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Should You Borrow Money From The Bank Or Licensed Money Lenders?

Believe it or not, the bank often lends its money to people who are stable enough that they would not need to borrow the money anymore. This is why some Singaporeans turn to alternative ways of acquiring money including Licensed Money Lenders. Now, before you borrow money from any of these options, you must know their differences first.

BANKS

Loaning money from the bank guarantees that there would be future repayment of the principal amount and its interest. A loan can either be specific or open-ended credit up to a certain ceiling amount.

Characteristics:

1. Larger Loans – Banks are ideal for larger loans such as renovating your home, starting a business, or buying a car.

2. Credit Assessment – A good credit score with a low debt to credit ratio is a must to qualify for a loan. And, if you want to pay a low interest rate, you need to be vigilant about your credit score.

LICENSED MONEY LENDERS

Licensed Money Lenders are businesses that are regulated by the Singapore’s Law. Unlike the loan sharks that lend with high interest rates, licensed money lenders’ fees are controlled by the parameters of the Law, which means you can expect to have a fair deal. Some of the known money lenders in Singapore are Max Credit, CashMax Credit and Quickloan Pte Ltd.

Characteristics:

1. Smaller Loans – Licensed money lenders are the ideal option for smaller loans such as paying utility bills, getting your laptop fixed, or repairing your car (even amounting to S$1,500).

2. Credit Assessment – Unlike the banks, licensed money lenders give more leeway in the credit score. This is because they lend a significantly smaller amount. So, if you have a bad credit and you cannot get a personal loan, licensed money lenders are there for you.

3. Transaction Speed – Licensed money lenders approve the borrower’s application within the day itself!

4. Higher Interest Rate – Since they carry more risk for granting loan to people with poor credit rating, they usually charge a higher interest rate and late fees

Image Credits: Taber Andrew Bain via Flickr

Although the license money lenders give more freedom in the credit score, they will reject your application if you have a large sum credit card debt or if you have an outstanding loan from another money lender.

Sources: Investopedia and Sumo Credit Pte Ltd

3 Investments You Should Immediately Consider

Investment is an asset purchased with a purpose to generate more income in the future or to sell it for a higher price. There are a myriad of investment selections available in the market today but here are a few 3 simple investments you can start with…

1. MUTUAL FUNDS

Being a newbie in the investment scene is not a problem anymore. With Mutual Funds, you can entrust a professional investment manager to produce capital gains for you and your co-investors. Mutual funds are investments that gather the investors’ money into a pool to make multiple types of investments, known as the portfolio. Shareholders participate proportionally in the gains and losses. Lastly, it gives the budding investors the access to professionally manage, diversified portfolios of equities, bonds and so on. This can be difficult and nearly impossible to create with a small amount of money.

2. CENTRAL PROVIDENT FUND INVESTMENT SCHEME

The Central Provident Fund (CPF) Investment Scheme is a way to invest your CPF savings to various banks such as OCBC, DBS, or UOB. This will enhance your retirement or housing money. Simply, the money you will generate from your investments will eventually go to your CPF account and not your pockets. To be eligible, you need to be above 18 years old and have over S$20,000 in your Ordinary Account (i.e., used for housing, education, investment, and insurance) and over S$40,000 in your Special Account (i.e., used for retirement). Compare the investment options and their charges. Instead of complaining about the CPF, why don’t you start investing?

3. REAL ESTATE INVESTMENT TRUSTS

Real Estate Investment Trusts (REITs) allows you to invest your money to a range of properties. REIT investors pool their money to buy buildings then, they divide the rental returns. This is a cheaper alternative to buying a property. Furthermore, REITs receive special tax considerations and mostly offer investors high yields and liquid method (i.e., converting your assets into cash) of investing in real estate. Although there are benefits, it is important to hire a trusted REIT Manager. One REIT in Singapore is CapitaMall Trust including properties such as Plaza Singapura, Junction 8, and JCube.

Image Credits: www.rentalrealities.com via Flickr

Sources: Central Provident Fund Board, MoneySense, and Investopedia

This article does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser.

Things To Do If You Feel Underpaid And Overworked

In 2014, a research showed that 61% of Singaporean employees felt that were underpaid and overworked compared to the existing market rates. To put that in perspective, that is about 6 out of 10 employees. As the increase of talents from all around the world rise, satisfaction of pay and loyalty to the company will be tested. Now, if you feel that you are underpaid and overworked then, here are the 3 things you shall consider doing…

1. ENHANCE YOUR WRITING SKILLS

Your potential can be assessed by how well you construct proposals, e-mails, and reports. Poor writing skills can cost more money or inadvertently offend others especially the valued clients. Proper grammar along with being direct is very important when responding to your superiors and to your clients. Brush up on your English skills by watching free tutorial videos on YouTube.

2. SPEAK UP MORE

Did you know that Narcissists (i.e., overly self-involved individuals) give out a better impression of themselves in the workplace because of their outspoken nature? They like to brag about their tasks and achievements hence, they are perceived by the bosses to be smarter and to have more initiative. But we all know that geniuses that are extremely quiet exist and are often overlooked (e.g., snob in promotions or pay raise).

To assert yourself more, try to join Public Speaking Workshops. In fact, there is an on going deal for a 3 Hour Public Speaking Workshop at GROUPON for only S$15. Grab it now, as it is valid until June 2015 only.

3. ASK FOR A RAISE

Living in Singapore with a deeply rooted Asian culture, it is usual for us to be silent and underrate our worth. Hence, it is not surprising how many people hardly negotiate pay at interview. During employment, they fail to negotiate a pay raise too. But, if you do not ask then you would not get it. You are more valuable than you think; otherwise, they would have fired you a long time ago. Realize that your bargaining strength is all in your head. You can do it! 🙂

For detailed ways to negotiate salary increase efficiently, read my other article here.

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.

10 Tips To Eat Healthier And Save More Money

Healthy eating is an active choice to improve one’s lifestyle. It is not about total dietary restriction and remaining thin. Rather, it is about having more energy and feeling better about YOU!

If you find it difficult at first, fear not because you are not alone. Taking this healthier road one step at a time will surely go a long way. Once you embraced healthier eating, you cannot only be fitter but also richer. As you cut back the unnecessary, you can save more money for important things such as your child’s allowance. On that note, here are 10 Tips To Eat Healthier And Save More Money…

CONSUME LESS SUGAR AND STARCH

1. Reduce sugar in fruit juices by diluting it with water. Even if it does not contain added sugar such as the pure fruit juices, it is still good to practice this.

2. A bottle of Strawberry Jam at FairPrice retails for about S$3-9.80. You can save that and reduce guar consumption by using minimum amounts of jam or any spread. Apply it thinly and evenly.

GO FOR REDUCED FATS

3. Did you know that Marigold’s Non Fat Yoghurt is available for S$1.85 while Meiji’s Low Fat Yoghurt is only S$1/pc at FairPrice. Also, milk containing less fat are either the same price or even cheaper than the other types. The point is, you can choose reduced-fat varieties of milk and yoghurt without sacrificing the price.

4. If you are preparing meat, remove the visible fat and the skin off the chicken before you cook.

CONSUME LESS SODIUM

5. You can either reduce or not use salt at all when you are cooking. But, if you want to add more flavors, use iodized salt instead.

6. Want to save more on salt? Gradually reduce the salt you add in your cooking and buy food with lower sodium levels.

INCREASE FIBER INTAKE

7. Eat about 3-4 servings of fruits daily. Banana, orange, and guava are just some of the fruits rich in fiber.

8. It is a known fact that leafy greens are more affordable than lean meat. To eat healthier, eat smaller servings of meat with larger servings of vegetables.

OTHERS

9. Cook more homemade meals instead of buying take-away. For example, cook fish by steaming, grilling, or pan-frying it. Shy away from deep fried food.

10. Lastly, it is no surprise that beer or any alcoholic drinks should be cut down. The recommended consumption should be no more than 3 drinks for men and no more than 2 drinks for women. Reducing your alcohol consumption will not only control your weight but it will also save you more money and lower the risk of cardiovascular diseases.

Image Credits: nutrition education via Flickr

Source: HeartFoundation.org.nz

This article does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser.

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