May 12, 2019

Why Is It So Hard To Save?

Lobang from: http://www.moneydigest.sg/why-is-it-so-hard-to-save/

With the surge of expenses from left to right, many find it difficult to save money on the side. The difficulty arises not only due to the lack of self-control, but also due to our perception. Harvard Economics Professor Sendhil Mullainathan tells CNN Money that “it is human nature not to save, but we can get better at it”.

#1: ACCEPTANCE

The first step to building your savings is acceptance. Accept your current financial situation and today’s economy. Whether you admit it or not, saving money is harder than ever. As prices in Singapore increase, we have less “disposable” income that we can allocate to our financial goals.

Acceptance of these will enable you to focus on the future priorities rather than focusing on the urgent expenses. You can automate your savings and allocate it to your retirement or education funds. I suggest you start small with the “52 Week Money Challenge”. This challenge encourages a slow and steady approach to saving money.

#2: REMOVAL

The second step to building your savings is to remove unnecessary elements such as your multiple credit cards. It is no surprise that saving money is hindered by the accessibility of credit. You see, our cashless society diminishes our appreciation for every dollar that we spend. Credit cards enable us to spend money before we save. And, there is no going back!

Not to mention, credit cards enable us to subscribe to monthly services such as video and music streaming. Our subscriptions add up! Every dollar you spend on meal delivery or Taobao delivery add up. What’s more? It can be difficult to cancel a monthly service that you forgot to sign up for. Just take caution with your plastics!

#3: RESET

The last piece of the puzzle is our perception towards savings. Many Singaporeans think that saving is challenging because it requires a heroic feat of tightening one’s budget. In reality, saving money can be done gradually. It should not be driven by sacrifice. Instead, it should be driven by opportunities harnessed by self-control.

For instance, you may save money without being conscious about it all the time through automation. You can automate a specific amount of your salary for it to go straight to your savings account. You cannot spend what you cannot see!

Image Credits: pixabay.com

Reset your perceptions about saving money. There are benefits to moving forward. And, moving forward you must do!

Sources: 1 & 2

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The Fall Of Carrefour: What Really Happened?

Lobang from: http://www.moneydigest.sg/the-fall-of-carrefour-what-really-happened/

In 2012, French hypermarket chain Carrefour has exited our shores. It pulled out due to not “being competitive enough”. You see, they believed that they could not achieve a leadership position in the medium and long term perspective in the country. Why is this so? Perhaps, they were not able to study our customer culture very well.

It is surprising to see the local downfall of a hypermarket chain who runs as the second largest mega-retailer right after Walmart in terms of revenue. Before I highlight the two factors that led to its exit, I will give you a brief background on Carrefour.

Its 1989 entrance in Taiwan began its operations in Asia. Its launching in Asia was prompted by the laws, which restricted the growth of hypermarkets and supermarkets in France. It opened its first Singapore branch in 2003. Its decision to penetrate the Asian market was further supported by its success in international ventures in Latin America.

Singaporeans were initially attracted with the combination of food and non-food items such as electronics and furniture. Yes! Your child can get lost while running around in a supermarket that housed a variety of products in one roof!

Once the enthusiasm faded, Carrefour faced tough competition from the other local players. Giant and Cold Storage were everyone’s preferred grocery while Courts and Best Denki were preferred in electronics. These stores gave Carrefour a run for its money!

Image Credits: pixabay.com

ITS LOCATION

Its two outlets smacked in the city center were located in Plaza Singapura and Suntec City Mall. Imagine traveling in the middle of town just to replenish your groceries. It is quite a hassle, right? This is why it is convenient for consumers to buy groceries in stores spread across residential areas.

I am referring to Cold Storage and FairPrice. I would not want to travel far and wide just to get an item that I can buy nearby! This sentiment echoes in the hearts of many.

ITS PRICES

Aside from its location, a factor that dictated its downfall is its pricing. It is undeniable that Carrefour offers products at a higher price. To be fair, their products are reasonably premium.

Nonetheless, these products are not unique. You can purchase cheaper hotdogs in the nearby mart at your HDB complex. Do you really need to spend S$20 more for a pack of hotdog? This is why most people will prefer for cheaper substitutes to everyday products.

Image Credits: pixabay.com

“The bottom line is Singapore is not the biggest market (in Asia) and it’s very competitive. It’s not the cheapest place to do business in as well.”
-Song Seng Wun, Regional Economist, CIMB , 2012

Sources: 1 & 2

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Lobang from: https://singpromos.com/dining-restaurants-food/fairprice-2-days-offers-coca-cola-scs-butter-nestle-omega-plus-more-ends-12-may-2019-227441/

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Fairprice: 2-days offers – Coca-Cola, SCS Butter, Nestle Omega Plus & more! Ends 12 May 2019 Read More »