5 Advantages to Buying an HDB Flat As Early On In Life As Possible

By Joanne Poh, via moneysmart.sg

Buying a home in Singapore is a complicated procedure. Unless you’ve got the dough for private property, you’re pretty much stuck playing by the HDB’s rules: get married or be over 35. For most people, that means when you can buy a home is something that has to be left up to fate.

But buying a home as early as you can does have its advantages, assuming you can find somebody who is willing to do so with you. Here’s why:

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Should You Buy or Rent Your Next Home in Singapore?

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By Joanne Poh (via moneysmart.sg)

There is a reason the overwhelming majority of Singaporeans continue to live with their parents until they’re married—the right to walk around naked at home isn’t worth dying of starvation for.

While married couples and over-35s can take advantage of government grants to buy HDB flats, the rental market is another story. The cost of renting the cheapest possible one bedroom condo unit in Singapore in an area as far flung as Bukit Panjang can cost around $1,500 a month, and when you get closer to the city fringe you can end up paying 50% to 100% more.

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25 Simple Ways To Keep A Budget And Live Within Your Means

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By Sameen Imtiaz, list25.com

Most of us are really bad at managing our money. We’re terrible in fact. From student debt and mortgages to credit cards and car loans, most people are in the red when it comes to their finances. Today we’re going to take a close look at how we can prevent ourselves from committing fatal financial errors. Budgeting is the obvious answer, but how you budget is even more important. You can’t just wake up one day, create a budget, and hope to stick to it. It’s kind of like a new year’s resolution to work out at the gym. They’re a dime a dozen but very few people stick to them. To follow your budget you will need to start living a principled life. This is hard because it will mean forgoing certain things that you want to do or giving up various desires. If you successfully implement everything that we talk about in this list you should be well on your way to living a more responsible life, at least in financial terms. Just remember, change doesn’t happen overnight, usually it can take a while. These are 25 simple ways to keep a budget and live within your means.

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What Can Debt Collectors in Singapore Legally Do and How do You Deal With Them?

What Can Debt Collectors in Singapore Legally Do and How do You Deal With Them? - moneysmart.sg

What Can Debt Collectors in Singapore Legally Do and How do You Deal With Them? – moneysmart.sg

By Joanne Poh, moneysmart.sg

The classic images of a pig’s head and O$P$ splattered in red on corridor walls sum up Singaporeans’ feelings about debt collectors. While legitimate debt collection agencies might not be using these loanshark runners’ tactics, some of their actions can still border on harassment. If you’ve had trouble paying your bills, you might be the recipient of unwanted attention from a debt collector. Here’s what you need to know.

Who are they?
Companies can lose huge amounts of money each year to non-paying clients. It is therefore in their best interests to invest in a means of clawing back the money owed to them. Most of the time, this unpleasant task is outsourced to debt collection agencies, who work on behalf of the company to chase debtors for the money owing. For instance, if you don’t pay your credit card bills, the bank is likely to engage a debt collection agency to get the money back.

What can they do?
There is a reason legitimate debt collection agencies don’t run around sticking pigs’ heads on people’s doors—it’s illegal. But that hasn’t stopped many debt collectors from resorting to scare tactics that might include banging on your windows and doors and hanging up banners telling the world that you owe money.

What sets them apart from your neighbourhood ah long is the fact that they try to comply with the law. There’s also an industry Code of Ethics set up by the Credit Collection Association of Singapore, which resolves disputes between debtors and collection agencies; however, the CCAS does not have a great deal of power to enforce the code.

What can’t they do?
Unfortunately for debtors, there is no specific law regulating debt collection agencies. This means that they’re basically allowed to do anything a regular entity can and are subject to the same laws as a friend you borrowed money from would be.

Still, it’s often necessary to scrutinise the actions of a debt collector who’s on your tail to ensure he doesn’t do anything illegal. Here are some examples of actions that could get a debt collector in trouble with the law.

  • Unlawful assembly – If the debt collection agency sends down a mob of angry, burly men, you might be able to call the police on them for unlawful assembly. Any assembly of five or more people can be convicted if you can show that their objective is to commit an offence, including using criminal force to take any of your property, vandalising your property or putting you under threat of physical harm. Earlier this year, a group of seven debt collection agency employees was arrested for unlawful assembly after showing up at a food court stall at Funan DigitaLife Mall.
  • Intimidation and violence – While banging on doors and shouting vulgarities are standard debt collection practices, it is actually against the law to use threatening, abusive or insulting words or behaviour with the aim of causing alarm to you or causing you to believe that immediate unlawful violence will be used against you or another person. So if a debt collector waves his fist in your face and threatens to punch you, call the police.
  • Vandalism – We all know what happened to Michael Fay. If the debt collectors spray paint your property, affix on your property any posters, advertisements or banners or steal, destroy or damage anything belonging to you, they are guilty of an act of vandalism.
  • Harassment – Causing harassment, alarm or distress to you by using threatening, abusive or insulting words or behaviour or making any threatening, abusive or insulting communication can amount to harassment. If their actions cause you to believe that unlawful violence will be used against you or they manage to provoke actual violence, you likewise have a good reason to call the cops.
  • Damaging or taking possession of your belongings – Many debt collectors will try to make you believe they can tow your car away or seize your TV if you don’t pay up. In reality, they need a writ of seizure and sale from the courts in order to seize your property.

How to deal with debt collectors
The bad news is that you can run, but you can’t hide. While you might be able to dodge debt collectors in the short term, let your debts spiral out of control and you could soon find your car and other property seized and sold in order to recover your debts, or bankruptcy proceedings commenced against you.

Don’t let yourself be intimidated by debt collectors. If they overstep their limits and do anything that’s against the law, don’t hesitate to call the police. Otherwise, know that they often have the ability to act as an intermediary between you and your creditors.

This means they might be able to negotiate an instalment plan, or in cases where the bank is a creditor, help you to lower your interest rate. Instead of running away, try to bargain with the debt collectors and work with them to devise a manageable way to repay your debts. This can save you a bit of money as well as alleviate the pain of having your case escalated to the court system.

Source : http://blog.moneysmart.sg/loans/what-can-debt-collectors-in-singapore-legally-do-and-how-do-you-deal-with-them/

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What 11 successful people wish they’d known about money in their 20s

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By Kathleen Elkins, businessinsider.sg

Even the wealthiest, most successful people are prone to making money mistakes.

Billionaire and investor Mark Cuban misused his credit cards at a young age, while personal finance guru Suze Orman once found herself deep in debt after overspending on fancy clothes and cars.

We asked several successful people what money advice they wish they had been given in their 20s, and drew insight from LinkedIn’s “If I Were 22” series, in which top minds share what they wish they had known at 22.

Here’s what they had to say:

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Learn to manage your credit cards.

Mark Cuban, billionaire entrepreneur, investor:

“That credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn’t.

I should have paid off my cards every 30 days.

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Skills are worth more than a job.

Tim Ferriss, angel investor, best-selling author of “The 4-Hour Workweek“:

“In your 20s, optimize for learning, not earning. Work directly under or with master dealmakers, and acquire skills. This is particularly true for negotiating and hard skills like coding.

“What would you rather have: $20,000 more per year in your 20s, leading to making $100,000 to $200,000 a year in your 30s, or a lower-paying job from 20 to 25 — but one like a real-world MBA you’re paid for — leading to making millions in your 30s?

“It often comes down to prioritizing skill acquisition over immediate post-college earning. McKinsey or Goldman can be seductive, but it’s easy to get trapped in a 20-plus-year path of paying for a bloated lifestyle that is always a bit more expensive than the year before. Serfs can become self-made kings, but consultants tend to remain consultants. The only true job security is a superior skill set.”

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You need a plan for your money.

Alexa von Tobel, founder and CEO of LearnVest.com, author of “Financially Fearless:

“Not having a financial plan is a plan — just a really bad one! Given what I see as a general lack of personal-finance education, it can be all too easy to wing it with your money.

“I was lucky enough to learn this lesson while still in my 20s, so I had time to put a financial plan into place for myself (and start LearnVest to help people nationwide do the same!).”

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Do something you love instead of chasing money.

Blake Mycoskie, founder, chief shoe giver of TOMS:

“In my 20s I wish I knew that the best advice for any person is to follow their passion as opposed to chasing money. I’ve seen time and time again that the people who foster their true passions and true callings are the ones that end up the most successful.

“It’s hard in your 20s not to worry about money, but to focus on making sure you do something you love. Today, I feel like every time I’ve made a decision at TOMS that I’m passionate about and improves someone’s life, the company grows and makes more money.”

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Buy high quality.

Kate White, former editor-in-chief of Cosmopolitan, author of “I Shouldn’t Be Telling You This:

“I was a great saver in my 20s — my dad had persuaded me to save for retirement, which seemed insane at the time, but I’m eternally grateful. But what I didn’t know and wish I had is that it’s so much smarter to buy a few great quality items — in terms of clothes, furniture, accessories — rather than a bunch of cheaper stuff.

“Oh, sometimes you get a great bargain — I have two Pier 1 prints hanging in my living room that look like antiques but cost $25 — but so often cheap stuff is poorly made and falls apart in no time.

“But the right quality goods last forever and are often timeless in design, something I discovered much later when I could afford better things. I wore a Prada dress the other night that I bought 16 years ago and it still looks good. If you can swing it, go for quality and you’ll save in the long run.”

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Understand the power of investing.

Kevin Cleary, CEO, Clif Bar & Company:

“In my 20s, I wish I better understood the power of investing. At the time, I had fewer expenses, more free time, and a long investment horizon — it would have been the perfect time to learn about investing.

“While I was disciplined about saving money, I missed the opportunity to leverage my money over the long haul.”

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Your company is more important than your role.

Adam Nash, president, CEO of Wealthfront:

“I was fairly fortunate to have been raised with a strong sense of the importance of saving and living below your means.

“However, it wasn’t until later that I learned just how much of your long-term economic success depends on your professional career.

“I’m a huge believer that people in their 20s should seek out opportunities at later-stage, hypergrowth companies. When you think long term, the company you join is far more important in your 20s than the specific compensation or role.”

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Money doesn’t make you happy.

Matt Maloney, CEO, GrubHub:

“Money does not define success or happiness. In fact, if you are truly effective at what you enjoy, money usually follows your passion. Passion drives interest, which in turn drives focus and commitment. Both qualities are requirements for success.

“When given a choice between ambiguous paths, choose the course that will bring you the most emotional and intellectual satisfaction — not the most direct path to riches. Don’t be afraid, you can live a very full life earning far less than you think you need.”

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Learn to manage the money you have now, no matter how little.

Debbi Fields, founder, Mrs. Fields:

“Looking back now, I know that I would have greatly benefited had I initiated an investment strategy as a young adult. I was so busy trying to save every dollar and living paycheck to paycheck that the idea of wealth creation was never really a consideration.

“Not thinking bigger than my bank account was my error — I could have set up a simulated investment account, joined a club, or learned about the buying and selling of securities.

“The key to managing money and building a nest egg is learning how to manage small amounts and grow them wisely over time. It can start with pocket change and grow beyond anything you imagined! The key word here is ‘imagined’ … You have to add a zero or two to your net worth and direct your attitude and financial strategy toward getting there.”

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Spending money to impress other people is a bad idea.

Suze Orman, author, television host, motivational speaker:

“When you are starting out in your 20s, it is natural to think about all that you will have and do once you start making money, and making more money. That gives money way too much power over your life. It’s not about how much you make, but the life that you make with the money you have,” she writes for LinkedIn’s “If I Were 22” series.

“I built a successful financial-planning practice and was making more in a month than I used to make in a year. But here was the problem: the more money I made, the more I wanted other people to see how great I was doing, financially speaking.

“I spent so much money — on fancy cars, watches and clothes simply to impress other people — that I got myself heavily into debt. If I were a guest on my CNBC show today, I would have given myself one serious smackdown.

“My finances were a mess, but more importantly, my money was a mess because I was a mess. I had it all wrong — all the things I was spending my money on added nothing to my self-worth.”

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Chasing money will cripple your career.

Marc Lore, founder and CEO, Jet.com:

“In banking, the core motivational driver was personal financial gain, cultivating a fiercely competitive environment,” he writes in LinkedIn’s “If I Were 22” editorial package.

“Over my six years in finance, I learned to approach my career as an individual sport, where I was judged by the size of my bonus and how quickly I was promoted. One morning I fell to the floor of my office, feeling an electric jolt in my chest as a result of stress. Although it was not a heart attack, the message was clear. I had worked incredibly hard to get to the top but I was there alone — and it was un-fulfilling.

“At 22, I evaluated my first job based on what I could get out of it. But I have since learned that you can achieve much greater success if you focus on what you can give. Ultimately, I have realized that success is not a measure of your salary, title, or degree, but the impact you have others and the collective happiness of the people you touch.”

Source : http://www.businessinsider.sg/successful-people-money-advice-2015-8/

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