How to Curb Your Overspending
Bitten by the buying bug? Try these strategies to curb your spending:
Keep track.
Write down everything you buy for at least two weeks: groceries, petrol, even a cup of coffee. Being aware of where your money goes will put you in control.
Quell the urge.
Postpone buying what you think you want for 48 hours. If you still want it, make your well-thought-out purchase.
Simplify.
Figure out a weekly budget that includes only basics like food and transport. Don't buy anything not in your budget for a month to discover what you can do without.
Quit cold turkey.
Put your credit cards away and pay for everything with cash. Even better, institute a buy-nothing campaign.
Thursday, August 27, 2009
Expert Advice That Pays Off
Expert Advice That Pays Off
When it comes to making and keeping cash, the experts will tell you that the best advice isn't new or trendy. So take it from those who've seen what works and what doesn't:
Donald Trump, real estate mogul and star of "The Apprentice":
On debt "Review your budget regularly a�� see where your blind spots are. I know people who don't count entertainment or alcohol or whatever a�� everything must be accounted for. Even a tiny leak can sink a ship. The same with finances."
Jonathan Clements, senior special writer, The Wall Street Journal:
On investing "People bank their financial future on crazy strategies. They are betting the housing market will keep soaring, investing hefty sums in hedge funds or equity-indexed annuities. But there is no easy way to get rich quick. If folks want to retire in comfort, they've got to stick with the basics: Save regularly, diversify broadly. Favour low-cost mutual funds. And show some patience."
Robert Kiyosaki, author of Rich Dad, Poor Dad:
On paying for university "Buy oil! As soon as the kids are born. Oil consumption is up, but supply is down. Get a mutual fund that sells oil stocks a�� Exxon, Mobil, but not Enron! A barrel of oil was $10 in 1998; now it's $60."
David Gardner, editor, The Motley Fool (fool.com) website:
On stocks "What do I invest in? An index fund a�� like those that track the Standard & Poor's 500 a�� because they are mostly managed by machines for a very low fee, not by humans trying to finance their vacations."
"When it comes to money, it's better to do nothing than to do something you don't understand."
Suze Orman, O Magazine
When it comes to making and keeping cash, the experts will tell you that the best advice isn't new or trendy. So take it from those who've seen what works and what doesn't:
Donald Trump, real estate mogul and star of "The Apprentice":
On debt "Review your budget regularly a�� see where your blind spots are. I know people who don't count entertainment or alcohol or whatever a�� everything must be accounted for. Even a tiny leak can sink a ship. The same with finances."
Jonathan Clements, senior special writer, The Wall Street Journal:
On investing "People bank their financial future on crazy strategies. They are betting the housing market will keep soaring, investing hefty sums in hedge funds or equity-indexed annuities. But there is no easy way to get rich quick. If folks want to retire in comfort, they've got to stick with the basics: Save regularly, diversify broadly. Favour low-cost mutual funds. And show some patience."
Robert Kiyosaki, author of Rich Dad, Poor Dad:
On paying for university "Buy oil! As soon as the kids are born. Oil consumption is up, but supply is down. Get a mutual fund that sells oil stocks a�� Exxon, Mobil, but not Enron! A barrel of oil was $10 in 1998; now it's $60."
David Gardner, editor, The Motley Fool (fool.com) website:
On stocks "What do I invest in? An index fund a�� like those that track the Standard & Poor's 500 a�� because they are mostly managed by machines for a very low fee, not by humans trying to finance their vacations."
"When it comes to money, it's better to do nothing than to do something you don't understand."
Suze Orman, O Magazine
Savvy Savers
Savvy Savers
It’s never too early to teach your child to make sound financial decisions. This will prepare him or her for financial success as an adult. And since kids learn from those around them, says Scott Mitchell, Senior Vice President of ipac financial planning Singapore, your money behaviour will make a big difference. Some tips from the company on raising a money-smart child:
Start a piggy bank.
Encourage your child to put aside a set amount of money each week. Teach them that savings should not merely be money that is left over from their allowance.
Discuss the value of things.
On shopping trips, get your child to help you decide which item gives the most value for money, for example, the best ice cream or chocolate bar. This will help them to start thinking about quality versus price.
Give your kids an allowance.
An allowance is an effective way of teaching your child how to prioritise and make better spending decisions. Give them a reasonable amount – not too much, not too little.
Set simple goals.
“Encourage saving for a toy. This is how children realise some things can’t be bought immediately. A chart certainly helps so the kids can see their goal getting closer each week,” says Scott.
Make it fun.
Go on educational family outings, for example, the local mint, or play Monopoly with your kids. Read them stories that encourage good values that are crucial to saving, like discipline. Let your kids pay for small items on shopping trips. In short, try to involve your kids in an interesting way.
It’s never too early to teach your child to make sound financial decisions. This will prepare him or her for financial success as an adult. And since kids learn from those around them, says Scott Mitchell, Senior Vice President of ipac financial planning Singapore, your money behaviour will make a big difference. Some tips from the company on raising a money-smart child:
Start a piggy bank.
Encourage your child to put aside a set amount of money each week. Teach them that savings should not merely be money that is left over from their allowance.
Discuss the value of things.
On shopping trips, get your child to help you decide which item gives the most value for money, for example, the best ice cream or chocolate bar. This will help them to start thinking about quality versus price.
Give your kids an allowance.
An allowance is an effective way of teaching your child how to prioritise and make better spending decisions. Give them a reasonable amount – not too much, not too little.
Set simple goals.
“Encourage saving for a toy. This is how children realise some things can’t be bought immediately. A chart certainly helps so the kids can see their goal getting closer each week,” says Scott.
Make it fun.
Go on educational family outings, for example, the local mint, or play Monopoly with your kids. Read them stories that encourage good values that are crucial to saving, like discipline. Let your kids pay for small items on shopping trips. In short, try to involve your kids in an interesting way.
Money Talks
Money Talks
Sound money management habits can form a strong foundation for how children deal with other matters when they grow up. “As you teach children about money, they also begin to learn other important lessons such as decision making, priorities, responsibility and goal setting,” says Brian Goh, senior vice-president of ipac financial planning (Singapore). Here are some money lessons in daily activities:
When at the ATM or when using your credit card
To appreciate the value of money, kids need to know where it comes from. Explain that hard-earned money has to first be deposited into the bank before it comes out of the ATM, and that purchases made on credit cards have to be paid for, in full, at the end of the month.
When grocery shopping
This is the best time to teach them how to make sound buying decisions. Have them help you look for items on your grocery list, and compare prices among different items. If you choose one brand of milk over another because it’s on sale, explain the decision.
When giving them an allowance
Paying out allowances on schedule (like the first of every month) teaches children the value of honouring agreements. Help them put away a portion into savings even before they start spending it, and assist them in setting savings goals, like buying a new toy.
When shopping
Spending indiscriminately sends out a dangerous signal that we can get whatever we want, when we want. Instead, teach your kids the difference between needs and wants. For instance, when checking out the latest Plasma TV, explain that while it might be nice to have a new TV, it’s not a necessity because the one at home is working just fine.
When planning a holiday
This is a great time to bring together concepts like budgeting, saving, price comparison, and balancing needs and wants. Money lessons are best absorbed when they are put to practical use, so do involve your kids in the decision-making processes of holiday planning – from picking a destination to scouting for deals.
Sound money management habits can form a strong foundation for how children deal with other matters when they grow up. “As you teach children about money, they also begin to learn other important lessons such as decision making, priorities, responsibility and goal setting,” says Brian Goh, senior vice-president of ipac financial planning (Singapore). Here are some money lessons in daily activities:
When at the ATM or when using your credit card
To appreciate the value of money, kids need to know where it comes from. Explain that hard-earned money has to first be deposited into the bank before it comes out of the ATM, and that purchases made on credit cards have to be paid for, in full, at the end of the month.
When grocery shopping
This is the best time to teach them how to make sound buying decisions. Have them help you look for items on your grocery list, and compare prices among different items. If you choose one brand of milk over another because it’s on sale, explain the decision.
When giving them an allowance
Paying out allowances on schedule (like the first of every month) teaches children the value of honouring agreements. Help them put away a portion into savings even before they start spending it, and assist them in setting savings goals, like buying a new toy.
When shopping
Spending indiscriminately sends out a dangerous signal that we can get whatever we want, when we want. Instead, teach your kids the difference between needs and wants. For instance, when checking out the latest Plasma TV, explain that while it might be nice to have a new TV, it’s not a necessity because the one at home is working just fine.
When planning a holiday
This is a great time to bring together concepts like budgeting, saving, price comparison, and balancing needs and wants. Money lessons are best absorbed when they are put to practical use, so do involve your kids in the decision-making processes of holiday planning – from picking a destination to scouting for deals.
How to be Good with Money
How to be Good with Money
Most of us probably resolve to be more sensible with money in these times. We're going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don't need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get you from profligate to prudent this year - while still enjoying life.
• Find out if your books balance. Get out all your bank statements and work out how much you've earned - include benefits and interest on savings - and how much you've spent over the past year.
• Bank online and check your balance twice a week. This will give you a clear idea of what's going in and coming out.
• Junk useless direct debits. Don't just go on paying for that life cover you don't need.
• Build up a rainy-day fund. Set up a monthly direct debit to put money aside in a high-interest account.
• Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours - to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.
• Buy now, pay at once. If you can't afford something one month, wait until the next.
• Use your credit card sparingly. Pull out the plastic when you absolutely have to have that half-price dress in the sales. But always pay it off before it incurs any interest.
• Always shop around when contracts - like your internet and mobile phone service provider - come up for renewal. Don't forget to ring your existing provider to see if it can offer you something better.
• Buy treats with reward points schemes. Use all those points you've accumulated on your various cards to give yourself a treat. Spoil yourself - after all, you deserve it.
Most of us probably resolve to be more sensible with money in these times. We're going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don't need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get you from profligate to prudent this year - while still enjoying life.
• Find out if your books balance. Get out all your bank statements and work out how much you've earned - include benefits and interest on savings - and how much you've spent over the past year.
• Bank online and check your balance twice a week. This will give you a clear idea of what's going in and coming out.
• Junk useless direct debits. Don't just go on paying for that life cover you don't need.
• Build up a rainy-day fund. Set up a monthly direct debit to put money aside in a high-interest account.
• Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours - to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.
• Buy now, pay at once. If you can't afford something one month, wait until the next.
• Use your credit card sparingly. Pull out the plastic when you absolutely have to have that half-price dress in the sales. But always pay it off before it incurs any interest.
• Always shop around when contracts - like your internet and mobile phone service provider - come up for renewal. Don't forget to ring your existing provider to see if it can offer you something better.
• Buy treats with reward points schemes. Use all those points you've accumulated on your various cards to give yourself a treat. Spoil yourself - after all, you deserve it.
The 12 Commandments of Wealth
The 12 Commandments of Wealth
1. Seek money for money's sake and ye shall not find.
2. Find your perfect pitch. (Know your strengths and weaknesses.)
3. Be your own boss.
4. Get addicted to ambition.
5. Wake up early. Be early.
6. Don't set goals – execute or get executed.
7. Fail so you can succeed.
8. Location doesn't matter. Success can take place anywhere.
9. Moor yourself to morals.
10. Say yes to sales.
11. Borrow from the best – and the worst.
12. Never retire.
Adapted from The Richest Man in Town by W. Randall Jones
1. Seek money for money's sake and ye shall not find.
2. Find your perfect pitch. (Know your strengths and weaknesses.)
3. Be your own boss.
4. Get addicted to ambition.
5. Wake up early. Be early.
6. Don't set goals – execute or get executed.
7. Fail so you can succeed.
8. Location doesn't matter. Success can take place anywhere.
9. Moor yourself to morals.
10. Say yes to sales.
11. Borrow from the best – and the worst.
12. Never retire.
Adapted from The Richest Man in Town by W. Randall Jones
Study Tips for Kids and Parents
With school back in session, here are tips from Oxford Learning to get your kids through school and dreaded exams.
Kids
1. Listen and hear. Pay attention in class. Jot notes on the main ideas. Don’t understand something? Make a note and ask someone to explain it to you.
2. Ace your homework. Use a planner to enter homework as soon as it’s assigned. Pick a comfortable place to do homework and study.
3. Study effectively. Divide material into units and assign each unit a day. Give yourself a three-day break before the test. Study in short bursts – 15 minutes at a time – then take a five-minute breather to exercise and refocus.
Use Oxford’s SQRCRC method to study:
Survey introductions, headings and summaries for main ideas.
Question: “What do I hope to learn by reading this?”
Read for details.
Cover the work.
Recite what you’ve just read.
Check how well you have done.
Parents
1. Help your child prepare a study schedule, and review it together every morning.
2. Create a special work environment that encourages best efforts and makes it easier for your child to get into study mode.
3. Get involved. Your interest shows them that school is important.
Kids
1. Listen and hear. Pay attention in class. Jot notes on the main ideas. Don’t understand something? Make a note and ask someone to explain it to you.
2. Ace your homework. Use a planner to enter homework as soon as it’s assigned. Pick a comfortable place to do homework and study.
3. Study effectively. Divide material into units and assign each unit a day. Give yourself a three-day break before the test. Study in short bursts – 15 minutes at a time – then take a five-minute breather to exercise and refocus.
Use Oxford’s SQRCRC method to study:
Survey introductions, headings and summaries for main ideas.
Question: “What do I hope to learn by reading this?”
Read for details.
Cover the work.
Recite what you’ve just read.
Check how well you have done.
Parents
1. Help your child prepare a study schedule, and review it together every morning.
2. Create a special work environment that encourages best efforts and makes it easier for your child to get into study mode.
3. Get involved. Your interest shows them that school is important.
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