Financial tips for Millennials - Getting to your first $100 000

I came across this article on Straits Times which wrote about millennial's financial status and how we can go about managing our finances. It starts off mentioning that millennial, aged 22-37 years old have actually started saving early as compared to the baby bloomers (1946 and 1964) and Gen X (born after the baby boomers but before the 1980s).



They gave 9 main tips to how millennials can go about about managing their finances.

1. Start early

2. Cultivate proper money management habits

3. Set financial goals

4. Set aside emergency funds

5. Avoid bad debts

6. Think health insurance

7. Consider compounding

8. Invest

9. Plan multiple income flows 

You can read more: 9 financial planning tips for millennials




Even though the article is kinda like an advertisement for Manulife, I believe that the tips mentioned there can help not just millennials but people who want to get started in managing their finances.

I was particularly intrigued by this image of how you can work your way towards $100 000.

It provides a guide and allows you to know how much you will need and the kind of investment plan you can use according to the rate of return to achieve your $100 000.




I have written before that I would like to achieve getting $100 000 before the age of 30 so this particularly attracted me.

Read more: My Financial Goals - Is $100 000 in 7 years possible?

The article also mentions that millennials are least thinking about retirement and I mean I do agree, when you are only in your 20s and 30s, retirement is definitely not something you think about. I mean life is so unexpected so that's why retirement is not so much in our plan.




Retirement could perhaps be our grand goal and what we are doing right now is taking small steps towards that grand goal of RETIREMENT!

My Facebook Page: SingaporeanTalksMoney

STI breaking it's 52-weeks low. Time to buy in?

Today (6th Sep 2018), STI ETF (ES3) have recently reached a new 52 week low of $3.17. With this new 52 -week low, I have a FOMO feeling because my average price for ES3 is $3.302 and I can really bring the average price down. However, with the market being so unpredictable right now, I hope to be able to wait awhile and see. Of course, for now, I am not planning to have any buy transactions as I am building my war chest.

With the 150 MA crossing 50 MA, there might be a further drop in the price. But I will be waiting at the sidelines for now even though I am rather tempted. Many other stock also fell in their prices yesterday as I saw a sea of red with DBS having a big drop of $0.50.

Inflation kills?!?!

SIM is just right beside Ngee Ann Polytechnic and I have gone to the canteen there to eat a few times. I find the prices in the canteen very subsidized and that's why many SIM students would go there to eat if they were having any long breaks. I usually eat the sliced fish mee sua, at a price of $2.80, it amazing value, of course you wouldn't expect fish slices as thick as Piao Ji (Amoy Street Food Centre) but you could just buy 2 bowls for the price of one outside.

Of course, you might say that schools have subsidized pricing and hence their food is cheaper than outside. However, growing up, I have been feeling the effects of inflation. Take chicken rice for example, my all time favourite dish. Previously, chicken rice (breast meat) would cost about $2-$2.50 but now it cost around $3-$4 at some places. 鸡腿肉 will cost $4.50 and above.




Of course, inflation has been going on for years, I think why I really start noticing it and its effect is because I start using my own money for my expenses. This really makes me track prices and hence noticing changes. I remember when I started my gap year working, I ordered chicken rice with 鸡胸肉 rather than 鸡腿肉 because I can save more. When I was young, I never ever order 鸡胸肉 because it's dry and flat. So now, having 鸡腿肉 is like a bonus enjoyment for me. HAHA

Another observation of inflation for me is bubble tea. I remember in secondary school after my class, I would go to those bubble tea shops where the auntie would have flavours like blue coral or oreo crush. I used to love oreo crush in secondary school and I found it expensive as it was about $2.20.




The traditional bubble tea stores are rarely seen nowadays and replaced are brands like KOI, Gongcha and LiHo, all of which are more expensive then the traditional bubble tea shops. Waffle prices from bakeries have also increased. I used to have plain waffle for a dollar but now it has increase to $1.20-$1.40. Definitely, with rising rent and utility bills, businesses have no choice but to increase prices to cope with rising cost.

When I was young, my mum told me that when she was really young, a bowl of noodles only cost like $0.20 (if it is familiar to you then you must be around my mum's age 😏) I guess this is also what I will tell my children in time to come. I am glad to have a place to write down my reflections and feeling about my surroundings. Hope you do enjoy me sharing about my thoughts!

Is Cash Really King?

Our government has been advocating for cashless payments and banks have also released many cashless platform. As the saying goes, Cash Is King and in Singapore, it definitely is so. With various platforms being introduced, we are slowly moving to being cashless but for the older generation like my mum, going cashless and paperless would take a much longer time.

 My mum have actually received numerous letters and online messages that her bills and account notifications would soon be turned into online statements which she can access to. And of course, she isn’t too comfortable being as to check her balance and bills online so I have been delaying them for her by ending back that she still requires hard copy for references.




However, I feel that sooner or later she would have to accept the fact that everything is going paperless and she will need to go online t check. I do understand why she is so against going paperless because she doesn’t have any online banking accounts and uses a bank book. With years of having hard copy and thing being presented to her, suddenly asking her to switch would be difficult.

I visit the NTUC at Singpost centre frequently and the supermarket is currently reducing the amount of cashiers needed. Even though you are allowed to use cash as a payment method, it made me think of how things are evolving right now. Moving on, I went to my neighboring NTUC and saw that they had the "robot" cashiers around beside the human cashiers, its frightening yet mind-intriguing how jobs can be evolved and change all to a machine.

If for me, all this seems so fast and new, what must it feel for the older generations, although I am say that I have slow in adapting to changes. For me, when I first created my bank accounts, I have no such thing as a bank book as I received a bank token and had access to ibanking (internet banking). There are definitely some advantages and disadvantages to that.




Advantages

Convenience and Time

1. In going paperless and cashless, I believe that time definitely can be saved. Currently, my mum uses the AXS machines to pay for her bills and so every time she gets a bill, she has to bring it to the AXS to pay. Of course there is GIRO right now and I have tried convincing my mum to switch over however she says that she needs to check her bills physically to make sure no additional charges are being deducted. GIRO would make her not check her bills.


2. For me, I have also gone cashless but only in terms of card payments. I haven't gotten to using my phone to pay for my purchases yet where you can incorporate your bank or credit card drtails into your phone. I definitely can see myself using cashless payments because it is so convenient. Going to a supermarket and paying like a boss at the cashier with my card and small change is not needed.




Disadvantages

Reliant on platforms and people who have no access to technology

1.  Cashless payment is very much dependent on the platform it is on and this can cause trouble. Cash on the other hand is accessible anytime and once you have it, you can use it without a platform. I have experienced situations like this before where payment platforms are not available. Most people think of fast food restaurant as having many different modes of payment.

However, if you have been to a Mos Burger outlet you would realise that they only accept NETS. And it so happen on the day that i visited that the NETS machine was down. I was out of cash and needed to go withdraw to be able to pay. There was also a disruption in NETS services early this year.

2. Another thing about going cashless is about inclusiveness of people in the lower spectrum of the society. For example, to have access to a credit card in Singapore, a minimum annual income is usually required of about $30 000. This means that people who are earning less than that wouldn't usually apply for a credit card. There are also people mostly elderly who do not own a smartphone. This means they are not able to get the relevant apps required.

As we move towards being a more technology-savvy and to increase our competitiveness, we should also have ways that can be more inclusive towards those who have a higher difficulty to transit to being cashless. We are currently still heavy on our cash and with the different kinds of cashless payments popping up, How many cashless platforms are you using currently?