savings Archives | Page 19 of 26

The Age-Old Relationship Of Money And Time

If you lived in Singapore long enough, you will realize that time is money! Not in the literal sense. In a fast-paced work driven environment, time is seen as a valuable and finite resource. Since time is irreplaceable, we must accomplish tasks as quickly as possible. You can always make money but you can never bring back time.

Time and money’s dynamic relationship is manifested in different daily scenarios such as these:

a. HAVING TOO MUCH TIME

Experts say that the unrealistic expectations people have with time outweigh their irrationality with money. It is because measuring our lifespan is a complex task. In a study, participants placed more bets when they gambled with their time than when they gambled with their money. Time is such an ambiguous currency that people cannot see its actual worth.

b. HANGING OUT WITH THE CROWD

Financial psychologist Brad Klontz said that: “It’s the herd instinct that influences each of us, particularly when it comes to our wallets.” Generally, we surround ourselves with people with the same monetary habits. If you frequently hang-out with a cautious buyer, you are more likely to learn a thing or two about the importance of budgeting. And that is not a bad thing!

c. POWER OF COMPOUND INTEREST

As an investor, the longer you keep your money on the account, the more you will make out of it. Elevation of your wealth each year is possible because of Compound Interest. This is why it is advantageous if you started young. And if your “younger years” passed, the next best thing is to start now.

d. BUYING A CAR

When purchasing a car, the present value of your money may not be enough. And you will have to make several financial strategies to increase your future value of money. Watch this short video to grasp its idea:

According to Investopedia, “Time Value of Money is the idea that money available at the present time is worth more in the future due to its potential earning capacity”. Provided that money can earn interest, any amount of money is worth more as time passes. Thus, it is important to calculate the Time Value of Money before you start investing.

Sources: 1, 2, 3, & 4

Genius Ways To Hide Your Cash In Case Of Emergencies

No matter how safe Singapore can be, unforeseen events in the form of natural catastrophes, bad power outage, credit/debit card decline, or even theft can happen. Whether you call it secret stash or emergency fund, keeping a substantial amount of cash in your home is a must to handle the demands of these unforeseen events.

As people get clever in time, the old “putting it under your mattress” trick does not work anymore! Instead, consider these Genius Ways To Hide Your Cash At Home:

1. CREATING FALSE STRUCTURES

If you have a knack for the tools, consider an intensive Do-It-Yourself project of faking fixtures around your house. You can install a drain pipe or a power outlet in your room that doubles as a secret safe. Worry not if you are not too good of a craftsman as some online shops sell installation-ready disguised safes.

For example, you may purchase the Hidden Wall Safe that acts as a non-functioning outlet with a hidden compartment to keep your valuables such as cash, cards, and jewelry.

2. DISGUISING IN PLAIN SIGHT

Keeping your money scattered in the most unexpected places is a good theft-proof strategy. Contemplate on the best places to hide your money where no one else would look. If you are an avid fan of books, pick a “random” book in your cabinet and cut a space in the middle where you can store your cash. Then, put it back where it belongs.

Here are other easy tricks you may follow:

a. Push the lint brush/roller’s handle up and put your cash inside.
b. Stuff your money inside a jar of cotton balls.
c. Put your money (rolled with a rubber band around it) inside an empty medicine or vitamins bottle and seal it well.

3. SWIMMING WITH THE FISHES

If you have a relatively large aquarium at your house, consider putting rolled up cash inside a watertight solid-colored jar inside it. Keep it hidden among the seaweeds, rocks, ruins, and corals so that it is as concealed as much as possible.

Image Credits: pixabay.com (CC0 Public Domain)

Alternatively, you may put your watertight jar of money inside the toilet tank.

Sources: 1 & 2

5 Surefire Ways To Boost Your Net Worth

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!

Sources: 1, 2, & 3

4 Money Decisions That Will Bring Future Satisfaction

1. BUILDING AN EMERGENCY FUND NOW

What happens next if your ridiculously expensive car needs an engine replacement? If you are like countless people in the world, you will opt for using your credit card or taking loans. This will only build piles of debt.

Instead, you must commit to building an emergency fund to use during the “rainy days”. Financial professionals recommend to save money that can cover at least 6 months’ worth of your living expenses.

2. SAVING MORE FOR RETIREMENT

If you envision a life of comfort after you leave the working scene, you will not regret your decision to maximize your contributions to your CPF account or to your retirement plan.

Remember that the amount of money you need to save depends on what type of lifestyle you want to achieve during your retirement. You will need more savings if you plan to purchase a rest house, travel the world, keep your cable TV subscription, and other luxuries. Building your retirement plan while young can bring huge advantages to your financial future because of the power of compound interest. So start boosting your retirement savings as soon as possible!

3. EVALUATING THE RISKS BEFORE INVESTING

Before you lose some or all of your savings, it is important to understand the risks of the investments. Investment hazards include credit, liquidity, market, concentration, inflation, and devaluation risks. Taking a higher risk can potentially give you higher returns. But you have consult a financial adviser first.

As you make informed choices for your wealth, you will appreciate the day that you evaluated the risks before investing.

4. AVOIDING DEBTS

The debt that you accumulate in your 20s (e.g., student or car loans) can haunt you for the rest of your life. So before you take one more responsibilities such as getting married, starting a family, and buying a flat…you must avoid and eliminate your debts first.

Start by paying off the debts with high interest such as quickly as circumstance permits. Then, avoid accumulating debt by purchasing items that you can actually afford.

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

Sources: 1 & 2

Quick And Simple Ways To Fix Your Financial Clutter

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)

Sources: 1 & 2

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