(1) Nope
(2) Checked
(3) Checked
(4) Checked
(5) Checked
(6) Nope
(7) Checked
(8) Checked
(9) Nope
(10) Checked
I have done 7 out of 10 of the above!
How about you?
Tags: 10 things that you may have done in your life, funny
Showing posts with label Life. Show all posts
Showing posts with label Life. Show all posts
Tuesday, 26 May 2015
10 things that you may have done in your life
Someone shared this link with me and I think it was hilarious!
(1) Nope
(2) Checked
(3) Checked
(4) Checked
(5) Checked
(6) Nope
(7) Checked
(8) Checked
(9) Nope
(10) Checked
I have done 7 out of 10 of the above!
How about you?
Tags: 10 things that you may have done in your life, funny
(1) Nope
(2) Checked
(3) Checked
(4) Checked
(5) Checked
(6) Nope
(7) Checked
(8) Checked
(9) Nope
(10) Checked
I have done 7 out of 10 of the above!
How about you?
Tags: 10 things that you may have done in your life, funny
Monday, 4 May 2015
Comparison between OCBC 360 and UOB One
Now we have a showdown between OCBC and UOB and who do you think will emerge victorious?
Let's compare the PROS & CONS of the OCBC 360 account and the UOB One account.
Based on the table above, it seems like OCBC 360 wins hands down! But that's not actually the case. Unless you buy insurance or investment products from OCBC or your incremental on balance is huge, the actual interest rates for comparison is 2.25% (OCBC 360) vs 2.48% (UOB One).
Now you would think that UOB One wins! But that's not the case again.
There is ONE BIG factor that we need to consider:
How much money you have?
It all depends on how much money you have, isn't it?
Let's assume you are able to meet the basic requirements for OCBC 360 and UOB One.
(a) $500 spending
(b) Salary crediting OR 3 GIRO Debit transactions
(c) Pay 3 bills online
Bonus interest for buying insurance and investment products as well as for incremental increase in account balance will be omitted for an easier and clearer comparison.
Now you can see that if you have less than $40,000.00 (Actual figure is around $39,735.00), OCBC 360 will give you a better deal.
So what happens if I have MORE money?
Well, the table says it all, doesn't it?
If you have $39,735.00 or less, OCBC 360 gives you the best deal!
If you have between $39,736.00 and about $55,273.00, UOB One gives you the best deal! ( I calculated to the nearest dollar.)
If you have between $55,274.00 and $60,000.00, OCBC 360 gives you the best deal!
So, like I said, it all depends on how much money you have.
Of course, this is just a comparison based on the interest rates.
Hassle-free method of getting the best from the banks!
Tags: comparison, OCBC 360 account, UOB One account, bonus interest rates
OCBC 360 VS UOB ONE
Let's compare the PROS & CONS of the OCBC 360 account and the UOB One account.
 |
| Comparison Between OCBC 360 & UOB One |
Based on the table above, it seems like OCBC 360 wins hands down! But that's not actually the case. Unless you buy insurance or investment products from OCBC or your incremental on balance is huge, the actual interest rates for comparison is 2.25% (OCBC 360) vs 2.48% (UOB One).
Now you would think that UOB One wins! But that's not the case again.
There is ONE BIG factor that we need to consider:
How much money you have?
It all depends on how much money you have, isn't it?
Let's assume you are able to meet the basic requirements for OCBC 360 and UOB One.
(a) $500 spending
(b) Salary crediting OR 3 GIRO Debit transactions
(c) Pay 3 bills online
Bonus interest for buying insurance and investment products as well as for incremental increase in account balance will be omitted for an easier and clearer comparison.
 |
| Comparison Between OCBC 360 & UOB One |
So what happens if I have MORE money?
 |
| Comparison Between OCBC 360 & UOB One |
If you have $39,735.00 or less, OCBC 360 gives you the best deal!
If you have between $39,736.00 and about $55,273.00, UOB One gives you the best deal! ( I calculated to the nearest dollar.)
If you have between $55,274.00 and $60,000.00, OCBC 360 gives you the best deal!
So, like I said, it all depends on how much money you have.
Of course, this is just a comparison based on the interest rates.
Hassle-free method of getting the best from the banks!
Tags: comparison, OCBC 360 account, UOB One account, bonus interest rates
Monday, 27 April 2015
NEW: UOB One Account
Great news!
UOB has launched a new account: One Account
With the terms and conditions changed for the OCBC 360 account come 1 May 2015, this new UOB One account may be the new place to park your S$50,000.00!
The fundamentals of the UOB One Account is similar to that of the OCBC 365 account.
Base interest: 0.05% (included in all the interest rates below)
Scenario 1:
Spend $500 on UOB One card:
First $10,000: 1%
Next $20,000: 1.5%
Next $20,000: 2%
Subsequent amount: 0.5%
Effective interest is 1.6% at $50,000!
OCBC 365 will only earn you 1.05% assuming you spend $500 on OCBC credit card and pay 3 bills online.
If you only had $10,000, OCBC 360 account will give you better rates at 1.05%.
Scenario 2:
Spend $500 on UOB One card + Credit salary of more than $2,000 OR 3 GIRO Debit transactions:
First $10,000: 1.5%
Next $20,000: 2%
Next $20,000: 3.33%
Subsequent amount: 0.5%
Effective interest is 2.43% at $50,000!
OCBC 365 will only earn you 2.05% assuming you credit $2,000 salary, spend $500 on OCBC credit card and pay 3 bills online.
But if you have less than $30,000, you are better off with OCBC 360 account as UOB One only gives you 1.5% while OCBC 360 gives you 2.05%
From the explanation above, if you have more than $30,000, the UOB One account will trump the OCBC 360 account with the same amount of effort. (OCBC has added 2 additional requirements for the additional 1% interest.
Especially for those who are already spending more than $500 on the UOB One card every month, this account is a godsend because you are already guaranteed additional 0.5% at least, depending on which tier your balance is at. And also for those who do not meet the salary crediting requirement. The UOB One account is for you.
Anyway, it is pretty easy to meet the 3 GIRO debit transactions requirement. Hence everyone should be looking at scenario 2 instead.
I'll do a clearer comparison once OCBC released details of the remaining 2 criteria.
Tags: UOB One account, OCBC 360 account
UOB has launched a new account: One Account
With the terms and conditions changed for the OCBC 360 account come 1 May 2015, this new UOB One account may be the new place to park your S$50,000.00!
The fundamentals of the UOB One Account is similar to that of the OCBC 365 account.
Base interest: 0.05% (included in all the interest rates below)
Scenario 1:
Spend $500 on UOB One card:
First $10,000: 1%
Next $20,000: 1.5%
Next $20,000: 2%
Subsequent amount: 0.5%
Effective interest is 1.6% at $50,000!
OCBC 365 will only earn you 1.05% assuming you spend $500 on OCBC credit card and pay 3 bills online.
If you only had $10,000, OCBC 360 account will give you better rates at 1.05%.
Scenario 2:
Spend $500 on UOB One card + Credit salary of more than $2,000 OR 3 GIRO Debit transactions:
First $10,000: 1.5%
Next $20,000: 2%
Next $20,000: 3.33%
Subsequent amount: 0.5%
Effective interest is 2.43% at $50,000!
OCBC 365 will only earn you 2.05% assuming you credit $2,000 salary, spend $500 on OCBC credit card and pay 3 bills online.
But if you have less than $30,000, you are better off with OCBC 360 account as UOB One only gives you 1.5% while OCBC 360 gives you 2.05%
From the explanation above, if you have more than $30,000, the UOB One account will trump the OCBC 360 account with the same amount of effort. (OCBC has added 2 additional requirements for the additional 1% interest.
Especially for those who are already spending more than $500 on the UOB One card every month, this account is a godsend because you are already guaranteed additional 0.5% at least, depending on which tier your balance is at. And also for those who do not meet the salary crediting requirement. The UOB One account is for you.
Anyway, it is pretty easy to meet the 3 GIRO debit transactions requirement. Hence everyone should be looking at scenario 2 instead.
I'll do a clearer comparison once OCBC released details of the remaining 2 criteria.
Tags: UOB One account, OCBC 360 account
Sunday, 29 March 2015
Tuesday, 10 February 2015
Plan your expenses carefully and be rewarded!
I have received a few emails asking me to help them "plan" their fixed expenses. To be exact, they are asking me which credit card(s) to use for their fixed expenses so they can get the maximum benefits/cash rebates. Coincidentally, all of them prefer cash rebates to miles or points. So this is my advice to all:
Step 1: Write down all the monthly recurring fixed expenses that accept credit card payment that you have.
Insurance 1: $104.75
Insurance 2: $110.35
Insurance 3: $230.20
Insurance 4: $160.15
Telco: $150.00
S&CC: $58.00
SP Services: $200
HDB season parking: $90
Income Tax: $450
Step 2: List down any credit card limitation that these fixed expenses may have.
Insurance 1: $104.75
Insurance 2: $110.35
Insurance 3: $230.20
Insurance 4: $160.15
(The above 4 only accepts recurring payment by Standard Chartered Bank, DBS/POSB, Maybank, UOB
Telco: $150.00 (Monthly recurring and online payment available)
S&CC: $58.00 (Only Visa/Master)
SP Services: $200 (Only DBS/POSB for recurring payments)
HDB season parking: $90
Income Tax: $450 (Giro or monthly recurring payment by HSBC/ANZ credit card)
Step 3: Try to see if you can hit the tiers of $300 / $600 / $800 / $1000 / $1500.
Applies to insurance, telco bills, S&CC etc.
If your fixed expenses can meet $300 every month, you may use UOB ONE OR Maybank Platinum Visa.
If your fixed expenses can meet $600 every month and can be subdivided into 2 x $300+, you may use UOB ONE ($300) AND Maybank Platinum Visa ($300).
If your fixed expenses can meet $800 every month, you may use UOB ONE.
If your fixed expenses can meet $1000 every month, you may use Maybank Platinum Visa.
If your fixed expenses can meet $1500 every month, you may use UOB ONE.
The above 2 cards will earn you up to 3.33% cash rebates if you can hit the required tiers during the qualifying quarters.(You may click the links for more information)
Step 4: Payment to SP Services
If you are looking at FUSS-FREE monthly recurring payment, pay with the DBS Altitude Visa Signature. You get 3 DBS Points for every $5.
There are times when there is $100 Tunglok voucher for redemption at 4200 points. This will translate to 1.42% which is pretty good in my opinion. Give your family a treat with the voucher!
Click to download DBS Credit Card Recurring Payment form.
POSB Everyday only gives you up to 1% (or $1).
1% cash rebate for SP Services and StarHub is capped at a maximum spend of S$100 per Card account, per calendar month per respective billing organization. For SP Services, recurring charges are applicable only to accounts under the name of the main or supplementary cardholder.
If it is convenient for you and you are looking at the highest % in terms of cash rebate, make trips down to the SP Services, Customer Service Centres to make payment.
Then pay with the ANZ Travel Visa Signature to enjoy 2.54% in cash rebate (1.4 Travel$ for every $1 spent, 550 Travel$ = $10). You may pay up to 3 months worth of bills in advance.
Step 5: HDB Season Parking
For FUSSFREE method, pay with Giro and get 2% discount.
For maximum cash rebate, pay online with the ANZ Travel Visa Signature to enjoy 2.54% in cash rebate (1.4 Travel$ for every $1 spent, 550 Travel$ = $10).
Note: You will have to remember to pay monthly to earn $0.50 more in cash rebate.
Step 6: Income Tax
Pay your income tax with ANZ Travel Visa Signature for the best returns! More info here.
There is a processing fee of 0.7% applicable (or 0.5% if you are ANZ Signature Priority Banking card member). Processing fee is charged every month and no points will be awarded for the processing fee.
Basically it works this way. You maintain a GIRO arrangement to pay $XXX monthly with IRAS. ANZ will credit $XXX amount to your bank account before the deduction. ANZ then charges $XXX + 0.7% processing fee to your ANZ credit card.
You will get 1 Travel$ for every $1 charged to your ANZ Travel Visa Signature for the income tax payment, which works out to be 1.81% in cash rebate. Effectively, you get 1.81% - 0.7% = 1.11% for your tax payment! That is better than 0% if you just pay by GIRO!
Moreover, if you hit a minimum spending per year on your credit card (excluding income tax), you will get a rebate on your processing fee! Hence, you will get 1.81% on your income tax payable! More info here.
The above 6 steps are my strategies to planning the payments for my fixed expenses. After I am done with the above, I would just dump the UOB ONE and Maybank Visa Platinum in my drawer and they will never see light again. And I also do not have to worry about the recurring payments at all.
If you need help with your planning, drop me an email and I will try my best to help you!
Free of charge!
Tags: fixed expenses, credit card, DBS Altitude, UOB ONE, Maybank Visa Platinum, ANZ Travel Visa Signature, POSB Everyday, recurring bill payment, insurance, Singtel, M1, Starhub, S&CC, SP Services, HDB Season parking, income tax, IRAS
Step 1: Write down all the monthly recurring fixed expenses that accept credit card payment that you have.
Insurance 1: $104.75
Insurance 2: $110.35
Insurance 3: $230.20
Insurance 4: $160.15
Telco: $150.00
S&CC: $58.00
SP Services: $200
HDB season parking: $90
Income Tax: $450
Step 2: List down any credit card limitation that these fixed expenses may have.
Insurance 1: $104.75
Insurance 2: $110.35
Insurance 3: $230.20
Insurance 4: $160.15
(The above 4 only accepts recurring payment by Standard Chartered Bank, DBS/POSB, Maybank, UOB
Telco: $150.00 (Monthly recurring and online payment available)
S&CC: $58.00 (Only Visa/Master)
SP Services: $200 (Only DBS/POSB for recurring payments)
HDB season parking: $90
Income Tax: $450 (Giro or monthly recurring payment by HSBC/ANZ credit card)
Step 3: Try to see if you can hit the tiers of $300 / $600 / $800 / $1000 / $1500.
Applies to insurance, telco bills, S&CC etc.
If your fixed expenses can meet $300 every month, you may use UOB ONE OR Maybank Platinum Visa.
If your fixed expenses can meet $600 every month and can be subdivided into 2 x $300+, you may use UOB ONE ($300) AND Maybank Platinum Visa ($300).
If your fixed expenses can meet $800 every month, you may use UOB ONE.
If your fixed expenses can meet $1000 every month, you may use Maybank Platinum Visa.
If your fixed expenses can meet $1500 every month, you may use UOB ONE.
The above 2 cards will earn you up to 3.33% cash rebates if you can hit the required tiers during the qualifying quarters.(You may click the links for more information)
Step 4: Payment to SP Services
If you are looking at FUSS-FREE monthly recurring payment, pay with the DBS Altitude Visa Signature. You get 3 DBS Points for every $5.
There are times when there is $100 Tunglok voucher for redemption at 4200 points. This will translate to 1.42% which is pretty good in my opinion. Give your family a treat with the voucher!
Click to download DBS Credit Card Recurring Payment form.
POSB Everyday only gives you up to 1% (or $1).
1% cash rebate for SP Services and StarHub is capped at a maximum spend of S$100 per Card account, per calendar month per respective billing organization. For SP Services, recurring charges are applicable only to accounts under the name of the main or supplementary cardholder.
If it is convenient for you and you are looking at the highest % in terms of cash rebate, make trips down to the SP Services, Customer Service Centres to make payment.
Then pay with the ANZ Travel Visa Signature to enjoy 2.54% in cash rebate (1.4 Travel$ for every $1 spent, 550 Travel$ = $10). You may pay up to 3 months worth of bills in advance.
Step 5: HDB Season Parking
For FUSSFREE method, pay with Giro and get 2% discount.
For maximum cash rebate, pay online with the ANZ Travel Visa Signature to enjoy 2.54% in cash rebate (1.4 Travel$ for every $1 spent, 550 Travel$ = $10).
Note: You will have to remember to pay monthly to earn $0.50 more in cash rebate.
Step 6: Income Tax
Pay your income tax with ANZ Travel Visa Signature for the best returns! More info here.
There is a processing fee of 0.7% applicable (or 0.5% if you are ANZ Signature Priority Banking card member). Processing fee is charged every month and no points will be awarded for the processing fee.
Basically it works this way. You maintain a GIRO arrangement to pay $XXX monthly with IRAS. ANZ will credit $XXX amount to your bank account before the deduction. ANZ then charges $XXX + 0.7% processing fee to your ANZ credit card.
You will get 1 Travel$ for every $1 charged to your ANZ Travel Visa Signature for the income tax payment, which works out to be 1.81% in cash rebate. Effectively, you get 1.81% - 0.7% = 1.11% for your tax payment! That is better than 0% if you just pay by GIRO!
Moreover, if you hit a minimum spending per year on your credit card (excluding income tax), you will get a rebate on your processing fee! Hence, you will get 1.81% on your income tax payable! More info here.
The above 6 steps are my strategies to planning the payments for my fixed expenses. After I am done with the above, I would just dump the UOB ONE and Maybank Visa Platinum in my drawer and they will never see light again. And I also do not have to worry about the recurring payments at all.
If you need help with your planning, drop me an email and I will try my best to help you!
Free of charge!
Tags: fixed expenses, credit card, DBS Altitude, UOB ONE, Maybank Visa Platinum, ANZ Travel Visa Signature, POSB Everyday, recurring bill payment, insurance, Singtel, M1, Starhub, S&CC, SP Services, HDB Season parking, income tax, IRAS
Tuesday, 27 January 2015
Cheapest way to call Philippines from Singapore
This post is inspired by the lady who was confused by the numerous calling cards that were presented to her by the cashier at the supermarket. I overheard that she was trying to get a card for her maid to call Philippines and as this was her first maid, she didn't know which was the best option. And to make things worse, there were too many to choose from! Thus, she asked the cashier who was equally confused!
Hence, I decided to do some research and perhaps this lady will somehow stumble upon this post and help her with her decision next time, and not hold up the queue. : )
Also, I hope more employers will make the right choice when it comes to choosing the cheapest way to call Philippines from Singapore.
Generally, you can call Philippines from Singapore via 5 methods:
1) Using a calling card (You will need a land line/mobile line/public phone to use a calling card)
2) Using a prepaid sim card
3) Using a postpaid sim card (Most expensive, same IDD rates as using land lines)
4) Using a land line (2nd most expensive, same IDD rates as using postpaid sim card)
5) Using Skype
The cheapest and most hassle-free way to call Philippines from Singapore is in fact the M1 M Card, a pre-paid card.
You can get the M1 M Card from:
My method of comparison between the different pre-paid sim cards is by comparing the charges for a weekly 30-minute call to Philippines from Singapore at the times which the telcos offered the best IDD rate.
I found that using the M1 M Card offers the cheapest way to call Philippines from Singapore as it will cost you $10.64/month for a weekly 30-min call to Philippines. However, you will need to make the calls on Saturdays to enjoy the promotional rates. And you will need a cheap mobile phone.
I ignored the comparison of different top-up cards offered by the telcos with different additional values/perks as I find that the 3 telcos offered almost the same thing for the same amount paid. Hence, the comparison is negligible and insignificant.
Here you go, a compilation of the rates for calling Philippines from Singapore.
From my research, I found that using a postpaid/land line and IDD to call overseas will deplete your savings faster than it grows! Unless you feel rich and have money to burn, avoid using postpaid/land line and IDD to call overseas. Since this is going to be frequent, get the cheapest and most efficient method!
Calling cards, though popular among maids, are definitely not the cheapest way to call Philippines from Singapore. Based on my research, there are several disadvantages to using a calling card:
1) Connection can be very bad with poor reception
2) Calls can drop sometimes and you will have to pay for the connection charge again.
However, the advantage is you do not need to have a mobile phone (a rule which some employer might impose). All you need is either the land line or a public phone. Of course, local rates will apply.
Skype has quite a number of disadvantages as well:
1) You will need to lend your mobile phone to your maid for 30 minutes if your maid does not have a smart phone.
2) You will need WIFI
3) The rates will fluctuate as you need to buy credits in USD
4) Calls can drop if WIFI signal is not consistent and you will have to pay for connection charge again.
So now you know:
The best and cheapest way to call Philippines from Singapore is by using the M1 M Card (Pre-paid)!
Tags: cheapest, call, Philippines, Singapore, Singtel, M1, Starhub, HomeConnect, Hello!, M Card, land line, IDD, pre-paid, post-paid, calling card, Skype, IDD 019, IDD 018, IDD 1818
Hence, I decided to do some research and perhaps this lady will somehow stumble upon this post and help her with her decision next time, and not hold up the queue. : )
Also, I hope more employers will make the right choice when it comes to choosing the cheapest way to call Philippines from Singapore.
Generally, you can call Philippines from Singapore via 5 methods:
1) Using a calling card (You will need a land line/mobile line/public phone to use a calling card)
2) Using a prepaid sim card
3) Using a postpaid sim card (Most expensive, same IDD rates as using land lines)
4) Using a land line (2nd most expensive, same IDD rates as using postpaid sim card)
5) Using Skype
The cheapest and most hassle-free way to call Philippines from Singapore is in fact the M1 M Card, a pre-paid card.
 |
| Image credit: M1 Singapore |
 |
| Image credit: M1 Singapore |
- M1 Shops
- M1 Exclusive Distributors
- Appointed Authorised Money Changers
- Appointed Authorised Retailers
- Chain Stores
- 7-Eleven stores and 7-Eleven@Shell stores
- Cheers Convenience Stores and Cheers Convenience Stores at Esso/Mobile
- Fairprice Xpress
- Singpost
My method of comparison between the different pre-paid sim cards is by comparing the charges for a weekly 30-minute call to Philippines from Singapore at the times which the telcos offered the best IDD rate.
I found that using the M1 M Card offers the cheapest way to call Philippines from Singapore as it will cost you $10.64/month for a weekly 30-min call to Philippines. However, you will need to make the calls on Saturdays to enjoy the promotional rates. And you will need a cheap mobile phone.
I ignored the comparison of different top-up cards offered by the telcos with different additional values/perks as I find that the 3 telcos offered almost the same thing for the same amount paid. Hence, the comparison is negligible and insignificant.
Here you go, a compilation of the rates for calling Philippines from Singapore.
 |
| Comparison of telco charges to call Philippines from Singapore |
From my research, I found that using a postpaid/land line and IDD to call overseas will deplete your savings faster than it grows! Unless you feel rich and have money to burn, avoid using postpaid/land line and IDD to call overseas. Since this is going to be frequent, get the cheapest and most efficient method!
Calling cards, though popular among maids, are definitely not the cheapest way to call Philippines from Singapore. Based on my research, there are several disadvantages to using a calling card:
1) Connection can be very bad with poor reception
2) Calls can drop sometimes and you will have to pay for the connection charge again.
However, the advantage is you do not need to have a mobile phone (a rule which some employer might impose). All you need is either the land line or a public phone. Of course, local rates will apply.
Skype has quite a number of disadvantages as well:
1) You will need to lend your mobile phone to your maid for 30 minutes if your maid does not have a smart phone.
2) You will need WIFI
3) The rates will fluctuate as you need to buy credits in USD
4) Calls can drop if WIFI signal is not consistent and you will have to pay for connection charge again.
So now you know:
The best and cheapest way to call Philippines from Singapore is by using the M1 M Card (Pre-paid)!
Tags: cheapest, call, Philippines, Singapore, Singtel, M1, Starhub, HomeConnect, Hello!, M Card, land line, IDD, pre-paid, post-paid, calling card, Skype, IDD 019, IDD 018, IDD 1818
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
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
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
Friday, 14 November 2014
Credit cards: Let them be your slave and not the other way round!
Recently, I saw and heard a few cases of people owing money to banks due to overspending using credit cards instalment plans, paying minimum sum for credit card bills every month etc. All these can be avoided and should be avoided.
Credit card is like fire. Let it serve you and you are well. Let it climb over your head and you are doomed.
We should make our credit cards work for us and not the other way round. We should exploit discounts, cash rebates, freebies, rewards points offered by credit cards. But never, ever let the banks exploit us by charging us their ridiculous annual fees, late payment and interests.
1) Instalment Plans
Instalment Plans are in place to people feel and think that they can afford certain things when they actually cannot afford.
For instance, a person earning $3,000.00 with zero savings will not be able to afford a television priced at $5,000.00. He does not have the means to cough out $5,000.00 to pay for the television upfront. However, with instalment plans offered by merchants and banks, one can easily pay for the television by 12-months ($417.00 per month), 24-months ($209.00 per month) instalment plans.
Worse still, after purchasing the $5,000.00 television on 24-months instalment plan, the person finds that he still has room for more instalments! And he went on to purchase a new washing machine, a new stereo system etc etc. All on instalment plans! If his monthly instalment payment (assuming all are 24 months IPP) is $1,000.00 (around a third of his monthly salary), that means he had purchased $24,000.00 worth of goods! 8 times his monthly salary!
If this is not over-spending, then I do not know what is.
My advice is:
One should never make use of instalment plans offered by banks. Instalment plans are there to make you feel that the item is relatively "cheap" and "affordable". Instalment plans make you spend more than you can afford in actual dollars and cents.
2) Never use future money
Swipe your card for purchases that you know you already have the cash to pay for.
Never depend on your next paycheck to pay for the current item that you want to buy.
You swipe your credit card and not pay cash for the item, simply because you want to take advantage of the cash rebates/points earned for the purchase! You should never swipe your card because you have no money to pay for the item now and you have to wait for the next paycheck to pay for the item!
3) Pay your bills in full all the time
Always pay your bills in full and never ever pay the min sum and let the debt roll over. With typically 24% per annum interest charged on balance, this is almost the highest interest rates you could be paying your whole life! You will NEVER be able to pay up your debt if you just pay the minimum sum every month because you will be paying for the interest only most of the time!
Follow the above 3 rules and you will be safe!
Remember: credit cards should be our slave; we should not be the slaves of credit cards/banks!
Tags: bank, credit card, interest, annual fee, debt, roll over, instalment, installment, IPP, bills, future money,
Credit card is like fire. Let it serve you and you are well. Let it climb over your head and you are doomed.
We should make our credit cards work for us and not the other way round. We should exploit discounts, cash rebates, freebies, rewards points offered by credit cards. But never, ever let the banks exploit us by charging us their ridiculous annual fees, late payment and interests.
1) Instalment Plans
Instalment Plans are in place to people feel and think that they can afford certain things when they actually cannot afford.
For instance, a person earning $3,000.00 with zero savings will not be able to afford a television priced at $5,000.00. He does not have the means to cough out $5,000.00 to pay for the television upfront. However, with instalment plans offered by merchants and banks, one can easily pay for the television by 12-months ($417.00 per month), 24-months ($209.00 per month) instalment plans.
Worse still, after purchasing the $5,000.00 television on 24-months instalment plan, the person finds that he still has room for more instalments! And he went on to purchase a new washing machine, a new stereo system etc etc. All on instalment plans! If his monthly instalment payment (assuming all are 24 months IPP) is $1,000.00 (around a third of his monthly salary), that means he had purchased $24,000.00 worth of goods! 8 times his monthly salary!
If this is not over-spending, then I do not know what is.
My advice is:
One should never make use of instalment plans offered by banks. Instalment plans are there to make you feel that the item is relatively "cheap" and "affordable". Instalment plans make you spend more than you can afford in actual dollars and cents.
2) Never use future money
Swipe your card for purchases that you know you already have the cash to pay for.
Never depend on your next paycheck to pay for the current item that you want to buy.
You swipe your credit card and not pay cash for the item, simply because you want to take advantage of the cash rebates/points earned for the purchase! You should never swipe your card because you have no money to pay for the item now and you have to wait for the next paycheck to pay for the item!
3) Pay your bills in full all the time
Always pay your bills in full and never ever pay the min sum and let the debt roll over. With typically 24% per annum interest charged on balance, this is almost the highest interest rates you could be paying your whole life! You will NEVER be able to pay up your debt if you just pay the minimum sum every month because you will be paying for the interest only most of the time!
Follow the above 3 rules and you will be safe!
Remember: credit cards should be our slave; we should not be the slaves of credit cards/banks!
Tags: bank, credit card, interest, annual fee, debt, roll over, instalment, installment, IPP, bills, future money,
Tuesday, 28 October 2014
Where do I buy electronic appliances?
Everyone buys electronic appliance. But not everyone knows where to get the best deal.
So, the question is, where can I find the best deal for electronic appliances in Singapore?
Many people will recommend Parisilk, Goh Ah Bee etc.
I recommend Mega Discount Store.
However, before you head down to Mega Discount Store, do your homework.
1) Shortlist what you want to buy, down to the exact brand and model.
2) Head down or call up a few electronics store (especially Parisilk and Goh Ah Bee) and ask for a quotation.
3) Note down the lowest price (normal retail price; not price tied to limited sets)
4) Head to Mega Discount Store
Look for an assistant and tell him what you want. If the price he quoted is higher than your researched price, tell him that and see if Mega can match your lowest researched price. They will reject you if they cannot match. Then you can go back to where you get your lowest researched price to buy. BUT if they can match your lowest researched price, then you are in luck.
BECAUSE, Mega Discount Store allows payment by credit card. Parisilk and Goh Ah Bee may give low prices but they may only accept cash payment for the low price they give. They may allow credit card payments but the price will not be as attractive as when you pay by cash.
Hence, you will get additional discount of between 2.5% (using ANZ Travel Visa Signature) and 3% (using Standard Chartered Manhattan if you exceed S$3000.00) if you purchased from Mega Discount Store.
That's not the end of it!
You can either make full payment at point of purchase and wait for the delivery (recommended due to savings from using credit card), or you may just pay a little deposit (10-20%) and pay the rest upon delivery.
The beauty of this is, if you purchased a TV at S$2000.00 on 1 Jan and due to deliver on 1 May, in the meantime, you find another store selling at S$1800.00 (reduced retail selling price; not flash sale price), you may let Mega know about the new price and if they can, they will match the price. Otherwise, they will allow refund of your payment for the item. I give them 2 thumbs up for the service!
Mega Discount Store offers free delivery and their delivery man is pretty punctual. If they say deliver between 2 and 5pm, you can be certain they will be there within the stipulated time. And they will install for you FOC.
So this is why I highly recommend buying from Mega Discount Store!
By the way, before you think this is a paid advertisement, I must say the above are solely based on my account from buying from Mega about 2 years back. I spent about S$4000.00 in total buying electronic appliances from them for my new BTO. If the practice I stated above is no longer available, do let me know.
Tags: Mega Discount Store, Parisilk, Goh Ah Bee, Harvey Norman, Courts, electronic appliance, Standard Chartered Manhattan, ANZ Travel Visa Signature
So, the question is, where can I find the best deal for electronic appliances in Singapore?
Many people will recommend Parisilk, Goh Ah Bee etc.
I recommend Mega Discount Store.
 |
| Image credit: Mega Discount Store |
However, before you head down to Mega Discount Store, do your homework.
1) Shortlist what you want to buy, down to the exact brand and model.
2) Head down or call up a few electronics store (especially Parisilk and Goh Ah Bee) and ask for a quotation.
3) Note down the lowest price (normal retail price; not price tied to limited sets)
4) Head to Mega Discount Store
Look for an assistant and tell him what you want. If the price he quoted is higher than your researched price, tell him that and see if Mega can match your lowest researched price. They will reject you if they cannot match. Then you can go back to where you get your lowest researched price to buy. BUT if they can match your lowest researched price, then you are in luck.
BECAUSE, Mega Discount Store allows payment by credit card. Parisilk and Goh Ah Bee may give low prices but they may only accept cash payment for the low price they give. They may allow credit card payments but the price will not be as attractive as when you pay by cash.
Hence, you will get additional discount of between 2.5% (using ANZ Travel Visa Signature) and 3% (using Standard Chartered Manhattan if you exceed S$3000.00) if you purchased from Mega Discount Store.
That's not the end of it!
You can either make full payment at point of purchase and wait for the delivery (recommended due to savings from using credit card), or you may just pay a little deposit (10-20%) and pay the rest upon delivery.
The beauty of this is, if you purchased a TV at S$2000.00 on 1 Jan and due to deliver on 1 May, in the meantime, you find another store selling at S$1800.00 (reduced retail selling price; not flash sale price), you may let Mega know about the new price and if they can, they will match the price. Otherwise, they will allow refund of your payment for the item. I give them 2 thumbs up for the service!
Mega Discount Store offers free delivery and their delivery man is pretty punctual. If they say deliver between 2 and 5pm, you can be certain they will be there within the stipulated time. And they will install for you FOC.
So this is why I highly recommend buying from Mega Discount Store!
By the way, before you think this is a paid advertisement, I must say the above are solely based on my account from buying from Mega about 2 years back. I spent about S$4000.00 in total buying electronic appliances from them for my new BTO. If the practice I stated above is no longer available, do let me know.
Tags: Mega Discount Store, Parisilk, Goh Ah Bee, Harvey Norman, Courts, electronic appliance, Standard Chartered Manhattan, ANZ Travel Visa Signature
Monday, 27 October 2014
How much do I need to save up for a wedding?
Someone emailed me, asking me to give a breakdown cost of a decent wedding with the usual requirements.
So how much do you really need to save up before a wedding? Let's do a break down of the necessary (or required by GF) expenses for a wedding.
ROM
Estimated cost: min S$26.00
Bethrothal Gold (娉金)
Estimated cost: min S$888.00 (very very very subjective)
Bethrothal Gift (聘礼)
Estimated cost: min S$300.00
*Teochew Dowry Jewellery (四點金)
Estimated cost: min S$3000.00
*Banquet (4 star hotel & above)
Estimated cost: min S$1200.00 per table
*Wedding packages (including actual day gowns, actual day photography, wedding car decor)
Estimated cost: min S$3000.00
*Videographer (from morning gatecrashing to dinner)
Estimated cost: S$2000.00 including OT
Wedding bands
Estimated cost: min S$1000.00
*Engagement (Proposal) Ring
Estimated cost: min S$1500.00
*Wedding car rental
Estimated cost: min S$238.00
*Gatecrashing Angbao
Estimated cost: min S$188.00
Misc expenses for the Newlyweds bedroom
Estimated cost: min S$200.00
Misc angbaos of S$28.00 each
Estimated cost: min S$500.00
Pre-wedding Photoshoot
Estimated cost: min S$2000.00
*Denotes optional items (in my opinion)
Let's assume the couples only invite close friends and relatives. So they require 18 tables (180pax)
The total cost for a decent wedding would be: S$36,440.00.
This is just an estimate that you will need for a wedding. BUT not to worry, there are still ang baos from your guests which you can use to offset the cost.
ALWAYS assume you will make a loss of between 10% and 20% of the banquet. That will let you control your budget and not burst your budget.
Hence, you should get back S$18,360.00 (estimated loss of 15%).
Your total cost for the wedding is now: S$18,080.00.
FRET NOT GUYS! You only need S$18,000.00 to hold a decent wedding with banquet at a 4 star hotel.
It's not as difficult as you think!
If you omit those which I think are optional and can do without, it will only cost you S$5000.00! Take the balance of S$13,000 to go on a honeymoon in Europe instead!
It is always good to work out all these expenses to have a good idea of how much you really need for a wedding! Try not to overspend and keep to a budget (that is if your other half agrees). And SAVE for your BIG day!
Tags: wedding, expenses, budget, banquet, hotel, bethrothal gift, price, angbao
So how much do you really need to save up before a wedding? Let's do a break down of the necessary (or required by GF) expenses for a wedding.
 |
| Image credit: www.theworldofchinese.com |
ROM
Estimated cost: min S$26.00
Bethrothal Gold (娉金)
Estimated cost: min S$888.00 (very very very subjective)
Bethrothal Gift (聘礼)
Estimated cost: min S$300.00
*Teochew Dowry Jewellery (四點金)
Estimated cost: min S$3000.00
*Banquet (4 star hotel & above)
Estimated cost: min S$1200.00 per table
*Wedding packages (including actual day gowns, actual day photography, wedding car decor)
Estimated cost: min S$3000.00
*Videographer (from morning gatecrashing to dinner)
Estimated cost: S$2000.00 including OT
Wedding bands
Estimated cost: min S$1000.00
*Engagement (Proposal) Ring
Estimated cost: min S$1500.00
*Wedding car rental
Estimated cost: min S$238.00
*Gatecrashing Angbao
Estimated cost: min S$188.00
Misc expenses for the Newlyweds bedroom
Estimated cost: min S$200.00
Misc angbaos of S$28.00 each
Estimated cost: min S$500.00
Pre-wedding Photoshoot
Estimated cost: min S$2000.00
*Denotes optional items (in my opinion)
Let's assume the couples only invite close friends and relatives. So they require 18 tables (180pax)
The total cost for a decent wedding would be: S$36,440.00.
This is just an estimate that you will need for a wedding. BUT not to worry, there are still ang baos from your guests which you can use to offset the cost.
ALWAYS assume you will make a loss of between 10% and 20% of the banquet. That will let you control your budget and not burst your budget.
Hence, you should get back S$18,360.00 (estimated loss of 15%).
Your total cost for the wedding is now: S$18,080.00.
FRET NOT GUYS! You only need S$18,000.00 to hold a decent wedding with banquet at a 4 star hotel.
It's not as difficult as you think!
If you omit those which I think are optional and can do without, it will only cost you S$5000.00! Take the balance of S$13,000 to go on a honeymoon in Europe instead!
It is always good to work out all these expenses to have a good idea of how much you really need for a wedding! Try not to overspend and keep to a budget (that is if your other half agrees). And SAVE for your BIG day!
Tags: wedding, expenses, budget, banquet, hotel, bethrothal gift, price, angbao
Wednesday, 22 October 2014
OCBC 360 Account - Highest Interest Savings Account!
Earn up to 3.05% interest per year with the OCBC 360 Account.
This is by far the savings account that offers the highest interest rate for deposits, much higher than what you would get for all fixed deposit! And it is a savings account, meaning you can withdraw your money anytime and anywhere you want with an ATM card.
How does it work?
Base interest: 0.05% per year
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
All Bonus interests will be credited by the 7th business day of each month.
IMPORTANT THINGS TO NOTE:
This is by far the savings account that offers the highest interest rate for deposits, much higher than what you would get for all fixed deposit! And it is a savings account, meaning you can withdraw your money anytime and anywhere you want with an ATM card.
How does it work?
Base interest: 0.05% per year
- this is the interest you will earn for whatever amount you have in the account
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
- Earn extra 1% interest if you credit your salary of minimum S$2000.00
- Only salary credit by GIRO will be entitled
- Must have "GIRO - Salary" description to qualify
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
- Pay 3 unique bills using "Pay any bill", "Pay any card" or "GIRO" within a calendar month to qualify
- 3 different credit cards from the same bank is considered 3 unique bill payment
- Multiple payments to the same bill is considered as 1 payment only
- Payments that are subsequently cancelled, reversed or made void will not be considered.
1.00% per year (applicable to 1st S$50,000.00 of account balance only)
- Spend S$400 in total on all OCBC issued credit cards within a calendar month to qualify
- Must be Principal Account Holder as well as Principal Card Holder to qualify
- Eligibility depends on posting date, not transaction date. (Posting date is typically 1 to 3 days from transaction date. Some merchants may take longer)
All Bonus interests will be credited by the 7th business day of each month.
IMPORTANT THINGS TO NOTE:
Initial Deposit: S$1,000
Minimum Monthly Balance: S$3,000
Fall below fee: S$2 (waived for the first year)
So long you qualify for 2 Bonus interest categories, you would have gotten yourself a good deal!
For comparison sake, typical savings account gives just 0.05% per year interest!
Quickly go and apply now!
Tags: OCBC, 360, bonus interest, 3.05%, savings account
Thursday, 16 October 2014
Car ownership: Can I afford a car?
Now I have a few queries pertaining to this topic: Car ownership.
How do you know if you are ready to own a car?
Let's go through this together and you will know if you are ready to own a car.
General assumptions made
a) Car purchased: Suzuki Swift 1.4M, S$92,900.00 (from sgcarmart)
b) Free parking at workplace
c) 40% down payment of S$37,160.00
d) 60% loan amount: S$55,740.00
e) Interest rate: 2.28%
f) Loan term: 60 months
g) 26 years old, single male, office based, held licence for 5 years
Monthly car expenses:
1) Instalment: S$1,035.00
2) Road tax: S$50.83
Assumption:
a) 1.4l car
3) Car insurance: S$200
Assumptions:
a) New driver
b) 0% NCD
c) S$2400/year
4) Petrol: S$250.00
Assumptions:
a) Cost: S$1.80/litre after discount,
b) Mileage of 20,000km/year; 1666.67km/month
c) Fuel consumption: 12km/l
5) ERP: S$40
Assumptions:
a) S$2.00 per day
b) Worked 20 days/month
6) Residential car park: S$88.20 (After 2% discount for using GIRO)
Assumptions:
a) Stay in HDB
b) Covered MSCP
7) Misc carpark: S$50
8) Car maintenance: S$30.00
Assumptions:
a) Servicing every 10,000km
b) S$180/servicing
Total monthly expenses: S$1,744.03
Now you know how much the car will cost you (minimally) every month. So what you need to do next is:
TRANSFER S$1745.00 EVERY MONTH INTO AN ACCOUNT WHICH YOU DO NOT HAVE ACCESS TO VIA ATM OR INTERNET BANKING
If you are able to do the above consistently for at least 24 months and still feel comfortable to live with whatever is left from your paycheck, YOU ARE READY!
After 24 months, you should have accumulated at least S$41,880 in your account. This amount will be used as down payment for your new car as well as your 1st instalment and car insurance.
Now you are able to live own a car and still live comfortably!
Tags: afford, car, ownership, costs
How do you know if you are ready to own a car?
Let's go through this together and you will know if you are ready to own a car.
General assumptions made
a) Car purchased: Suzuki Swift 1.4M, S$92,900.00 (from sgcarmart)
b) Free parking at workplace
c) 40% down payment of S$37,160.00
d) 60% loan amount: S$55,740.00
e) Interest rate: 2.28%
f) Loan term: 60 months
g) 26 years old, single male, office based, held licence for 5 years
Monthly car expenses:
1) Instalment: S$1,035.00
2) Road tax: S$50.83
Assumption:
a) 1.4l car
3) Car insurance: S$200
Assumptions:
a) New driver
b) 0% NCD
c) S$2400/year
4) Petrol: S$250.00
Assumptions:
a) Cost: S$1.80/litre after discount,
b) Mileage of 20,000km/year; 1666.67km/month
c) Fuel consumption: 12km/l
5) ERP: S$40
Assumptions:
a) S$2.00 per day
b) Worked 20 days/month
6) Residential car park: S$88.20 (After 2% discount for using GIRO)
Assumptions:
a) Stay in HDB
b) Covered MSCP
7) Misc carpark: S$50
8) Car maintenance: S$30.00
Assumptions:
a) Servicing every 10,000km
b) S$180/servicing
Total monthly expenses: S$1,744.03
Now you know how much the car will cost you (minimally) every month. So what you need to do next is:
TRANSFER S$1745.00 EVERY MONTH INTO AN ACCOUNT WHICH YOU DO NOT HAVE ACCESS TO VIA ATM OR INTERNET BANKING
If you are able to do the above consistently for at least 24 months and still feel comfortable to live with whatever is left from your paycheck, YOU ARE READY!
After 24 months, you should have accumulated at least S$41,880 in your account. This amount will be used as down payment for your new car as well as your 1st instalment and car insurance.
Now you are able to live own a car and still live comfortably!
Tags: afford, car, ownership, costs
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