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Saturday, November 26, 2022

Beat Inflation with these hacks!


When inflation hits and also you’re seeing your bills go up consequently, what do you do?

Do you:

  • complain and fret over the way it sucks to be residing via inflationary instances,
  • begin wanting into how one can spend much less, or
  • take motion to adapt to the brand new regular?

I’m the kind of one that falls into the third class, and I hope that if you happen to’re studying this weblog, it means you’re the type to direct your power in the direction of truly taking motion to enhance your scenario too…fairly than simply whine about circumstances that you just can’t change.

None of us have any management over the worth of electrical energy or mortgage rates of interest, however we are able to definitely select to cut back them; or if we are able to’t, then at the very least optimise what we have now to spend anyway.

And now that it has change into nearly sure that inflation isn’t going away any time quickly, it’s time to take motion, be it via:

  • Reduce on bills
  • Get extra rewards out of the cash that you just have to spend
  •  Earn extra

If you are able to do all 3, that’ll be even higher.

Right here’s how.

REDUCE

Throughout instances of inflation, you possibly can’t management how far more you must pay, however you possibly can definitely management (i) how a lot you employ and (ii) going for lower-cost options, wherever potential.

By now, I hope you’ve already switched to a low-cost electrical energy supplier. Your cellular plan can also be value , particularly if you happen to’re nonetheless on a tied contract as a result of altering to a SIM-only plan can simply prevent 30% to 50% in a single transfer.

Select to eat at dwelling extra usually, and also you would possibly simply discover that your eating bills go down by a straightforward 20% – 30% every month.

If you must eat out, select the hawker centres or meals courts wherever potential, as you’re paying much less but additionally supporting native on the identical time.

One other tip I’ve applied for my very own family is to change to deal with manufacturers, which may probably cut back your grocery bills by as much as an extra 30%.

OPTIMISE

Subsequent, for the cash that you just have to spend anyway, have a look at how one can greatest optimise this spend. Probably the most helpful transfer you can also make on this space is to ensure you’re utilizing the proper playing cards to your spending.

Being acutely aware about our bills now additionally signifies that you don’t need to be slowed down by a card that requires you to clock a minimal spend, or provides you a low earn price, and even worse – each,once you’re unable to fulfill their standards.

Let me educate you ways to do that simply along with your POSB playing cards.

In case you haven’t heard, the POSB On a regular basis Card is a hidden gem that’s hardly talked about, however the reality is, the cardboard has been one of many prime picks for individuals who search rewards throughout their on a regular basis spend effortlessly. And it’s not shocking – the cardboard has no minimal spend and comparatively greater earn charges on groceries, gas, public transport (SimplyGo) and even your utilities.

Groceries

As an example, if you happen to purchase your groceries from Sheng Siong, the POSB On a regular basis Card provides you 7% money rebates. However, in case your weekly grocery runs are at Chilly Storage or Big as a substitute, then you need to be paying along with your PAssion POSB Debit Card for 7% financial savings as a substitute, which additionally earns you TapForMore factors (a.ok.a. PAssion card factors)!

Unbeknownst to many, there may be in reality a debit card that offers you cashback in Singapore – this being one of many few playing cards regionally to take action.

Public Transport

In terms of transport choices, POSB has additionally catered for each the drivers and non-drivers.

For these taking public transport, you already know by now that you just get 5% money rebates for bus/MRT rides once you use your PAssion POSB Debit Card / POSB On a regular basis Card.

Whereas if you happen to’re a driver, you’ll be accustomed to how one can get 15% financial savings upfront once you swipe your POSB debit card collectively along with your SPC&U card. However why not go for much more low cost once you maximise it by utilizing your POSB On a regular basis Card collectively along with your SPC&U membership? That means, you may get >20% off your invoice i.e. $21.80 off for a $100 gas receipt!

Payments / Utilities

As to your payments, most Singaporeans make the error of not optimising this and paying by way of the standard strategies e.g. AXS machines, on-line invoice cost, and so on. Neither of which provides you any cashback or miles, sadly.

In that case, you need to be utilizing your POSB On a regular basis Card as a substitute, which provides you 5%^ money rebates in your recurring utilities payments and three% to your telco funds.

^5% for electrical energy covers SP Group (recurring), Geneco, Sembcorp Energy, Union Energy, Tuas Energy. 4% in case your electrical energy supplier is Keppel Electrical and Senoko Power.

Alternatively, you may as well use your PAssion POSB Debit Card, which additionally provides you 5% money rebates in your utilities payments.

Meals / Eating Out

Photograph credit: DBS / At present On-line

And now that you just’ve taken to eating at hawkers as a substitute of cafes or eating places, you’ll quickly discover you can’t use your playing cards to pay since most hawkers don’t settle for bank cards as a cost mode. A simple means out is to pay with PayLah! at hawkers which can assist to unlock extra bonus curiosity for you too (extra on this bonus curiosity later).

Mortgage Funds

With rising world rates of interest, you’d need to ideally get extra out of your mortgage repayments as properly.

On this case, POSB HomeSaver is one technique to get essentially the most out of your mortgage, as a result of by taking over a brand new dwelling mortgage with POSB and opening/having a SAYE account, you may get $500 (and a bonus $200 once you get MRTA).

SGD deposits are additionally insured as much as S$75k by SDIC.
MRTA refers back to the Mortgage Decreasing Time period Assurance coverage, which you may get to handle your excellent dwelling mortgage quantity ought to the unexpected occur.

And the very best half? Your property mortgage now contributes to the bonus rate of interest you’ll get with Multiplier! It’s a win-win, since mortgage repayments are one thing that every one of us owners must repay every month anyway.

EARN

And at last, an important factor to do if you wish to come out stronger than inflationary price pressures is to…earn extra!

Are you able to ask your boss for a wage elevate?

If not, then you may as well look into constructing an extra supply of revenue, akin to beginning a facet hustle (take a look at my earlier article right here if you happen to want some concepts) as a way to earn extra outdoors of your job. In my case, I used to show tuition on weekends and I’ve lately ventured into dropshipping earlier this 12 months – each of which gave me an extra 5-figure annual revenue.

Supply: DBS NAV Monetary Well being Report

Subsequent, assessment your money financial savings – are you making essentially the most out of this cash? The place are you presently parking your money in? Wouldn’t it make sense to switch it into fastened deposits and even the Singapore Financial savings Bonds for greater curiosity?

Multiplier remains to be the most effective financial savings accounts in Singapore

When you desire to retain liquidity, then at the very least ensure you’re utilizing a high-interest financial savings account like Multiplier, the place you possibly can earn as much as 4.1%* p.a. That is the place it’s essential to spend at the very least 10 minutes to assessment which account could be greatest for you – based mostly on the standards you can hit – earlier than you go and open it.

If you need a fuss-free choices, one of many best would positively be Multiplier, as a result of you possibly can earn additional curiosity just by doing the next (straightforward) steps:

  • purchase a kopi with PayLah!
  • join with SGFinDex (no must do wage crediting)

And if you wish to earn much more curiosity, my suggestion could be to:

  • arrange a $1,000 funding in digiPortfolio (psst, take a look at the latest SaveUp or Revenue portfolios which provide extra secure progress / common payouts)
  • make use of your mortgage with DBS/POSB (the opposite 2 banks don’t reward mortgage repayments, and the very best half is that DBS/POSB acknowledges for the total quantity for so long as your mortgage remains to be with them)
The above might be achieved on a $50k financial savings for somebody who (i) connects to SGFinDex (ii) invests $1000 on digiPortfolio (iii) $2,000 dwelling mortgage.

There’s completely no must do the next if you happen to don’t need to:

  • credit score your wage
  • hit a minimal card spend
  • join insurance coverage or funding

Inflation Hack: If you’re already crediting your wage with POSB, you possibly can earn an extra 3.5% p.a. in your month-to-month financial savings by depositing into the POSB SAYE Account.

This hack helps you to double the methods to earn much more curiosity! Right here’s the way it would possibly be just right for you:

Supply: POSB

After all, you possibly can additionally learn to put money into dividend shares which may pay you passive revenue, which is even higher than you having to actively trade your time and power for cash. Even with the bear market that we’re presently in now, there are many basically robust firms that are persevering with to pay out dividends to their shareholders such as you and me. Final 12 months, as an illustration, I earned >7% dividend yield on my DBS shares!

Sponsored Message from POSB


With nearly all of Singaporeans banking with POSB, the financial institution has put collectively a number of presents to assist its prospects battle inflation in as many features as potential – be it by decreasing spend via on a regular basis service provider companions, giving money rebates in your common spend, elevating rates of interest on one’s money, and even sharing extra academic “hacks” like those introduced on this article. 

Conclusion

In abstract, whereas we can’t management our price of residing and inflationary pressures, we are able to positively take steps at this time in order that it impacts us lower than it in any other case would.

And what you are able to do for your self at this time with minimal effort is:

  • Eat at dwelling extra usually
  • Select hawkers over cafes or eating places
  • Change to deal with manufacturers

By researching somewhat, you may as well:

  • Get extra cashback
  • Reap the benefits of reductions or promotions
  • Use the proper card(s) or memberships to get rebates
  • Get the next rate of interest in your financial savings

And so long as you’re prepared to speculate a while and power, you possibly can even earn extra by:

  • Buiding an additional supply of revenue or a facet hustle
  • Receives a commission greater at your job

The probabilities are infinite, however what issues extra is – what are YOU going to do at this time to beat inflation?

Disclosure: This put up was written in collaboration with POSB, with hacks and suggestions supplied by yours actually.

*Notes for Multiplier bonus rates of interest:
1.	Larger rates of interest are relevant to the S$ stability in your DBS Multiplier Account, as much as the primary S$100,000. Any quantity over and above this shall be accorded the prevailing rate of interest for that month. Curiosity is credited in 2 elements:
i.	base curiosity at our prevailing rate of interest, calculated on each day balances shall be credited at month finish, and
ii.	preferential curiosity on the preferential rate of interest (which is the upper rate of interest much less the prevailing rate of interest) based mostly on the sum of your eligible transactions with us, calculated on each day balances, by the seventh working day of the next month.
2.	In case your transactions don't meet the standards, the S$ stability in your DBS Multiplier Account shall be accorded the prevailing rate of interest for that month.
3.	Overseas foreign money transactions are topic to trade price fluctuations, which can lead to capital features or losses; such accounts might also be topic to trade controls imposed on the foreign money held.
4.	Service cost is waived for DBS Multiplier Account holders as much as 29 years outdated, efficient from Might 2018 onwards.



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