The festival of giving and collecting red packets will soon be here. This Chinese tradition has been around for centuries, and the tricky question for those receiving red packets is: What do you do with the money?
In this article, we assume that the average money you received is about SGD400, and here are some tips on what you can do to grow your Ang Bao money.
If you seem to be on the roll for most of the card games you played at your relative or friend’s house this Chinese New Year, it might appear that your luck for this year is unstoppable. In that case, you might want to try your luck at Singapore Pools – betting on a four-digit combination closely related to you, and stand a 1 in 10,000 chance of winning first prize.
However, unless your gut feeling stands at 100 percent accurate, we strongly advise you not to heed this tip and risk losing all your Ang Bao money.
Bet on Chelsea Football Club
For soccer fans that have been following the English Premier League closely, Chelsea football club seems to be cruising its way to being crowned the Champion of English Premier League this season. The odds at Singapore Pool currently stand at SGD 1.10.
Assuming that you bet all SGD400 worth of Ang Bao money on it, you will enjoy a 10% profit if Chelsea Football Club emerges as the title winner of this season’s league. But then again, how certain are you that no other clubs will catch up?
Make some gains at the Forex Market
One can start by opening an account with a Forex Platform such as Oanda (which does not require a minimum sum deposit) and start trading. The volatility in the Forex market allows fast gains if one is able to make the right decision at the right time. Forex trading requires high technical analysis knowledge, keen observations of market movements and self-control.
However, despite the prospect of one making fast gains in the Forex market, it is also possible for one to lose his all initial deposits (and more). Hence, this tip is not suitable for the faint-hearted or investors with tight cash flow.
Buy 1 lot of STI
It is now possible to purchase 100 shares of the Straits Times Index with just SGD400. If you are purchasing at a price of SGD 3.45 using DBS Vickers, it will cost you SGD 371.90 (total commission and fees included).
While it might be foolish to pay the high fees for just 1 lot of STI, you get to enjoy 4 to 5 dollars worth of dividends twice a year – and you can recoup the fees in less than 2 years – not taking the gain in stock price over the years. Of course, it is a smarter choice to purchase more lots at one go.
In conclusion, while the amount of Ang Bao money you received might seem little or insignificant for some of you, especially those who are already in the workforce, you will be amazed by how much you can grow this little sum of money just by making the right decisions.