Ever wonder how the money you received from your recent personal loan has dwindled? And how have you been spending your hard-earned money? Setting short-term and long-term goals is the first step towards financial independence.

When you have no personal finance goals, you will likely develop poor spending habits and may even end up in debt. Short-term financial goals act as a stepping stone to help you achieve bigger goals by providing you with information and foundational knowledge to set long-term goals. So, how should you begin? Here are 9 things to get you started.

1. Goals should be specific

Rather than setting personal finance goals such as “I want to save money”, you should have goals such as “I want to save $10,000 by December.” Specificity prompts you to take the necessary steps in achieving those goals. For instance, if you want to renovate your kitchen by the end of July, you can consider taking a personal loan in Singapore of a specific amount to finance that goal. By knowing that your goal is to repair your kitchen, you’ll have a clear budget that dictates how much money you need for materials and labour.

2. Ensure your goals are measurable

“I want to pay off my loan this year.” This is not the right way to set goals. Instead, your goal should read, “I want to pay off 50% of my loan this year.” A measurable personal finance goal helps you set the specific amount to contribute towards personal loan repayment each year. Setting measurable goals enables you to estimate the measurable amount of personal loans you need to finance your goals. When taking a personal loan in Singapore, ensure that it is fully utilised and research on banks and licensed money lenders’ interest rates that are the lowest and most affordable.

3. Goals need to be achievable

Sometimes it is easy to overestimate the results of your goals, which may lead to eventual failure of adherence and demotivation. Penning down your goals creates a commitment towards achieving them. You can always feel the satisfaction of ticking a goal off once you have achieved it – the feeling is unbeatable. Once you’ve written down your short-term and long-term goals, place them in a location where they will always be seen and remembered.

4. Set realistic goals

In view of setting achievable goals, you must also ensure that those goals are realistic. You should be able to reach those goals based on your current mindset, skills, and motivation. If writing down your goals is too much of a habit to inculcate, try vocalising them instead. Sharing your goals with like-minded friends and family will provide you with viewpoints on how realistic they actually are and hold you accountable for achieving them. It’s also important to discuss your goals with a financial advisor who can offer tools and insights to help you manage money better. Finance experts can even help you manage your personal finances effectively and keep you out of debt.

5. Every goal should be time-sensitive

There is no day such as ‘someday’. Ensure you have a timeline for saving or paying off that personal loan and aim to achieve it. Personal finance goals are more realistic when there’s a deadline attached to them, and it will always give you foresight towards financial freedom. Hence, no delays and accumulation of debts.

6. Avoid goal comparisons

It’s easy to look around and see your friends and colleagues building homes and saving for grand weddings. But comparison is the thief of joy. Your goals may seem small compared to those around you, but they are personally yours. There is no reason to follow the crowd when setting goals. Put the blinders on and focus on yourself.

7. Establish a budget and stick to it

When you sit down and analyse your finances, you may be shocked at just how much money is slipping through the cracks without your noticing. A budget is exactly what is needed to help analyse your monthly expenses and income to ensure you are spending money wisely. When you spend soundly, you can set aside the money you don’t need to use towards goals you have set. For personal loans, having a budget will help you determine a comfortable amount to borrow. As a result, you’ll find yourself actively seeking the lowest personal loan interest rates, which will save you tons of cash.

8. Keep a positive mindset

As long as you’re doing your best to achieve your set goals, maintain a positive mindset. Whether your goal is to pay off a huge personal loan or to cap personal loan interest rates by making regular payments, keep your eye on the prize. Remember, it’s normal to get discouraged along the way due to emergencies that may veer you off track. In such cases, take a look at how far you have come, keep a positive outlook and remember your goals are in sight and definitely achievable.

9. Track your progress

You can’t get to your final destination successfully if you are unsure of where you are. Seeing how far you’ve come and how close you are to your goal can motivate you to keep going. You can keep track of your goals using a journal or using apps if you prefer using technology. Ensure you have records of all your goals and what you have been able to achieve. For instance, if you’re seeking a personal loan in Singapore, you should be tracking your credit score. As your credit score improves, you’ll be at a better chance of getting a low-interest personal loan.

Now that you have these tips under your belt, it’s time to get your financial health in check. As always, contact us if you are looking for personal loan options!

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post 9 Things To Take Note Of When Setting Personal Finance Goals appeared first on Licensed Moneylender Singapore.

Cryptocurrency is all the rage these days, with terms like crypto millionaires and NFTs (non-fungible tokens) on everyone’s lips. Since most people like quick cash, investing in crypto is something we might have considered.

In this article, we explain what exactly Crypto is, its risks and benefits, and whether you should invest in it. If you are looking to make some quick cash to either pay loans or increase your net worth, crypto could be an option.

What is Cryptocurrency?

A cryptocurrency is a form of payment that can be exchanged online for goods and services. The most famous of them is Bitcoin, which was invented in 2009 by an anonymous person. It works via blockchain technology, which transmits data and records transactions. Also, cryptocurrencies are decentralised, which means they are outside the authority of governments and banks.

Many companies, including a few Singaporean ones such as Crypto.com and StraitsX, issue their own cryptocurrency, also called tokens, which can be used to buy goods or services that the said company provides. There are currently more than 10,000 different cryptocurrencies being traded publicly. All cryptocurrencies also have the same value in every country and there are no exchange rates.

How can you hold Cryptocurrencies?

There are three main ways to hold cryptocurrencies. All involve having a “wallet”, which is an account that holds your crypto.

Exchanges

Firstly, you can hold them on exchanges such as Binance or Coinbase. On such platforms, you will be issued a “hosted wallet”, so-called because these platforms hold the wallet.

Non-custodial wallet

A “non-custodial” wallet allows you to have full control over your crypto. The downside is that if you lose your password, the wallet is gone forever.

Hardware wallet

Unlike the previous two options, a “hardware wallet” is a physical device the size of a thumb drive that stores your crypto. The upside is that you cannot be hacked since this is offline, with the downside being an inconvenience.

How do you make money out of Cryptocurrencies?

Much like stocks, the value of your portfolio increases when the price of the crypto token/s you hold rises, and vice versa. In other words, you make money when you sell the crypto tokens at a profit.

Cryptocurrency risks

As with all investments, there are risks. Crypto is known to be more volatile than stocks or gold, which is why it would be good to keep a healthy capital at bay so that you may buy more when it drops and sell when it’s at a higher price.

No sure-win crypto token

Although there are many established tokens with reputable companies behind them, the market is very competitive, with many tokens getting unlisted every few months. If you happen to hold such tokens, you lose all their value.

Vulnerability to hacks and criminal activities

For example, if your crypto is stored on an exchange, hackers can hack into your account and transfer your assets to their accounts. You may or may not be able to recover your crypto tokens — some are traceable while others are untraceable.

Scams

These tokens are often either hyped-up to offer extremely good services, such as giving you a percentage of their earnings, or entice you to invest by a tactic called “pump and dump”. “Pump and dump” happens when a token suddenly rises many times in value, attracting you to buy at an already high price. Once enough people buy at a said high price, the manipulators will “dump” the price by selling all their tokens, leaving you at a great loss. You may end up needing to pay loans that you have borrowed to buy such tokens looking for quick cash.

Cryptocurrency benefits

Many see cryptocurrencies as the currency of the future. We may end up using coins like Ethereum or Bitcoin to pay our monthly bills, or to procure certain products or services. Hence, buying these coins may be considered a long-term investment.

Get cash quickly

There is indeed such a thing as making quick cash. In May 2020, Bitcoin’s price was about USD 9,500. In May 2022, it was hovering around the USD 31,000 mark, though, in July 2022, it went down to around USD 19,000. Many coins have grown exponentially over just a few days, such as DogeCoin, which often pumps dramatically due to a tweet from billionaire and Dogecoin fan Elon Musk.

Advancing technology

The technology behind crypto, blockchain, is also why many people believe in digital currency. This technology is touted to be able to revolutionise industries from shipping to gaming. Having many believers and potential, many investors believe that cryptocurrency is not a fad and will only become more important as time goes on.

High liquidity

Some cryptocurrencies have high liquidity. This means that you can sell or buy them very quickly at market price. For example, if you need money to pay loans, you can simply liquidate your tokens for fiat, which is a term for real-world money.

Should You Invest In Crypto?

It depends if it is within your means. It is important to remember to never invest more than what you could comfortably afford to lose.

Investing in crypto can be an option to diversify your portfolio, which is always a good thing. This is especially true if you believe in the technology behind the tokens that you buy, and also that crypto usage will become more widespread as time goes by. However, do take note that the MAS discourages the general public from engaging in cryptocurrency trading as it is “highly risky”.

Bent on snagging some tokens right now but lack the funds? You might want to consider borrowing a relatively small sum from Galaxy Credit, a 24-hour money lender in Singapore. Our loan applications can be submitted at any time of the day, which is followed by an in-person interview for verification and loan approval. We’re an authorised money lender in Singapore that provides a variety of loans with attractive interest rates. If a loan is what you’re looking for in your Crypto journey, we’re here to help. As it stands, nobody said you have to invest a tonne of money into cryptocurrency for potentially big wins!

About the Author

Weetee Neu

Weetee Neu is a writer based in Singapore. He has written for MediaCorp, SPH magazines, Tripzilla and others.

The post Is Cryptocurrency A Worthy Investment To Consider? appeared first on Licensed Moneylender Singapore.

Most adults in Singapore have heard of a credit report even if they have not personally obtained one. It is almost always the first document that any lender, from major banks to licensed money lenders, will refer to when they are considering a loan application.

What info does a credit report contain?

A credit report in Singapore is divided into ten sections.

Section 1: Data Provided and Summary

This is where you will find personal details such as your full name, NRIC, date of birth, and postal code.

It also lists basic financial credit information, including the date of your first credit record on file, the number of credit lines in your name, the number of defaults and bankruptcies, your secured credit limit and unsecured credit limit, etc

Section 2: Personal Details

This is where you’ll find other additional details such as gender, nationality, marital status, and address

Section 3: Additional Names and Addresses

You’ll be able to see all the addresses and names associated with or ever have been used by you for your NRIC, bank accounts, credit cards, cheques, etc.

Section 4: Account Status History

This section details the types of credit products you have (e.g. home loans, credit cards, personal loans), the grantor banks, dates of opening and closing the account, overdue balances as well as details of how prompt you’ve been at making full payment for each account for the last twelve cycles.

Section 5: Previous Enquiries

This section shows a record of all recent requests for your credit report in Singapore, either by yourself or banks and money lenders.

Section 6: Bureau Score

This section uses all the information from Sections 1 through 5 to come up with the individual’s credit score, risk grade, risk grade description, and the likelihood of default.

Section 7: Narratives

Any other important information about your account(s) will be illustrated here. For example, if you’d applied for a mortgage deferment due to the pandemic, the date and type of request would be narrated in this section.

Section 8: Adverse

Any adverse information regarding the individual would be written here.

Section 9: Aggregated Outstanding Balances

This section shows an overview of all your financial products’ secured balances, interest-bearing unsecured balances, non-interest-bearing unsecured balances, and exempted unsecured balances.

Section 10: Aggregated Monthly Instalment

​​The monthly instalments show the amounts for each credit facility for the previous month and the total amounts for the previous five months.

Who can obtain a credit report?

Any legal resident of Singapore, including foreigners, can apply for a copy of their credit report.

Apart from individuals, banks and financial institutions can obtain your credit report for credit assessment purposes. Some licensed money lenders will also look at your CBS credit report when assessing your loan application.

Privacy safeguards regarding credit reports

All data in a credit report is obtained from the Credit Bureau (Singapore), also known as CBS. The company practices the highest level of information safety and security and there has never been a breach of CBS data.

What if there are errors in your credit report?

Your credit report may contain errors and such mistakes can affect your chances of getting lower interest rates for a loan. To obtain a low interest personal loan, it’s key to ensure there are no errors in your report. If you spot an error, contact the bureau immediately. You will have to provide evidence to dispute any data on the report.

Why should you consider getting your credit report?

Both individuals and business owners can benefit from knowing their credit status.

Accelerated loan approval

· Business owners: A credit report is almost essential for current and aspiring business owners. Whether you are setting up or expanding a business, you will need capital. A good credit report will qualify you for a legal loan in Singapore faster and help you make the best use of opportunities as they present themselves.

· Individuals: Whether it is a medical emergency, sudden vehicle breakdown, or legal fees, good credit gives you the money you need quickly. You also can avoid such situations by learning how to set personal financial goals.

Lower interest rates

A good credit score informs lenders that you are a reliable borrower. They will offer you lower interest rates and may even waive certain fees and penalties. Hence, the better your score, the less you will waste on additional expenses.

· Business owners: Lower business loan interest rates to set up or expand operations.

· Individuals: Lower personal loan interest rates to be used for a variety of purposes.

Higher credit limit

· Business owners: Lenders appreciate individuals and businesses with good credit because they regard them as safe investments. They will extend higher credit limits, which means that you have access to more funds if you want to expand, or if you need to weather a slow business period.

· Individuals: Expenses such as weddings, school fees, and renovation can be huge. A high credit limit gives you all if not most of the money you need instantly.

Where to get your credit report in Singapore

Credit reports in Singapore are issued by CBS or Credit Bureau (Singapore). CBS is a joint venture between the Association of Banks in Singapore (ABS) and financial services company Infocredit Holdings Pte Ltd.

Where does CBS get its information?

ABS members share their credit information with CBS. CBS then organises this diverse information by the individual and shares it in the form of a credit report when a valid request is made.

How to get your credit report

There are a few ways you can obtain your credit report:

Bottom line

The CBS credit report only includes your records with major banks and other financial institutions in Singapore. To obtain your loans and repayment records with licensed money lenders in Singapore or check on your overall financial health, you can consider buying your credit report from the Moneylenders Credit Bureau.

A credit report may not be a huge part of your financial plans but it is a good-to-know when you find yourself in a situation where you need to apply for a personal or business loan. Reach out to us to find out more about any legal loan in Singapore that may be suitable for your needs.

About the Author

Nikki T

Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!

The post Credit Report Singapore: How To Obtain One appeared first on Licensed Moneylender Singapore.