Friday, December 30, 2011
Wednesday, December 28, 2011
The coins I bought are from Golden State Mint and each coin weights 1/4 troy oz.
Here is a scan of it =)
Friday, December 23, 2011
Well, the first thing to realise is that it is not too difficult to buy silver in Singapore. I am not talking about investing in silver through ETFs but really owning physical silver bars and coins. There are actually quite a few companies that sells silver bullion. Here are the few things that I have learnt about silver coins thus far:
1. Buy silver coins or bars that are widely recognised
- This seems to be the advice that people are giving in various forums. Coins widely recognised include the American Silver Eagle and the Canadian Silver Maple Leaf. There are others like the Australian Silver Kookaburra from Perth Mint and also the Austrian Silver Vienna Philharmonic.
- One can check the spot price for silver easily on kitco or some other website. However, silver coins often trade or are sold above the spot price of silver. Even on Ebay, they trade above the spot price.
- Silver price has been increasing slowly.
- www.1silver1.com (Website is a bit slow so need to be patient)
Wednesday, December 21, 2011
GGN was previously named Gabelli Global Gold Natural Resources before the recent name change to Gamco Global Gold Natural Resources.
Monday, December 19, 2011
Finally found the time to go down to Starhub and cancelled my cable plan. I don't watch TV so I definitely do not need cable TV. It was as simple a decision as that. And just by that simple decision, I have saved myself around 30 dollars a month. This decision was definitely not motivated by saving money since I have been thinking about cancelling my subscription for the longest time but was just too lazy to do so.
I am glad that I have finally done so. I have just been procrastinating for too long. Just trying to cut out all the clutter in my life and focus on the real things that I enjoy doing.
My dear reader, what clutter can you removed from your life that you have been procrastinating for way too long?
Saturday, December 17, 2011
Dividends and passive income for the month of Nov 2011 was around $300. Couldn't be bothered to do the conversion of USD to SGD but I figure it should be somewhere there. Managed to renew some ad space on my sites so that helped to boost the income a little.
I have also been thinking a bit more seriously about the charities that I ought to be giving to. Some days, I just feel like I have been blessed with so much and I really have not much need for so much money. After all, there is only so much one can eat, and spend money on. There is just a numbing effect to spending so much money. It doesn't give me great pleasure or happiness anymore. Well, in the past , retail therapy was something that I subscribed to. But nowadays, I lead a simple life and I am pretty content with simple food and a simple lifestyle.
Right now, I am just waiting for Christmas to come. Can't believe that it is now the end of the year. And another whole new year awaits me.
Wishing all readers an advance Blessed Christmas!
Tuesday, November 29, 2011
When Do You Want to Die?
So when thinking about the retirement age or retirement planning in general, it is inevitable that the question about life expectancy will come up. Meet any financial planner or insurance agent and they will most probably bring up the issue of the "age that one is expected to die" . Well, it is a valid question as many of the assumptions that are made will be based on the assumption of when you think you are going to die (okay, that sounds so blunt but it is the truth).
The problem with putting a pinpoint estimate on when you think you are going to die based on the statistical life expectancy is that you might over or under estimate how long you might live. Life expectancy is calculated based on a statistical average. And we learn in school that average basically means that the average person is expected to be around there but at the same time, there can be large variances.
So these large variances means that you can either die way before the average life expectancy or you could actually live a whole lot longer than what you previously expected. When it comes to retirement planning, I guess most people often make the assumption that the average life expectancy is the year that they will DEFINITELY DIE. But that is wrong and it is perhaps wise to cater for a bit more extra just in case you are not the average person. What happens if you retire at age 65 and die at age 95 or 105? Will you have enough retirement savings to last you till then if your initial planning assumption used was that you are expected to live until only 80? Yes, I know that might be going a bit overboard to cater in for such large variances in retirement planning but wouldn't you want to err on the safe side if your current income allows you to set aside a little more for your retirement?
Of course, if you die much earlier before the retirement age, then this is not a problem that you will have to worry about. Sorry for being so morbid but that is the truth.
But the main idea is this: Life expectancy is just a statistical average. When using it as a planning assumption for retirement planning, do remember that it is just an assumption. Life might not turn out the way you assume it is going to be and you might die much earlier or live much longer compared to the average person.
Friday, November 25, 2011
Indeed, after ten years since real estate investment trusts (REITs) were listed on the Singapore Stock Exchange, it seems that many people (including me) still do not really understand much about this asset class and the investment opportunity/risk involved.
I started taking note of REITs sometime back due to the potential dividends that I could receive. It seemed like a choice investment instrument for me as I was really into income investing and was looking for ways to increase my passive income. My first investment was in First REITs. I subsequently divested it because it was too heavily focused on healthcare with its assets largely in Indonesia. But while REITs are usually positioned as defensive play, I can agree with Mr Colin Tan that for Singapore REITs, many of them are still on the acquisition trail and are trying hard to expand their portfolios.
What does this mean for investors? It simply means that once can expect money to be raised through rights issue. If one does not subscribe to the rights issue, your overall shareholdings as a % drop. Whether this translates to a drop in distribution is probably a study to be taken up by somebody more experienced. But I do agree that it seems that many of the REITs are linked to their parent companies and it might be questionable how the valuations are done (including of course the timing of the transaction).
The domestic market is also pretty small. And I guess there are certain economies of scale required before REITs should start expanding overseas. (Just think about the airfares that have to be paid for management to do the site visits, meetings, etc). Of course, REITs are also tied closely to the property market and rental market and one needs to keep in mind all these factors when investing in them. If one invests in REITs which has properties overseas, you are also exposed to other country risks that are involved.
Nevertheless, REITs still feature in my portfolio. I still intend to purchase more and diversify across the various REITs in order to diversify my risk accordingly.
Well, REITs is still a mystery to me in many ways and I am still slowly learning more about them day by day. In a sense, they look simple. But when one studies them further, you will come to realise that there are actually lots of complexities involved.
Wednesday, November 2, 2011
Saturday, October 29, 2011
August was good in terms of dividends received but September has been pretty quiet. Other than a Adsense cheque that I received, have not received much passive income. Can definitely do better for the future.
Friday, October 21, 2011
Well, I don't really plan to retire. And I hope that I can stay employed for as long as possible. At least that will keep me active. But the matter of fact is that it will probably be difficult to work at the same pace that I am working now. So I will probably be doing WORK, but it might not necessarily be PAID WORK. It could be volunteer work or something else. I don't know.
Recently, the thought of opening a postage stamp shop just keeps creeping into my mind. Maybe I should just pursue my hobby and try to make a living out of it. That will be some cool retirement plan indeed. But it is difficult as the capital involved seems to be quite huge. And I will probably want to hoard all the stamps rather than sell them. Something for me to think about and work towards over the next 30 years perhaps.
Wednesday, October 19, 2011
Sunday, October 16, 2011
I have been doing that the past couple of days and I realised that the answer is a vague NO. It isn't a strong NO-NO. But neither is it a resolute YES.
Saturday, October 15, 2011
Friday, October 14, 2011
Wednesday, October 12, 2011
I said it’s all about you and you reply with the vice-versa
In the beginning I was, like this might hurt you
Love is a strong thing, it can make you wanna die or make your heart sing
Nothing compares to the joy you bring in me (bring in me)
You could make a, a cripple man walk and a blind man seeIt’s all about you and me
Girls flirtin’ with me but you still stuck with me
And didn’t give a f*** with me,
If I needed it, you would give your blood to me
And this means you’ll be mine till the end of time
We gonna ride, gonna shine, in this life of mine
Took me awhile to figure it out
But you’re the reason why I live my life no doubt
And you’re the only one who makes me feel this way
I ain’t got no time to waste
Where I need to be is beside you
I spent so many years trying to find you, baby
(Woo, you baby, hey yea, hey yea, hey yea yea)
How you feel baby now that we’re having one
Yeah they telling me our life’s just begun
I look forward to this new life as a daddy that can handle his son
We ‘bout to have all kinds of fun
You’re a mother now (uh)
Who would’ve thought you would ever be a mother wow
It’s kinda crazy how things turned around
We went from living on the streets and being homeless downtown
Hail Mary, come with me
My father’s up in heaven watching over me
Thanks for staying close to me
And in my heart I know that’s where we’re supposed to be
With a third heartbeat and live so complete (eh)
And we can start a family yeah
And we can start our family yeah, we can start our family yeah
And you’re the only one who makes me feel this way
I ain’t got no time to waste
Where I need to be is beside you
I spent so many years trying to find you, baby
(Woo, you baby, hey yea, hey yea, hey yea yea)
Monday, October 3, 2011
Friday, September 30, 2011
Thursday, September 29, 2011
It looks like my search for another monthly dividend stock will have to continue.
Friday, September 23, 2011
You might have just stumbled upon this blog and I thank you for taking time to go through it. I hope you find lots of interesting articles even as you navigate around this blog. I thought that I might as well just highlight a few articles which I have grouped according to topics to make it so much easier for you to navigate: I must be frank that reading through some of these posts, I have entirely forgotten that I actually wrote them. It almost feels like it was a different person writing some of these articles then.
Personal Thoughts and Reflections
- A Brutally Honest Post
- Lessons from Silas Marner
- Which is Your Best Income Source
- Conversation with a Millionaire
- Don't Run the Rat Race
Salary and Personal Finance
- Salary Discussion
- Starting Pay for Singapore Graduates
- Are You Ready to Manage Your Cashflow?
- Are You Ready to Take Charge of Your Healthcare Costs?
- 1001 Frugal Things to Do
- How Much to Get Married (Part 1) (Part 2)
Tuesday, September 20, 2011
For example, babysitting was listed down as one of the ways to earn extra cash. Sure, this advice applies well to stay-at-home mums but even if $1000 is paid out for you to babysit a child for all weekdays throughout a month, is it a worthwhile effort? Likewise, Adsense was listed down as one of the ways but seriously, how long does it take for a newbie to earn $1000 through Adsense?
Why it is probably easier to babysit
These are difficult questions and will probably require difficult answers. But looking at it, I can safely tell you that it will be easier for most people to earn $1000/month doing babysitting compared to earning $1000/year from Adsense. And the context is really important. And the reason for this apparent difficulty or disparity lies in a really simple answer that probably plagues many of Singapore's local businesses too: Singapore is too small.
Imagine an American blogger. With a total resident population in the United States of 300 over million people and a high internet penetration rate, it is fairly easy for this American blogger to reach out to his target group of audience (i.e. customers) in America. Even if he was only able to capture % of the audience per day, that will amount to 3 million readers per day already. The same Singaporean blogger has no such luck. If he managed to reach out to 1% of the residents per day, it only amounts to 50,000 readers. Of course, the 1% target is really arbitary but it shows that for the same amount of effort, the Singapore blogger (with his/her Singaporean content only interesting to the locals) is placed at a severe disadvantage.
Well, the solution actually seems pretty straightfoward. Go global! Blog about things that the global audience can identify with and relate to. But this is challenging and extremely difficult. Unless you know what the global audience wants to read, you will probably find it extremely difficult to build up a site that will be visited by visitors. This is not to mention the language barrier, culture barrier, and other impediments that you face. And one can safely say that most people who try to eke out a living on the internet will rarely succeed. But that being said, it is not entirely impossible. There are good Singaporean bloggers who are making a living through their blogs.
How to Earn Extra Cash Passively
So I will give my own version of what I think is one good way to earn extra cash passively without much effort on your part. . Well, surprisingly, I have found out that passive income is sometimes much easier to earn than active income (e.g. blogging). I have earned a lot more from dividends paid out from stocks/shares I own compared to any other area. Of course, this pre-supposes that one has sufficient capital to invest in stocks that pay out a good yield. But this method has worked for me and has brought me fairly stable returns without me having to do a single thing. Talk about earning extra cash without putting in much effort!
Of course, not all is rosy and one must expect that there could be a possibility of the dividends being cut or the share price dropping. Nonetheless, dividends probably ranks pretty high up in my list of "How to Earn Extra Cash".
Monday, September 19, 2011
Anyway, thought I will do a continuation of what I did in the previous post and check my own readiness in terms of taking charge of my healthcare costs. I went through the list of questions in the checklist and here are my answers (as honest as can be):
I Make/Receive Monthly Medisave Contributions
Yes. My CPF contributions go towards the Medisave Account. Thus far, my Medisave account has only been used to pay a certain part of the hospital bills when my first child was born. I guess this question is really aimed at those who are self-employed and who ought to make contributions to their medisave account.
I Am Aware of the Importance of Medisave, Medishield and Eldershield
Wow, this is a pretty tricky question. I guess I generally know these 3 terms mean thought I must admit that there might be some inaccuracy in my understanding. But here it goes:
Medisave - An account held under CPF that can be used to pay off hospital bills (if certain criteria are met).
Medishield - A basic hospitalisation insurance plan.
Eldershield - A severe disability insurance scheme. Especially useful if you require long term care in the future. It provides a monthly cash payout and is available when you are of age 40.
And the importance of them all, I think I can say I know the importance of them all even though I am too young to be covered under Eldershield now.
I am Insured by Medishield and/or an Integrated Shield Plan
Yes, I upgraded my coverage to an Integrated Shield Plan offered by Aviva. I have covered my entire family with it.
I Exercise At Least 3 Times A Week
Errrr.........Okay, no. I hardly exercise at all these days. Have been making too many excuses not to exercise and this is a timely reminder that I should really be exercising more. Maybe for a start, I will try to exercise once a week?
I Keep A Balanced and Healthy Diet
Well, generally, I would like to think that I eat rather healthily. At least I do not have any health problems. But I certainly think I could eat healthier (i.e. more vegetables, more fruits and less meat). I am certain that I have room for improvement in this department. Interestingly, somebody once did a guest post on this blog regarding the linkage between financial health and obesity so you might want to check out the article.
So done. I have checked off the checklist and I think that while I am financially prepared to take charge of my healthcare costs, there is definitely room for improvement in terms of keeping myself healthy (by exercising) as well as eating right. A good and timely reminder indeed.
Sunday, September 18, 2011
Just thought that I would share some thoughts about my own personal experience regarding the first topic of managing my cashflow. Based on the checklist provided at the IMSavvy site (http://www.cpf.gov.sg/imsavvy/ayr_list.asp?catid=1), there were a few questions and I hope to answer these questions as honestly as I can. So here I go:
I Spend Less Than What I Earn Monthly
Yes, I do spend less than what I earn monthly most of the time. The only times that I ever spent more than I earn was when I was either going on a holiday or spending on my wedding preparations/home renovations. Otherwise, as a whole, I would like to think that for a typical month, I make a pretty conscious effort to spend less than what I earn monthly. This discipline I guess was instilled in me since young - you never want to spend your pocket money before the week is over. So likewise, when you are working, your monthly cash outflows should not exceed your monthly cash inflows unless for very good reasons (e.g. once-off big ticket items).
I Save At Least 10% of My Income
Generally, I would like to think that this is a YES for me too. It really depends what is the definition of saving. My definition of saving is basically income that is not spent on consumption. So saving to me includes putting money in the bank, putting it in a regular savings plan or investing in stocks. Well, some people will include their CPF contributions as part of their savings (and that isn't entirely wrong). So different people probably have very different ideas about what actually constitutes savings. For me, I do save >10% of my income over and above my CPF contributions.
Again, I must qualify that there are some months when I am a little less disciplined and splurge a little. But with a regular savings plan that I have set up through an ILP bought years ago, more than 10% of my income does go into saving (at least based on my own definition).
I Have At Least 6 Months Worth of My Income as Emergency Funds
A big YES to this question too! This was really something that I put off in the past and it was advice that I did not heed which I regret. During then, I was young and rash. I decided that the bank was paying me too little interest and decided to invest the majority of my money in stocks. I had less than 6 months worth of my income in emergency funds even though I originally had set aside that sum of money. Then came the time when I had to pay for some big ticket items and I was left with little choice but to liquidate some of my investments at a loss. So if this is not good enough warning for you, please do set aside 6 months of your income as emergency funds first before you even start investing. The last thing you want to do is to be liquidating your investments at a loss when a certain crisis (e.g. job loss) hits you.
I Pay My Credit Card Bills and Other Debt Obligations, in Full and On Time Each Month
Generally yes. All my debt obligations are paid through GIRO so I do not lapse on it. I do pay my credit card bills in full at the end of each month though not always on time. This is simply because I forget to pay them or miss the due date as the credit card bill was lost in my stack of letters. I usually call up the bank to waive the late charges since it is basically an oversight. I must have done that more than 5 times but they have always been more than willing to waive it.
I Have Adequate Financial Protection
Well, this is perhaps the toughest question to answer. And my answer to this is probably a "MAYBE". I know that I ought to be insured to certain levels (e.g. 10 times my annual pay for death coverage). But all these are really rule of thumb calculations. My protection level is slightly below those levels. I would like to think that I am adequately insured with coverage for death, TPD, critical illness, hospitalisation and personal accident.
This is perhaps a good time for me to dust off the dust on my insurance plans and see whether it is time to review the insurance coverage for myself as well as my family members.
So how did you fare in answering these questions? Any action you need to take if you have answered a "No" to any of the questions above? Are you ready to manage your cashflow?
Saturday, September 17, 2011
My name is Mrs. Mutsakorn Chauvinist, the wife of the former deputy Prime minister and finance Minister Suchart Chauvinist who died of cancer. Due to the death of my husband as you can read from the Bangkok post news website to this linkhttp://www.bangkokpost.com/
Mrs. Mutsakorn Chauvinist,
I also remember reading the Straits Times recently and was surprised to realise that there are NTU 2011 fresh grads out there that are earning $20K per month. I don't know what line they are in but $20K for a fresh grad sure sounds like a high figure to most people. I am assuming that they are probably in sales or perhaps working in some investment bank. It is good to know that local grads actually stand a chance of earning such a high salary. One would think that such high salaries were only possible if you study in a good university overseas.
Friday, September 16, 2011
Sunday, September 4, 2011
Saturday, August 13, 2011
Sunday, August 7, 2011
Wednesday, August 3, 2011
Monday, August 1, 2011
Thursday, July 28, 2011
Sunday, July 24, 2011
What a weekend! Was really looking forward to Saturday after a hectic week in the office. (Well, work is always hectic for me in a sense..) Breakfast was nicely done at SimplyBread. Had the delicious ham steak served with scrambled eggs. Felt that the toast was sort of burnt but the scrambled eggs were really good. Anyone who can cook scrambled eggs better than me definitely deserves praise. And there are really not many places in Singapore that serves good scrambled eggs.
I am not really a foodie. But when it comes to discerning good food - especially "Western style" breakfasts, scrambled eggs is the sole criterion by which I judge whether a certain cafe or stuff deserves a second visit. Scrambled eggs is like fried rice. If you can find a good zi char stall that sells good fried rice, its other dishes ought to be pretty good as well. It is really the basic dishes that sets the good apart from the rest. And when it comes to breakfast, it is really the SCRAMBLED EGGS.
You see, I am not much of a cook myself. I hardly step into the kitchen. But one dish that I think I can cook pretty well is scrambled eggs. I am not sure where I picked up the recipe for scrambled eggs but I guess it must be my mum or something. Of course, watching Gordon Ramsay and Jamie Oliver must have added some of its influences on me as well. Of course, eating scrambled eggs at Bill Granger's restaurant in Sydney must really be THE MOMENT for me in realising how a simple dish really tells so much about a place.
And the fact is that scrambled eggs needs to be cooked with butter and of course, "stirred" continously. It should never be cooked like an omelette where you literally fry it (I have witnessed some egg counters in certain hotels/resorts do just that) !! That is a strict No-No for scrambled eggs. It needs to be continously stirred under low heat in the most loving manner. And that is what makes it scrambled if you ask me.
After Breakfast Happenings
Well, that is so much for breakfast. There wasn't really much that I wanted to do afterwards and there wasn't really much to do after a satisfying breakfast. Went to Hort Park for a walk to soak in some nature. It didn't help that the weather was almost scorching hot. In short, it was a bit too hot for my liking. Lunch was at Burger King. Pretty simple fare and I somehow realised that I don't enjoy fastfood as much as I used too in the past. I used to love fastfood - like I thought it was really yummy- even though I know it was unhealthy and stuff. Nowadays, I don't really like it so much anymore. Perhaps it is just changing tastes. I very much prefer my chicken rice or wanton mee than Macs or KFC or Burger King.
Wasn't able to get an afternoon nap as the little one was kind of cranky the whole day. We ended up eating a really really early dinner if you ask me. I wasn't too hungry but ate anyway. End up taking a nap at like 7pm and woke up at around 10pm only to find that I could no longer put myself to sleep...
TV and the Latin Epic Poem
Watched a bit of NatGeo Wild and it was quite silly to spend an entire hour seeing some person try to figure out whether sharks were inhabiting some part of some river in some part of South Africa. It was really quite a waste of time since they could have easily cut the chase and went straight to the findings.. Got a bit irritated just waiting for them to reveal WHICH shark was actually inhabiting the river...
When one is wide awake at this hour, there isn't really much to do. I don't Facebook as often as I used to and I don't really get much time to hang out with friends nowadays. It is really just me and the internet or me and my books. Have been struggling to complete Virgil's The Aeneid. Yes, I have been spending my time on such frivolous readings - books which really just delight me and which I do not really spend to much time to analyse or think about.
After reading the Iliad, I decided that I was really quite fascinated with all these ancient epic poems and stuff. These were definitely books that I would not consider reading in the past but now...I actually enjoy them... it is really weird. Maybe I am growing more "artsy fartsy".. hahah...or maybe it just gives me a sense of accomplishment to read this supposed classics. The wife sniggers at me when she sees me reading them . She thinks that I am reading them because of their cover and their title. Well, she might be correct to a certain extent but the truth is, I actually do quite like the stories (or maybe the translator's story since most of these were written in Greek and Latin so I am probably reading a translator's interpretation of it).
Well, lots of random thoughts. I just spent a good hour of my time watching magic on youtube. I never really liked magic. Or perhaps it was my exposure to David Copperfield kind of magic in my early days. I could never quite tell whether it was clever film editing or stuff. Besides, I don't really like the parts where they put their lives on the line to saw their bodies in half.
But lately, I have been quite interested and intrigued with the simpler magic tricks. Those involving the simple cups and balls, cards, coins, rope and stuff. And if one must watch any magician, I recommend Slydini. Wonderful sleight of hand techniques and misdirection. I can't even tell how he does some of his tricks. Ricky Jay is also pretty good with cards (not to say being a very entertaining comedian at the same time). Bebel is quite slick too even though I don't understand French. But I could serioulsy spend hours just watching them perform their tricks over and over again. Even though I know how some parts of it are done, it is really amazing to watch this people perform it in such an artistic manner. The sheer amount of practice required is truly amazing.
Song of the week in my head: Hope of all Hearts by PlanetShakers
Mood : Uncertain about the future
Wednesday, July 20, 2011
But then, there are bills to pay. And someone has to feed the family. So I put off all my wildest dreams of like travelling the world (on a really shoe string budget), or setting off to some far flung place and anchoring myself there for like the rest of eternity...
And i know that slowly the bright spark in me is dying and slowly fading. I am very much less cheerful nowadays. I prefer to be left alone. I desire for something more than this seemingly mundane life. I am not making a living. I am making a "dying" literally.
Don't get me wrong. It is not that I am not happy at my job. But sometimes, I just get the sense that this isn't what I should be doing. Reaching home past seven pm on each weekday is not something that I desire. (Of course, i know there are those of you who reach home much later than I do).
I need to find new inspiration, set new priorities, find my purpose and live my life with passion.
So my dear friend: Please don't let your work define who you are. I am trying hard to do that. We deserve so much more than all these.
Tuesday, July 5, 2011
Sunday, July 3, 2011
Wednesday, June 29, 2011
Tuesday, June 28, 2011
- Buying a HDB flat (Cash over valuation) = $20-$50k (Rest is usually paid by CPF)
- Renovation = $20 to $40K
- Wedding dinner/lunch = $20k to $30k (depends on hotel and no. of tables)
- Engagement ring = $1k to $10k (depends on the depth of the guy's wallet)
- Photography + Wedding gown/suit = $1k to $5k
- Miscellaneous lunches, hongbaos = $1k to $2k
- Honeymoon = $500 to $10k (depending on where and when you travel)
Monday, June 27, 2011
Sunday, June 26, 2011
If there is no right and wrong, all things are grey. Arguments are meaningless if there is no such thing as an absolute right and wrong. If wrong and right are just references that are subjective to each person, we will not be able to agree fully on certain issues. Life is always much simpler when you view it in terms of black and white. - Random Philosophical thoughts
Friday, June 24, 2011
Sunday, June 19, 2011
Saturday, June 18, 2011
If you’re self employed, you’ll be very aware of what your dollars can do. You’ll also be extremely conscious of the possibilities of your income drying up on you if you’re unable to do the work. That does happen, and it’s something you can cover with income protection insurance.
Even a minor situation can put you out of the loop for contracts and new jobs. That’s the nightmare, and it’s no joke for anyone who’s self employed. Something as simple as a minor injury can take you out of your income stream quite easily. If you’re a graphic artist who’s broken something, you can be stuck with sitting around waiting for things to heal, while your bills come in regardless.
This can hit cashflow in all the wrong ways. If you don’t have any cash on hand, or more likely if your cash is tied up in your business, the lack of cashflow is potentially destructive. Equally important, your clients may be “on hold”, waiting for work while you recover. That situation can often be fixed by subcontracting or outsourcing things you’d normally do yourself- If you have the cash to do it.
Not having the cash is likely to be the sticking point in any version of these scenarios. That’s also not including the domestic expenses, which can also be caught out in the sudden drying up of the income stream. Power bills, rates, you name it, they add up to a situation where plenty of money can be going out and none coming in.
Dodging the financial bullets
These situations are all quite avoidable. A good income protection policy can cover you for your expenses and in many cases even your medical needs. That’s useful cover when you need it, and it’s also a very good way of staying clear of those interesting “surprises” when you find out how much you have to pay for these things.
The cost of the income protection cover isn’t particularly expensive. You can get something like 75% of your income covered upfront, for a small, bearable outlay. You can also get packages that include serious full coverage for things like disability and related benefits.
Important: It’s a good idea to apply directly for quotes from the insurers, and get into a dialog about your needs. There may be a range of options available to you to lock in some good cover for your issues, and this extra effort can pay off very well in terms of providing comprehensive cover when you need it most.
Take the time to really think about this:
What are the risks of suddenly losing your income stream? These things include loss of business, too, so you need to consider a worst case scenario, to fully assess the situation.
What can you afford as an outlay for insurance? Cash outlays can be a little complex for self employed people, particularly if you’re just starting out, so try to pin down a good level of cover, relative to a viable outlay that you can live with.
When you’ve figured out what you need, talking to your insurer will provide a range of options. You can get it all done in a few minutes, and have some added peace of mind.
[The above is a guest post. If you are interested in contributing a guest post to this blog, please email firstname.lastname@example.org with your proposed article. The topic of the article should be related to personal finance.]
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Often, I get questions on how much one should give for baby shower (e.g. colleague's baby first month celebration, etc). Well, this is ...
In my previous article , I compared an endowment plan with an ILP. Many might think that an ILP is a silly way to save for my child's ed...
Just received Tokio Marine's Participating Fund 2014 update from my whole life policy with them. As expected, they are maintaining the ...
Some years back, I purchased a term insurance under the SAF Group Term Life for me and my wife. The consideration back then was affordabi...
I just contributed another lump sum of monies to my SRS account. There are good reasons for me to do so since I get to enjoy tax reliefs an...
Just received a small amount of dividends from Capitaland. A total of $315.00 Red hot property market Singapore's red hot private p...