Being kiasu isn’t always bad, unless it’s about the wrong thing. For example, being the first to buy electronic gadgets may not always be a good idea (it could be better to wait till the bugs are worked out, and the price dips). But there are things you should actually be kiasu about. Here are a few.
1. Your home content insurance
It’s always good to have a fire insurance so you’ll be covered in case a fire breaks out at home, but apart from that, it’s also advisable for you to have a home content insurance that can cost between $100 and $200 as an add-on, especially because your fire insurance doesn’t cover a lot of things, including these:
- The possibility of being sued by your neighbour
If the fire spreads from your house to your neighbour’s house (assuming it started from your house, that is), your neighbour can claim damages from you through a lawsuit. Unfortunately, a fire insurance won’t help you cover the legal costs, but some home content insurance policies will.
- Temporary rental of home or storage space
Some home content insurance policies may cover the cost of temporary accommodation or storage to stash your surviving furniture while renovations are underway.
- Personal items stolen or lost in fire
The bad news is, your fire insurance doesn’t cover this. In fact, even home content insurance coverage is limited in this aspect. Payouts are usually capped at $2,500.
2. Your loan interest rates
There may come a time when you have to face the realities of adult-ing and take up a loan to buy a house or something important (not a bag, hopefully). But loans are not like other products or services. With other things, if you pay more, you are likely to get f extra benefits (which is their way of justifying the high price).
With loans, paying a higher interest rate doesn’t come with any real benefits. Which is why, it’s good to use loan comparison sites, like SingSaver, to compare loan rates and find the cheapest one. The rates change often, so be sure to check each time before you take up a loan.
3. Your travel insurance
When it comes to travel insurance policies, some people focus on the payouts for cancelled flights and delayed baggage, but those are usually insignificant amounts compared to more serious situations such as medical evacuation and repatriation.
Medical evacuation covers the cost of getting you to the hospital, from wherever you may be. If that happens to be a cruise ship, then you can be sure it would involve a helicopter ride, which would typically be a five-digit cost, and can cost as high as $30,000 in places like Europe and the United States.
Following that, you might need to be repatriated to Singapore for treatment. That’s also another significant cost, which you’d want the travel insurance to cover.
The better travel policies have unlimited medical evacuation costs, and can cover the full cost of repatriation. The cheaper policies may only cover repatriation of your remains, and nothing more. You need to be aware of that especially if you usually opt for free travel insurance.
4. The conveyancing cost when you buy a house
When you buy a house, you have to pay a law firm a conveyancing fee, which ranges between $1,500 and a whopping $3,000.
What a lot of people don’t realise, however, is that you can look for cheaper law firms and request to use their services instead. If the bank agrees to your choice of law firm, you can potentially save at least $1,000 or more.
In fact, a lot of mortgage brokers (i.e. people who source for the cheapest mortgage for you) can help in this area. Ask them if there’s a way to lower the conveyancing fees, as they often know the various law firms that work with banks.
You can find mortgage brokers on home loan comparison sites, and their services are almost always free (since their main source of income is commissions from the bank).
5. The credit cards you use
Not all credit cards are made equal. You might find that some credit cards are better suited to your lifestyle than others.
There’s no point in getting a credit card with the best petrol rebates if you usually use Grab and Uber to get around. Likewise, cashback rewards may pale in comparison to what air miles can get you if you’re a frequent flyer.
Always be sure to use the right credit card for the right purchase. For example, if you have a cashback credit card, but you’ve hit the maximum monthly cashback of $60, there’s no point in charging anything else to the card. Either switch to another cashback card or to a card that gives you better discounts.
SingSaver is Singapore’s #1 personal finance comparison platform. Launched in May 2015, SingSaver is committed to helping consumers find the right financial product with easy-to-use self-serve comparison tools. SingSaver provides free, quick and easily accessible resources to help consumers understand personal finance products in Singapore including credit cards, personal loans and insurance. In a constantly changing financial landscape, SingSaver strives to provide consumers with detailed and accurate data and insights so they can make the best choice before applying for the financial products that suit their needs.