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Archive for the ‘Finance’ Category

To start building your “rainy day” fund in a disciplined manner, get a regular savings plan. OCBC’s Monthly Savings Plan, for example, has an interest rate of one percent per annum, which means you get to enjoy better returns than other savings or current accounts. With a short tenure of 24 months, you can decide to put the money to other uses after two years, whether for investment or to purchase a coveted designer bag. The OCBC Monthly Savings Plan does not charge monthly account fees or service charges. Best of all, you only need to save a minimum of $100 a month in the account.

For the long term, you need to consider other ways of putting your savings to more efficient use. If you put all your money in a savings account without investing it, you’ll be sacrificing growth for security. Investing is a way to get potentially higher returns and make your money work harder for you. Investing also helps us reach our financial goals and negates the eroding effects of inflation on our purchasing power over time. Don’t forget about protecting yourself too. The best time to look at insurance is when you’re young and healthy.

I earn $2,500 a month and I set aside $500  in a savings account. Should I consider a current or a fixed deposit instead? Any tips for saving a good sum for ‘rainy days’? What are my options?

answer:
You’ve got to have enough to tide you over in the event of an unforeseen crisis, like illness or sudden job loss. Start by setting aside at least six months’ worth of your monthly expenses. This emergency fund should be in cash or near-cash instruments like fixed deposits. It’s smart of you to be saving about 20 percent of your monthly income. That’s above the recommended 10 percent we advise.

Current and savings accounts are usually used as transactional accounts, which most people use to manage their monthly finances such as depositing their salaries and withdrawing cash for daily use. Both accounts are interest-bearing (they offer about 0.20 percent per annum in interest) and offer basic facilities such as passbook or monthly statements, an ATM card, as well as phone and Internet banking services. A current account just comes with a chequebook for additional convenience in making payments.

No willpower to save up for a rainy day? Why not try a new disciplining scheme. Get family members to take on the role of your savings account keeper! Here’s how to get started:

Create a separate account to credit your savings into.

Next, make a pact with your family, asking them to check on your monthly savings. Discuss with them the “terms” of your savings account such as the amount you’d pay every month and the date you’ll be paying into the account (very much like the terms a credit card vendor would impose on you).

At the end of each month, show them your account statement as proof of your savings.

Add stringent rules to the pact by allowing your family to charge you interest if you miss a savings date or don’t meet the amount set.

Create a budget. To be fiscally fit track your expenses and income. Set aside something for emergencies and if you know you need some money for entertainment, be it a CD or the occasional movie, factor it in to avoid nasty surprises.

Buy in bulk. If you’re sharing a place with friends, try buying household items such as detergent, dish-washing liquid or rice in bulk from low-price hypermarkets.

Buy used books. If you can get used books from seniors who’ve completed the course so much the better! Alternatively, check out book prices online, it could be lower than what the bookstores offer. If you divvy up the freight charges with a group of friends, it could be worth your while.

Don’t drive.A car is no doubt convenient but maintaining a vehicle is expensive. Besides petrol and parking, you need to set aside funds for insurance, road tax, regular service appointments as well as repairs should it become necessary.

Smart spending equals savings. Stock your wardrobe with basics and update them with key items from the latest trends or hit the boutiques during end-of-season sales. Do your research to see what or when certain cafes, cinemas or even restaurants offer student discounts and patronise these outlets to save.

The job: Basically help design a customer’s tattoo and then do the tattooing. Encourage original designs so can help customers with ideas and concepts. Do all sort of designs and portraits. You also advise customers on hygiene and diseases. More often than not, you have to calm them before a session because some can get really nervous.

The challenge: This job is really flexible and gives you a lot of freedom. There’s no office politics to speak of, and everyone is just doing their own thing.

Downside: The only thing you can think of is the health issue. You’re dealing with needles and blood all the time and it’s quite worrisome. You’ve to be very careful when do the work.

The customer: A tattoo artist can work anywhere in the world as long as you are good at what you do.

Practice on demo account for 6 months before going live. Demo trade until you are comfortable with your platform, your broker, your trading plan, which includes your trading system. Demo with the amount of money you are willing to invest. When you go live do not deviate from any of the above. You have a winning system in demo it will work in live. Try not to be under capitalized, if you are trade to that level.

Studies show that it takes anywhere from 18-30days to develop a pattern (good or bad), and about 2-3 months to implement it successfully. So it’s important that you do things the way you consciously know they should be done, emulate the positive and avoid developing awful habits constantly (blowing accounts, taking trades on wrong signals, greed and fear). Learn from your mistakes, write it down, and give your word never to do it again.

If you are newcomer, begin with the short-term trading, if you can’t make money in the short term your chances of making it in the long term is miserable.
If your short-term decision is wrong, the long-term will also be wrong, start with the short term where you can notice your mistakes and rapidly correct it not leaving in hopes that it will turn your way.

How long is long-term and how long is short-term make the difference i.e. if ‘short term’ is trading anything shorter than the daily time frame you will get ‘nailed’ if you don’t know what you’re doing for the simple reason that on time frames shorter than the daily you are ‘wide open’ for ‘surprises’ like ‘spikes’, ‘stop hunting’, ‘news data’, etc.
If you are a new trader, the ‘odds’ of you having the ‘experience’ to ‘react’ quickly enough or ‘judge’ the market in the short term are very slim.

Looking at ‘long term’ charts meaning ‘daily or longer’ does not take a genius to see where the general trend is going. The disadvantage of ‘long term’ i.e. daily and longer: bigger stops, greater potential losses. The positive factor of course: bigger potential profits. What will ‘nail’ you even quicker though is not having the patience and discipline to see the ‘long term’ (meaning daily or longer) trades through to their conclusion.

Its natural for the financial companies to hire telemarketers or outsource their tele-promotional offers outside the US. Now, we can’t ever be certain of the identities of such professionals. Thats why it is advisable that you avoid such calls.

What do I do if someone calls me! At first I’d listen to the person properly and if the things are interesting to me I’d give it a thought. We may have a meeting so that I can see all the documents or proofs associated with the company’s offer and then only I will proceed with it.
I am sure this processes will never harm me, if I talk to such people face to face, see all the documentation and then only move ahead with the deal.

there is no harm in accepting offers from the tele-marketers but make sure that:

* You receive all the documents on the promised date and also get the benefits explained properly to you.
* Also ask them for the address and telephone number of the concerned person, in case you want to visit their office.
* Don’t make any payment before you are not absolutely sure of the authenticity of the company and even if you do maintain proper documents of the transactions.
* Don’t give your bank details to the tele sales executive. Keep a track of all the withdrawals from your account. If you can trace any spurious transaction, report it immediately to you bank.

Insurance scams are present everywhere and health insurance is not an exception. The sales speech sounds so convincing that you fall for that. People often unknowingly walk into the trap laid by the con stars because of their cupidity. Don’t pay them a dime before you become absolutely sure about the existence of the company.

The new anti-money laundering program is reviewed and amended by the Financial Crimes Enforcement Network (FinCEN), Department of Treasury

The revised anti-money laundering program requires the insurance companies to report any suspicious transaction of $5,000 or more. However the monitoring is applicable only to the ‘covered policies’. It has excluded the insurance companies from mandatory reporting on less risky policies.

‘Covered policy’ includes- 1) permanent life insurance other than group life insurance 2) annuity contract other than group annuity plan. 3) Policies having ‘cash value’ or investment features.

The program is in effect since May 2006.