Please note that there is no miles/rebates/points awarded by Citibank for payment at AXS machine.
This is regardless of payment for road tax, insurance etc.
Confirmation from my latest statement from Citibank.
Tags: Citibank, AXS, miles, cash rebate, CitiDollars, award, no more
Wednesday 31 December 2014
Sunday 28 December 2014
NEWS: QZ8501 goes missing! (Updated)
AirAsia flight QZ8501 has gone missing since this morning after losing contact with the control tower. The flight was bound for Singapore from Surabaya and was due to arrive this morning.
There were 155 passengers on board, including 1 Singaporean and 1 Malaysian.
It is still not known where the plane is but unverified sources claimed the plane has crashed into the sea due to bad weather.
Let's pray for the best for the passengers and crew of AirAsia QZ8501.
Lastest update on 30 Dec 2014:
It is confirmed now that aeroplane debris has been spotted during the search and 95% confirmed to belong to QZ8501. More bodies have been spotted and retrieved from the sea. Identities of the deceased still unknown yet.
Lastest update on 30 Dec 2014:
It is confirmed now that aeroplane debris has been spotted during the search and 95% confirmed to belong to QZ8501. More bodies have been spotted and retrieved from the sea. Identities of the deceased still unknown yet.
Tags: plane, missing, AirAsia, Singapore, Indonesia, QZ8501
Friday 26 December 2014
When to use ADVISE and ADVICE
I have seen many people getting "advise" and "advice" mixed up. And yes, my GP tutor taught me the difference between these 2 words again. *GRIN*
What is the difference between "advise" and "advice"?
When do I use "advise" and when do I use "advice"?
Can they be used interchangeably?
These 2 words, "advise" and "advice", CANNOT be used interchangeably and should not be used interchangeably.
So my ADVICE to you is: Learn the difference between "ADVISE" and "ADVICE" and you may start to ADVISE others the difference between these 2 words.
Tags: advise, advice, difference, verb, noun
What is the difference between "advise" and "advice"?
When do I use "advise" and when do I use "advice"?
Can they be used interchangeably?
Advise is a verb. So "advise" is an action word.
Example: She advised me to quit smoking.
Advice is a noun. So "advice" is a name.
Example: This is her advice to me: Quit smoking.
These 2 words, "advise" and "advice", CANNOT be used interchangeably and should not be used interchangeably.
So my ADVICE to you is: Learn the difference between "ADVISE" and "ADVICE" and you may start to ADVISE others the difference between these 2 words.
Tags: advise, advice, difference, verb, noun
Friday 19 December 2014
Is it "compared to" or "compared with"?
I am sure this question has been bugging many people and not many know exactly when to use which. Perhaps only the GP tutors will know when to use "compared to" and when to use "compared with". I was taught this by my GP tutor and I still remember it till this day.
So when do I use "compared to" and when do I use "compared with"?
Can they be used interchangeably?
The answer is "NO". They are used in different scenarios and should not be used interchangeably.
Example: Your dwindling grades can be compared to the stock market during a recession.
Example: The Prime Minister now earns up to 50 times the GDP, compared with 20 times the GDP 20 years ago.
Now that you have learned the difference between "compared to" and "compared with", please make sure that the correct one is being used in the correct context.
Tags: compared to, compared with, english, similarities, differences
So when do I use "compared to" and when do I use "compared with"?
Can they be used interchangeably?
The answer is "NO". They are used in different scenarios and should not be used interchangeably.
Compared to is used mainly to point out the similarities between A and B.
Example: Your dwindling grades can be compared to the stock market during a recession.
Compared with is used mainly to point out the differences between A and B.
Example: The Prime Minister now earns up to 50 times the GDP, compared with 20 times the GDP 20 years ago.
Now that you have learned the difference between "compared to" and "compared with", please make sure that the correct one is being used in the correct context.
Tags: compared to, compared with, english, similarities, differences
Thursday 18 December 2014
Employer's CPF contribution increased by between 1% and 2% for all in 2015!
GOOD NEWS!
EMPLOYER'S CPR CONTRIBUTION WILL INCREASE IN 2015!!!
With effect from 1 January 2015, there will be an increase in Employer's CPF contribution rates! The increase ranges from 1% to 2% for all employees!
If you are below 50 or above 65 years old, the employer contribution rates will be increased by 1%!
This increase will be allocated to the Medisave Account.
If you are above 50 to 55 years old, the employer contribution rates will be increased by 2%!
The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
If you are above 55 to 65 years old, the employer contribution rates will be increased 1.5%!
The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
This sounds like everyone has gotten a salary increment of between 1% and 2% in 2015!
Merry Christmas!
For more information, please visit CPF website!
Tags: CPF, medisave, special account, increase, 1%, 2%, employer's cpf contribution
EMPLOYER'S CPR CONTRIBUTION WILL INCREASE IN 2015!!!
 |
| Image credit: CPF Singapore |
With effect from 1 January 2015, there will be an increase in Employer's CPF contribution rates! The increase ranges from 1% to 2% for all employees!
If you are below 50 or above 65 years old, the employer contribution rates will be increased by 1%!
This increase will be allocated to the Medisave Account.
If you are above 50 to 55 years old, the employer contribution rates will be increased by 2%!
The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
If you are above 55 to 65 years old, the employer contribution rates will be increased 1.5%!
The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
This sounds like everyone has gotten a salary increment of between 1% and 2% in 2015!
Merry Christmas!
For more information, please visit CPF website!
Tags: CPF, medisave, special account, increase, 1%, 2%, employer's cpf contribution
Wednesday 17 December 2014
Enhanced Consumer Credit Report
You may purchase your enhanced consumer credit report from:
Credit Bureau Singapore
DP Credit Bureau
A report will cost you S$6.42 including GST.
So what on earth is revealed in the Enhanced Consumer Credit Report?
You can find the following in the report:
1) Summary
2) Account status history
3) Previous enquiries
4) Bureau score
5) Adverse
6) Aggregate outstanding balances
The above are the more important aspects of the report that I would like to highlight.
1) Summary
In the summary, you will see
a) Date of earliest known credit account
This is the date when you had your first credit card
b) Previous enquiries
The number of enquiries made on your credit report by financial institute etc.
c) Accounts
Total number of credit accounts you have with banks, namely credit cards, loans.
d) Defaults
Number of default on payment
e) Secured credit limit
Total credit limit of all secured credit account (housing, car loan etc)
f) Unsecured credit limit
Total credit limit of your credit card of all banks
2) Account Status History
In this sector, you will all information of the credit card(s) and loans that you have including:
a) Product type (e.g. unsecured credit card)
b) Grantor bank (e.g. SCB)
c) Account Type
d) Date opened/Date closed
e) Overdue Balance
f) Last 12 cycles / Cash advances / Balance Transfer / Full payment
 |
| Explanation for (f) |
3) Previous Enquiries
You will see the date which the enquiry was made and also the banks that made enquiry on your credit report and their purpose for doing so.
4) Bureau Score
This is the score risk grade that you have obtained.
2000 is the max score and 1000 is the lowest score you can get for your enhanced consumer credit report.
Basically, the score is an indication of the probability of you defaulting on payment based on your history and it does not draw any conclusion or make credit decisions for the financial institutes.
AA: 1911 - 2000 (Probability of default <=0.27%)
BB: 1844 - 1910 (Probability of default between 0.27% and 0.67%)
CC: 1825 - 1843 (Probability of default between 0.67% and 0.88%)
DD: 1813 - 1824 (Probability of default between 0.88% and 1.03%)
EE: 1782 - 1812 (Probability of default between 1.03% and 1.58%)
FF: 1755 - 1781 (Probability of default between 1.58% and 2.28%)
GG: 1724 - 1754 (Probability of default between 2.28% and 3.48%)
HH: 1000 - 1723 (Probability of default >=3.48%)
There is also a non-scored risk grade.
 |
| Score Risk Grades & Non-scored Risk Grades |
5) Adverse
I do not know what is under this sector because I got " No adverse information could be found on the subject". But I believe this sector may be negative comments or reports from financial institutes.
6) Aggregate Outstanding Balance
This sector shows your outstanding balances (credit cards, loans etc) from the past 6 months, with the latest month in detail while the preceding 5 months in summary.
I find the only useful information here is the secured balances (home, car etc) where you can see how much outstanding loan you still have on your vehicle and house.
So what do I think about the Enhanced Consumer Credit Report?
All in all, I think the enhanced consumer credit report is a very useful report to purchase and keep as reference. However, you do not need to purchase the report on a regular basis. I would recommend one to purchase a report perhaps every few years to do check on yourself. (I didn't realise I have 30+ credit cards until I purchased the report!)
Sample of Enhanced Consumer Credit Report (courtesy of Credit Bureau (Singapore) Pte Ltd
PS. To CBS, it should be "between XX and YY", not "between XX to YY". Common mistake.
Tags: enhanced consumer credit report, credit bureau singapore, dp credit bureau, credit card, loan, balance, over-draft
Do not waste food.
I was having lunch this afternoon and suddenly thought of this Chinese poem that was taught to me by my mother when I was a child.
The above is a poem by Tang Dynasty poet, Li Shen (李绅).
The poem describes the hardship experienced by farmers during the process of growing grains. But the people who are eating the cooked rice on their dining plates may not know the hardship that farmers had gone through before the grains are harvested, cooked and served to them. And thus, do not appreciate the cooked rice on their plates.
I would like to take this opportunity to urge everyone not to waste food. Parents, please teach your child/children not to waste food unnecessarily. Food does not come easily and there are many countries that are suffering from famine as I typed out this post. Please remember that every grain of rice on your plate does not come easy.
Please help to inculcate this virtue to your offspring(s) and make sure it gets passed down.
Tags: food wastage, do not waste food, tang dynasty poet li shen, famine
锄禾日当午，[chu2 he2 ri4 dang1 wu3]I tried my very best to translate the poem directly. Please pardon my poor English translation:
汗滴禾下土，[han4 di1 he2 xia4 tu3]
谁知盘中餐，[she(u)i2 zhi1 pan2 zhong1 can1]
粒粒皆辛苦。 [li4 li4 jie1 xin1 ku3]
Planting grains using hoe in the mid-day heat,
Perspiration dripping into the earth beneath,
Who would know the grains on their plates,
Every single grain comes with hard work.
The above is a poem by Tang Dynasty poet, Li Shen (李绅).
The poem describes the hardship experienced by farmers during the process of growing grains. But the people who are eating the cooked rice on their dining plates may not know the hardship that farmers had gone through before the grains are harvested, cooked and served to them. And thus, do not appreciate the cooked rice on their plates.
 |
| Image credit: www.yesgood.com.tw |
I would like to take this opportunity to urge everyone not to waste food. Parents, please teach your child/children not to waste food unnecessarily. Food does not come easily and there are many countries that are suffering from famine as I typed out this post. Please remember that every grain of rice on your plate does not come easy.
Please help to inculcate this virtue to your offspring(s) and make sure it gets passed down.
Tags: food wastage, do not waste food, tang dynasty poet li shen, famine
Monday 15 December 2014
Straits Times: $10 billion in outstanding credit card loans by Christmas
I was reading The Straits Times when I came across this article written by Ms Radha Basu. I was reading and shaking my head at the same time and I think a few people might have thought that I was a crazy man.
When I came the this part, I was astonished! Having credit card debts amounting to a year's salary is no joke! You could be paying for years and still owe money to the banks!
What the MAS had come up with is to ensure suspension of credit facilities and repayment of the money owed for this group of people. However, I don't think this is going to solve the problem.
What I suggest to MAS is to raise the bar for credit card application:
The 1 MAJOR problem with most people who cannot make full payment regularly is over-spending. These group of people are spending more than what they can actually afford. Because of the inflated credit limit that ranges from 2x - 4x, these people have the impression that they HAVE the capability to spend! Imagine 10 banks giving you credit cards with limit which is 2x your monthly salary, you will have 20x your monthly salary to spend on! A person earning $3000 per month will have $60,000 at his/her "mercy"! And that should not be the way!
Some of the people I came across had this mentality! They would bust 1 card and jump to the another card! They lived from paycheck to paycheck and paid only the minimum sum to ensure that they can still use their credit cards! And THEIR DEBTS WILL ROLL FASTER than you can say "Merry Christmas"!
Hey people, credit cards are supposed to help us save money by letting us leverage on the discounts, cash rebates, point rewards systems. Not the other way round! DO NOT ever let credit cards be your master!
Come on MAS, if you really want to help people, do consider my suggestion. Curb the issuance of credit cards and curb the problem of "misuse" of credit cards.
Tags: The Straits Times, credit card, debts, rollover, minimum
According to figures from Credit Bureau (Singapore), there were nearly 1.58 million credit card consumers as of October, up from 1.2 million in October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
When I came the this part, I was astonished! Having credit card debts amounting to a year's salary is no joke! You could be paying for years and still owe money to the banks!
What the MAS had come up with is to ensure suspension of credit facilities and repayment of the money owed for this group of people. However, I don't think this is going to solve the problem.
What I suggest to MAS is to raise the bar for credit card application:
1) Increase the minimum salary to $50,000 per annum
2) Maximum 2x credit limit of monthly salary (based on monthly salary only, excluding bonus, commission etc)
3) Credit limit is to be shared by all credit cards/credit facilities from all banks. (This will ensure that one cannot max out 1 card and spend using another card from another bank.)
4) Release credit only upon full payment every month
5) Do a credit review yearly (This is to ensure that those who suffered a decrease in income will not get high credit limit based on the previous higher salary and also to ensure that those who temporarily lost their job will rely on their credit cards for their daily expenses.)
The 1 MAJOR problem with most people who cannot make full payment regularly is over-spending. These group of people are spending more than what they can actually afford. Because of the inflated credit limit that ranges from 2x - 4x, these people have the impression that they HAVE the capability to spend! Imagine 10 banks giving you credit cards with limit which is 2x your monthly salary, you will have 20x your monthly salary to spend on! A person earning $3000 per month will have $60,000 at his/her "mercy"! And that should not be the way!
Some of the people I came across had this mentality! They would bust 1 card and jump to the another card! They lived from paycheck to paycheck and paid only the minimum sum to ensure that they can still use their credit cards! And THEIR DEBTS WILL ROLL FASTER than you can say "Merry Christmas"!
Hey people, credit cards are supposed to help us save money by letting us leverage on the discounts, cash rebates, point rewards systems. Not the other way round! DO NOT ever let credit cards be your master!
Come on MAS, if you really want to help people, do consider my suggestion. Curb the issuance of credit cards and curb the problem of "misuse" of credit cards.
Tags: The Straits Times, credit card, debts, rollover, minimum
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Radha Basu
Radha Basu
Thursday 11 December 2014
How to give way to emergency vehicle?
I am perturbed after reading the news about the SGF6850J not giving way to an ambulance with sirens and blinkers on along PIE. I am even more disturbed when I see netizens on Hardwarezone forum commenting that the driver of the Hyundai Matrix was not in the wrong because even if he/she gave way, the ambulance would still be stuck behind other cars as traffic was relatively heavy.
Everyone plays a part in situation like this and let me tell you how.
It is not right just to say that only those on lane 1 are required to play their part to give way. In fact, all motorists should play a part. Let me show you how.
Driver of SGF6850J, read this and learn.
1) Vehicles travelling in front of emergency vehicles (assuming on lane 1) should signal left and change lane at the earliest possible chance.
2) On hearing siren and blinkers, vehicles on lane 2 should slow down gradually and create gaps for vehicles on lane 1 to move in.
3) Vehicles on lane 3 and 4 should also slow down gradually and create gaps for vehicles in lane 2 to move in. Just in case lane 2 gets too congested with vehicles.
So you see, everyone plays a part. In matters of life and death, every second counts.
Please be considerate and be aware of your surroundings. Give way to emergency vehicles.
Tags: Emergency, ambulance, give way, SGF6850J, PIE, hardwarezone, forum, EDMW
Everyone plays a part in situation like this and let me tell you how.
It is not right just to say that only those on lane 1 are required to play their part to give way. In fact, all motorists should play a part. Let me show you how.
Driver of SGF6850J, read this and learn.
 |
| Image credit: STOMP |
1) Vehicles travelling in front of emergency vehicles (assuming on lane 1) should signal left and change lane at the earliest possible chance.
2) On hearing siren and blinkers, vehicles on lane 2 should slow down gradually and create gaps for vehicles on lane 1 to move in.
3) Vehicles on lane 3 and 4 should also slow down gradually and create gaps for vehicles in lane 2 to move in. Just in case lane 2 gets too congested with vehicles.
So you see, everyone plays a part. In matters of life and death, every second counts.
Please be considerate and be aware of your surroundings. Give way to emergency vehicles.
Tags: Emergency, ambulance, give way, SGF6850J, PIE, hardwarezone, forum, EDMW
Build your savings slow and steady!
I have met many people during my course of work, during ICT, during networking seminars etc. And whenever the topic comes to something related to finance, many would say that they do not have much savings. Or simply, they could not save from the monthly salary. Every single cent of their salary seems to vanish by the end of the month!
So I always have this advice for those whom I have met and have this problems.
Start small and steady.
Forget about the common advice that tells you to "pay yourself first" then pay others etc. This obviously will not work on people who has loads of bills or people who has no discipline. Many whom I have spoken to had tried this method but still failed to have savings. Because, by the end of the month, they would have used up the money that "they paid themselves first".
So what I advocate is: START SMALL AND STEADY!
So what is this small and steady all about?
First of all, you need to get hold of a piggy bank; one of substantial size and cannot be opened easily.
Next, what you do is, dump all your $1 coins into the piggy bank. Only the $1 coins. I know the Singapore Government and Singapore Mint is going to kill me for encouraging people to hold on to their $1 coins and reduce the circulating amount.
SORRY!
Everyday when you get home, drop your $1 coins into the piggy bank.When you get the hang of it, you may also start dropping your 50-cent coins into the piggy bank.
Just keep dropping your coins into the piggy bank and watch it grow and grow and grow.
On average, I saved between $500 and $1200 in coins every year. And I DO NOT deposit these coins directly into my bank accounts as there are charges for depositing coins. There are times when Singapore Mint or the banks have promotions for FOC coin-deposit services. Watch for these promotion periods and deposit your coins. Otherwise, you may wish to count your coins and change your coins with the hawkers or provision shop owners or any of those in retail business. They will be more than willing to trade notes for your coins.
You will realise that this "small and steady" has little impact on your spending behaviour as most people do not pay attention to "loose change". If you do not see the figure in your account, you tend to disregard the existence of it.
So, start now! SLOW AND STEADY!
Tags: savings, slow and steady, coins, Singapore Mint, piggy bank
So I always have this advice for those whom I have met and have this problems.
Start small and steady.
Forget about the common advice that tells you to "pay yourself first" then pay others etc. This obviously will not work on people who has loads of bills or people who has no discipline. Many whom I have spoken to had tried this method but still failed to have savings. Because, by the end of the month, they would have used up the money that "they paid themselves first".
So what I advocate is: START SMALL AND STEADY!
So what is this small and steady all about?
First of all, you need to get hold of a piggy bank; one of substantial size and cannot be opened easily.
Next, what you do is, dump all your $1 coins into the piggy bank. Only the $1 coins. I know the Singapore Government and Singapore Mint is going to kill me for encouraging people to hold on to their $1 coins and reduce the circulating amount.
SORRY!
 |
| Image credit: wikipedia |
Everyday when you get home, drop your $1 coins into the piggy bank.When you get the hang of it, you may also start dropping your 50-cent coins into the piggy bank.
Just keep dropping your coins into the piggy bank and watch it grow and grow and grow.
On average, I saved between $500 and $1200 in coins every year. And I DO NOT deposit these coins directly into my bank accounts as there are charges for depositing coins. There are times when Singapore Mint or the banks have promotions for FOC coin-deposit services. Watch for these promotion periods and deposit your coins. Otherwise, you may wish to count your coins and change your coins with the hawkers or provision shop owners or any of those in retail business. They will be more than willing to trade notes for your coins.
You will realise that this "small and steady" has little impact on your spending behaviour as most people do not pay attention to "loose change". If you do not see the figure in your account, you tend to disregard the existence of it.
So, start now! SLOW AND STEADY!
Tags: savings, slow and steady, coins, Singapore Mint, piggy bank
Wednesday 3 December 2014
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Follow me on twitter @adviseandadvice for the latest credit card deals, promotions and other tips!
Tags: Twitter, @adviseandadvice
Tags: Twitter, @adviseandadvice
Tuesday 2 December 2014
Buying property and budget calculation
More and more people are spending more than what they can afford on their home (especially the 1st one) without realising what kind of trouble they are getting themselves into.
So the question is, how do I know if I can afford the property? How much budget do I have?
Let's rack our brains and do some mathematics.
First of all, you must have the answer to these questions:
Q1) How much are you and your spouse contributing to your CPF OA account monthly (employee's contribution only)?
Q2) How much do you and your spouse have in the OA account currently?
With the answers to the 2 questions, you may now calculate your budget. A practical budget that has no impact on your lifestyle at all.
Case study on Andy and Betty who earn $4000 each, combined household income of $8000:
A1) $800 each. Total of $1600 (Consider employee's contribution only)
A2) $50,000 each. Total of $100,000.
I would recommend one to USE up to 90% for home loan repayment.
With contribution of $800 to the CPF OA account monthly in this case study, Andy and Betty should contribute $700 each to repay the home loan monthly.
I would recommend one to KEEP at least 12 months of monthly repayment amount in the OA account as a safety net. Just in case of non-employment.
With $50,000 in each CPF OA account and a monthly repayment of $700.00 in this case study, Andy and Betty should KEEP at least $8,400 in the CPF OA account as safety net. That means they have $83,200 as deposit/down payment/initial payment.
Assuming interest rate of 2% per annum and loan tenure of 10 years, the maximum loan amount that Andy and Betty should get is $152,000. And the budget of the property is $235,200 ($152,000 + $83,200).
Assuming interest rate of 2% per annum and loan tenure of 20 years, the maximum loan amount that Andy and Betty should get is $276,000. And the budget of the property is $359,200 ($276,000 + $83,200).
Assuming interest rate of 2% per annum and loan tenure of 30 years, the maximum loan amount that Andy and Betty should get is $378,000. And the budget of the property is $461,200 ($378,000 + $83,200).
The above is of course just a case study and one should calculate based on his/her own scenario.
Using the strategy above, you will realise that you do not have to fork out cash for monthly repayment. Hence your liefestyle will not be affected. Moreover, your OA account will be increasing as well due to interests, contribution from employer, contribution from bonus and potentially increased contribution from increased income!
Once you have enough in your CPF, do redeem your home loan and be debt free!
NOTE: DO NOT to take future expected earnings to calculate your budget. You may expect your earnings to increase by how many % in how many years or you may expect promotions within how many years etc. But these are subject to changes which may be affected by uncertainties that no one can predict. No one can predict the futureand you will never know what can happen the next day.
It is always better to be cautious when budgeting.
Tags: Buying property, calculating budget, CPF, OA account, maximum loan tenure
So the question is, how do I know if I can afford the property? How much budget do I have?
Let's rack our brains and do some mathematics.
First of all, you must have the answer to these questions:
Q1) How much are you and your spouse contributing to your CPF OA account monthly (employee's contribution only)?
Q2) How much do you and your spouse have in the OA account currently?
With the answers to the 2 questions, you may now calculate your budget. A practical budget that has no impact on your lifestyle at all.
Case study on Andy and Betty who earn $4000 each, combined household income of $8000:
A1) $800 each. Total of $1600 (Consider employee's contribution only)
A2) $50,000 each. Total of $100,000.
I would recommend one to USE up to 90% for home loan repayment.
With contribution of $800 to the CPF OA account monthly in this case study, Andy and Betty should contribute $700 each to repay the home loan monthly.
I would recommend one to KEEP at least 12 months of monthly repayment amount in the OA account as a safety net. Just in case of non-employment.
With $50,000 in each CPF OA account and a monthly repayment of $700.00 in this case study, Andy and Betty should KEEP at least $8,400 in the CPF OA account as safety net. That means they have $83,200 as deposit/down payment/initial payment.
Assuming interest rate of 2% per annum and loan tenure of 10 years, the maximum loan amount that Andy and Betty should get is $152,000. And the budget of the property is $235,200 ($152,000 + $83,200).
Assuming interest rate of 2% per annum and loan tenure of 20 years, the maximum loan amount that Andy and Betty should get is $276,000. And the budget of the property is $359,200 ($276,000 + $83,200).
Assuming interest rate of 2% per annum and loan tenure of 30 years, the maximum loan amount that Andy and Betty should get is $378,000. And the budget of the property is $461,200 ($378,000 + $83,200).
The above is of course just a case study and one should calculate based on his/her own scenario.
Using the strategy above, you will realise that you do not have to fork out cash for monthly repayment. Hence your liefestyle will not be affected. Moreover, your OA account will be increasing as well due to interests, contribution from employer, contribution from bonus and potentially increased contribution from increased income!
Once you have enough in your CPF, do redeem your home loan and be debt free!
NOTE: DO NOT to take future expected earnings to calculate your budget. You may expect your earnings to increase by how many % in how many years or you may expect promotions within how many years etc. But these are subject to changes which may be affected by uncertainties that no one can predict. No one can predict the futureand you will never know what can happen the next day.
It is always better to be cautious when budgeting.
Tags: Buying property, calculating budget, CPF, OA account, maximum loan tenure
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