Monthly Archives: November 2021

What Is An NFT?

Posted on by
Reply

This question has been cropping up all over Twitter, in conversation, and was even the first question that came up when I started typing into YouTube. So what is an NFT, is this going to be similar to the Dot Com Bubble or the Tulip Mania in 1634? (Yes, this is where Dutch people thought that tulips were super cool, so much so to the point that a tulip bulb could cost 10 times the annual income of a skilled worker.) Let’s dive a little deeper into the internet’s latest craze.

Let’s start with the basics- NFT stands for ‘Non-Fungible Token’. To be honest, the word ‘fungible’ was one that stood out to me, not because I like that word, but because its definition is so specific and complicated that it’s easier to just say ‘replaceable’. Essentially, this means that an NFT is unique, one-of-a-kind, like the Mona Lisa or the Venus De Milo. An NFT is unlike any other. The T, token, is all to do with blockchain. Essentially, blockchain is a public record of transactions; so if one person makes a transaction, everyone else can see it, and it’s almost impossible to change, hack or cheat the system. This kind of technology has become very popular as peoples’ mistrust of centralised banks increases.

This is all well and good, but what do all these concepts have to do with GIFs? Or random pictures online? In theory, this all boils down to human psychology. Who decided that gold was valuable? Or paper money, or fine art, or….anything for that matter? If a large enough group of people decides that something is of value, then it becomes so. A large group of people basically decided that things online (tweets, pictures, music, highlights of an NBA game, you name it) are valuable enough to have a numeric value to them. But, how can someone buy something that doesn’t tangibly exist? Well, with blockchain, we have the technology to be able to put these purchases on public record, so that no one can dispute that a specific person has bought a specific image, or whatever it may be.

Does anyone remember Nyan Cat? That strange little GIF way back when Myspace was a thing? It’s a GIF of a pixelated flying rainbow cat? Well, in February, Nyan Cat’s creator Chris Torres sold the NFT version for roughly $580,000 USD. This was the first ever meme to be sold as an NFT, and I think it does mark a new era where digital artists can have the same recognition as normal ones.

And I know that all this may seem ridiculous to some, ‘how can you own something that doesn’t exist’, but the reality is that our world is now moving online. Back in the 90s, the internet was taking off; people would never have imagined that all our banking can be done online, we can send people money via our phones or that we wouldn’t need a physical credit card or cash to make payments. Isn’t that the same as us thinking that NFTs aren’t real? Money is no longer just tangible cash or card- it’s a figure on our computer screen. So I think it’s only natural for the world of investments to head in this direction. I think that the stage our world is at with NFTs, is the stage we were with the internet in the 90s. It’s a hype right now, the new technology is exciting. But, will it crash or burst like the Dot Com Bubble, the Real Estate Bubble or Tulip Mania? Is this all a fad that will burn out- the brightest star burns quickest…will that be the same for NFTs?

Natureland Giveaway!

Posted on by
Reply

Giveaway alert!

Rest and relaxation is an important part of mental and physical well-being, you deserve it! Participate in our giveaway for a chance to win a five in one spa therapy for two with our partners at Natureland spa therapy!

To enter, all you have to do is like this post, follow our Facebook, and follow our Instagram. https://instagram.com/expatfinances?utm_medium=copy_linkhttps://www.facebook.com/SingaporeExpatFinancialPlanner/ Comment or PM us so we know that you have entered!

Feel free to share with your friends so that they can enter too! Winners will be announced on 1st of December!

Good luck!

Terms and conditions: applicants must be above 18 years old and residing in Singapore.

How Social Media is Messing Up Your Money

Posted on by
Reply

Social media has definitely become a very integral part of our lives; we can connect with our friends, share our idea, show off our photos and pretty much expose every part of our lives online if we wanted to. It’s especially great for us expats to stay in touch with people at home and abroad. I also think social media is a great tool for broadening our horizons, listen to new ideas and keep up with the news. However, it has a flip side; what we see on social media is not 100% real…people only showcase the best aspects of their lives online; be that be their jobs, their holidays…their belongings…everything is not as it seems. That’s why it’s particularly important to be conscious of how social media affects you. Here’s some ways that social media is BAD for your bank account.

FOMO Spending

This is a term I heard of lately and, as soon as I read it, it instantly resonated with me. FOMO (or, ‘fear of missing out’) is something I suffer from frequently. I often feel like I need to attend every social event or gathering, and that if I don’t, I’ll be missing out on so much fun and good times. Especially now, during lockdown 1094829953892 (whichever one we’re on), I feel like I need to get as much social interaction as I possibly can. But, this isn’t always so good for my wallet…brunches, drinks…. some of you may go on friend staycays. This all adds up!

  It’s always good to cultivate a friendship circle that is empathetic and adapted to your financial lifestyle. Having friends that are understanding of your financial needs and limitations, is not only healthy for your bank account, but also for your mental health. It’s not fun feeling pressured into buying something, or spending when it’s beyond your means, and if you’re not able to express this to a friend, maybe it’s not the right group for you. A recent study shows that 27% of millennials feel uncomfortable saying no to a friend when they can’t afford an activity. And 48% admitted to spending beyond their means to hang out with friends. This is only exacerbated with that fact that we will see everything on social media.

  Not only that, being in financial trouble because of spending on nights out or luxury items, it a lot tabooer (yes, that’s a real word) than admitting to being in student debt or having a housing loan. This can lead to secretism, shame and denial about one’s financial standing. Honesty is always the best policy, even when it comes to voicing out to your friends not wanting to spend beyond your means.

Advertising and Luxury Goods

This one seems obvious but it may not be as obvious as you think. Adverts are almost everywhere, including plastered all over social media. What’s even worse, they’re not adverts for things we don’t particularly want or like- they are specifically tailored for each and every person, based on the videos they’re watching, the content they’re digesting. Product placement is secretly crafted into everything we watch; from product reviews, video sponsors and sneaky product placement, we are always consuming adverts one way or another. Luxury brands in particular are coming up with fresher ways to reach younger audiences, such as TikTok, and it’s working; a recent survey showed that millennials spend $500 on average a month on luxury items, and 51% said they would forgo healthcare in favour of luxury goods. Which, is crazy to me. Where I believe that healthcare is a human right, I know that we don’t live in a perfect eutopia where everyone has free healthcare and education. So, to hear that the majority of the younger population favour brands over health, it really saddens me. This shows that the ads we’re seeing, are working! I also think that more expensive isn’t always better quality, which is what a lot of people forget to remember. Think of all the celebrity products and brands that…aren’t good?! Like all the Kardashian ventures that were a flop, or all the influencers skincare lines, that have been proven scientifically not to be any better for your skin than drugstore brands. It’s always good to be aware of what advertisements are there to do- they are there to SELL. Of course, they’re not going to tell you all the negatives. And at the end of the day…is a designer handbag going to make you feel better if you fall sick, or would that healthcare insurance have been better?

Hauls and  OOTDs

All these trends, particularly the ones on TikTok, I originally thought were harmless, but when I thought about it deeper, I can see that they could be quite toxic and detrimental for one’s relationship with money. For example, the idea of ‘Outfit Of The Day’, suggests that it’s not ok to wear the same outfit twice. Which of course, is ridiculous. Of course people wear their clothes more than once. Studies show that comparing ourselves to the highlight reels we see on social media can lead to feelings of depression and inadequacy, which in turn leads us to spend more on items we don’t particularly want or need, in order to look good for a day- a split second in time!

  I love watching a good haul video, but they are not healthy. Decades ago, fashion had four seasons, and people only had a select few pieces in their wardrobe, that they would mix and match to create new looks and outfits. Flashforward to today, where fast fashion sites have thousands of new products added every day, with fashion seasons being broken down into micro-seasons, adding more pressure for us to buy. A haul video is this concept on steroids, whereby influencers will buy multiple pieces, spending a tonne of money in one go, try them on, on camera, review them, and probably never wear them again. People doing the hauls are often sponsored, or are being paid every time someone shops with their discount code. If we were to do these hauls, we’d just end up spending a tonne of our money, on clothes we probably don’t need, and maybe we’d wear these items a couple of times and that’s it. What a waste of money.

I’m not trying to sound like a Grinch, or a preacher, as I will admit, I do partake in fast fashion and I enjoy watching product reviews online, but I wrote this so that we can be mindful of how our emotions affect our spending; what we see on social media is not fully real, and we don’t need to spend beyond our means to emulate these kinds of habits. I could go on for ages about how unrealistic beauty standards and social media models is a toxic and expensive concept, but maybe that’s for another article. What’s your biggest social media pet peeve?