Category: The New Savvy

Which Job Do You Need to Afford Both a Home And a Car in Singapore?

 How can you afford both a home and a car in Singapore? Everyone dreams about one day owning a car and a home. However, this is not an easily achievable wish for most people: homes can cost hundreds of thousands of dollars, while Singapore is notorious for having extremely expensive car prices starting from S$100,000. Then, how much salary do you need to make this dream come true? As it turns out, quite a lot. In fact, 60% of the top 100 jobs in Singapore don’t pay enough for a person to be able to afford both a home and a car. How Much You Need to Make to Buy a Home and a Car According to ValuePenguin’s analysis, a person needs to make at least S$6,400 per month to afford a housing loan and an auto loan while not sacrificing their other expenditures. Here’s how we break down the math. First, an average 4-room HDB flat costs about S$500,000″ in Singapore. Realistically, most people will choose to make the minimum of 20% down payment, which is 20% S$100,000. To service such a loan over 30 years at an average cost of 2%, a person has to make a monthly instalment of S$1,478. Then, there is another S$60,000 of

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4 Tips on How to Save Money on Dates Without Embarrassing yourself

Dating can be an expensive proposition. Going on dates on a regular basis can be even more expensive. And if you live in Singapore – the most expensive city in the world – going for romantic outings can be very heavy on your wallet. How can you save money on dates?  Whether you’re looking to meet new people on a casual basis or seeking a long-term partner, keeping track of your expenses is as important as the dates that you will go out on. To ensure that your romantic life continues to be a financially viable experience, here are some tips you can follow to avoid runaway spending. 1. Set a budget for your date This is perhaps the easiest method to save money, but the hardest one to follow. A budget sets limit on your expenses and also allows you to narrow your options for things to do during your date. A good type of budget to set for yourself is by adopting the 50-30-20 rule. This rule is used for monthly budgets, where 50% of your income is spent on necessities, 30% is used for discretionary spending, and 20% is used for savings, investments and emergency expenses. Your

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Importance Of Credit Scores In Hong Kong

Credit Scoring 101: Benefits of High Credit Ratings in Hong Kong Consumers in Hong Kong should seriously start paying more attention to their credit scores. An article published on the newsroom of revealed a survey that indicated how consumers in Hong Kong are behaving when it comes to credit use.   Angus Choi, the Managing Director of TransUnion in Hong Kong revealed that 1 out of 3 respondents in the survey admitted that they did not keep track of their credit activities. These respondents also admitted that they fail to pay their debts (personal loans and credit card balances) on time. The article concluded that it is obvious that consumers in Hong Kong have a lot to learn about their credit scores and its role in their financial life. What are credit scores? A credit score is like your body temperature – it measures your credit condition at a certain point in your life. It varies from time to time – depending on what is reflected in your credit history and how you behave when you use credit.   It is calculated based on the credit report that is compiled by credit referencing agencies. According to one of the

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Budgeting For Beginners: 4 Ways to Lower Your Bills

Handling one’s finances isn’t as easy as people first think. When times are especially hard, it is convenient to come up with ways to even a few bucks. Whether you are finding yourself drowned by debts to pay your bills or just in need of some extra cash and savings, here are some techniques you can follow and try for yourself to lower those numbers in your receipts and monthly bills. Monitor your monthly bills and receipts. These electric companies and banks probably would not make mistakes in computing your bills, right? Wrong! There have been a lot of cases where accounts have been accidentally exchanged, customers are charged extra for things they did not consume or benefit from, and others situations like it. Therefore, you should never assume that what is stated in your bill is right and just pay them off without checking. And when you do find mistakes, do not give in to laziness and go to the nearest branch to clarify instead. There will be some tellers and customer service representatives who will give you a hard time, and in times like this, you have to stand your ground and know your rights as a customer.

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How To Buy Foreign Stocks In Hong Kong

International Investments: Beginners Guide to the Hong Kong Forex Market Buying foreign stocks in Hong Kong may seem intimidating but only because it can be confusing for someone who is new to trading.   Probably the most important question on your mind is, why buy foreign stocks in Hong Kong?   According to the data published on the website of HKTDC Research, “Hong Kong is a highly attractive market for foreign investment (FDI).” In fact, the data revealed that the FDI inflows to Hong Kong reached US$103 billion in 2014 – all of this from around the globe. When it comes to the outflows, Hong Kong is second only to the US with US$143 billion.   In another site, the South China Morning Post revealed that there is a greater opportunity for diversity in the HK market – thanks to the opening of the Shenzhen-Hong Kong Stock Connect. With the success of the Shanghai-Hong Kong Stock Connect since 2014, it is expected that investors would be flooding in looking for foreign shares to invest in. Both stock connects is expected to complement each other and that would lead to promotions from both ends that would benefit investors from all over

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3 Things Borrowers in Singapore Should Know Before Interest Rates Rise

A period of sustained increase in interest rate is coming. The US Federal Reserve is expected to raise its interest rates on Wednesday, 15th of March, and this will have a rippling ramifications for almost every single borrower living in the world, including those in Singapore. Why? It’s because rates in Singapore will also rise in order to keep exchange rates steady. This means that the pattern of borrowing to fund your purchases is no longer going to be as attractive as it has been for the last few years while rates were so low. If you’ve been borrowing to buy a home, a car or even fund your wedding, it’s time to make some changes to your lifestyle. Here, we walk you through what expected to happen with interest rates in the near future, and what you could do to either protect yourself from or to take advantage of this situation. Rising Rates in the US Means Higher Rates in Singapore So how are US interest rates related to rates in Singapore? The Monetary Authority of Singapore, the country’s central bank, is unique in that it regulates interest rates solely to control the value of Singapore Dollar against other

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What Are The Different Types Of Savings Plans For Retirement in Hong Kong?

Retirement 101: Ways to Save for Retirement in Hong Kong Retirement savings will always be an important subject regardless of your age. According to an article published on, Hongkongers might be in trouble of outliving their retirement money by 6 years. Apparently, people in Hong Kong are living longer and their savings plans are not enough to pay for their needs until the very end. According to the data provided in the article, a comfortable retirement in Hong Kong is expected to cost around HK$436,000 each year. If based on the data, the average retirement age will last 17 years, that means you need at least HK$7.4 million to retire comfortably and without running the risk of losing money before you expire.   We all know that this is a problem because the elderly are in no condition to work to support their lifestyles. If you add to that health care costs, you will see the value of having adequate retirement savings.   Obviously, not saving for retirement is probably one of the biggest mistakes that you will make. In that regard, Hongkongers are smart about their choices because it is revealed that 6 out of 10 will save

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The Best And Worst Ways To Use a Personal Loan

This article originally appeared on ValuePenguin Personal loans, which are unsecured instalment loans, are becoming increasingly popular because of their relatively low-interest rates compared to other borrowing alternatives like pawn shops or moneylenders. While personal loans can be used for almost any purpose, some use cases are more financially sound than others. Importantly, taking out a personal loan should lead to either an immediate or a long-term economic benefit. Here’s a look at when taking out a personal loan makes sense–and, just as importantly, when it doesn’t. Consolidating or Paying Off Debt Consolidating or paying off high interest debt like credit card bills is not only the most common reason people turn to personal loans but also one one of the smartest. A personal loan allows you to streamline multiple debt obligations into a single monthly payment with a lower interest rate than you would otherwise have to pay. Many credit cards, for instance, have APRs of 25% or higher. In contrast, debt consolidation plans (a specific branch of personal loans) can have rates as low as 5% to 6%. By dramatically reducing your interest burden, a personal loan can have an immediate economic benefit to your daily finances. Home Improvement Using a loan to make

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3 Credit Traps To Avoid

With easier access to credit and the immediate gratification culture of “Buying Now, Pay Later”, many have found themselves caught in a cycle of credit card debt. Our statistics have shown that the highest consumer delinquency rate for unsecured credit cards (including $500 credit limit cards) stands at 6.4 per cent in June this year for people ages 40 to 44. Delinquency, also known as late credit card payment, refers to debt that is owed 30 days or more past the due date. Individuals are beginning to max out their credit limits and use debt to pay off debt. Debt that initially seems manageable for payoff could rapidly snowball because of compounding interest. It is thus important to have a good sense of what we earn versus what we can spend on. Here are 3 credit traps to avoid that could possibly lead you into a downward spiral if credit is not used wisely.         1. The Needs from Wants trap Many Singaporeans tend to incur excess credit card debt through overspending because of their inability to tell needs from wants. Take a general example – food. We are eating out more often than before and as

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Why Are Women Making More Money But Are Still Financially Impaired

A lot changed for women compared to their lives a century ago. With the help of the movement started by the suffragettes, women in many different countries, though not all, are finally able to vote. No longer are men automatically seen as the breadwinners of the family and the women homemakers. Many women of today finally have the chance to choose for themselves what they want to do in their lives. However, just making more money is not enough to get rich. So if women today are finally getting jobs, working for themselves, and making more money, how come a big percentage of them continue to be financially impaired? Here are the factors that keep women from getting rich despite increasing salaries and income: Here are the factors that prevent women from getting rich despite increasing salaries and income: Getting rich is not their priority. This does not simply follow from the fact; various surveys also prove it. One global survey shows that when women think of success, more of them are more inclined to think of other things rather than extreme wealth. Asia’s Richest Women By Country – Meet the Top 11 Wealthiest Females Following the same survey, while

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