Newbie’s Guide To Singapore Banking

Image Credits: Tax Credits via Flickr

WHY SHOULD YOU KEEP YOUR MONEY IN THE BANK?

1. Protection

A potent reason why people prefer to keep their wealth in the bank is its security. Keeping your money at home may increase the risk of it getting stolen or damaged by unforeseen events such as fire. The banks are equipped with facilities to guard your money the best they can possibly can.

2. Accessibility

With the modern times, banking had become easier. More and more banks allow online banking and even Smartphone Apps to help its users to transfer money with the stroke of their fingertips. No need to endure a long queue! Furthermore, you can access your money anywhere as there are ATMs nationwide.

3. Saving and Investing

The money you park in the bank will have returns depending on the yearly interest provided by your bank. Also, you can take the opportunity to grow your savings even more by investing it in the stock market through the bank’s investment services.

TRUSTED BANKS IN SINGAPORE

Singapore is one of the strongest developed countries all over the world. This is why aside from local banks; renowned International banks have branches located here. With a myriad of choices which, shall you trust your money with?

To answer this question, Focus Singapore, a website that provides useful information on travel, business, and education, had ranked the “Top Banks In Singapore”. This ranking is solely based on the available data and research. On that note, here are 7 of Singapore’s premier banks:

1. Developmental Bank of Singapore (DBS)

2. Post Office Savings Bank (POSB)

3. United Overseas Bank (UOB)

4. OCBC Bank

5. Standard Chartered Bank

6. Citibank

7. HSBC

These commercial banks include the functions of universal banking such as allowing deposits, provision of cheques, and other businesses authorized by the Monetary Authority of Singapore. With these transactions, you may encounter abbreviations such as GST (Goods and Services Tax) that you may not be familiar with.

That said here are 10 COMMONLY-USED BANKING ABBREVIATIONS that you may see on your bank account statement:

1. ATM: Automated Teller Machine

2. BGC: Bank Giro Credit

3. INT: Interest

4. DIV: Dividend

5. CD: Cash Deposit

6. CW: Cash Withdrawal

7. S/O or SO: Standing Order Payment

8. IFT: Internet Banking Fund Transfer

9. IBP: Internet Banking Bills Payment

10. SC: Service Charge

Image Credits: 401(K) 2012 via Flickr

May these nuggets of knowledge help you in the future!

Sources: 1, 2, 3 and 4

Newbie’s Guide To Financial Planning

Picture a curve going up. This is your lifetime money curve. Every decision you make affects the direction of your curve. For example, once you earn money from your first job then, the money curve will go up higher. But living in reality, your money curve are exposed in certain financial pressures such as taxes and bank fees, which, will push the money curve direction down. The good news is that, with a strategic plan that evaluates the potential pressures, you can survive or prevent the downward money curve. This strategic plan is called a Financial Plan.

Financial planning is an important process that draws out your monetary future. It is a process of managing your finances and knowing where you want to go. Here are 5 pointers to guide you…

1. INFORMATION GATHERING

In order to manage your finances, the first step is to gather all the important documents (e.g., bank statements, insurance policies, and investment accounts) and financial information. Organize these records by using a folders or filing accessories that will cost less than S$5 at Popular Bookstore or Daiso.

2. EVALUATING

After you gathered all the essential information, you must evaluate all the areas of your financial life including long-term savings (e.g., retirement and college fund), short-term savings (e.g., payment for bills and emergency fund), key documents (e.g., durable power of attorney and will) and insurance (e.g., life and car insurance). Calculating your net worth is also in this step.

3. SETTING GOALS

Following evaluation is goal setting. It involves two things: identifying your goals and knowing what resources you need. Identifying your financial goals both short-term (e.g., staycation in Bali) and long-term (e.g., retirement at 50s) is vital to knowing what your next plan of action will be. After plotting your goals, you must know the resources you will need to achieve them.

4. TAKING ACTION

Since your goals are set, your next plan of action is to decide whether you shall do it on your own or to hire a professional financial advisor. The personal actions you can take may include purchasing life insurance, creating a will, and setting a side money for your retirement. While, hiring a professional can help you reach your objectives in the midst of time your constraints.

5. MONITORING

The last step is monitoring. Monitoring involves tracking your progress and altering your goals based on the reevaluation of your current economic situation.

Image Credits: carlocanyougo.tumblr.com

With a systematic and a holistic Financial Plan, may your money curve take a flight…leading you to success!

Sources: Entrepreneur and MoneySense

5 Things You Should Consider Before Opening A Savings Account

According to Investopedia, Savings Account is an account managed by the bank which provides principal security and a moderate interest rate. Personally, I value this financial tool because it serves as an accessible shield to cover the immediate expenses. Before you open your own savings account, here are the 5 helpful and feasible things you should consider…

1. HOW MUCH TO SAVE

Having enough money in reservation, especially in an expensive country such as Singapore, is very important not just for you but for your family too. A savings account with an emergency fund can pay for the unforeseen expenses instead of using credit cards or applying for loans. You need to ask yourself this: “How much do you need to save?” Consider your needs and that of your family.

2. CHOOSE YOUR BANK WISELY

The first thing you should look out for aside from your eligibility to open the savings account, is the initial fee and the maintaining balance requirements. For example, UOB’s passbook savings account has an initial fee of as low as S$500 (for Singaporean/PR) and a maintaining balance of S$500. While, OCBC’s passbook savings account has an initial fee of S$1,000 (for Singaporean/PR/Foreigner) and a maintaining balance of S$1,000.

3. ATM AND BRANCHES AVAILABILITY

It is important that you can withdraw the cash from your savings account at your convenience once the need arises. Be sure to examine the bank’s ATM locations. Are there ATMs near your home, workplace, or frequented shopping malls? Also, if you are traveling a lot then, a bank with branches around the world is a better option.

4. SCOPE OF FACILITIES

In today’s world, most banks allow Internet banking and even Mobile App banking to check your savings account balance and to make various transactions. Consider this. Also, know whether your savings account comes with a passbook, a debit card (e.g., with VISA, NETS, or MasterCard), or an ATM card. This will help your options to narrow even more.

5. ESTABLISHING THE SAVINGS

To establish your savings, it is better to have a fixed amount to put inside every month. First, you must set a long-term goal about the money you can accumulate. Second, you must set a time frame that allows you to complete your goal.

Image Credits: Ken Teegardin via Flickr

Do not forget that different banks have varied interests rates that may affect your savings.

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