In the world of finance, the window for error is miniscule and the penalties for it are unforgiving, and sometimes, impossible to recover from. Just to let you know, we only mean to scare you with the best of intentions. Financial literacy is the need of the hour in Singapore as living expenses are spiking up and the job market approaches its saturation point. Starting young is the key to long-term financial investment success and securing your future.
Although the Singaporean education system is held in high regards across the world, the truth is there isn’t enough of an emphasis on inculcating financial wisdom as part of the curriculum. It’s no wonder we see numerous Singaporean youngsters stumble into crippling education debts and underwhelming jobs that fail to do justice to their credentials. Today, we will identify 3 typical mistakes many young, financially oblivious Singaporeans make that can deeply damage their bank balances in the future:
1. “Heavy Debt Now. High-Rolling Tomorrow.”
The ruthlessness of debt isn’t merely constricted to the lives of adults; in fact, the average age of debt’s hapless prey only seems to be getting younger each year. Before Singaporean youth ever get a chance to nail down a stable job and attain a steady stream of income in order to apply for home loans and pay off credit card bills, they must swallow the bitter pill of education loans For those not familiar with the term, credit risk essentially refers to the possibility of a borrower not repaying a loan.
Most young Singaporeans look at college loans as a foolproof investment that will quickly get wiped off their slate in a couple of years when they get their dream job. Unfortunately, this callous approach to financial obligations can snowball into additional debt damage via accrued interest payments and penalty charges, which can shoot your debt pile into the six-figure range. To their dismay, they will be confronted with a quarter-life financial crisis that will be way worse than any future mid-life crisis can ever be.
The Credit Bureau in Singapore profiles the credit ratings of consumers from the very first moment a citizen opts for a loan or a credit card from a financial institution. Displaying inconsistency and ignorance in paying your credit card bills on time can sabotage your credit rating in no time at all. Although it may not appear to be a big deal initially, the real damage becomes apparent when you opt for your crucial home loan and subsequently lose out on competitive interest rates or get rejected because of your poor credit rating.
2. “I am an Invaluable Asset to Your Organization!”
Now that you’re a proud owner of a degree and finished your week-long revelry at the local nightclubs in celebration of your achievement, it’s time to snap back to reality and correct your form before you dive headfirst into the job market. A drinking hangover eases down with a few good hours of sleep and a healthy breakfast, but a debt hangover only gets worse with time and will lead to sleepless nights down the line. Hence, it’s essential to know exactly how to leverage your educational credentials and personal skills to make a sizeable footprint in the job market and nab a well-paying job.
The question is how do you market your value as an asset to the wily HR division who are adept at hardball negotiation tactics? You need to correctly gauge the value of your skill set and experience in the job market and see how you compare against your peers. A good leadership track record coupled with a competent GPA rating should materialize into an attractive salary. But how much?
You can start by investigating online on platforms like Jobiness.com and Payscale.com to build a salary data profile that evaluates a number of factors such as qualifications, company size, experience, etc. Directly querying insiders regarding this matter is another good way to accurately determine your value in the organization you are planning to apply at.
3. “Health Insurance? Just Go Lift Weights, Bro!”
Of all wise sayings your parents share with you that you take for granted, “health is wealth” should be at the bottom of that list. Every twenty or thirty-something Singaporean have the working capacity of an ox and still have plenty of energy to party at the end of the day in their heydays; however, it doesn’t take long for age to catch up with them and flip your perspective upside down. A healthy lifestyle is the cornerstone of a productive individual, but the threat of death and disease lurks at every corner of your life and there’s nothing you can do to anticipate it.
Hence, purchasing a reliable health insurance policy is of the utmost importance in order to mitigate the financial onslaught of healthcare expenses that accompany a bad health episode in your life. Even if you don’t formally apply through a financial institution, you can easily meet up with insurance agents at public places like MRT stations by utilizing the survey method. All you need to do is tell them you want to purchase the “Hospitalisation and Surgery” plan instead of scouring over the other unreliable products they might try to peddle.
For more financial tips and tricks to optimize your financial lifestyle, visit imoney.sg and learn all the best moves to make with your money.
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