Everyone likes to live a happy and healthy life with their family. With the current economic status in Singapore, it is quite hard to tell when emergency expenditure will rise. We should be prepared to solve all the financial problems when arises and plan accordingly. It is always vital to keep aside a certain amount of money because there are going to be instances whereby you are in need of money to pay off medical expenses and you would have to take up personal loan from the banks or legal money lender in Singapore. But I would say it will be much quicker to obtain loan from money lender than the banks as there are period of waiting time in order to get your loans approved.
Most people believe that they need quite a large sum of money for making an investment. When you are saving your money in the back with the lower interest rates than when your money loses value literally after taking inflation, it would be difficult to earn the highest profit. With the tough economy, it would be difficult to make the right finance consideration.
You need to find a right money lender when times are hard for your needs. It is also necessary to consult the reliable and reputable credit and personal loan providers in Singapore. Consulting the licensed money lender and related reference would be useful saving more time and money to highest extend.
How Investment Essential For Lower-Income Earners
Most lower-income earners live as hand-to-mouth so putting the money aside for the investment could be difficult. In fact, it is also necessary to save some money that you earn to solve any financial problem in future. The high-income earners who are spending extravagantly could not manage extra amount in their bank saving account by the end of the day. Higher earning power could also easily grant them for accessing easy credit tools such as Credit Card that encourage them to easily spend money unnecessarily.
Some people take on more amount of debt than they should which leads to several problems. A Finance Advisor states that “You should invest money only you can live without.” When it comes to investments, there is only a little guarantee of returns so it is necessary to prepare yourself for any situation. Sometimes you could lose more than you earn and you need to save enough money before you start investing thus avoiding the risk financially.
How To Escape Social Status Trap
Gone are days when people just use cash but nowadays having no cash means then there is no way for you to show off. Most people pretend to have higher financial status with availing the credit cards and loans. Peer pressure on marinating the higher social status could be undeniable and leads to the drastically affect the money decision of the person. People don’t want to left behind by their co-workers or friends so they like to maintain their status financially.
Forgotten budget automatically leaves your road to overspending so it is necessary to plan your investment accordingly for a healthy future. How Much Should I Save? People who are earning less than $3,000 a month can follow these types of investment options. Many financial experts recommend that it is important to save money at least 6 months worth expenses as the best emergency fund. In fact, this financial money needs help to overcome the emergency situation like unexpected retrenchment or hospital bills. After saving this amount, you can put extra amount aside for the monthly basis and it helps you to form the foundation for the investment fund.
Which Types Of Investment Can I Choose?
Low-income earners have a wide number of investment options available but choosing the best one would be a great way for saving more money. When looking at the investment products less than $5,000 along with a lower risk appetite then it is necessary to have appropriate knowledge. Take a note of the lower risk, the returns could not be higher as the higher risk investment products efficiently.
1. Maximizing Your CPF Savings
Some people do not like the fact about the forced way of saving their money in CPF. However, it is the greatest invention made by the government suitable for making an extensive investment. Without this CPF, everyone would actually have the discipline to save their money to use to buy a home or within their retirement.
CPF system is quite difficult to understand as there are various scheme involved in the process. CPF pays the best risk-free interest rate and it acts as the best way for increasing the retirement money saving aspects. Simply park your money in CPF Special Account and get minimum 5% interest rate. Making the voluntary contribution to CPF account online would be a great option. Account use can easily choose the top up options for CPF SA Account so you could make the transfer from the CPF OA to AS when you are above 55 years old. Save up your retirement instead of investment as the transfer is irreversible.
2. Blue-Chip Investing Plan
Investing in the equities as well as shares are most accessible for making the right investment. In fact, the techniques are much risk for the low-income earners with more capital. The Blue-chip investing plans are one of the best that helps you. Blue-chip investing plans are offered by the top banks like POSB and OCBC. The scheme allows the user to easily invest on the monthly basis with starting from just $100 per month. Buying the blue chip stocks via Exchange such as Traded funds would be a great option. Benefits of the Blue-chip investing product include the low minimum investment amount as there is no need for opening the trading account and helpful for selling the units anytime.
A key advantage of the Blue-chip investing plans is getting the average cost per unit to the lower rate. In fact, there is more chance for saving the entire costs of investment. Investment for each of the individual always depends on individual financial objectives and circumstances. Blue-chip investing plans help you to think carefully to put money based on products of the quick brush.
3. Singapore Savings Bonds
Singapore Government issued a Singapore Savings Bonds for raising the funds from the investors to lend the money for the highest period of time exchanging the interest earnings. Interest also called as the Coupon and they are also expressed typically as the percentage of the principal amount. It is also known as “par” or “face” value and the bonds are redeemed according to the value. Singapore Savings bonds are normally risk-free and easy to apply for the fast cash loan. This also allows the secure withdrawal at any time without any incurring penalty. Withdrawing downside before maturity will not meet your target returns so it is important to choose the process accordingly. Every savings bond has the best term of 10 years or at the end of 10 years. Principal and last interest payment are automatically credited to the bank account.
A minimum amount of $500 is necessary to invest up to $50,000. Putting $5,000 into the SSB is helpful for earning the total amount of $1,102 at the end of 10 years thus it will equate to 2.16% effective return per year. Get the complete idea of the interest you can earn with the investment in the much more secure way.
Good Credit Scores
Credit scores are important in Singapore and necessary for gaining the appropriate loan amount. Many people are neglected when it comes to getting the personal loan from the licensed moneylenders.
Most of the Licensed money lenders maintain separate credit bureau which is little lenient when it comes to credit score. Choosing to save your money with right investment would be a great choice.