Do You Know How Much You Can Save Without Your Car?

Understand that having your own transportation helps in easing the hassles of having to squeeze with the morning and evening crowds when you are getting to or off from work. Okay, now you got your car and you are able to get to your destination with ease. But the problem has just rise. What problems? The terrible jams on the expressway, the ERP gantries, the parking fees and even finding that parking lot (super pissing if you are already late for a meet up).

Spoke to a driver regards to the above expenses incurred for driving.

Mr Salei - From Ang Mo Kio, travelling along the CTE all the way to Town, plainly for the ERP charges, it cost about $9 bucks and a little cheaper from town back to Ang Mo Kio. And now, because of the increase in oil prices, owning and maintaining a personal vehicle is even tougher.

Drive Brand New Honda Jazz 

Car Loan - $600

Petrol - $300

Road Tax - $62.50

ERP - Assume $14 to and fro per day for 5 days a week and 4 weeks - $280

Parking - $1.60 per hour, $16 per day x 5 days x 4 weeks and total up to be about $320 per month.

Total expenses on Car alone - $1562.50

The total expense does not include your travelling on weekends, maintainence and modifications (for your audio, lights and parts which may cost few to ten over thousands).

If you chose to turn to taking public transport - Bus, Mrt and occassionally Taxis.

You save on parking - $320

Car Loan - $600

Road Tax - $62.50

Petrol - $300

Total Savings - $1,282.50 per month

And in a year you will be $15,390 richer. Wow!

(p/s: I have not minus the ERP charges because if we take occassion taxis during peak hours, the charges are incurred directly to us. )

But of course, if you have a big family and you need a transportation that can put your family members in it for outings, you may really want to keep it. On the other hand, weigh your current expenses without your car, are you able to take on extra cost on top of your expenses? At the end of the day, would you be a able to still secure emergency cash for rainy days for you and your love ones.

it is very crucial for you to plan for adding new luxury in life, not just buying that car. It is an expense and not a keep.

Total Expense On Car Alone -

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Deal Or No Deal

Happened to watch Deal or No Deal today, Which inspired me to blog about it. Just in case, you have not really watch this,

 Btw, She is the first to win  £250k.

Roughly, you understood how the game is played. Outwit the banker and trust your instinct to win the best cash prize.

Easy, no sweat.

But I never known of any one in Singapore that won the S$250,000. Most work away with few hundreds or thousands, lucky ones tens over thousand. 

Often, most got only enough for their taxi fare. Why? They bothered too much with the ‘advices’ from the audience, relatives and friends. They neglected their instinct when even though they know deep down they just wanted to deal with the banker. But still they trusted the ‘advice’ of others and not follow his heart, stayed on the game and the rest you know.

When I watched the show today, I felt the above scene resembles the one when someone decides to plan for their own financial objectives.

Many a time, we seeked too much 2nd, 3rd …advices that stirred up our initial target and ones, because now we are doing what other want, not you! We divert from what our instinct and feelings tell us and let the golden opportunity slipped. Most of the time, there is no looking back, what’s left only remorse because you have lost the most precious thing in the world, time - opportunity.

If You Took Up An Insurance Policy Before July 2002, Please Read On…

Many might not have known, nomination of beneficiaries before July 2002 in most insurance proposal has no legal effect if it is for the benefit of person(s) other than spouse and/or children.

And if you have named your spouse and/or children, an implicit trust under Section 73 of the Conveyancing and Law of Property Act, which means this interest could not be revoked by the insured.

To help you better understand the scenerio;

Eg. Mr G took up a policy during year 2000, June when he has just gotten married to Wife A.

 Policy insured amount : S$200,000

Nominated  Wife A to be beneficiary in policy under or unintentionally/ not noticed because did not pay attention to the clause Section 73.

In 2003, divorced Wife A and remarried in year 2005 to Wife B and have 1 Son.

Unfortunately, met with a car accident and passed on.

So who do you think should get the money? A full sum of S$200,000.

EX-Wife A or poor widow B and young son?

Answer: Ex-Wife A

Why? Because of Section 73 of course.

So what should you do now if you have taken up any policy before July 2002 when you have named spouse/ ex-spouse and/or children under section 73?

Decide for yourself whether you really love and want them to benefit from that insurance proposal.

If you have decided that you do not wish to depart full amount or anything to them, you can only seek an agreement between you and the previously nominated spouse/ children to revoked the nomination. This issue of Section 73 will not be even able to settle with a written will or trust.

Now, probably you wondered why this started. This type of trust is created by operation of law where it is to protect the interest of the nominee(s) in a life insurance policy.

To discuss in person with me, make appointment via email at cassiezhng@gmail.com and confirmation will be returned asap.

P/s: Section 73 mentioned above applies in Singapore, if you are from other countries check with your legal representative or financial consultant for clarifications.

Is Insurance a Scam?

I do hear this from a minority group of people who mentioned that insurance is just a scam. It is just there to take your monthly premiums, with some exchange condition of life, major illnesses and total permanent disability coverage. And if all is well, you will get what they call the maturity ( a combination of guaranteed and non guaranteed cash bonuses - applies only for traditional whole life and saving insurance).

So why do they considered it that way, even though endorsing of agreement made it really clear that in specific circumstances that no pay out be made?

Thus, it all voice down to the understanding of the contract before hand.

How can you ensure that you fully understand?

1. Get someone you trust or you feel that he/she is a very professional financial consultant and someone you feel that you be in good hands with your insurance.

2. Before meeting a consultant for life insurance, saving, investments etc, do your homework as well thus you be able to better understand and voice your queries during the meet up with the financial consultant. By doing this you can further analyse the professionality of the consultant.

3. After the financial analysis from the consultant, it is very important that you take note regards to your priorities in planning for yourself. And I do not mean that thinking of whether you have enough for your leisure spending but whether the premium level that you take up is something that you be able to sustain till the maturity is reached or till the time you are planning to use the insurance for retirement purpose, business setup, etc.

4. After taking up the proposal, it is very important that you do not end your story here. A regular meet up is vital for you and your consultant to recollect what policies you have and the coverage in each of them.

The most important point that I have taken from the minority which thinks that the insurance is a scam have probably faced set backs in their own plans.

When time comes for the claim or maturity, because due to lack of understanding the coverage that embeds in the insurance contracts and communication with their consultants. Undesire results in form of not able to claim etc.

Thus, it is very important that a close contact is maintained between you and your consultant, especially if you have a change in contact details. Communications is also very important, you have to tell the consultant what you want to receive from the benefits, no consultant can read your mind by just looking into your eyes or your skin.