Financial Responsibilities as Young Adults (2018 Update)

Posted by admin
on May 31, 2018

Financial Responsibilities as Young Adults (2018 Update)

KEYWORD PHRASES: Personal finance young adults  

As young adults, it is indeed a liberating experience to earn your first pay cheque and feel financially independent. It is a time when you feel like you have left your student life behind and arrived in the real world.  

Most youngsters revel in this new found freedom, and either end up getting swayed by it or act smart and start focusing on saving and investing. We agree, the urge to splurge your first pay cheque can be quite strong. And it is probably okay to give in to some extent. But when this goes overboard, you could find yourself up to your ears in debt. The situation worsens when you end up snowballing your debt by taking other loans to pay up your existing credit card bills and other liabilities. 

The only way to avoid this adversity is by managing your finances prudently. We do not want to sound preachy, but certain lessons tend to be true at all times. Handling your finances responsibly may not seem like your cup of tea, but if you keep these few things in mind, you could just make your money work harder for you. When it comes to personal finance for young adults, here are few things you ought to know. 

 

young people finances
young people finances

Controlling your expenditure and credit usage 

It is natural to want to wear the best labels to work or to buy that expensive car you have been eyeing for months but if it takes up an entire chunk of your salary, then maybe you should rethink your purchase. These expenses are not investments by far, and will eventually drain your account. Hence, it is important that you restrain your expenses to some extent so as to avoid being bankrupt in the early stages of your career. When you make an expensive purchase, you might think that this is just going to be a one time thing. But it doesn’t take long for people to turn into complete spendthrifts with outstanding credit card bills. It is, therefore, advisable that you limit your credit usage and control your expenditure in the initial few months of your career. This is the time when you will be laying the foundation for future financial growth with the help of strategic financial planning.  

Budgeting 

A good way to ensure you have a firm grip over your expenses is by budgeting. It will help you manage your disposable income and manage your expenses systematically. To begin with, you can list all your daily expenses that includes transport, rent, food, bills, and others. The next step is to decide what portion of your salary you want to allocate for each of these expenses. Once you have decided on the amount you can spend, set aside the rest of your pay and save it. And remember to have realistic targets or you’ll just end up being disappointed with the whole budgeting process.  

While you budget, make sure you review it every now and then to revise your saving and spending goals. If required, even use an online budget calculator to budget all your expenses accurately.  

Saving funds 

With proper budgeting, you will be left with some amount to save. When you start saving initially, it might seem like you are saving very little but over a period of time, your earning capacity will increase and so will your return on investments. This means you will be able to save a lot more as time progresses. 

Ideally, you should aim to annually save at least 3 – 6 months of your salary as an emergency fund. This will help you survive in case you get laid off your job, meet with an accident or are temporarily unable to work due to some reason. You might also have to set aside money for that long pending vacation you intend to take, for unforeseen health related expenses, your upcoming wedding or even for getting your parents an expensive anniversary present.  

Building a financial portfolio 

Once you start saving, you are in a position to take baby steps towards investing your funds. Most people begin with getting a fixed deposit. Other investment options include mutual funds, stocks, bonds, real estate and cryptocurrencies. These days more and more investors are investing in cryptocurrencies. Bitcoins are the most popular option when it comes to investing in cryptocurrencies. While you spend time strategizing on the best mix of investment options for your financial portfolio, don’t forget to pay attention to your retirement planning. The most common element in most Singaporeans’ financial profile is the Central Provident Fund. It is a good retirement planning option for those who want high returns but are not willing to take any risk.  

Payment of taxes 

Paying taxes is your first duty towards the state. If it’s your first time, then you might be wondering as to how to file your taxes and perform the required procedures. Generally, you will receive a notification from the Inland Revenue Authority of Singapore (IRAS), asking you to do the needful with respect to the payment of taxes. Planning for taxes is of paramount importance while managing personal finance for young adults.  

As young adults, you are in the best phase of your life when it comes to savings. You don’t have the responsibility of a spouse or children. By being financially responsible today, you will slowly and steadily create a sizeable corpus for your and your family’s future. Best of luck! 

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A/B IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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Essential Retirement Moves to Make in Your 20s and 30s. (2017 Update)

Posted by admin
on May 22, 2018

Essential Retirement Moves to Make in Your 20s and 30s. (2017 Update)

KEYWORD PHRASES: Saving for retirement in your 20s 

retirement-image

When you are young, the tendency to spend a lot and enjoy life is quite common, and prudence tends to take a backseat. In the prime of our youth, we forget that we will not stay young for a very a long time. We won’t be in a condition to work for the rest of our lives. And at that point you will require the support of your savings, pension plans, insurance policies, and central provident fund (CPF). To be able to survive your post-retirement period, you will have to strategically start saving for retirement in your 20s and 30s.  

But do Singaporeans really care about retirement planning? Although Singaporeans have a reputation of being financially conservative, when it comes to retirement, statistics speak otherwise. According to a Nielsen survey commissioned by NTUC Income, one in three Singaporeans are not prepared for the golden years of their life. And among the surveyed group, 40 percent admitted to not doing enough for their retirement planning as they don’t know much about the options available to them.  

 So, if you have been wanting to kickstart your retirement planning, then you probably need to employ the following retirement moves in your 20s , 30s and the rest of the years till your retirement 

Contributing to retirement planning in your 20s 

The period between your 20s and 30s is usually spent graduating from college and bagging your first job. The average Singaporean already has a job by the age of 25 years. And a major part of your 20s are spent planning in repaying student loans, rent, and other expenses. Most youngsters tend to get carried away with their newfound financial freedom and end up over-spending instead of saving. But, if you intend to have a peaceful retirement, then it is imperative you get started early on. The best part of starting early is that you have the benefit of time in your hands. This helps in recovering any losses that you might make in the course of reaching your retirement.  

Here are a few things you ought to do for your retirement:

Think in terms of a fixed amount 

It is always good to start with estimating the exact amount you would require to survive post retirements. This amount will vary for different people based on their lifestyle. Only when you know the exact number can you work towards achieving your goal. There are many retirements planning calculators online that can help you estimate the exact amount you would need to save for your retirement. Some of the most popular options are: 

The CPF Retirement calculator: As per the Central Provident Fund website, the CPF Retirement Calculator is an interactive tool that helps you to determine if your retirement goal is achievable. It determines the amount of savings you need based on your desired retirement age and retirements lifestyle.  

Retirement Income CalculatorDIY Insurance, a popular website that compares all the insurance policies in Singapore, helps you decide on the right policy. This online portal also offers a retirement income calculator where you can find out if you have enough sources to fund your retirements lifestyle.  

Companies like Standard Chartered and Aviva Life Insurance have calculators to help you estimate your retirement saving goal, too. 

Don’t bankroll your 20s in credit 

The next thing to keep in mind is that your credit card is not your ticket to over indulgence. In fact if you heavily use your credit card, then all your focus will be diverted in paying the credit card bills. You will barely be left with any funds for your retirement planning. So, be sure you don’t bankroll your 20s in credit. Live within your means and avoid the temptation to misuse the spending flexibility of your credit card. Otherwise you will end up bearing the brunt of mishandling your finances in your 30s. If you start saving for your retirement in your 20s. Then the amount you will have to save to reach your end goal will be lesser. But the more you delay, the higher the amount you will have to save to reach your retirement planning goals.  

Major retirement planning moves in your 30s 

Childproof your finances 

It’s highly likely that by the time you are in your mid 30s. You are already married and planning to have a child. The birth of a baby will increase your overall annual expenses by at least $10,000. These expenses will only increase in the coming years as your child will progress in her educational path from school, to high school, and college.  

Transfer any unused Ordinary Account (OA) savings to your Special Account (SA)  

One of the best ways to grow your retirement savings is by making a cash top. And all this up to your own special account (SA). According to the website Are you ready by the Central Provident Fund (CPF) fund, savings in your OA can earn up to 3.5% interest p.a. while that in your SA can earn up to 5%.  So, take advantage of this higher interest rate and transfer any unused savings to your SA! You’ll be surprise at the difference 1.5% makes over time. 

Keep these tips in mind, and there is a good chance that you would be able to survive your post-retirement life comfortably.  

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A/B IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

 

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Can Insurance Be A Tool For Investment? (2018 Update)

Posted by admin
on May 2, 2018

Can Insurance Be A Tool For Investment? (2018 Update)

KEYWORD PHRASES: Insurance investment products 

 

insurance
insurance

 

 

 

 

 

 

People are usually attracted to idea of growing their wealth with the help of their limited earnings. This is why they tend to have a positive outlook towards investments. But when it comes to insurances, everybody associates it with all the unfortunate incidents in life like death, critical illness, and accidents. Talking about insurance is never a good idea in a social gathering, as it makes everyone morose.  

But this is slowly changing. Financial planners are even trying to use insurance as an investment tool. They try to seek out the best of both worlds for consumers by linking investments with their insurance policy. Products like Investment-Linked Insurances Policy (ILP) have both insurance as well as investment components. It’s important to note that both insurance and investments are crucial for your financial profile. You need investments to increase your wealth, for better lifestyle, and for a comfortable life post-retirement. On the other hand, as you go through various stages of life, the number of dependent people increase. The right insurance policies will ensure that your family is financially stable even if you are not around. But is it a financially viable option to combine investments with insurance coverage? The answer depends on your financial goals and risk tolerance.  

Here is a brief overview of Investment-linked Insurance Policies in Singapore, their potential benefits and the risks involved. 

What are Investment-linked Insurance Policies? 

According to MoneySense, a National Financial Education Programme for Singapore, Investment-linked insurances policies (ILPs) have both life insurance and investment components. The policy requires you to pay for units for sub-funds of your choice. A part of the premiums you pay is used for investing in these sub-funds whereas the remaining amount is used to pay for insurance coverage.  

ILPs provide insurances protection in the event of unfortunate events like death, motor-vehicle accident, critical illness, total or permanent disability (TPD), etc. Depending on the policy, the death or TPD benefit may comprise the higher of the sum assured or value of ILP units or some combination of the sum assured and the value of ILP units. The money you get depends on the value of the units at that time.  

ILPs are ideal for those who have a strong inclination towards investments as opposed to getting an insurance policy. It provides a way for the investor to be happy about getting to invest in the sub-funds of her choice and at the same time gives the satisfaction of having insurance coverage. However, if your priority is for a stronger insurance coverage, then you should consider other insurance products that are not linked to investments.  

The MoneySense website classifies ILPs into two major categories:  

Single Premium ILPs:  

You pay a lump sum premium to buy units in a sub-fund. Most single premium ILPs provide lower insurance protection than regular premiums ILPs. 

Regular Premium ILPs:  

You pay premiums on an ongoing basis. Regular premium ILPs may allow you to vary the level of insurance coverage you need. 

The benefits of insurance investment products 

One of the key benefits of linking investment with insurances is that you get to enjoy potential returns as well as life protection at the same time. To add to that, there is a wide range of sub-funds to choose from. You can opt for sub-funds that adhere to your risk-tolerance. And some financial advisors also allow you to switch your sub-funds after charging you a nominal fee. You also get the flexibility to vary your investment mix and insurance coverage based on your evolving financial needs.  

Investors may optimize the returns with the help of professional fund management knowledge provided by renowned investment advisors. And the cherry on the cake is that it is exempt for all estate duties.  

The risks and pitfalls of insurance investment products  

One of the main downsides of linking insurances with investment is that the value of your investment is directly linked to the movement of the market, and the risks are higher. So, if the market is at all time low, your investments will go down. Although even the opposite is possible, the risk involved in ILPs is much higher. Another disadvantage of using ILPs is that the units you purchase could be insufficient to cover your insurance fees. ILPs are also known to have high sales charges. In most cases, you will end up paying a huge incentive to your financial agent. As per a report by Dollar and Sense, this incentive can be atleast worth the premium you pay for one year.  

The reason for high sales charges could be your growing age and a steep fall in your immunity. Therefore, insurance companies label you as a riskier client. To lessen this risk, insurance companies ask for higher fees for older policyholders – even if you keep the same coverage. 

This means that every year, even if you are paying the same amount of money for your policy, your premiums can buy fewer investment units to pay for your higher-costing insurance charge. 

This is especially risky for those whose accounts combine a high insurance coverage and a sub-fund that isn’t performing well because the cash value may not be enough to pay for the life insurance’s coverage charges. To fix this, you may either raise your premium payment or lessen the insurance coverage. 

The final verdict 

When planning to invest in anything, remember to take time to study and understand what you are deploying your money to. 

Now if you ask whether insurances can be a tool for investment? The answer is yes, but just like a regular investment option, your insurance linked investment policy involves high risk. So, if you’re up for it, indeed go for it.  


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A/B IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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