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4 Ways To Stop Your Couple Woes Over Money

They say that love is unconditional, selfless, and priceless. But the truth is, you have to spend money for roses, dinner, or even diamonds during special occasions such as birthdays or Valentine’s Day. And these gifts do not come cheap! The influence of money on the relationship does not stop there. It is significantly present in marriage. In 2012, a study found that the more regular couples argued over money, the more likely they were to get divorced.

There are different reasons why couples have dispute over money. One reason is the opposing views that deeply affect their values to the point that it is hard for them not to be self-righteous in the subject. Although, if both parties truly love each other and are willing to work things out then, they can set their differences aside. Here are 4 helpful ways to stop your couple woes over money…

1. DISCUSS YOUR VALUES ABOUT MONEY

To prevent another issue to boil, 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.

Learn put yourself in your partner’s situation (i.e., spender or saver) by recognizing his or her financial strengths. For example, if you are buying a washing machine. While a saver may lean towards a cheap and used machine, a spender will want a costly and new machine. Compromise by combining the saver’s ability to get a good deal with the spender’s ability to commit to a new purchase.

Related Article: Psychology of Spenders and Savers

2. RELAX AND WRITE

When faced in a situation where you are already frustrated and about to burst, take a step back from those feelings. Avoid blaming or shouting at each other. Instead, write down your feelings or values about money and how you want your money dynamics to change for the better. When your temper is gone, exchange letters to know where your partner is coming from. If you want to break the cycle of feud, you have to work together to a fresh start.

3. PRODUCTIVELY PLAN TOGETHER

Ensure that you will have a productive and open communication on your financial goals and new budget plan. Change can be difficult and you may need to remind each other of your dreams and budget from time to time.

4. ENCOURAGE INDEPENDENCE

Although you have a joint bank account, you may want to have separate bank accounts for your personal finances including buying gifts for your spouse or child. This degree of financial independence can help you deal with the changes better. Keep in mind that you shall still honor the new budgeting scheme and financial goals even if you have a personal account.

Image Credits: Robert Bejil via Flickr

In resolving your money woes with your partner, it is important to keep an open mind. Remember that it is not about winning or superiority, instead it is about understanding your partner’s perspective on money.

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

Most Profitable Savings Accounts In Singapore To Date

Savings Account is an account managed by the bank, which provides principal security and a moderate interest rate. This account lets the client set aside a portion of his or her liquid assets while earning a monetary return. Personally, I value this financial tool because it serves as an accessible shield to cover the immediate expenses with its facilities such as Internet banking and online transactions.

In Singapore, savings accounts predominately require a minimum amount of deposit. The amount ranges from S$0-1000. To get most of the benefits of your savings account some encourage you to transact more while others encourage you to withdraw less. That being said, here are the Most Profitable Savings Accounts In Singapore To Date as they offer the highest interest rates…

4. CIMB STARSAVER SAVINGS ACCOUNT

CIMB StarSaver Savings Account requires a minimum deposit of S$1,000 with S$0 maintaining balance. With this savings account you can get up to 0.8% of interest per year as long as you deposit at least S$100 more to your account every month. On the other hand, you will get an interest of 0.5% per year for balance under S$100. There is more! Funds transfer to CIMB Malaysia is free. Also, there are no withdrawal fees from CIMB Group ATMs across ASEAN countries.

But wait, there is still more…sign-up for CIMB StarSaver Savings Account from now until June 30, 2015 online to be rewarded with S$20 worth of shopping vouchers. Apply here.

3. MAYBANK ISAVVY SAVINGS PLUS ACCOUNT

For people who are very diligent and disciplined savers, Maybank iSAVvy Savings Plus Account is the perfect partner for you. With this savings account, you will not only earn an interest of 0.38% a year but you will also be rewarded with additional interest with every dollar you save. You see, an additional interest rate of 1.56% per year will be rewarded as long as the average daily balance increases every month. The base interest rate, depending on how much money you have, ranges from 0.19% and 0.38% per year. That is not all! Being a super saver with a minimum account balance of S$100,000 will get you a free insurance coverage.

All you have to do is to deposit a minimum amount of S$500 and apply here.

2. DBS MULTIPLIER PROGRAMME

In contrast of Maybank’s iSavvy, DBS Multiplier Programme rewards you for regularly using your account. The more you use your account for transactions, the higher interest you shall receive. Specifically, if you’re banking transactions adds up to S$7,500 a month then, you are eligible for an interest up to 2.08%. It offers a starting rate of 1.08% per annum. Enjoy the flexibility to withdraw and deposit anytime, as there is no lock-in period.

With a minimum balance of S$3,000, you can apply here.

1. OCBC HIGHER-INTEREST DEPOSIT ACCOUNT- BONUS PLUS

As the name suggests, OCBC Higher-Interest Deposit Account – Bonus Plus offers its clients the higher interest rates for up to 2.35% a year. But, there are conditions attached to it. First, the initial deposit required is a fresh fund of S$10,000 with a minimum balance of S$3,000 every month. Second, you will earn higher interest rates if you do not make any withdrawals every month or every quarter. Here is a detailed illustration of how the system works:

Image Credits: www.ocbc.com.sg

Nonetheless, they offer secure online banking or mobile banking, and no lock-in period for your transactions. Apply here.

Sources: Investopedia and iMoney

As you park your money inside the bank, consider the savings account that suits your lifestyle and needs. 🙂

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.

How To Teach Your Kids (Aged 3-10) To Be Financially Responsible

Aged 3-5

1. PEOPLE MAKE MONEY BY WORKING

Describe your job to your children. You may even bring them along one in your workplace and give them a tour. Then, introduce this video of a farmer that gets paid for supplying milk. This short video explains the concept of money to children in a simple and animated manner.

2. MONEY IS NEEDED TO PURCHASE THINGS

Like the farmer in the video, he needed money to buy what he wanted. Help your child understand the concept of being able to buy things by identifying items that cost money (e.g., house, car, table, or iPhone) and those that are free (e.g., hugs and kisses from Daddy).

3. THERE IS A DIFFERENCE BETWEEN NEEDS AND WANTS.

When you are shopping with your kid, highlight what are the essentials such as vegetables and fruits. Then, let your him pick the items that are considered as wants.

Tell your child that an individual must wait before buying something he/she wants. Make him realize this by putting money into two jars: 1 for savings, 1 for spending. Ask him to save a dollar of his allowance for savings and a dollar for spending every week.

Aged 6-10

4. IT IS GOOD TO COMPARE PRICES.

Teach your child how to look around the shops first before buying anything in order to get the best deal. In spending money, choices must be made. So, include your child in small decisions to increase their awareness.

5. THERE ARE DANGERS IN SHARING PERSONAL INFORMATION ONLINE.

Discuss to your child how dangerous and costly it is to enter personal information (e.g., address or bank account details) online because someone may steal it. Encourage purchasing online only when you are beside them.

6. INTRODUCE BANKING AND INTEREST.

Describe how the banking and interest works. Savings account will protect your child’s savings and it will also generate more money due to interest. You may open a junior bank account that you supervise. Let your child watch this video to understand the concept better:

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