This blog is about financial freedom and serves to inform, educate and entertain the public on all personal finance matters. The author of this blog has been blogging for 5 over years. He was also a guest blogger at CPF's IMSavvy site (now AreYouReady site). This blog is visited by many unique readers from various countries every month. Do bookmark this blog and leave your comments.
Being Contented Helps You Save Money
What Am I Saving For?
But we need to know what we are saving money for.
Is it just to see our bank accounts grow fatter? Do we have a clear purpose in our savings?
We can choose to spend our money today. Or we can save it up and spend it tomorrow. When it comes to saving, we need to know why we are not spending the money today and instead saving it up. I am writing this post to tell myself why I am not gratifying my desires NOW but instead putting money aside in a bank account.
Here are a few of my savings goal (in terms of priority) for the short term as well as long term:
Short Term Savings Goal (5 to 10 years)
1. COE for my current car when the COE expires (estimated $25K)
2. Europe holiday
3. Down deposit for 2nd property
Long Term Savings Goal (10 to 30 years)
1. Retirement
2. Child's University Education
3. 2nd Car
4. 3rd Property
This reminds me that I need to start saving for my short term goals.
How Much to Save?
Breaking the Psychological Barrier
Money Saving Tips
One of these money saving tips that you commonly hear is this:
Shop at outlet stores. You can find a lot of nice, even brand names, clothes for a fraction of the price.
Outlet Stores in Singapore
In the first place, I don't really know where to find outlet stores in Singapore. I am not much of a shopper so I would really appreciate if everyone can share the best outlet stores in Singapore to get stuff like clothes and shoes.
Outlet Stores in Malaysia
Over at Malaysia, I frequently come across Factory Outlet stores and also the Reject Shop. These shops often carry certain branded shirts at really a fraction of the price. And that is in Ringgit also! Tell me about a good deal.
The shopping mall just opposite the new immigration complex is where you can find a Factory Outlet store and a Reject Shop. If one does not mind making the trip across the causeway, you can find pretty good deals there.
Higher Electricity Bills
The new rate for the April to June period is reported to be at 23.56 cents which is 3 per cent higher than the current rate.
The Straits Times reported that it will translate into an increase of $2.47 for a family in a four-room HDB flat. Hopefully that will be all that I am paying in extra for the month of April.
The increase in prices is largely due to the price of fuel oil which has gone up over the last 3 months.
You might want to re-read my Save Electricity Save Money post to avoid a shock when you receive your electricity bills for April.
Bus Trip Cost Only 91cents
A single trip costs me only $0.91 . So a two way trip adds up to about $1.80. That is pretty affordable for my trips when I give tuition.
While travelling by car would be much faster, I get to save on the carparking. This adds up over the long haul.
It makes me wonder whether I should just sell my car away. Afterall, maintaining a car in Singapore is a costly thing to do. I reckon that it costs me about $1100 per month based on all the charges. Yikes!!!!
If you can resist the urge, you should not buy a car especially if you are single.
Think of all the things you can do with $1100 per month in EXTRA cash. You could literally eat at restaurants every single day.
Sheng Shiong is Not the Cheapest
AIA Achiever - Good or Bad?
Today, I will share with you my personal experience with one ILP that led me to be a little more accomodating towards ILP amidst the anti-insurance stance taken by most people.
AIA Achiever
I bought the above mentioned plan some years back. I believe that it is no longer in the market. Some insurance agent sold it to me as an investment plan and conveniently left out some important details about the "downside" of this policy.
Anyway, for the first few years, I hated the plan. I thought that it was the worst plan that I could have gotten. Afterall, I had to pay premiums for 7 years before I could withdraw the amount out. (When I bought the plan, I thought that I could withdraw the money out once the policy has been incepted for 7 years)
I was really thinking of surrendering the plan very early on as I felt that the 7 year waiting period was simply too long and I could put my money to better use elsewhere. However, the high surrender charges before 7 years made me think twice.
In the end, I continued servicing the plan and recently, I just crossed 7 years of premium payment.
What I Like About Achiever
Now that the 7 year waiting period is over, I have discovered that I actually do LIKE this ILP. When I look at the amount of money inside, I am amazed that 7 years of consistent saving have actually yielded me with results that I am quite pleased. I took up this plan as a means to fund my retirement. It has served me well thus far and the actual cash value is much higher than that shown on the benefit illustration for 9% compounded annual returns.
In addition, I get to log into AIA eCare easily to check on my monthly statements and can do my fund switches easily too.
What I Don't Like
It is of course obvious that there are aspects I do not like about the plan. Here are a few:
1. Policy charges every month.
2. Supplementary benefit charge based on face value of policy. This is payable for 10 years.
However, when I consider this to any endowment plan or whole life plan, I find that it suits my overall portfolio very well. It gives me the necessary protection and savings.
Would I have done things differently now?
I am still torn between the "Buy Term Invest the Rest" strategy and the other whole life approach.
If I had bought term insurance and invested the rest using something like the Share Builder's Plan by Philips Capital, I might have gotten higher returns. I might also have gotten worst returns.
If I could turn back the hands of time, I seriously do not know whether I would have bought this plan.
I know many people have complained about the bad returns or low surrender values from their ILPs. I am perhaps the minority that have actually sticked through with my ILP instead of surrendering it. As such, I now see the "fruits" of my labour. It gave me a disciplined way to save for my retirement and gives me protection as well.
Saving for My Child's Education
The main purpose of this account is to save for his university education. This account also allows me to deposit all my spare coins at no charges.
The figure that I am aiming for is S$100,000. Yes, it might not be enough for an overseas education in 20 years time but I guess it is better than nothing.
Having been deprived of the chance to study overseas because of the lack of money (alas, and also the lack of good grades to get a scholarship), I always felt that I was "disadvantaged" in a certain sense because I did not get to study abroad.
My SAT score then was 1390. Not very high but sufficient to get me a place into universities like Brown University and University College of London (I can't remember what were the other universities that I applied to). However, the lack of funding made me decide to pursue a local university education instead.
This is something that I do not wish my child to face. I hope to be able to have the financial capacity to put him through his studies overseas if he is able to make it into any university there.
I have seen so many people who have gotten worse grades than me but have been able to pursue an overseas education at quite reputable universities because they have the financial means. Is this fair? Nope. But this is life, and life isn't fair sometimes. It also won't be fair when I become a millionaire faster than them even though I don't have the same qualifications as them =)
My child, if you read this someday...know that Daddy is saving up hard for your education. I am doing my best yah?
$1375 and counting...everyday, I drop all my spare change into a little container which I will then deposit into his university fund. I wish I had started saving for it earlier.
POSB Coin Deposit Machine
1. What is this Coin Deposit Machine?
This is a new 24-hour self-service terminal that allows you to deposit coins at our selected branches/Electronic Banking locations.
2. Who can use this Coin Deposit Machine?
Customers who wish to deposit coins into any DBS Current/Autosave Account, DBS Savings Plus Account, POSB Current Account, POSB Savings Account may use this machine.
3. Can I deposit my coins to more than 1 account for each coin deposit transaction?
At any one time, you may deposit the coins into one account only.
4. What are the accepted denominations and currencies?
Only Singapore Dollar currency is accepted. The accepted denominations are 1 cent, 5 cents, 10 cents, 20 cents, 50 cents, 1 dollar (floral series only).
5. How much coin can I deposit each time?
There is no minimum or maximum amount for each coin deposit. The maximum number of pieces deposited is however, subject to the load capacity of the machine.
6. Do I need to sort the coins according to denominations before depositing at the machine?
No, your coins can comprise a mixture of the accepted denominations of 1 cent, 5 cents, 10 cents, 20 cents, 50 cents, 1 dollar (floral series only).
7. Can I change the amount of my coin deposit after placing them into the coin deposit machine?
You may retrieve coins that are still in the coin tray and not inserted into the machine. Once the coins are inserted into the machine, it will be counted and deposited accordingly.
8. When will my account be credited?
Collection time is daily at 2pm (except Saturdays/Sundays/Public Holidays). Deposits before collection time will be credited on the same business day before 8pm while deposits after collection time will be credited on the next business day before 8pm.
9. Are there any charges levied for coin deposits?
Coin deposits through the coin deposit machine are levied fees based on $0.0075 (0.75 cents) per piece, and total charges rounded off to the nearest 1 cent. Coin deposit fees will be waived for deposits into Children's accounts (age 15 years and below). To enjoy this waiver, you will need to drop the coin deposit receipt in our Quick Cheque Deposit box. Refunds will be processed by the next business day (Mon-Fri).
10. Who can help me if I encounter a problem using the machine?
You may call us at :
DBS Phone Banking : 1800-111-1111
POSB Phone Banking : 1800-339-6666
Read Related Articles:
1. Opening POSB Kids Savings Account
2. Saving Money on Coffee
3. How To Get Your Credit Card Annual Fee Waived
4. 1001 Frugal Things To Do (Very Popular Post)
Opening A POSBKids Savings Account
Saving Money on Coffee
I figured that it would replace my daily cup of coffee from the coffee shop downstairs which costs me $0.70 per cup.
I cannot kick the habit of drinking coffee so I have no choice but to make my own coffee.
The roasted coffee should be able to make me at least 30 to 40 cups of coffee based on my estimations. 40 cups of coffee would cost me $28.00.
We will just have to see how disciplined I am in making my own coffee instead of buying coffee from coffee shops or Starbucks.
The coffee is pretty nice but it does not taste like the Robusta coffee beans that are commonly used in Singapore coffee shops. It lacks the aroma and is slightly acidic. I am guessing it is Arabica beans - the kind which westerners like to drink.
Perhaps I need to use some condensed milk in the cup I am drinking now.......
Why Hawker Food Tastes better than Food Court Food
All the years in my life, I have always wondered why hawker food tastes so much better than food in the food courts.
Now, I think I know the answer why.
I used to think that it was the air-con in the food court that somehow affected the quality of the food. I then realised that it was not necessarily the air-con but the people that made all the difference.
I believe that most food court stalls are not actually owned by the people running it. There might be a small exception but I believe most stalls are actually owned and managed by the food court themselves. Many of them are actually hired by the food court themselves to operate the various stalls. These people (usually PRCs) are hired and are not the business owners.
They simply do not care about the quality of the food or the service that they provide. They are just there to make a living without having to bother about profits and customer service. I have seen these PRCs trying to speak Mandarin to Malays and Indians before... totally oblivious to the fact that these people do not understand them!
Compare this to the hawker centre where the stalls are runned by the owners themselves. The owners put in the effort to make sure that they smile at you (okay, some of them do smile) and at least maintain a reasonable standard of the food quality.
Hawker food for me always tastes way better than food court food. I don't know if it is true for you but it certainly is for me.
Not only is hawker food much nicer, it is often much cheaper too!
How to Get Your Credit Card Annual Fee Waived
How did I do it?
It is simple. All it takes is a simple phone call to customer service.
I have a DBS credit card and all I did was to call the customer service hotline. I waited for roughly 5 minutes to be put through to an operator.
All I asked was that the annual fee be waived. The customer service officer was extremely polite and did not even ask for the reason why. She just said "Okay" and it was done.
She then went on to inform me that I had some points that were expiring and advised me on what to redeem which she proceeded to help me with too.
Just a few simple steps and I saved $150!
Most banks are more than happy to waive the annual fee as long as you ask. If they refuse to budge, you can threaten to cancel your credit card and place your business with other banks. That should make them budge.
Read Related Articles:
2. Being Frugal
BookFest @ Singapore 2009
The BookFest @ Singapore 2009 will be held at the Suntec Convention and exhibition Centre from 11 December 2009 to 20 December 2009. This is organised by Popular so I guess you can expect to see the same range of books that you find in Popular and Harris bookstores.
The only thing is that since it is held at Suntec, I guess the rental of the place will be slightly higher and that might result in the books not being priced as attractively as at the Penguin Book Fair.
At the Penguin Book Fair, I managed to grab a grand total of 7 books. (Prices ranged from $5 to $10) They are the following books:
1. Hot, Flat and Crowded by Thomas L. Friedman
2. The Three Trillion Dollar War by Josephy Stiglitz and Linda Bilmes
3. First, Break All The Rules by Marcus Buckingham
4. The Last Tycoons by William D.Conan
5. The Assault on Reason by Al Gore
6. Fateful Choices by Ian Kershaw
7. The Walmart Effect by Charles Fishman
I guess these books will last me all the way till end 2010 when the next Penguin book fair comes again. I will then swipe up all the books that I hope to be able to get at a huge discount.
You can view the site to BookFest 2009 here.
Read Related Articles :
1. Penguin Book Fair & $50 Competition
Penguin Book Fair & $50 Competition
I visited the penguin book fair at Singapore Expo and the only thing I can say is that if you LOVE books and you really want to find good deals, make your way down to the Penguin book fair.
Books are going for as cheap as $3 (they mentioned $1.00 but I couldn't find those books). I checked and realised that certain books which I bought for $20 to $30 at normal bookstores are going for as cheap as $8 to $10. That is a lot of SAVINGS if you are an avid book reader.
I saw some people pushing around like carts of book so I guess that they must be shopping for their entire year's worth of book there.
Seriously, if you have a budget of $100 to spend on books each year, just drop down to the Singapore Expo and you can easily buy 10 books! That is enough books to read for a year.
I myself bought over 10 books (including children books)
$50 Competition
I started a competition to give away prize money of SGD 50.00 here.
Competitors, please continue to take note of the following pointers.
1. Consecutive postings by 1 user will be considered as a single posting. For example, if User G post 5 comments consecutively, it will be considered as 1 single posting. Users are allowed to post multiple comments but are encouraged not to post consecutively to confuse others =)
2. Only 2 ways to win. First way, be the 50th comment and win $50. Second way, if there are less than 50 comments, be the last person to comment in 24 hours. Based on my last count, there were 38 comments already so somebody will surely walk away with $38 already.
Follow this link to see the competition
http://sgfinancialfreedom.blogspot.com/2009/12/free-50-to-give-away.html
How To Eat Chicken Wings
Save On Home Repairs
I just fixed some leaking shower head recently and realised that it was really a simple task! Saving on home repairs is much simpler than I thought it would be.
1001 Frugal Things to Do
I realised that a lot of people are really concerned about saving money and stuff. So I have scoured the internet and forums for a list of things that people do to be frugal and to save that extra bit of money. I don't do all these stuff listed here (okay, the list here does not run to 1000) but at least it gives you an idea of what others are doing to save money and how you can incorporate it into your very own spending habits. You will be amazed at some of the ideas suggested here!
1001 Ways to Save Money and Be Frugal
Buying food that is about to spoil. Supermarkets offer steep discounts for food that is going to expire. They are not fresh but they are definitely safe for eating!
Free entertainment and books at the library.
Cook and Eat at home
Eat at a friend's place
Unplug devices in the house that you are not using
Switch off all lights
Keep thermostat down, use blankets to stay warm
Dry 2 loads of clothes at once
Set the dryer to 10 minutes shorter than usual
Use the dryer with 2 dry towels. It seems to make the clothes dry faster.
Use formula milk + vinegar for pancakes instead of buttermilk as stated in recipes
Don't buy Starbucks
Make your own coffee and carry it around in a travel mug
Drink nothing but water the whole day
Stock up on items that are on sale.
Hang up clothes to dry instead of using the dryer
Switch off the aircon in the car
Don't bring money out with you.
Eat left overs for your next meal
Exercise to keep warm (for those in cold countries)
Use Skype instead of phoning for long distance calls
Cancel channels that you are not watching on cable TV
Use the microwave to warm up a cup of water instead of boiling an entire kettle full
Carpooling
Shop at the dollar store or those 1.99 shops
Buy petrol that is cheaper
check whether your company offers discounted rates for your mobile phone plans
Use those discount coupons at the store.
Take a shower at the gym
Set timers to your thermostat or airconditioner
Re-use your valentine day cards
Shower in cold water.
Wash your disposable utensils and re-use them
pack a lunch box for the kids
Buy and sell your own house to save on the commissions
Paint your own house
Repair your own house
- Grow your own vegetables
- Cut your own hair
- Color your own hair
- Do your own facial
- Wash your own car
- turn off that home-shopping channel on TV
- Wax your own car
- Walk to work
- Use a fan instead of the airconditioner
- Take a nap
- take public transport
- Don't upsize your meals
- Avoid jam packed roads to save on petrol
- Take the budget airlines
- Accept old furniture from friends and relatives
- Dig out old clothes to wear instead of going shopping
- Get husband or wife to hand deliver things instead of wasting money on postage
- Call up the diaper company for free sample diapers
- Call up the milk company for free samples of formula milk
- Turn the car engine off when waiting for someone
So here you have a comprehensive list of things that you can do to save money and be frugal. Any other great ideas to share? Feel free to leave a comment!
Electricity Bill
After writing an article about saving electricity, I was dismayed to find out that my electricity bills for this month was a record HIGH for the past 6 months.
The bill added up to slightly over a $110. That is for my little family of three living in small flat of around 900sqft.
Perhaps it was due to the higher tariffs on electricity this month....but still no excuses...
I think one of the main reasons for the sharp rise in my electricity bills is due to the fact that I have been switching on the air conditioner too often while working on my blogs. The weather does get a bit hot and stuffy at times in Singapore. Yes, even during the nights!
It also does not help that the little one has been switching on every switch in the house that he can get his little finger on. (we discovered that the iron was switched ON for an ENTIRE day when we returned home one weekend)
The next month will be a challenging one as I try to lower my electricity consumption for the entire household.
That means less of the aircon and switching off all unused lights. I will update on my progress next month.
Read Related Articles:
1. Top 10 Money Saving Tips
2. Save Electricity, Save Money
3. Retire Young, Retire Rich
4. 3 Key Lessons from Rich Dad Poor Dad
5. 3 Sources of Passive Income
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