23 personal finance killers to change this 2016

A lot of people are constantly having issues with their finances last year, but thank God, it’s a brand new year again. A fresh new start for everyone, I strongly believe that your personal finance is going to change today but there are things that you need to let go in order for you to go to a higher ground.  As you look back from the past these are the following habits that you need to be mad or uninstall from your system. 

1. Believing that change won’t happen
2. Spending too much money without thinking the cost-benefit
3. Overusing credit card
4. Too lazy to create or track a budget
5. Borrowing so many times by obtaining a cash advance from your credit card to pay for living expenses and/or other debts
6. Having liabilities in excess of assets
7. Thinking that retail therapy can make you happy in a long-term perspective
8. Not saving enough for your future retirement
9. Reaching the maximum limit on a credit card most of the time
10. Running away from your credit card and phone line bills
11. Having a non-existent or low emergency fund
12. Always want a “FREE” ride
13. Unable to pay due bills more than twice a year (e.g., credit cards, utilities, rent)
14. Unable to repay installment debts and asking for a loan to pay all the existing debts
15. Receiving "overdue notices" from creditors
16. Being denied from additional credit because of a lack of a sufficient positive credit history
17. Losing money to scams
18. Losing money by gambling or buying lottery tickets
19. Allowing an insurance policy to lapse (e.g., vehicle, renter's/homeowner's, medical, life)
20. Feeling emotionally stressed about money matters
21. Having a seizure when there’s a big SALE
22. Investing without doing due diligence
23. Being a hoarder and not a giver 

Bonus,

Denying that you need help

Self awareness is the key to change. Knowing about these will give you an advantage but what you do with what you know will set you apart from the rest. Many champions are willing to rise and grind to create the habits that they want while looking at the reward. Yes, I know it’s hard, but if you want to be stretch and win, you need to have grit to take charge.

David Isaiah Angway currently helps young, urban and educated millennial (Gen Y) set and achieve their long-term financial goals by educating them about investments, asset allocation, risk management, retirement planning, and estate planning. His role as a financial planner is to find ways to increase the client's net worth and help the client accomplish all of his/her financial objectives. 

Image courtesy of gqindia.com

Investing In a Bear Market

You will seldom see me writing about investment on equity (stock market). First, I am not an expert. Second, my key to financial independence is not dependent on stock market. However, I do admit it is a good instrument to accelerate your financial goals, if you did it "correctly", or rather, "timely".

We definitely can't time the market. This is why people still buy stocks at STI 3500 level. I believe when STI reached 5000 level, there are still buyers. We need to understand a few simple logics. First, STI is a general sentiment on how Singapore stocks are doing. Second, It is forward looking sensing and don't represent any current stage of our country economy. Most probably, it is speculation based on yesterday news. We "speculate" based on our best knowledge. Since we can't time the market, how do we know we have bought companies that will go up, and not down? For income investors, how will we know whether the dividends are sustainable?

If you have done your thorough homework and invest knowing the valuation is cheap and the price is nothing but just a discount, then it is at most a better "speculation" knowing your chances of earning money in the long run will be more certain. A good company need to be discovered by the general public to unleash the price potential (if you are looking to sell them) as stock market price are generally driven by sentiments. There are always mismatch in the true worth of the company and the market price sentiments, and the difference is what we get in the long run. Hope you get the upside, and not the downside. If you bought the right company at a good price and it is not discovered by the public, then you most probably will enjoy the potential of good earnings, which will translate into returns like dividends or sudden jump in share prices (after decades of not being discovered and finally, it does). As for dividends, you have to understand the company has the right to reinvest the earnings to grow the business, for all I know. It may not land in your pocket.

Having said that, the bear market is simply a trigger of negative sentiments among the stock market. Knowing your asset allocations are utmost important to a successful investment. Knowing that you have set aside some emergency fund for your livelihood is important because jobs are at stake during bad economy. Then, you can invest the "excess" cash you have. Of course, if your risk appetite is huge, then go ahead and invest your life saving away. Especially if you are youthful and no financial commitment. At your own risk. I wouldn't encourage this.

If this time is no different with any other bears, remember, it is a cycle. We could be seeing the start of the fall or we have reached the bottom. For all you know, what have you catch so far? How long more the journey?

Always remember, don't over invest in a counter if you are uncertain. For example, averaging down a stock that has went down so much and you happened to own it, must have a limit. Ideally, it should not be more than 10% of your portfolio. Of course, if you are doing STI ETF investing, then the 10% can't apply as you are buying a fund that invest in 30 top market capitalisation stocks. Personally, I have a bit of Keppel Corporation and it is dropping every day. I know I am not going to average down unless it meet all the requirements like portfolio allocation, more certainty of oil industry and no better stocks to buy. What if it return to $8 or $10? Good for me. If it don't, I did myself a favour of not overcommit. This is the beauty of cherry picking to beat the STI ETF, if you can avoid the downsides and focus on the upsides.

My strategy? Eat slowly, and when it is time to be greedy, eat faster. When is the time? Always remember, there are two pricing. 1st price is the general market pricing that caused most stocks to follow in a uniform direction. 2nd price is the overly beaten price of a good company. Look for a company that is good and you know it is oversold. Watch your portfolio allocations.

Hope we emerge richer 5 years later after this post. What is the price you have to pay?

China Stocks Recover, Asian Markets Breathe Sigh of Relief

Shares Recover in Asia- Chines Yuan Stable for 3rd Day

Trading seemed to remain uneven on the mainland stock market though shares recovered in Asia recently as the Chinese Yuan become stable for the third straight day. The Shanghai Composite Index SHCOMP, +0.17% increased 0.4% to 3028.04 though traded up and down as around 1% from its earlier close.

The main stock market of China dropped 5.3% last week amidst fear that the authorities of China seemed to be unable to stem the latest chaos in the financial markets as well as s slowdown in the larger economy. In another place, the Australian S&P/ASX 200 XJO, -O.14% dropped 0.1%, South Korea’s Kospi SEU, -0.21% was flat while Hong Kong’s Hang Seng Index HSI, -0.84% rose 0.2%.

Where the markets seemed to be closed for national holiday on Monday in Japan, the Nikkei Stock Average NIK, -2.71% tracked Monday’s regional losses dropping 2%. The Chinese Yuan sustained to steady on Tuesday but the central bank directed the slightly weaker currency. Previously, the Chinese authorities had fixed the Yuan at 6.5628 per U.S. dollar when compared with 6.5626,on Monday.

Offshore Currency Hits Strongest Level

China’s onshore Yuan that could trade 2% below or above the fix, had traded last at 6.5733 per dollar, weaker than 6.5695 at Monday’s close and the currency had reached a five year low of 6.5956 last week. Offshore currency had hit its strongest level from the beginning of the year on Tuesday and had trade last at 6.5705.

The offshore Yuan, which tends to trade freely, on late Monday, strengthened by around 1.5% to 6.5827 to one U.S. dollar when compared to the earlier close, which helps to contract the gap between the onshore and offshore Yuan to its tightest in two months. Traders are of the opinion that the offshore Yuan is strengthening since state-owned Chinese banks tend to buy the currency, which is an intervention by central bank of China.

This had limited the supply of the offshore Yuan, thereby tightening the liquidity and sending the rate at which the Hong Kong banks tend to lend Yuan to each other overnight, to a record high of 66.815%, on Tuesday. The rate soared to 13.4% on Monday from 4% on Friday.

According to Tommy Ong, head of Wealth Management Solutions at DBS in Hong Kong commented that `a lot of channels bringing money from onshore to offshore market has been blocked which also tends to contribute to the shortage of Yuan in Hong Kong.

Beijing Continues to Affect Global Market Mood

The regions’ stock gains Tuesday, tends to offer some absolution after the chaos of the earlier week caused by a faster than anticipated depreciation of the Yuan, when the currency had fallen 1.5%. The stock regulators also seemed to come in last week in order to calm the trading stating that they would do away with a circuit breaker which tends to aggravate selling and extend a ban on big shareholders from selling the shares.

However, China shares are presently roughly just 3% above their summer low on August 27 after a 3 month retreat wiped trillions of U.S. dollars from the marketplace, sparking a global selloff. Traders as well as analysts state that they are uneasy since Chinese authorities oppose with the prospect of increasing the capital outflows from the world’s second largest economy.

Market analyst at Brokerage IG, Bernard Aw,in a morning note had written that `for now, it may seem like the tweaks that Beijing makes will continue to affect global market mood.

5 costly behaviors from top athletes of yesterday who are broke today

 

NBA players keep signing massive amount of contracts from team owners and endorsement deals year by year. Those who were once worth 90 to 200 million dollars during their good old days spent their money like they have unlimited resources. It was sad that they are currently struggling today and ended up not having those funds kept for a very long time. Worst is their getting those so called menial jobs just to make their ends meet. Here are the following reasons how they lost control of their funds and why those once richest and famous athletes are facing rock bottom today.

They fathered 7-10 children from different women- According to recent studies done by different universities in the United States that athletes who got the chance to play in a big league are more prone to engage with their fans that means more opportunities to hang out with them. They get to meet women from different locations and had various activities including sex. That causes a lot of unexpected pregnancies as they go along with that habit throughout their career. As they continuously play in different teams it is their responsibilities to pay child support or else they will face legal charges that are going to be more costly.

The danger of materialistic lifestyle- An NBA player who once had a flourishing career usually had fat paychecks and extravagant lifestyle for example; buying 2,000 pairs of shoes, a luxurious seven-bedroom mansion, yachts and jet for partying alone. They tend to overestimate their earnings with their expenses which are very normal at the peak of their career. “The problem with that lifestyle is they forget the tax they must pay in a long run, leaving them with a very small chunk of what they truly earned” an ex- NBA player said. As they increases their lifestyle the more it is hard for them to keep up with it. When they sign another contract that’s lower than they usually get, this is where the problem of falling starts, thus financial bankruptcies are epidemic in the league.

Gambling addictions – Rehab International Organization says more than $5 billion has been lost each year, also the social effects of addictions in the family are tremendously devastating since family members also suffers from physical and psychological abuse.  An NBA player, who earned over $200 million dollars throughout his career due to his gambling and drinking issues, loses his wife through a messy divorce, can’t pay his duty like child support, failed to have lifetime collaboration with Reebok.  Therefore, addictions can corrupt your good values in life; ruin your family, career and reputation.

Created a business but financial meltdown was really bad – Athletes are trained to do what they need to do on the court but not easily in the league of business. It is too risky for them to manage it without extensive training. Shifting from once famous career can lead serious mistakes and financial injuries will definitely occur. A lot of them attempted to create their own identity after those glorious years, helped a lot of people by simply creating business hoped that it will thrive but low economic growth took all those investments away and left them crippled from many creditors. Without solid financial plan they won’t able to sustain the business.  

He is supporting a lot of people - Sports Illustrated done an incredible study that family problems, risky investments, misplaced trust, and providing for an athlete's friends as the main reasons why players go broke after retirement.  Free loading friends as many as 70 left an NBA player who was a top pick in the 1996 NBA Draft, worth 108 million dollars, proved that he was not immune to this kind of misery, he was not able to sustain his earnings after he retire from the big league. He lost everything within 2 years. There’s a lot of athlete who had major financial commitments to a number of extended family members, they spoil their entourage and serves like an ATM for various groups of people. It also shows that they are not well equipped to handle their finances compare to handling balls and technical fouls on the court.

Bleacher Report and Mint.com says 60 percent of NBA players file for bankruptcy five years after retirement.  The combination of bad investments, poor economic conditions, lavish spending, bad attorneys, poor mindsets and lack of discipline shows that they are not excluded in financial woes like anybody else.

David Isaiah Angway currently helps young, urban and educated millennial (Gen Y) set and achieve their long-term financial goals by educating them about investments, asset allocation, risk management, retirement planning, and estate planning. His role as a financial planner is to find ways to increase the client's net worth and help the client accomplish all of his/her financial objectives. 

Replacement Compressor Parts

You do not want to mess around trying to find a place to buy air compressor parts when you need them. Ideally, you want to already have a place to buy them in mind so you can quickly get the parts you need. Unfortunately, finding a store that sells quality air compressor parts is not as easy as you might think. There are definitely many stores that sell this type of parts. However, it would be making a huge understatement to say that they tend to vary greatly in the quality of parts they sell. What makes a good air compressor parts store? Here are a few things you should be looking for.

1. Do they carry obscure parts?

You may have an older air compressor that has not been sold for many years. If this is the case, you might find it very difficult to find the parts you need when you need to make a repair. This is why it would be a big help if you could find a store that caters to people like you who own older pieces of equipment. This will allow you to avoid spending endless hours online trying to find a specific part for an air compressor that is 30 years old. It would make your life much easier to be able to drive to your local store and buy it.

2. Competitiveness

How much does the store charge for their parts? Are their prices somewhat close to the other air compressor part stores in your area? Finding a store with a large inventory is all well and good. However, this will not matter very much if they charge an arm and a leg for the parts they sell. The trick is the find a store that has the parts you want and sells them for competitive prices. It is often hard to find a combination of these two things. You can find a nice selection of Joy air compressor parts for sale online.

3. A knowledgeable staff

You might go to an air compressor parts store having no idea what type of parts you need. After all, not every person is an expert when it comes to this sort of thing. In these cases, it is very important that the employees at the store are knowledgeable. They need to be able to guide the customer and recommend the specific part that is needed.

How to Create a Scalable Payments System

Creating Effective Fintech Payment System

Generating an effective fintech payment system is much more than removing the credit cards while indulging in transaction. There are several companies, in fintech which tends to build scalable payment methods and as per EY; the largest market in UK fintech is payments which is around £8bn a year.

However payment could be difficult and in order to make money, a new payment source is essential to scale rapidly for economics to function. A proposition is essential which could be considerably convincing for consumer as well as the merchant together with various other players in the value chain. Payment tends to work and though it is not impeccable by any means, all the same it tends to work.

Firstly, one needs to add value to a payment method in order to make an effective business. It was observed that just doing payments seems great though not good enough. Given the option of paying at a restaurant with the phone through contactless, rather than the credit card, the difference would not be big, and one will still need to go through the process of asking for the check and view it. Instead of paying with credit card, one would be paying with their phone and the incentive of using the phone is not strong.

No Need of Paper Vouchers/Loyalty Program

In one intends creating a compelling payment experience, like trying to comprehend the full process, one needs to understand where the discomfort points lies for the customer. For instance the technology has been integrated into restaurant apps enabling consumers in making payments for the total bill amount or split the bill with others through Apple Pay, PayPal or a registered card on a MyCheck account, without the need of waiting for the staff.

Moreover, it also permits sophisticated incentives together with loyalty programs that are designed to personalize the dining experience for the customers. When a customer tends to sit in a restaurant, they would want to check the menu and they can do that through the app of the restaurants which is powered by MyCheck and when he intends to redeem his coupons or offers or even participate with loyalty program, they could do the same through the app.

There is no need of paper vouchers or loyalty cards and the accumulation together with redemption seems to be automatic.

MyCheck Platform is Integrated

And when you want to pay, you don’t need to ask for the check since the MyCheck platform is integrated and one can pay as well as split the bill by utilising the smartphone.When it comes to monetizing an app it is based on what the app intends to achieve. Several of the payment apps have not been generating revenue and the merchant is paying them.

The amazing thing with regards to MyCheck is that they are in partners with chains that they are working with and the partners’ success becomes their success. It is not too difficult in persuading customers in using the app for the first time. The big challenge is on how one makes them loyal, how you tend to drive repeated visits and at the same time provide an improved customer experience.

According to their data, it has been observed that when a user tends to use the app more than twice, they get hooked to it. They need to be convinced to use them twice and then they tend to get used to the experience and appear to like it.

Get Your Disabled Crane Back on Track

When you deal with overhead cranes, you're talking big equipment for big jobs. Your machines have to hold up under extreme conditions and they're taking on heavy loads with every job. Wear and tear is unavoidable. When you face a breakdown in the middle of an important job, it can have major repercussions. Any delays affect your crew, your client, and the long list of jobs that are waiting for you down the line. Time is money. The more you waste waiting to get your overhead crane fixed, the more you lose. If you can't live up to expectations, it can damage your reputation. You need to get your overhead cranes up and running as soon as possible to keep everything on an even keel.

Be Proactive

The best way to avoid costly delays is to be proactive. Be prepared for common issues by stocking up on extra parts. Have a go-to source like www.ProservAnchor.com that you can count on when you are in a jam. When problems crop up, don't hesitate to get online or call customer service to fill your order as quickly as possible. If you're fortunate, you'll catch minor problems before they become major hassles. Have a back-up crane that can be put to work while another machine is getting repairs. Don't let a delay derail your entire job.

Don't Forget Routine Maintenance

Your overhead cranes need attention just like your everyday vehicles. You need to inspect all of your machines regularly to look for any signs of damage. Take good care of your equipment and replace parts on a regular basis before you run into trouble. Have a good repair person on staff or someone you can call in a moment's notice.

Consider Refurbishing Your Equipment

If your overhead cranes are older, your business could benefit by modernizing your machines. You can enhance your equipment and make it more effective. Overhead cranes have to be tough enough to perform. Regular upgrades are good alternative when you don't want to invest in a new machine. You can make the most of what you have by making mechanical, structural, or electrical improvements. If you don't know how to make improvements, take your overhead crane to the experts to give it an overhaul, ensuring that you will be able to meet your deadlines when push comes to shove.