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Valuable Real-Estate And Finance Lessons From Monopoly

Monopoly is a board game that has been causing family feuds since 1935. Monopoly was first marketed in 1935 during the Great Depression. It was an instant success and became a best-selling game in United States. Since then, over 275 million game sets were sold worldwide.

What is amazing about Monopoly is its ability to mimic financial scenarios in real life. On that note, here are four valuable real-estate and finance lessons that you can reap from the game.

#1: ALWAYS HAVE CASH ON HAND

In Monopoly, having cash enables you to purchase properties and pay fees for unlucky turns. You may need to shell out some cash to pay an opponent or to pay for a “Chance” card. It is important to always have cash on hand whenever you play. Do not spend all your money in one go!

In a similar way, you must spare some cash for unforeseen situations. The game teachers us about the importance of budgeting and saving money. You need to save enough money to cushion the blow of rough times, such as during this pandemic. Establish your emergency fund by identifying your current financial standing. It is best to build a fund that can cover about six months’ worth of your living expenses.

#2: DIVERSIFICATION IS IMPORTANT

Let us go back to the game itself. If someone lands on your property, you will earn money. Players usually buy multiple spaces or properties around the board to increase their chances of earning money. Chances of earning are slimmer if you only have a few properties on the board. The same can be applied in real life.

You need to diversify your portfolio and scatter it throughout the different possibilities in order for you to maximize your earnings. Instead of putting everything in a single basket, make sure to diversify your portfolio with bonds, stocks, and so on.

#3: PLAY THE LONG GAME

Being patient is essential whenever you play Monopoly. You see, the game continues until there is a last man standing (i.e., the other players have gone bankrupt). Much like the game, you are playing for the long haul. Meeting your financial goals is a journey and not a sprint.

Whether you are saving up for your 2021 vacation or your upcoming retirement, you need to be patient. There will a be a few bumps and celebrations along the way. For instance, you may pay off your student loans first before purchasing a car. Setting up a new business venture will also take time and involve a lot of ups and downs. Ultimately, your hard work will help you achieve your goals.

#4: EXPENSIVE IS NOT ENTIRELY THE BEST

The most expensive assets may not always be the best decisions. Most Monopoly players want to earn the Park Place and the Boardwalk since they have the biggest payouts. However, they are also the most expensive pieces to maintain. Many people lose at Monopoly by using this strategy because they do not pay attention to the overall cost. Instead, they only pay attention to the cash flow.

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Those who win at Monopoly are the ones who focus on the value gained for the price paid. You will not win by merely owning the most expensive assets. You will win by making the most money. In investing your money in the real world, you will win by selling high and buying low. Zeroing your attention to the most expensive assets may set yourself up for losses.

Sources: 1 & 2

Boost Your Savings With These Lifestyle Changes

Much of the world has been given a small portion due to the grave effects of the pandemic. Sickness, unemployment, budget cuts, and other painful transitions can give us a taste of poverty. Being in this situation allows to take a closer look at our finances.

How is your financial health? Before anything else, evaluate your financial objectives and assess your spending and saving patterns. Ask yourself why you want to save and what your priorities are. This is to ensure that you know which path to take to reach your desired goals. Afterwards, review your cashflow and create an allocation plan. Move any excess funds to a bank account to help facilitate discipline against impulsive spending. Choose a bank with a high interest rate.

Other lifestyle changes include automating your finances, shopping smartly in supermarkets, switching to generic products, discussing about household finances, and going on a cash-only diet. Let us start with automating your finances.

Most bills can be paid online and many establishments have the option of setting up automatic payments. Try automating consistent payments for fixed costs such as your telecom, insurance, Netlix, or Spotify bill. This way, you will not miss a billing statement and will not incur late fees. You may also apply automation to your credit-card bills, if you want smoother transactions.

Secondly, you must use savvy shopping strategies in the supermarket such as using a coupon. Coupons can help you save a lot, especially when you are buying in bulk. Grocery tricks such as employing the numbers game – wherein they will put an irrational price of “S$3.99 or S$3.96” (instead of S$4) can trick your mind into saving more. Watch out for this!

If you are grocery shopping, it is best to shop on a full stomach. Shopping on an empty stomach may cost you a lot. Your feelings of hunger can make everything enticing, including junk food and other unnecessary items. Try eating a healthy snack before heading to the store. Your wallet and your tummy will thank you for that.

Thirdly, you may switch to generic products whenever possible. My sister and I recently went to the pharmacy to pick up some antibiotics. Interestingly, the generic brand was three times cheaper than the branded ones. You have to weigh your options and consider generic products for items such as toiletries and pet supplies. What is important to you? What are you willing to sacrifice? Only you can answer these questions.

Fourthly, you must discuss your finances with your spouse or partner. Knowing each other’s spending patterns and financial plans can help you set a life of success. Dealing with financial issues is something that most couples have to do. However, you have to do it as a team. Get comfortable talking about money, because a single conversation will not suffice. Reduce your electric and water bills by conserving water and switching off the lights when not in use. Use money-saving household cleaning hacks that enable you to make your own cleaning products.

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Lastly, you may go on a cash-only diet. This entails that you will ditch you plastic cards for a month or a certain period. It takes a lot of self-control and patience. Buy things that can only be bought through your allocated cash. When your cash runs out, you will be out of funds until your next scheduled withdrawal. Spend and plan wisely!

Simple Acronyms That Can Help You Save Money

Stuck in a rot? Consider imbibing some or all of these four acronyms to maximize your daily savings!

1: BYOB – Bring Your Own Beverage

Bid farewell to your endless Starbucks trips and say hello to BYOB. Bringing your own beverage and food to school or work has many benefits. For starters, you can choose what you eat for the rest of the day. This is especially helpful to the people who vowed to lose weight or to eat healthier meals this year. Lastly, bringing your own beverage and food lessens your chances of dining out. BYOB prevents you from mindlessly breaking the bank on food expenses.

2: PIYS- Put In Your Savings

Aside from having a physically fit body, you must strive to have a financially fit account. Luckily for you, you can just PIYS. Whether you have accumulated loose change or have work incentives, you can PIYS. Do not spend your extra money! Put it in your savings account instead. You may also enroll your account to an institution’s automatic savings program to ensure that you do not touch your money.

3: YODA – You Overspent Days Ago

If you need a reminder on why you need to save, just think of Baby YODA. This adorable Star Wars character cannot only charm your heart, but also give you a potent reminder. “You Overspent Days Ago or You Overspent Decades Ago” is something that resonates many Singaporeans. If you are bound to repeat the same financial mistakes you have done in the past then, what does that make you? It is time to learn from the past and focus on your needs.

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Start building a future that you will be proud of. When faced with another temptation to spend, simply evoke the name of YODA. May the force be with you!

4: ABC – Allocate, Budget, and Cut

Did you know that budgeting is as easy as ABCs? Simply start with Allocation, proceed to Budgeting, and apply the Cut. Allocation is the processes of listing down your expenses and identifying which ones are important. Allocate the right amount of money per expense category.

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Then, maintain a budget that you will keep track of. Monitor your progress and the money you are currently saving. Lastly, apply cost-cutting when your savings remain too low. Cut down unnecessary expenses and focus on expenses that will help you survive.

Surefire Ways To Save Money As A Freelancer

The essential benefits (e.g., health insurance or retirement contributions) indulged by the freelancers are their primary responsibility. It comes along with a variety of other expenses including operating costs. It comes with a variety of problems including late payment from clients. As a result, freelancers must save more money.

#1: EMPLOY THE ZERO-BASED BUDGETING SYSTEM

Zero-based budgeting entails telling each dollar where it is going to go. Simply put, the money that comes in (net income) minus the money that comes out (expenses) must equate to zero. How will you assign your money efficiently? Well, you must prepare for the fixed and unexpected expenses. Assign an amount to fix expenses and variable expenses first. Then, the rest of your money will be put to savings.

For instance, you earn S$4,000 a month after taxes and you spend S$3,500 on your monthly expenses. Let your extra money be transferred to your savings account. Ensure that you have somewhere to place it with each month.

#2: ASK FOR A RAISE

Say that you cannot afford to cover all your expenses or you cannot commit to your savings. Consider asking for a raise from your loyal clients.

Working with a client for a couple of years can help you prove your worth. There is no harm in asking for a raise as the worst thing that can happen is rejection. You are putting yourself if the position where you are on the present time. So, negotiate your salary. Having an increase of a few dollars per hour or per project can help you save money each month. Trust me, it will add up!

#3: PAY YOURSELF FIRST

One of the most influential factors that will enable you to save is paying yourself first. Transfer a portion of your income to your savings account to cover insurance and retirement plans. Since your income varies per month, having a cushion will help you worry less. Have a minimum savings amount to keep track of your saving goals.

Making sacrifices along the way entails that you will not have to struggle during retirement or during the next big crisis. Be responsible with your finances!

#4: AVOID CREDIT CARD DEBTS

As much as possible, you must not participate in credit card debts as it is bad for your credit score. Friends of mine who carry credit card balances pay hundreds of dollars per annum in interest alone.

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Re-frame your mind! Never purchase anything that you cannot save up for. Following this statement will help you avoid flushing down your money due to interest. Cash should go to your savings and not your debts.

Sources: 1 & 2

6 Bulletproof Saving Hacks For Millennial Singaporeans

As a Millennial Singaporean, it is easy to be tempted to travel and to socialize (talk about #YOLO or #NOFOMO). You just want to make the most out of your youth. Enjoying the wonders of the present and preparing for financial freedom is a difficult job!

Hopefully, these saving hacks below will enable you to make the right monetary decisions and live a prosperous 2017.

MAXIMIZE YOUR CASHBACK

In this day and age, almost every purchase qualifies for a cashback or rebate. Do you need a new dress for work? Or, do you need to expand your health coverage? See if you can get a little cash back!

Try to make the most out of your credit card rebates to save a decent amount of money for emergencies.

AVOID THE EMOTIONAL SPENDING

Studies (like this) have shown that Millennials are prone to spending based on their emotional states. The four common emotions that lead you to overspend are hunger, anger, loneliness, and tiredness. These emotions may lead to purchasing something that you do not need or want.

Avoid experiencing “buyer’s remorse” by increasing your awareness while you shop.

SPOT THE BEST DEALS

As Millennials, we spend countless of hours online. Use its potency for the greater good by searching for the best deals, promo codes, coupons, and vouchers islandwide. Keep a close eye on the local websites such as Flipit.com Singapore, Groupon, and Money Digest.

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MAXIMIZE YOUR RESOURCES

As a young adult, you may feel the urge to keep up with the latest trends on fashion and technology. Who can blame you? Purchasing new clothes and devices can boost one’s confidence. However, your spending habits may take a toll on your finances. Choose to be practical instead!

Account your resources to know which areas you can cut cost. Ditch your underused cable television and switch to a Netflix or Toggle account on your laptop. You may also refrain from purchasing new shoes by revamping your simple shoes with laces and ribbons.

DO NOT TURN A BLIND EYE

Being in your 20’s does not guarantee that you are immune to financial woes. Red flags, such as outstanding bill notices, are there for a reason. Make it a habit to account how much money goes in and out.

Use money-tracking tools to aid you in this process!

USE THE POWER OF TECHNOLOGY

Most millennials are innately tech-savvy. Use the power of technology to boost your knowledge on investments, financial services, and personal finance. Appreciate how lucky we are to have the luxury of accessing information right at our fingertips!

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You may also seek guidance and support from the experienced financial advisers by interacting with them thru social media.

Sources: 1 & 2

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