4 Simple Steps You Must Know To Invest Smartly

- Brought to you by www.stockflock.co 

As a beginner in investing, it can be hard to understand complex financial statements. But in fact, there are only a handful of key points you should take note of.

Here are 4 simple steps for you to have a good picture of a company’s health.

1. Valuation. Is the stock too expensive?

Just like when you do your shopping, you want to find the cheapest store to buy from. The same principle applies for investing. You wouldn’t want to buy a company that is too expensive.

Here is the chart of Amara, a hotel operator of the luxurious Amara Sanctuary Resort in Sentosa. First, we look at the Price-earnings of Amara. It runs at 8.91, the lowest among the 3 competitors. That makes Amara the cheapest company to invest in as compared to its competitors.

2. Earnings growth. Is the company growing?

We want to invest in companies that are growing. Amara’s growth has been stagnant for the past 5 years, hence it does not have an exciting growth story. However, that could pick up once Amara Signature Shanghai opens in China. 

3. Returns for investors. How much can you make as an investor?

There are two important things we look at. We want to know how much returns can the company generate for its shareholders, and of course, the more the merrier. For that, we look at Return on Equity, also known as ROE. 

Amara definitely generates the best returns for its investors as compared to its peers. Over 8% returns for the past 5 years? That is a good business to be in. If they keep this up, the share price should increase year after year. 

The second factor to look out for is dividend yield. Amara gives only 1.87% dividend yield. If you are looking for passive income, then this stock is probably not for you. In fact, all 4 hotel companies give low dividends so investors should be looking for capital gains from rising share price.  

Insolvency risk. Will the company go bankrupt?

No matter how fast the company is growing, you must always pay attention to the risk of a company not being able to pay its debt. History has proven that fast growing companies often borrow too much and when they fail, investors suffer. Therefore you should stay clear of companies that borrow excessively.

As seen from the pie chart above, Amara has almost 50% debt and 50% equity (slightly more equity). This is on the high side. A safer proportion will be 30% debt and 70% equity. Nonetheless, it is manageable for now but investors should be mindful if Amara’s debts keep rising. 

Access to all the information on Singapore listed companies are now available for you to help you invest better. Simply log on to www.stockflock.co for a full suite of resources you need. 

*This is a sponsored post brought to you by the Stockflock Team

Fixed or Variable Rates for Home Loans?

In recent months, there has been a lot of news on interest rates and indeed the rates are changing at a much faster pace than before. Interest rates on the international level are all changing. US interest rates are changing, Singapore's interest rates are changing too.

With the ongoing changes, now it’s a good time to look at the benefits or disadvantages of both fixed rates and variable rates for our loans.Most of us will be taking loans when we buy a house. When interest rates change, we will get affected, big or small, depending on the home loan packages we take.

Credit: pixabay.com

In Singapore, there are basically 2 typical types of home loan packages offered by the banks. The first is short term fixed interest rates and the second is variable interest rates or SIBOR dependant rates. Interest rates are generally low in Singapore so a lot of people go for variable rates packages. But we have to take note that if interest rates rise, the monthly instalment we pay will go up as well.

If you own properties or is planning to buy properties in countries like Australia, the situation is different. Some of the fixed rate packages in Australia actually have lower rates as compared to the variable rate packages for a short period of time. It is important to do our own research to get the best deals when buying properties in Singapore or Australia. Newcastle Permanent is an independent, mutual, retail financial service provider which provides home loan packages in Australia.

Let's take a look at some of the benefits and disadvantages of fixed vs variable rates.

Fixed Rate Home Loan

A fixed rate home loan can provide you a sense of financial certainty because the interest rates and repayments will remain the same for the set period of time of your choosing.

Benefits:

• Consistent monthly payments
• Best for long term loan payments
• For home-owners who expects interests rates will go up and would want to lock in a lower interest rates now
• Protection from interest rate hikes

Disadvantages:

• Monthly payments are higher than Variable rates
• Home-owners cannot take advantage of any interest rate decreases that might occur during the life of the loan
• Most plans incur a fee when breaking out of a fixed rate before end of the loan term. This happens when there is transfer of home ownership due to sale or refinancing over to another lender.

Variable Rate Home Loan 

With variable rate home loan, market forces and the economic climate affect the amount of interest you pay for your mortgages. 

Benefits:

• Monthly payments are cheaper than fixed rate loans
• Best for those who plan to keep the loan for a short period of time

Disadvantages:

• No protection against interest rate changes
• Monthly payments will fluctuate in line with market interest rates

What happens when interest rates change?

$500,000 loan on 5 year fixed rate

If we take a $500,000 loan at 5 year fixed rate, we will not be affected when interest rates increase,. However, when interest rates decrease, we can't take advantage of it. 

$500,000 loan on variable rate

If we take a $500,000 loan at a variable rate in Australia, the variable rate loan will adjust accordingly if interest rates increase and we'll be affected. If interest rates decrease, we can take advantage of it and our monthly repayments will be adjusted lower. 

1% increase on a $500,000 loan

If interest rates increase by 1% on a $500,000 loan package for a 25 years term, the monthly repayment would increase by around $295. Those on the fixed rate package will not be affected while those on variable rates packages will be affected by this rise in interest rate. 

There you have it, the benefits and disadvantages of fixed vs variable rate home loans. Choose your loan packages wisely and you could save quite a bit of money on your monthly home loan instalments. 

*This is a sponsored post by Newcastle Permanent

What are Singaporeans Looking At Outside of Equities?

What are Singaporeans Looking At Outside of Equities?

brought to you by Call Levels - Your Personal Market Assistant

After launching the public beta version with only FX and Metals in late November, we have grown 15% weekly, with several thousand users now using us regularly in Singapore. Thank you for your patience and feedback! We had users thanking us when the Swiss Franc spiked and they were informed via Call Levels faster than any other professional system or person, and we hope to remain as useful and relevant for young investors as they navigate through the world of trading.

We started with a Singaporean core group of users, but as the word spread we have been adding users especially from Europe and the USA, and they now count for 20% of our user base. We expect to grow more internationally now we have added US stocks and even more in the future, but now is a great opportunity to take a look at what our (mostly) Singaporean users have been looking at on Call Levels.

66% of Our Users Look at Forex

This is no surprise as we launched with 930 crosses real time on FX, and indices and commodities came a few months after.

Users have requested for equities, and we are happy to announce that we are offering 500+ US stocks at launch, and this allocation will change in time as we cover many more assets.

Singaporeans Look at a Diverse Array of Currencies

A quarter of our users monitor the SGD on a very regular basis, and against the USD and JPY. Call Levels launched at a time when volatility for commodities and the US dollar was extremely high, with the Euro and Singapore dollar making multi-year lows. Users who have used Call Levels to keep track of their investments in FX would have felt safer sleeping at night knowing that Call Levels was constantly monitoring the market.

Gold and Oil Dominate the Futures Market

With the USD soaring to highs and the Federal Reserve predicting a US rate hike soon, gold prices were in the news, and more than 60% of users’ attention was focused on gold. Oil prices also tumbled to new lows over the past few months, dominating more attention than both US stock indices combined.

Key Level to Watch: USD / SGD @ 1.4000

The recent spike of the US Dollar against the Singapore Dollar has left all Singaporeans concerned about the weakness of the currency. We see a lot of attention placed on 1.40 - 1.41 level in USD / SGD, and there may be a lot of volatility at that level if the US Dollar move continues.

To ensure that you will be notified immediately when USD / SGD reaches 1.4000, use Call Levels now. We’ll watch the market so you don’t have to.

Download the free Call-Levels App on iOS and Android below:

For Android Users, you can download the app here

For iOS users, you can download the app here

*This is a sponsored post by Call-Levels 

How much does studying in the United Kingdom cost?

Have you wondered how much does it cost to study overseas? Find out more in the guest post by sgeducate below.

How much does studying in the United Kingdom cost?

An undergraduate degree from a foreign university has longed been seen as unattainable for the average Singaporean. Mind-boggling school fees, coupled with astronomical living expenses have made many cringe at the mere thought of sending their child overseas.  Indeed, such an experience does not come cheap. The United States, United Kingdom and Australia are popular study destinations, where the exchange rate rarely works in our favour.  Yet, speaking to several of my counterparts has made me realize that some overestimate the cost of an overseas education. So, how much does studying abroad really cost? In this article, we will look at the cost of studying in the UK.

Credits: http://pixabay.com/en/stamp-commitment-approval-study-451285/

United Kingdom

The cost of studying in the UK is dependent on location (London vs Non-London) and the course chosen. We will select two schools as a basis of comparison.


University of College London (Based in London):

Fees (2015 entry): £15,660 for most Arts/Humanities/Social-Sciences courses. £20,700 for most Science and Engineering programmes. £30,800 for Medicine.

Living Expenses (30-week academic year + Easter & Christmas vacation) 
1) Accommodation: £5850
2) Food: £2145
3) Travel: £888
4) Books/Equipment: £390
5) Leisure: £1950

Total Living Expenses: £11223

Based on the calculations above, a student studying in UCLwill have to fork out roughly (per year):

Arts/Humanities/Social-Sciences: £15,660 + £11223 = £26883 ≈ 56,240 SGD
Science/ Engineering: £20,700 + £11223 = £31923 ≈ 66,784 SGD
Medicine: £30,800 + £11223 = £42023 ≈ 87,905 SGD

For a three-year arts course in UCL, it will cost roughly 169K SGD.



University of Bristol:

Fees (2015/2016 entry): £15,200 for most Arts courses, £18300 for science courses and £18,300(first two years) + £33,900 (subsequent 3 years) for medicine.

Living Expenses (30-week academic year + Easter & Christmas vacation) 
1) Accommodation: £5460
2) Food: £1100
3) Travel: £750
4) Books/Equipment: £300
5) Leisure: £1500

Total Living Expenses: £9110

Based on the calculations above, a student studying in Bristol will have to fork out roughly (per year):

Arts: £15,200 + £9110 = £24310 ≈ 50,852 SGD
Science/ Engineering: £18,300 + £9110 = £27,410 ≈ 57,335 SGD
Medicine: £27,410 ≈ 57,335 (years 1 and 2) , £43010 ≈ 89,978 SGD ( each subsequent year)

For a three-year arts course in Bristol, it will cost roughly 153K SGD.


Evidently, based on the estimates above, studying in London is more expensive than studying in other cities. Having broken down the figures, I hope that you would have a better understanding of how much it costs to study in the UK.


*Do note that the above figures are based on estimations and information available on the websites of various Universities. Airfares have not been included in the calculations. Costs will vary depending on the school chosen, how one controls personal expenditure and changes in the exchange rate.

*This is a guest post by sgeducate. Republished with permission
Look out for more related posts at http://sgeducate.blogspot.sg

Planning ahead [Guest Post]

This is a short guest post by Young. He has written a few other posts for my blog previously.  

Recently, there was an article in the papers regarding how young Singaporeans were frivolously spending on designer handbags. Read the article here.

It appears that many netizens were quick to condemn and I can definitely understand why given their estimated monthly pay mentioned in the article. (SGYI: The salary was just a mid four figure salary)

Who’s right? Who’s wrong? Is there even a right or wrong in the first place? I think not. There is no right or wrong. Some of the individuals quoted in the article state that they don’t feel pain spending the money and neither do they save up to fund these purchases.

Should we criticize these people? I think everyone has their own opinions but at the end of the day; the bottom line is that so long as one is able to justify his or her actions, it is entirely prerogative to do what they wish to.

Of course, one can never go wrong with saving what they can and I definitely stand by that going forward. Maybe youths aren't interested in learning to invest; but the act of saving itself, is definitely commendable at least to me.

I hope you enjoyed reading my brief post and have a great weekend!

In Summary, I feel that at the end of the day, one should know better what is best for oneself. Do not be overly tempted by decadent, opulent or frivolous lifestyles. Money out will always be easier than money in.

My thoughts: 

Many young people now grow up in more well to do families. Recently I have a friend who got a brand new BMW from his father. He knows his family is rich so he also spends most of his own money and don't find the need to plan ahead or save up for his future. Many of us may envy people who are born in rich families or envy people who get to live luxuriously but life gets boring without challenges. 

We don't have to envy the lives of others. The value of money is lost when we spend recklessly. One day we'll wake up and realise how ridiculous are the items we bought when we finally realise the need to plan ahead. 

What students should save for?

This is another guest post from Young, who recently shared his story and his experience on investing on a previous blog post in my blog. In this post, he talks about the life of young people and what should they save for?

Credit: ringling.libguides.com

"Many times, I would find myself hearing schoolmates saying, “eh bro, can belanjal or not?” What this translates to is, “hey bro, could you give me a treat?”

One would find it common for students to be hanging out at cafés like Starbucks and such. We also find students filling up jobs along the lines of doing some special events or waiting tables in restaurants.

In fact, i've observed that taking up part time jobs for students has turned into something very common. Why is this so?

It is also common to see students especially teenagers having the latest gadgets (for guys) and designer brands (for girls).

It appears that after some eavesdropping and chit chat, a huge number of students take up part time jobs to fund their wants.

Of course, this conclusion/deduction is merely my own and definitely does not apply to all.

So is it wrong to take a part time job for the sake of buying such items? Of course not. In fact, it is commendable that teens take up a job.

However, if one spends their salary frivolously and takes up the job simply for the sake of spending; then I do not think it a good idea.

Long story short, the point of this short article is to induce the idea of working to invest rather than working to indulge.

By having the intention to invest at a younger age, this induces the notion of planning for the future to a certain extent.

What might this be beneficial for one may ask? It can be used to offset a certain amount of tuition fees, food and travelling expenses etc."

SGYI's thoughts: 

I'm glad to be able to hear from a young person on how his friends are living their lives. It is common for young people to spend on "wants" especially on the latest gadgets and following the latest fashion trends. I was once like that too. Spending the money i earned from a part time job just to buy a $300 plus dollars 3.2 mega pixels camera phone which was the new thing back then. 

Thinking back, all those expenditure were of no meaning at all. Where was the phone that I bought during my younger days? Its not trendy any more so I changed another phone. It did not make any difference in my life for spending on that latest phone. 

Spending money is ok but spend on something that is meaningful such as a gift for your loved ones or a trip with your family. These are the ones that will make a difference in your life. However, we still need savings and also investment to grow our wealth. It all about achieving that balance. Don't spend too much and don't save too much. Haver a financial plan for your future. 

Enjoyed my articles? 

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Don’t Pass On These Bad Financial Habits to Your Kids [Guest Post]

The following guest post is contributed and written by Lim ChuWei

You might not realize it, but your kids watch you all the time and then copy your habits.

The financial behaviour that parents display in front of kids needs to be healthy in order for them to learn well. You are their role model for good and bad habits. Your intentions might be right, but you still might be sending negative signals in a subtle manner, especially when it comes to use of credit cards and debt handling.

Have a look at some behaviour related to finances, habits and attitudes that you might want to reconsider as a parent.

1. You Don’t Save Anything 

If you don’t save for a rainy day and are always working neck to neck, then your children will do the same. Learn to save and plan, and set a good example for them. Encourage them to set aside a small amount from their pocket money.

2. Buying Things You Don’t Need

Is your house getting full of items you bought on the spur? Are your closets spilling clothes out and you have lost your control of passing a garage sale? If your answer is yes, please be informed that you have no control over yourself and should expect major financial problems soon. There’s no harm in asking for help from a friend or a professional.

3. Don’t Pay Credit Card Bill On Time

A credit card bill has to be paid at the end of the month. There is no way that goes away without paying. So if you charge everything to your card, be ready to pay up on time. Missing a payment means high interest rates and bad credit history. And remember when you card gets declined it’s the customers in the store and your kids who are watching.

4. Don’t Pay Bills on Time

Do you throw the mail in the bin in front of your kids stating- just some bills. Your kids will do the same in a few years. Teach them to not to borrow and return a loan on time. Be careful of your statements in front of them.

The above guest post is contributed by Lim Chuwei from http://www.championtutor.com/

5 Tips for Selecting the Best Private Student Loan Lender to Help Pay for College [Guest Post]

With so many tutoring jobs emerging in Singapore, many people are hiring a home tutor in Singapore to prepare for tricky entrance exams to get admission into the top colleges. And once you get into the college of your choice, worries of arranging finances for college start creeping in. Here’s telling you the 5 most essential tips on selecting the best private student loan lender to help you pay your for college.

When considering a private student loan, make sure you carry out a comprehensive research on all private student loan options available to you and compare each one of them. Look out for some exclusive offers along with the rates and terms, such that you keep all options open and select the one that is best for you.

Credits: http://www.simpletuition.com/wp-content/uploads/2013/10/student-loans-needed-300x200.jpg

1.     Look For The Total Number Of Lenders 

If you think the very first lender you searched for is offering good rates, do not sign up until you compare student loan rates with several other lenders.  Majority of the loans are available to Singaporean/PR students in the age group 21–62 years. 

Some banks in Singapore (OCBC, for example) even offer loans (against the tuition fee) to international students as long as they have a co-signer. Most lenders require that your cosigner or sponsor has a minimum income of $30,000 per annum. 

2. Look For The Most Favorable Terms 

Private loan lenders offer fixed and variable rates. Fixed rates are generally above 5%. Banks such as POSB, for example, have 5.88% fixed interest rate on student loans. Some cooperatives and other institutions may even offer student loans at attractive 2.9% (flat) interest rates. The variable rates are generally lower and are tied to a fluctuating key index. But, variable interest rates on student loans can also jump up in future. Repayment duration can range anywhere between 5 -10 years or more. When selecting a variable interest loan, it is important to consider the loan term because fixed interest rates are suited for long durations. 

3. Look For Credible Lender 

Make sure the private loan lender you select has been in the market for quite some time and is more likely to stay for years to come. In case your lender closes up, your loan would be sold to some other company which you may not like much. So, instead of just looking at flexible loan tenure and not-so-strict paperwork, pay attention to the kind of financial institution you’re dealing with. In Singapore, some of the most credible lenders include: 

• TCC Credit Cooperative 

• SINDA Study Awards 

• HSBC 

• Citibank Ready Credit Line 

• Maybank Education Loan 

• CDAC Education Loan (best for the Chinese Students) 

• POSB Study Loans 

4. Only Look For Education-Specific Loans 

There are private lenders who only deal with generic lending and do not have true educational lending programs. Carefully look out for lenders who offer a program that is specifically designed for lending loans to students. 

5. Look For Positive User Experience 

Make sure you check every single detail about your lender. Is their web-site user friendly? Do they offer a courteous customer service? Make sure you check out their profile and company history thoroughly. Do not jump the gun right after you notice a stupendous student loan offer from an online lender. 

The above guest post is contributed by Lim Chuwei from http://www.championtutor.com/

Getting the Courage to Invest—Taking Calculated Risks [Guest Post]

French novelist André Malrauxonce said, “often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one’s ideas, to take calculated risk – and to act.”

Risk is something inherent in investing. Some investments are so risky that the possibility of losing all of your investment is possible. The thought of losing all of one’s investment, or even just a part of it, can easily discourage some people from making an investment, which is rather unfortunate.

It’s easy to just flock to the safety of just saving your money in a bank. You could be thinking that your money is safe and even insured by a government agency in a savings account. It even earns interest, so why should you still bother to invest?

One way to see it is this: the money in your bank, aside from earning only minimal interest, is actually losing some of its value. Savings account interest rates these days earned are so small that many lag behind the inflation rate.

An example of this is the situation in the UK in June last year where depositors actually needed to find a savings account that has an interest rate of at least 3.38% to beat the inflation rate. If depositors don’t find a higher rate, the value of their money basically erodes.

Sure, you could work hard and earn more money, but if you really think about it, how long can you stay productive? A smarter way to go about protecting the value of your money is to make it work for you through investments.

Studying Your Investment Choices

As we’ve mentioned earlier, investing has inherent risks. But there are so many investment options that you can take steps to minimize these risks and still realize positive returns for your investments. 

Stocks and bonds are common investment instruments that you could look into. You have others that pose smaller risks, such as blue chip stocks and government bonds.

Having a diversified portfolio has always been a recommended risk management method. It basically means putting your money in different types of investments. It’s following the age-old advice of not putting all of your eggs in one basket, so if for instance you invest in stocks, don’t invest in just one company. You could further diversify your portfolio by investing in the stocks of companies from different geographic areas to further shield you from any regional political or economic conditions that can affect the stock’s value.

Going into business is also considered an investment. You invest your time, effort, and capital to start a business and there are many possible factors that could play a role in the success or failure of your venture. There’s the regulatory risks such as the government suddenly raising taxes so that you would find it hard to make a profit or risks such as a road construction right in front of your business just a few months after you open that severely cuts foot traffic to your establishment.

Before making any investment, it’s thus essential that you first study all of the aspects of the investment. This is the part where taking a risk becomes taking a calculated risk. This is the idea that Malraux was talking about which differentiates a successful person from one who is a failure.

Funding Options For Starting Your Investment

Once you decide to invest in stocks and bonds or even start a new business, you then have to choose how to go about investing. Ideally, you should always have an emergency fund saved up in a savings account that you could tap into. This amount should be enough to sustain you for eight months at least even if you don’t have any other source of income. Keeping an emergency fund helps minimize your investment risks.

Money in excess of that emergency fund can be invested but there are other sources of funds, such as getting a personal loan, but you should think twice before taking this option since the profit that you may earn from your investment may not be high enough to cover the interest payment that you need to pay on top of these loans.

There are also business organizations that you may want to tap since there are some that offer business assistance for people like you who are interested in starting their own business. Or you could go big and seek investments from venture capitalists and angel investors.

Studying your investments well and your options should any unforeseen events happen can help you make a calculated risk when investing. Malraux emphasized this but all this planning is studying will not bring you success unless you learn how to act on it.

Author’s Bio

Ryan Del Villar works as a Content Strategist for MoneyHero. He is also a freelance online reputation management writer.

Tips to Save Money when you’re A Student [Guest Post]

Do you have fine wine taste and cheap beer budget? It’s absolutely fine - majority of the college students survive on a tight budget while the remaining get indulge in relentlessly over drawing. But it always does not need to be so. Read along to find out how!

Saving money as a student can certainly prove to be quite a daunting task. It’s very likely that you are at present making very little or no money at all and the sum you have is simply not adequate for you to make big purchases or to help you get past a wedge.


Despite all odds to ensure you’re saving as much as possible, follow the tips mentioned below:


Identify Your Goals 

You need to be clear about the goals you set out for your monthly or weekly expenditure. Decide whether you are looking to save a few bucks for a lunch or dinner party or you want to save for a big vacation that you've been planning for long.

Credits: http://www.supermoneysave.com/wp-content/uploads/2011/05/Save-Money-While-in-College.jpg

Next you are required to figure out your short-term and long-term goals and then decide how much can you save for each of them. Even if you don’t have any goals in mind, it is still advisable to keep a small amount separate for future use. Such savings would help you easily get out of any blind event and emergencies in the near future.


Incorporate Savings into Your Budget 

Once you determine the total amount of your savings, you can then finalize the amount you need to put away every week to meet your targets on time. Example, if you are required to purchase a set of books (priced about $300) after three months, then your monthly target would be to save a minimum of $100 every month to make it $300 after three months.


Look For Part-Time Work 

If you make more money, you can genuinely save more. If the load of your studies in under your control and if you feel you have the capability and potential to take up another activity, seek part time jobs that better fit into your schedule – you can consider home tutor options in Singapore.

There are many colleges, which provide students with convenient part-time jobs in campus libraries, bookstores and computer labs. The administrators at such places know that you’re a student and understand the importance of attending classes and therefore you might be allowed to work for one or two shifts every week. Opting for delivering private tuitions in Singapore can be one great way to making extra income.


Make full Use OF Your Student ID Card 

The little piece of card – student ID card can help you gain lots of discount coupons on various merchandise and food items at great many places. Make sure you check in your student services department to learn what discounts are available to you.

Guest post contributed by:

Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.

Great Money Saving Tips for Those Just Getting Started

The first step on the road to savings is the toughest. It takes baby steps and a lot of determination to build a reserve for a rainy day.

Once the money starts accumulating, the confidence grows and a person can start making bigger and better plans. Some steps are very simple and just need some determination; others are a little complicated and need more meticulous planning.

Image URL: http://blog.washingtonfederal.com/wp-content/uploads/2013/04/url-1.jpeg

On the whole, saving is a habit that should be inculcated in children from a young age, to help them lead a stress-free and quality adult life.

Take a look at some great tips for saving money for those just getting started:

1. Choose a smart bank

When selecting a bank to keep your savings, make it a point to compare interest rates and also the maintenance fees before taking a decision. If you find out that your bank is charging you more, feel free to switch loyalties anytime.

2. The thirty day rule

Whenever you are tempted to shop impulsively, stop and ask yourself to wait for thirty days. If after that period you are still tempted go ahead, in most cases the desire is over by then. You will save a lot of money and become a disciplined shopper too.

3. Make a shopping list

It always helps to go out armed with a shopping list to avoid buying unplanned items. Do not buy anything that is not on the list and pat yourself when you get out of a shopping mall safely without buying any extras.

4. Entertain at home

When calculated till the last penny, most activities when held at home are cheaper than going out. Calling friends over and entertaining at home will result in savings and also lend you an opportunity to spend quality spend time with each other.

5. Avoid spoiling the kids

Children are very adaptive if you look for ideas to entertain them at home. The money spent on junk foods and countless other activities can easily be saved. Use stuff lying idle at home to organize activities to keep young kids blissfully occupied.

6. Credit Cards

Similar to banks, choose a credit card company that charges you the minimum rate. Customers with a good credit card history can also put in a request for reduction in the rate being charged. All these small savings add up to a substantial amount at the end of the year.

7. Shopping

The next time you see a flier for an ongoing promotion, go home and settle your closet first. Take a fresh look at the stuff you already have and then decide if you need more. It will give you the double satisfaction of a clean cupboard and money well saved.

Guest post contributed by:

Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.

7 Tips to Manage Your Money Better

Children are generally very good at imitating behaviours of their parents. Parents should always try to practice what they preach in order to succeed as good role models.

Teaching children the value of money and how to manage it well from a young age will help them become responsible adults. The same way a child is taught to eat and behave in the right manner, he should be taught to be responsible with money.

Source: http://i.huffpost.com/gen/1633282/thumbs/o-KIDS-MONEY-facebook.jpg

Here are seven tips which children can be taught to manage money better.

1. Start Training Them Early

Playing shopping at the grocery store is one of the oldest games parents play with kids. They learn the concept of purchasing and denomination of money to some extent. Teach young kids to go and make small purchases and then count the left over change.

2. Trust Them With Money

Start by giving a small amount as pocket money to your kids. Lay out clear guidelines of what and what not they can buy with it. If you give an allowance as a reward for a household chore, they will clearly understand the concept of a job and salary.

3. Encourage Responsibility

Dedicate two jars as spending and saving in the house and let them decide how much goes in which. You can open a bank account for slightly older children and allow them to do the saving themselves. Explain the concept of savings to them.

4. Be Open to Mistakes

There will be mistakes even after the rules so be ready for them. Resist the temptation of fixing their errors by dishing out more money. Private tutors in Singapore are doing a great job in advising families on money management.

5. Let Them Decide

Let the children voice their opinions on their age related money matters. Respect their idea and let them feel heard. Plan a project like choosing a board game for the house, where they do the research and comparisons.

6. Charity 

Source: http://www.seniorbrigade.com/consumer_protection/images/charities_080201_mn.jpg

Always teach them to keep aside for the less fortunate and have compassion for them. Let them be thankful of what they have.

7. Be a Good Role Model

Always try to be a god role model for them to follow in your footsteps. Brush up your own skills before giving the wrong information.

Guest post contributed by:

Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.

Where does the free money come from?

About the Guest Author​

The guest author of this blog post is Mr. Torgny Persson. Torgny is the founder and CEO of the Singaporean company BullionStar.com where you can buy gold and buy silver. Torgny is also the founder of the Swedish bullion dealer LibertySilver.se as well as the Estonian bullion dealer Liberty Silver.ee.

Torgny has a Master´s degree in Economics and has 10 years experience as a gold market expert and bullion dealer.

Where does the free money come from?

As a kid I was always fascinated by the interest appearing in the savings book at the end of the year. Yes, I am actually old enough to remember the physical savings book. I was eagerly going to the bank with my piggy bank the 2nd of January each year to find out how much free money I was going to get.

Where is the free money coming from? 

Want to study Economics?

I have a Master's degree in Economics. I'm sometimes asked to share my best advice to prospective students considering Economics as their major. Don´t do it. Yes,don't do it is my advice. 

Even so, I'm proud of my background as an economist. It has taught me a lot about how the world isn't working. I have to tell you that advanced economics was the starting point for a turnaround in my economical thinking. 

My first years studying micro- and macroeconomics was a lot of fun. Demand and supply. Carbon paper logics of the world. I was thrilled. A lot of logical reasoning theorized. I enjoyed it. It opened a new window of reasoning for me.

The latter years were also amusing but not because of the logics of economics. It was amusing because the economic models got more and more far-fetched. 

What started out as modelling the behaviour of people ended in obscurity. 

Take a professor in economics. A man with a lot of respect and authority. Seldom much real life experience. After reviewing too many increasingly unrealistic and illogical studies by his colleagues, he (because it is often a male) feels that he can come up with something equally abstract. A couple of peer reviews, a sweaty seminar and a journal publication later, and he can collect the membership card to the economics admiration club. 

To learn economics, self-studies are much superior to institutionalist studies. Mises is an excellent organisation teaching real life economics. For news coverage, there´s Zerohedge. By keeping to these sources you can learn much more about economics in a month than in four years at university. 

Where is the money?

Back to my original question. Where does the interest come from? It´s as simple as it is enthralling. The money for the interest didn´t exist before it was credited to the account. The interest is a mere book-keeping entry creating money.  

Interest, like money, is not a tangible. Most of it doesn´t exist in physical form. In Singapore, only 5.5 % of the money supply exists in physical form. In the US, the equivalent number is about 7 %. In Sweden, where I originate from, the banks are pushing strong for a cashless society, with the result that only 4 % of the money existing as notes and coins.  

When a bank is extending a loan to a borrower, where does the money come from? Depositors you may say. Wrong. Only a fraction originates from the depositors. All banks have much less deposits than money loaned out. The money is simply created out of thin air. It is lent into existence. Our current monetary system making this possible is called fractional reserve banking. With fractional reserve banking, a bank only needs to have a small fraction in reserves and can loan out create money out of thin air. 

How much is USD 17.4 trillion? 

With the stock markets like the S&P 500 index setting new records by the day, many financial journalists have a positive outlook on the economy. And sure, compared to many other economies, the Singaporean economy is strong. 

But what if we look at the major underlying economies of the world? What has changed since the financial crises in 2008? Sure, the consumption rate is higher but what does that tell us? If you look at the figures, there´s some scary information embedded. Western economies like the US is deeper in debt than ever before. 

USD 17.4 trillion. How much is that? Well, it's SGD 22 trillion. Hey wait, there's no such thing as SGD 22 trillion. The total money supply in Singapore, even calculated broadly, is only SGD 0.5 trillion. The US national debt is thus 44 times all Singapore dollar currency in existence!

I don't know how much a billion is as I can't really comprehend numbers like that. We as people are not equipped to understand trillion, quadrillion or billion figures. Money is supposed to be a unit of account, a frame of reference. USD 17.4 trillion is so out of touch from reality that not many even seem to notice how underwater the developed economies are. 

Gold

How does gold come into the equation?

History shows that gold is keeping its value and purchasing power over time.

Gold cannot be created out of thin air. 

Gold is no one's liability.

What if you put away SGD 1800 in a safe deposit box and left it there for 20 years? What would happen to your purchasing power in those 20 years? Judging from the history of unbacked fiat-money, there would be a loss in the value of the money. 

What if you instead deposited 1 oz of gold in the safe deposit box. 1 oz of gold today cost about SGD 1800. What would happen in 20 years? The gold would likely increasing in purchasing power being worth much more in 20 years. Why? Because it has kept value for 6000 years. Gold can´t be created out of thin air. Gold is a tangible asset in high demand but in limited supply. Gold is the superior metal because of its metallic characteristics such as being dense, soft and malleable.  

Gold is wisdom. Gold is a return to the safety of the past. 

Gold is a way to sleep tight at night - Gold is money! 

How to buy precious metals in Singapore

There are several different dealers offering physical precious metals in Singapore. The most important things to consider when buying physical precious metals are:

- Making sure that the dealer is presenting prices transparently online

- Ensuring that prices and storage fees, if you choose to store your bullion with the bullion company, are competitive

- Checking the track history and reputation of the bullion dealer

At BullionStar, we are proud of our price competitiveness, integrity and service. We treat our customers with utmost respect and confidentiality. We aim to offer the lowest prices for bullion in Singapore. If you choose to store your precious in our storage solution called My Vault Storage, storage is free until 2016!

If you are looking for further information about precious metals, please browse BullionStars articles section which cover topics such as precious metals, monetary economics and general economics.

 

Investment in Precious Metals in Singapore

Investment Precious Metals (IPM) has been exempted from GST in Singapore since 1 October 2012 as the Singaporean government is actively trying to create a regional hub for gold trading in Singapore. Singapore is one of the best places in the world to own and store precious metals since:

- There is no taxes for precious metals in Singapore (No GST or no capital gains tax)

- There is no reporting requirements for precious metals in Singapore

- Singapore is very safe with very low crime rates

- Singapore has very strong property ownership rights

- The Singaporean government is aiming to create a regional trading hub for precious metals in Singapore.

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Teaching Children to Be Financially Savvy

Teaching children about the value of money from a young age will make them responsible adults when they grow up. Read on to know how this can be made possible.

Parents are a child’s first role models for learning money management skills. Teaching them simple steps to save money and to make the best use of it, will help them in a long way. Supporting habits of saving and practicing the age old theory of reward for work will make them understand the basics in a better way. Have a look at simple tips that can make children money smart.



1. Introduce money at an early age

Once a child starts going to school, start making him aware about the concept of money. Teach them to save coins or change in their very own piggy bank and let them take ownership of it. Set up small achievable goals for them, and make sure to appreciate them when they achieve it. When in the market let them pay for small things and check if they got the right balance.


2. Encourage the habit of Saving

Talk to your children about their wants and then guide them to save and set a target for them. Smaller children can save for a toy or a game and older ones for a movie or going out. Offer to add if their balance falls short and make it an interesting task.


3. Teach how to work in a budget

Give the children a small sum of money and then ask them to keep part of it aside. Now teach them to manage the whole month in this left over amount. At the end of the month discuss about the savings how they add up to become a bigger amount. Make a daily planner for them that will guide them step by step.

Guest post contributed by:

Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.

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Related Posts:

1. Teens in Singapore to Learn How to Manage Finances

Asia’s Youngest Self-Made Billionaires

Forbes magazine regularly comes out with a list of richest people in the world and they've come out with a list of Asia’s youngest billionaires for 2013. On the list are Gree’s Yoshikazu Tanaka from Japan and Fang Wei of Fangda International Industrial Investment of Beijing in China. Forbes also came out with a similar list in 2008, which included several billionaires like Ma Huateng of Tencent Holdings from China and Chu Lam Yiu from Hong Kong. These young, self-made billionaires serve as an inspiration to anyone who believes that hard work—and a bit of cleverness—can indeed make you rich.

1. Yoshikazu Tanaka (36)

Japanese entrepreneur and self-made bilionaire Yoshikazu Tanaka founded social network game site Gree when he was just 26. He has had the distinction of being called “Asia’s Youngest Self-Made Billionaire” by Forbes in 2010. Gree has grown big enough to acquire other companies, including Atlantis Co., Ltd., US social mobile gaming platform OpenFeint, and mobile game developer Funzio. His net worth is estimated to be at $1.9 billion as of April 2013.


2. Fang Wei (40)

Self-made billionaire Fang Wei’s net worth is estimated to be at $1.3 billion according to Forbes. Fang Wei chairs Fangda International Industrial Investment of Beijing. A profile from Bloomberg says that the company invests in carbon, iron, steel, real estate, and pharmaceuticals.


3. Ma Huateng (42)

Ma Huateng co-founded Tencent in 1998. Today, the internet company’s QQ instant messaging tool is very popular in China. Tencent is also currently involved in other businesses including e-commerce and online games. Forbes estimates Ma’s net worth to be a staggering $10.2 billion as of October 2013, up from $6.4 billion from the previous year. Time Magazine named him one of the world’s most influential people in 2007.


4. Chu Lam Yiu (44)

Chu Lam Yiu chairs fragrances and flavourings company Huabao International. Her fortunes may have fallen a bit since her Hong Kong listed company’s shares dropped, but Forbes estimates her net worth to be at around $1.7 billion as of October 2013. According to a profile of the company by Bloomberg, Huabao supplies flavours and fragrances for tobacco, food, and other household products. Huabao also provides research, development, and marketing services to its customers.


5. Robin Li (45)

Robin Li is the co-founder of Chinese online giant Baidu.com. Baidu was founded in 2000 and is now the largest Chinese search engine and gets the lion’s share of local search queries. Li is one of China’s richest men and Forbes estimates his net worth at $11.1 billion as of October 2013. Li has had experience working at several US websites including Infoseek and Go.com.


Conclusion

While there are many billionaires in Asia, many of them inherited their fortunes. A lot of them were able to grow their inheritance and become notable business figures in their own right. The five billionaires on this list, however, stand out because they started companies by themselves, were able to expand those, and reap the rewards of their hard work. Also worth nothing is Huabao International’s Chu Lam Yiu, who is the only female in our short list of young Asian billionaires.

Yoshikazu Tanaka, Fang Wei, Ma Huateng, Chu Lam Yiu, and Robin Li are self-made billionaires that have been featured in Forbes’ list of young Asian billionaires. They serve as inspiration to entrepreneurs who may not have been born with a golden spoon but are determined to build their fortune through sheer hard work. It’s also remarkable how many on this list are from China, serving as a testament to how the country’s economic policies allow entrepreneurs to become not just millionaires, but billionaires.


*This guest post is written by Israel Defeo. He is the writer and online promoter of the leading financial comparison website in Hong Kong, Money Hero. The online portal presents up-to-date and unbiased information about insurance companies, credit cards, loans, deposit accounts and broadband and mobile plans.

How to Invest in Gold Bullion?

How to Invest in Gold Bullion

Precious metals are naturally occurring metallic compounds of high economic value because of their rarity. Gold bullion is the more popular precious metal that is frequently selected by investors because this precious metal is often used as a hedge or harbor against economic uncertainty. Bullion is a bulk form of gold, and gold bullion is frequently traded on prominent commodities markets. Gold bullion can be traded as a commodity that is significantly affected by the central banking industry and the international monetary fund, for example.

Credit: www.123rf.com

Getting Started in Gold Investing

Gold bullion bars can be used as hedging products against inflation. Buy gold online through professional precious metals dealers to begin a precious metals portfolio. Buy gold bullion as a precious metals investment. This type of investment is tangible and is often more attractive to individuals who wish to have their own access to an account. Gold can be easily used as a purchasing agent. An investor can use their own storage facility or may use a safety deposit box at a local bank, for example. Insurance is available for an account that is stored by a professional gold dealer.


New Investor Tips

Buy gold online through an online professional precious metals and rare coins dealer. An investor may buy gold bullion successfully by using the following steps:

• Learn about the online dealer and the services offered.
• The quality and characteristics of the gold bars purchased are critical to understand.
• Gold purity is an important characteristic of a gold bullion purchase with higher purity levels being more valuable.
• Be sure the gold is genuine by using reputable dealers who sell only legitimate products.
• There are several makers of gold bars that use a valuable hallmark that identifies a genuine product.
• Check the spot price of gold to make sure that the sales price is appropriate.

Investing in Gold Bullion Wisely

Gold bullion bars can be held for a number of years as a long term investment. Investors often use gold bullion and other precious metals as retirement accounts. The bullion bars can be sold for emergency purposes. The following are several markets for gold bullion bars:

Contact an investment company directly in order to sell a gold bullion bar.
Auction websites can help a gold investor sell a certain amount of gold bullion.
A local jewelry store may want to purchase gold in order to manufacture new jewelry.
Pawn shops buy gold bullion for lower pay outs.


Summary

Gold is used as an additional account for an investor's portfolio. The value of gold has its own economic markets, and frequently the value of this yellow metal does not decline when other markets fall. This precious metal is used as a hedge against unstable economic markets and a harbor against inflation. There is a tangible value to this type of investing that is attractive to investors wanting more direct account access. Buy gold bars for long term retirement investments. Buy gold online through reputable broker dealers. Note the quality and characteristics ofgold bars prior to purchase. Investment caliber bars are stamped with a maker's hallmark and have a certain percentage of gold purity. Gold bullion bars can be safely stored.


*The above article is contributed as a guest post by Aew. 


My thoughts on investing in Gold

Gold is a long term investment. It is a hedge against inflation. When the value of paper currency depreciates, Gold becomes stronger as what we've seen over the years when the US dollar depreciated. Gold prices has fallen significantly over the past 1 year and may continue to fall as the US dollar get stronger due to the fact of the tapering of QE. It may be good to watch gold prices as it develops. There will certainly be chances for patient investors to buy Gold at cheap prices.

In Singapore, you can invest in Gold through the bank. UOB allows you to open a gold/silver account or you can buy the physical gold itself. Contact a professional advisor to know more about investment in Gold Bullion.