Tag Archives: money

Sex And The City…And Broke!

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How Sex And The City Warped Women’s Relationship With Money

Samantha…Charlotte…Miranda…Carrie…we all had a favourite. But I think it’s safe to say that a lot of the episodes have not aged well (think of those episodes with Samantha dating a woman, or someone of a different race and how that was tackled…yikes!), but the point that sticks out to me the most is how toxic most of the character’s relationship is with money, particularly Carrie’s. So here is my deep-dive into this sticky topic of this show’s glorification of bad money habits.

Carrie’s Unrealistic Salary

This one really irks me. In the show, especially at the beginning, Carrie is a columnist who hasn’t really hit the peak of her career yet; she lives in a beautiful apartment in Manhattan, wears designer clothes, brunches and buys designer shoes on a regular basis. This is in no sense realistic for a woman on a freelance journalist’s salary. For people watching in the 90’s, it painted an improbable picture for those wanting to go in a creative line of work. Sex and the City was debuted in 1998. It was reported that females in the US that year were earning $591 per week (US Dept. of Labour). After taxes, that’s not much over $30,000…doesn’t really sound enough to live on in central NY. Not only that, most freelancers I know have more than one stream of income. I find it very hard to believe that Carrie only had one stream of income of only a few hundred bucks per article…

Carrie’s Problem with Spending

“I like my money right where I can see it- hanging in my closet.” Oh Carrie, what a terrible mindset to have. And it wasn’t hidden in the show that Carrie, and the rest of the girls for that matter, had a spending problem, and didn’t really care when it came to saving her money. This was definitely a major plot hole throughout the show, especially after dissecting Carrie’s salary above. How did Carrie manage to brunch with the girls on a weekly basis, order takeout all the time (it was a weird point the show was trying to make, that working women should focus on their career and needn’t bother learning to cook), take taxis everywhere (erm hello! Cabs in NY are so expensive and inconvenient!), go to cool and exclusive clubs in the city and buy all the clothes she wanted on that low-income salary?! It is baffling to me that the show continued for as long as it did without ever getting pulled up on this massive flaw.

Carrie’s Credit Card Issues

Uh oh, this is how Carrie spent so much, she had massive credit card bills. An article was published in 2016 by The Financial Diet (which, by the way, I highly recommend, I love their articles and videos), that calculated Carrie Bradshaw spent about $3,600 a month on non-essential expenses. This is astounding for someone earning $2,364 a month! Leaving Miss Bradshaw in a deficit of $1,236 per month! No wonder she had to take out credit cards to fund her lifestyle! Don’t get me wrong, credit cards are not a bad thing and definitely can be used in a financially healthy lifestyle, but only if you can pay off the bill before accruing any interest. This responsible usage of credit cards is not portrayed in Sex and the City. The show taught viewers to be reckless with their credit card spending, because at least you can buy the things you want. In one episode, Carrie is declined a bank loan because of her financial track record. She admits that she paid off over $40,000 in credit card loans- oh my. Credit card debt is mentioned a few times in the show but it’s definitely just brushed off as a bit of a joke. Also can we just remember when Carrie was left $1,000 on the nightstand because the guy thought she was an escort and she uses that money to pay off a bill! Which brings me onto my next topic..

The Girls’ Relationship with Money and Men

For me, this is the most problematic message that the show portrayed. Throughout the show, the girls express the need for finding a rich, affluent man, to where it’s pretty much a goal for them. Take Charlotte for example, her quest for love was always paired with a pursuit of finding a wealthy husband. When she finally divorces her 1st husband Trey, he left her a very expensive apartment and a ring worth a few tens of thousands of dollars, so that she can still live comfortably. Interesting to note that she sells this ring to pay for Carrie’s house deposit, just as an aside. But it perpetuated the very dangerous and abysmal message that women will always need men to provide for them financially, because women simply cannot plan their finances by themselves. Another example of this is when Carrie lets her boyfriend Aiden buy her apartment (???) and then approaches another ex to pay for her down-payment?! The whole thing is farcical and a bit psychotic if you ask me. And this is a theme throughout the show, where Miranda seems to be the only woman who doesn’t really care how much her husband is earning or expecting him to pay for her. All the other girls crave a man buying them things and spoiling them. Even less-problematic scenes perpetuate this, like Carrie walking into the walk-in closet Big made for her and there’s a pair of shoes waiting for her, or when Samantha continues to date that guy in his 70s, just because he’s wealthy.

Glorifying Frivolous Lifestyles

While I do enjoy the show and think it is great for easy viewing, it’s mindful to note that this show glorifies living beyond your means. The girls are obsessed with brands and labels, and will happily spend a few thousand on a Birkin, even though they definitely cannot afford it. The show insinuates that looking the part is much better than actually being the part, and if you want to make it in the Big City, you got to spend the dough. Its light-hearted outlook on very serious matters such as debt, not having savings and relying on others for money, downplays the harsh reality of how detrimental these money mistakes can be. Not only that, it encourages women in their early to mid-30s to spend all their paycheque on fancy bars and dining, instead of setting some money aside for the future. Not only that, the picture it paints of living in an expensive city is definitely through rose-tinted glasses, and we should be mindful that city life may not always be as fun as the show portrays.

I know this is an old show but those watching (i.e., me) are now adults trying to build their careers and be smart with their finances, and shows like Sex and the City, Emily in Paris and 90210 do not portray sensible spending habits. I’m not bashing these shows, or telling you to avoid them, just merely pointing out their flaws and how to look at them objectively.

Make Your Money Green As Well As Your Lifestyle!

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I think it’s safe to say that a lot of people are concerned about climate change; over the past few years we’ve seen very obvious and drastic changes to our ecosystems that it almost too blatant to ignore…flooding, wildfires, mass extinctions…all of these have a negative impact on our environment.

Many of us try to do our part (recycling, using less plastic, swapping disposable for reusable), but what about our money? Money is green in colour, but is it by nature? If you have read my previous articles about cryptocurrency, you know that I am a bit apprehensive of investing in this type of asset because of the environmental implications. According to Digiconomist, a single Bitcoin transaction has, on average, a carbon footprint of 549.74 kgCO2 – the equivalent to 91,624 hours of watching YouTube. And of course, people are also concerned with industries such as gas, coal and oil, and would prefer not to invest their money in these kinds of industries.

 Companies themselves seem to be moving further away from unsustainable processes. Singapore was the first South-East Asian country to introduce carbon tax in 2019. The country has plans to increase the levy at faster rates, to tackle Singapore’s growing concern with climate change.

“We think it’s necessary so as to put the right incentive for industries and for companies to look at the way they’re making things and the way they’re producing things,”, Grace Fu, Minister for Sustainability and the Environment, commented.

This is all great news, and is an exciting future for Singapore on its journey to become greener. Companies and industries are sure to follow suit, so how can we ensure that our money and investments do so also, whilst still maintaining a positive portfolio?

The first thing you can do is invest in green power investments; there are plenty of industries utilising wind power, hydro power and even solar power, which you can invest in. Water energy seems to be the go-to for sustainability, so why not invest in energy producers with notable hydropower in their portfolios, such as PG&E and Brookfield Renewable Partners. Today, projects such as China’s massive Three Gorges Dam can supply electricity to between 70 million and 80 million households. According to the International Renewable Energy Agency (IRENA), hydropower is the most cost-efficient means of generating electricity, so this is a lucrative and exciting tech to invest in. China is also the leader in wind energy right now, so if this kind of renewable energy interests you, check out General Electric or Vestas Wind Systems.

Prevention is also key when moving forward to create a greener world, so you may want to look at companies in waste management, green transportation or even pollution controls. These companies aim to minimise the affect humans’ inevitable impact have on the environment, and are going to be around for a long time. We are always looking for new ways to minimise our carbon footprint, be it minimising car emissions, reducing greenhouse gas emissions from power plants or improving recycling facilities.

So We Should Stop Investing In Oil And Gas?

This is not a black and white topic, there are many things to take note of with oil and gas industries. While oil and gas is not sustainable, environmental policies, like the tax I mentioned before, it has pushed large oil and gas companies to move further in this direction. Many investment managers prioritise green funds, causing oil and gas companies to improve their business models to be greener. Look at their business models, it is easy to see that some are greener than others. In fact, several large oil companies are among the global leaders in promoting a tax on greenhouse gases and investing in energy sources that will help the world transition away from oil. Choosing the firms with the best environmental records and practices is another way of looking at green investments.

I’m not the biggest expert when it comes to green energy, but I would like to think that I am doing my part for the environment. It’s very simple to make small changes in your portfolio to make it greener, and I wouldn’t even rush to withdraw anything in oil and gas, and these companies offer sustainable investment returns, and are improving their business models to be more environmentally friendly.

Random Money Hacks That I Do!

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Singapore is an expensive country, I won’t lie. But, there are very simple and sneaky ways of cutting costs and useful money hacks that makes Singapore that little bit less expensive.

  • Buying Stuff on Shopee and TaoBao

To me, this seems like an obvious one, but I noticed that loads of people don’t do this. I think maybe people think that, because most of the stock comes from China, it won’t be good quality…but that’s not the case! I’ll tell you a little story. I’m getting married in a month (just ROM, the real ceremony will be next year in Malta), and I wanted a dress. I found a beautiful blingy dress in Far East Plaza…$300. I got the exact same dress from TaoBao for less than $70! And I don’t mean it was a good knock-off…I mean it was exactly the same! What a steal.

  • Doing My Nails at Home

This leads on from my previous point of buying stuff on Shopee…over circuit breaker last year I taught myself how to do manicures, gels, extensions, the whole thing. Getting your nails done in a salon in SG can be very expensive, especially when you want gems or patterns done. So, I decided to take matters into my own hands and learnt to do it myself. I bought a lamp and a kit off of Shopee and now I always buy my nail accessories from there; there’s so much choice and they’re so cheap. I save hundreds of dollars (maybe even a thousand!) doing mani-pedis at home.

  • Using Fave or Entertainer

These apps are great when you know you have an activity or meal coming up that you know might be expensive. Entertainer is great for restaurants and Fave is great for activities, such as boat rental, massages, haircuts, museum tickets…you name it! You can buy tickets from these websites at discounted price instead of buying directly from the attractions or restaurants themselves. One thing I will say is that meals and restaurants are a safe bet, sometimes it’s a bit hit and miss with treatments. Top Tip: get used to hearing the hard sell.

  • Shop at MBS

Ok, now you’re probably thinking- erm, Danni, Marina Bay Sands is very expensive, why are you suggesting I shop there? Well, here’s what I do; I got an MBS membership card, it’s free to sign up. Then, every time I buy something in one of the shops, I collect points. The points wrack up very quickly, and I spend the points when I do a slightly bigger shop. I normally shop at places like Sephora and Zara; these shops aren’t as pricey as the other shops at MBS but I get the extra bonus points instead of shopping in say Orchard or Somerset. Not only that, pro-tip! If you shop at Sephora too you can wrack up Sephora points and MBS points at the same time! You can also use these points at the restaurants too!

  • Buy Fruit at Night

I stopped buying fruit off RedMart when I realised, they either went bad very quickly or took weeks to ripen. So now I buy fruit from those local fruit stalls. This tip is especially great for durian but it works for all fruit- the vendors always drop the prices drastically at night. This is because they don’t want to have to throw all their stock away at the end of the night. This means you also have a better chance for bartering.

  • TimeZone

Yes, yes, you’ve heard me go on about this place loads- I love TimeZone. If you love games and want to win some good stuff, this place is great. The kitchen items here are particularly great. Instead of buying expensive slow cookers, grills and hot pots, I got all mine from TimeZone! The coffee machine is next on my list.

So, there you have it, 6 random things I do to save money. These hacks may not work for everyone, but tis is what I do and it works for me. I hope it helps somewhat and you can take away something useful from this!

You Could Be Paying 4 Times Too Much For Insurance!

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Hospital plans are an absolute must in Singapore; with the average hospital bill being approximately $40,000, you must ensure that you are covered. Many expats want an international plan, as it often seems like there are more benefits. But, did you know that most international plans are around 4 times the price of local ones?

For the past two years (I can’t believe it’s been that long), we have been unable to leave Singapore due to Covid-19. This means that less people are able to travel freely to their home countries or on holiday, so why pay for an international insurance policy during this period?

The pros of an international policy are that you are covered worldwide at the same amount of coverage as you would in Singapore. However, this often means that the coverage you are offered is slightly lesser than local plans. Local hospital plans are often able to provide customers with maximum coverage, because there is not that extra risk of claiming abroad. Not only that, claiming through a local company is often a lot easier than with an international one, as you can directly contact your agent who is in the same time zone as you, instead of calling a hotline based abroad.

But what if I am hospitalised abroad and a have a local health insurance? Not to worry- did you know that most local plans cover hospitalisation abroad if it is due to an accident or emergency? But, if you are planning to be hospitalised abroad, I would suggest using a top-up insurance from that country, or a travel insurance.

Not only that, if boarders open it’s very easy to switch from a local plan to an international one. So, what is the point of paying for an international plan when you’re not going abroad?!

I did a comparison for myself on different insurance policies. I am currently 27, non-smoker, and I am paying $1,192 per year for a hospital plan that covers private hospitals. I am covered for $2,000,000 per policy year, and I can go to panel and non-panel doctors so long as I pre-authorise (something which very few companies offer). This is with a local company. When I check international plans, some are offering worldwide coverage of $1,000,000 for double the price. Some are offering $2,5000,000 coverage for over four times the price, of over $5,015 a year. This to me, seems like a no brainer to go for a local plan during this period than an international one.

As an expat, I feel that the term ‘international insurance’ is very alluring and may seem like the best option. But, if you delve a little deeper, read in between the lines and compare costing, it is quite often an unnecessary expense. Comment or contact me if you want to know how I planned my health insurance!

Investment vs Insurance- Which is More Important?

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Whether we like it or not, when we become adults, we have to start thinking about our personal finances and planning our future. For those who have not been taught about finances (I know pretty much none of us learnt this in school), planning finances could be a daunting task. The words ‘investment’ and ‘insurance’ often fill people with dread; is it a scam? Why should I spend my money on that? Do I need it?

The long and short of it is, both are important and you need both. But is one more important than the other? Let’s look at both and see for ourselves.

There are lots of kinds of insurance products but they all cover one thing- loss. The whole point of insurance is that it covers us if something goes wrong. This may be a hospitalisation, a disability, an illness, or some other kind of liability that would set us back financially. It is meant for protection; protecting us from the adverse effects of not being able to work or financial hardships. Many people think that planning for these things, such as death or disability, is a morbid topic and a worst-case scenario. But good health is never guaranteed, and it’s always best to get these things sorted before it’s too late. Insurance products also become more expensive as you get older, so it’s best to start early, so that these payments don’t interfere with any of your future life stages like purchasing a house or sending your kids to school.

Investing is all about growing money for our future- we can either plan for a passive income stream, so that we don’t have to rely on work so much. Or, we can plan for capital gains, so that we have a nice chunk of money when we want it. The idea of making money with not necessarily putting too much effort in (check out my articles about passive investing), is an attractive one. And, if we make all this money, why do we even need insurance?

Unfortunately, the truth of the matter is, it is unwise to have one without the other; investment increases our upsides, but insurance protects our downside. If you invest without being insured, you run the risk of losing it all should you fall sick or become hospitalised (also, can I just say, it’s very naïve to think you will stay healthy forever), especially if your investments are not enough to pay for your bills. If you just insure yourself without investing, you are selling yourself short, only planning for the bad things that can happen, and not planning for the good times ahead. It also means that you may have to constantly work and never be able to retire. Neither insurance nor investments will work on their own; you need to plan and review both in order to be financially successful.

A very important thing to take note of is that investments take a long time to accumulate, especially if you cannot set aside a lot of money to invest. Insurance policies cover you pretty much as soon as you get them. So, it’s always important to sort your insurance out first; once you are protected you can focus on growing your money.

But do remember that investing and insurance is never fixed and one-size-fits all. You need to constantly review your finances in order to keep up with your changing needs!

Why do Expats Need Financial Planning in Singapore?

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As an expat, and a financial consultant, I have seen both sides of the coin when it comes to financial planning. 30% of Singapore’s population is made up of expats; and, being the fourth most expensive city in the world, means that non-residents really need to understand and adapt to the way of living here.

  Here are some main differences between locals’ and expats’ expenses that you should take into consideration.

Housing

Houses takes up the main bulk of expenses moving to Singapore; rental is expensive, especially in the downtown area, where a lot of offices and expat’s place of work is. Singaporeans and PRs can buy a HDB at an affordable price using their CPF money, but if an expat wishes to buy a property, they are not allowed to buy a HDB, and executive condos and landed property can be in the millions. Clearly, for a foreigner, more often than not purchasing a property is not an option. So be cautious when you begin to start renting here- the rental and bills should never exceed 50% of your monthly income.

School Fees and Childcare

If you are in Singapore with your family, you need to understand the differences between local and international schooling. As local schools are funded by the government, the fees are a lot cheaper than international schools. Sending your child to international school can cost roughly $2,000-$4,000 per month. While there is some debate as to which schooling system is better (which I’m not going to go into), it is certainly more economical to send your child to local school. However, do take note that in order for an expat child to go to a local school, they have to pass exams, and places are competitive.

Healthcare

I often hear outrage from expats in regards to the cost of healthcare in Singapore. In 2018 Singapore was announced to have the second-best healthcare in the world, second to Hong Kong. All of this comes at a price, and Singapore is not a welfare state. While there are government subsides for locals, it is crucial that expats get a comprehensive healthcare insurance. The average hospital bill in Singapore is about $40,000, so to avoid paying out of pocket- get insurance! I know it may seem annoying but paying for healthcare is unavoidable in this country.

A Holistic Need For Planning

While most expats earn more here in Singapore than they would back in their home country, it is imperative that we plan correctly and not live paycheque to paycheque. This may often be difficult; Singapore has a plethora of amazing places to eat out, visit and experience, which can really burn a hole in our pockets. Simply saving a bit each month is not enough. Think long term, why did you move to Singapore? What do you plan on achieving? And where to plan on staying for the rest of your years?

Long-term planning may be daunting, but there is a reason why Singaporeans are some of the most well-off people in the world…they did the uncomfortable and planned their finances early!

What Happens If I Leave My Money In The Bank?

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Money saved is money earned…right? Not necessarily in the long run. Rising inflation rates can mean that you’re actually losing money by leaving it in your bank account.

If we take my DBS account as an example; the interest rate is a lousy 0.05%. The average rate of inflation in Singapore is projected to increase to 2%. In theory, if I leave $100,000 in my bank account for 5 years, I will have $100,250 after interest. However, this amount of money will have lost buying power. In theory, my money in 5 years will actually be worth $90,622; I will have lost $9,378 just by leaving my money alone! (It has a negative rate of -1.95% when inflation is taken into account.)

While inflation shows an upward trend in the economy, it can be a massive hindrance to our bank accounts! So what do we do? There are a couple of ways to take action today! The first one is to find a savings account that offers you a higher interest rate. Some offer 2%-3%.

The second and most effective way is to put your money in instruments that will get you a much higher rate of return. This is why I feel that investing is key; even if you find something that yields a conservative 4%, your $100,000 in 5 years would be $121,665.

I will be writing about in a future article the benefits of different investment instruments.

Hindsight is bitter sweet; it’s very easy to sit back and relax and leave your money alone…but you will regret it in the long run.

How To Be A Successful Investor!

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You may think that investing is not for you; maybe you’re not experienced enough, maybe you don’t have enough capital. But, the whole process of investing is not as scary as you think. Follow these simple tips and start investing successfully.

Start Before You’re Ready

This may seem counter-productive, but hear me out. Have you ever refrained from doing something, for fear of the risks? And then the thing you didn’t do, happened, and you regretted it? Hindsight is a fickle friend, so don’t miss an opportunity to start investing. Tackle your fear and start before you’re ready, because, to be honest, you will never be ready; “I’ll wait until next month…Let me do it after I’ve paid my bills…Maybe next year.” Take the plunge! If you don’t, you’ve already missed out on so much time you could have been investing.

Don’t Be Emotional

This point is crucial. You have to take all emotion out of investing, mainly fear and greed. If you see your investment plunging, your first response may be to sell, out of fear of losing even more. If you see stocks going up, you may want to buy before they go up higher, out of greed. Doing this eventually leads to buying high and selling low, losing you money in the long run.

  Instead, take advantage of dollar-cost averaging (the concept of buying the same amount at regular intervals). This method makes your investment almost robotic. Another thing you can do as well, is to make your payments into your investments automatic. Set up GIROs or transfer straight away after you get paid, so that you don’t even think about it.

Plan Situations In Advance

Another great tip is to have a set of ‘rules’ before you invest, so that if X was to happen, you already have a Y. For example, if you have a target buy price of a stock in mind, stick toit and do not deviate. This forward planning also helps you take emotion out of investing and manages your fear and greed.

Use Volatility To Your Advantage

Volatility is inevitable with investments, similar to if you go to a theme park you know there will be rollercoasters. A quality of a true investor is being able to hold onto their investments through times of great volatility. Even though it’s scary when investments go down, it’s not permanent. Stocks do not permanently lose their value. Use times of volatility to define your objectives, focus on what stocks are trending and always remember to be prepared for these situations. It’s all part of the game!

Do Some Homework!

Learn about the world around you; politics, technology, science, all have an effect on the financial world. Read up on current affairs and look out for things that could affect the economy and stock markets. The more you read, the more you will start to see trends in the market. I recommend reading The Economist, Business Insider and Bloomberg.

Know What Kind Of Investor You Want To Be

There are two types of investors; passive or active. Passive investors invest in mutual and index funds. If you’re unsure what these things are, check out my article “Investing Terms You Need To Know”. Passive investors benefit from long-term growing financial markets. Their investments are managed by fund managers, shuffling their money around for them on a regular basis. I would consider myself a passive investor; I leave the experts to do their job and just put my money in these funds over regular intervals. This, along with dollar-cost averaging, helps me remove my emotion from investing.

  An active investor has to be very committed, professional and knowledgeable in what they are doing. If you decide to be an active investor, do your research! Know which stocks you want to invest in and be prepared to keep an eye on them. Try to be robotic about it and apply the previous tips.

Have A Long Time Horizon

I’ve mentioned it before but an investor who holds onto their investments longer, usually benefits the most. While the stock market is often volatile over shorter periods of time, the economy generally grows year by year; the inflation rate in the US in 2010 was 1.64%. In 2021, it is currently 2.21%. While inflation rate is annoying in terms of making things more expensive, it is an indicator that the economy is doing well. A higher inflation rate means more spending, more demand for products and triggers more production to meet the demand.

  This means that if you hold onto your investments for longer, you are avoiding short-term losses and in turn benefitting from the growth of the economy.

To conclude, no one can be the perfect investor (if that was the case we’d all be rich), but if you follow these steps you are more likely to make better choices and become a successful investor!

How To Survive The Next Economic Crash!

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I think it’s safe to say that no one saw Covid-19 coming. None of us thought that we would be unable to travel, unable to see our family and none of us would have foreseen so many people losing their livelihoods, their jobs, and their lives.

  We may be lucky here in Singapore, but some were not so lucky. Those who lost their jobs have had to rely on their savings or may have even had to borrow money to stay afloat.

  Although we could not have predicted 2020, there are ways that we can prepare for another blip in our financial prosperity. Here is what I suggest.

  1. Manage your Debt

I feel like I’ve mentioned this already in previous articles but I cannot stress how important it is. When things go wrong, like losing a job for example, the monthly bills do not stop. Rent still has to be paid, the water bill will still have to be paid and, if you have debt, the monthly instalments don’t stop. That’s why it is imperative that you try and clear your debt or at least minimise your debt as soon as possible. That way, you can start focusing on other aspects of your financial life and focus on how you can grow money, not just how you can get through month to month.

2. Have an Emergency Fund

I really do sound like a broken record but, imagine if you lost your job and had no savings? You would either have to borrow money, or sell off your assets, neither of which are ideal. So, it is imperative that you are disciplined with keeping an emergency fund of at least 3 months of your salary. This money should be easy to access but not one that you dip into frequently. This fund should be for emergencies only, and used only when very necessary.

3. Have a Market Opportunity Fund

If you really want to take use of a market crash, it’s a good idea to have funds set aside for a market opportunity. This fund could be from extra savings each month from cutting your monthly expenses, or after managing your debt. You can then use this money for investing when markets are low. For example, buying stocks when they are cheap.

4. Be Disciplined With Your Investing

So, you bought some stocks cheap with your Market Opportunity Fund…now what? I would suggest making use of a term called ‘dollar cost averaging’. I have explained this term in my post ‘Investment Terms You Need To Know’. It is best to make your investing almost automatic; the same amount each month or year, so that you can weather the storm of market volatility. It means that you will earn more from your investments in the long run, instead of timing the market.

5. Diversify Your Investments

Look at what happened in 2020…the industries that were most affected were airlines, hotels, restaurants, bars and entertainment. People that had stocks in these companies could have lost a lot of money. Therefore, it’s best to diversify your investment portfolio so that you have a mixture of stocks, bonds etc in lots of different industries, to minimise the risk of loss.

6. Have a Side Hustle

My last point is really an optional one, to ensure that you never miss out on making money should another crash happen. Some people, like myself, are not able to have a side hustle (fyi because of my visa I cannot have more than one job). But, if you have a different skill or something that can be sold from home, it may be good to explore it further and monetise on it. For example, you may be very good at Photoshop or good at website design. These are services that you can sell and do whilst you are at home.

  Follow these steps and not only survive but thrive in the next market crash!

How I Planned My Finances

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People often ask me how I became so financially literate and what I did to make myself financially stable. So, I thought I would share with you how I planned my finances in Singapore. First of all, I will say, I’m very lucky to have parents who taught me from a young age how to save and be frugal. But, moving to Singapore I realised I needed to do more than just save. So here’s how I did it.

Step One: Have an Emergency Fund

This first step was crucial, as you will see in my story later why. I saved 6 months’ salary in my bank account, as a buffer should anything happen. This meant that rent was never an issue, even with putting a deposit on a new rental and moving apartments. It also meant that I had less buyer’s remorse and I knew how much I could afford to spend on my days off.

Step Two: Spend Wisely

 Pre-covid, I travelled a lot. A lot of people, particularly those back home, would often ask me how I did it. It was really quite simple; I often travelled to countries where the Singapore dollar went far. I booked cheap accommodation and ate local food. This kept my budget quite low.

  Also, in Singapore I don’t tend to buy a lot of things. I mostly spend on going out for meals or activities with friends, which I find easier to manage, especially if the restaurants are cheap!

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Step Three: Get Covered

Remember earlier I mentioned why an emergency fund is so important? Here’s why. In 2019 I found out I had to have an operation- it wasn’t a particularly big surgery, but it was a crucial one. My doctor had found a growth and was unsure if it was cancerous. It was causing me a lot of discomfort and affected my personal life greatly. I was told that the estimated bill would be roughly $19,000. Thankfully, I had health insurance. Even though foreigners have to pay the cost upfront, I managed to get every penny back through my hospital plan, even the doctor’s appointments leading up to the surgery. It was a massive relief. Luckily, I had the money upfront to pay, but can you imagine if I never got that back? Expats often see insurance as unimportant, maybe because healthcare is free back at home, but it’s a fact that Singapore is not a welfare state, so don’t treat it like one.

Step Four: Don’t Leave it Too Late

I went on to purchase critical illness coverage, as I knew deep down in the back of my head that having an operation at 25 (especially one where the C word comes up) is not normal. (I’m fine by the way, it wasn’t cancer.) So, I felt that it was best to be fully covered for critical illnesses. Hospital plans are not sufficient. Imagine if I were diagnosed with Cervical Cancer, and just had a hospital plan? It wouldn’t cover my change in lifestyle; having to take taxis everywhere; maybe hiring at home help; having to maybe order personalised meals. Not to mention the fact that I wouldn’t be able to work if I was going through chemo. A hospital plan definitely wouldn’t cover all of that.

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Step Five: Invest

Ok so I had an emergency fund, I was protected and covered insurance-wise. Now what? How did I make my money grow quicker than leaving it in the bank? My current DBS account has an interest rate of 0.005%…. I’m not being funny but that’s rubbish. So, I took a portion of my savings and invested it in unit trusts. I purchased investment policies that contained a mixture of sub-funds that are managed by portfolio managers. I’m not one to sit and watch stocks and manage that by myself, so I’m very happy to let a professional do that for me. This will help me achieve my long-term goals of purchasing a property and having a very comfortable retirement.

I pride myself on not living paycheque to paycheque; I actually can’t remember the last time I did live like that! I always reflect on these five things and review how on-track I am with my financial goals. I hope this helps those who are confused on where to start. How do you plan your finances? If you feel that you have any questions or need any help, please do get in touch.