Dividend

• Ezlink Card: This transport card needs no introduction since most of us should have an Ezlink card in our wallets. Simply top up your Ezlink card via credit cards using the General Ticketing Machine found at any MRT stations. 
• Kopitiam Card: If you frequently dine at Kopitiam, you are likely aware that you can now do a cashless top up for your Kopitiam card via credit cards at the Kopitiam Top-up Machine. However, it is worth noting that an extra 2% of the total top-up amount is levied as the credit card administrative fee. There is a minimum top-up of $10 for each transaction and the maximum amount you can top up at a time is $50. 
• Starbucks Card: Coffee enthusiasts who habitually get their morning fix of caffeine, can top up their Starbucks cards at any participating store. 
• Grabpay: For those who routinely travelled via Grab, topping up their Grabpay wallets would be an apparent option. In addition to paying for Grab rides, approximately 200 other third-party merchants also accept payment via this digital payment app. 
• ActiveSG: Fitness junkies can consider topping up their ActiveSG eWallets via the mobile app to enjoy access to a comprehensive range of facilities such as swimming pools, ActiveSG gyms, studio programmes and badminton courts. You should note that there is a minimum top-up of $10 for each transaction and the maximum balance is $1,000 at any point in time. 

• Stock up on essential and non-perishable items: For those who prefer to receive tangible items in exchange for your credit card spending, consider stocking up on the essential household products such as toilet rolls, silverware, dishware, towels, etc. On the assumption that you do not intend to consume within a short span of time, try to avoid obtaining perishable items such as fruits, meat and diary products.  
• Prepay bills: One of the commonly known "hacks" is to prepay your utility or telco bills. For utility bills, you can prepay with your credit cards at SP customer service centres located at Toa Payoh HDB Hub, Woodlands Civic Centre and 8 Cross Street Manulife Tower (formerly PWC Building). For telco bills, you can simply prepay electronically, via the mobile apps or drop by one of the retail outlets. Given the indispensability of such expenses, I would regard it to be arguably one of the more useful tips. 
• Buy gifts in advance: Do you have a gift that you have been wanting to prepare, be it a birthday present for your close friends or for the upcoming Christmas gift exchange? In such instance, perhaps you can start to look out for those gifts in advance. 
• Book your holiday trip early: If you have been organising a vacation trip with your loved ones, maybe you could book the hotel/flight earlier or break down the travel expense, such as purchasing of train tickets separately. 

Anchoring Effect

Financial Applications of the Anchoring Effect

• Negotiation: Do you recall the last time you haggled with a stall owner in the midst of the buzzing night market in Bangkok? There is a high chance that the seller has quoted a high price when prompted initially. During the course of negotiation, the first suggested price usually set the benchmark for subsequent bargaining and this includes the final price. Such scenarios are also prevalent in salary package discussion with HR, as well as bargaining on Carousell. 
• Sales Technique: In the first half of the year, I have attended a financial introductory course. Towards the end of the session, the speaker revealed that the original price of the investment course is approximately $2,000. And if we were to sign up for it on the spot, they are willing to offer a promotional price of $800. By revealing the original price as the anchor, the promotional price, by contrast, creates a clear sense of value for potential customers. Some might have encountered similar experience with Fave/Groupon deals. 
• Advertisement: During sales, you may occasionally notice that fashion retailers tend to include the strikeout original price and display the discounted price next to it. The non-discounted price, serving as an anchor, causes potential shoppers to think that they are getting a good deal, thus increasing their propensities to spend.
• Investment: The decision to buy/sell a stock by investors can generally be traced back to the anchoring effect. As it is onerous to measure the true value of a stock accurately, people often anchor on its previous price levels. For instance, investors may anchor on a previous high point for the stock's price and likely to believe that a drop in the price provides an opportunity to buy at a discount. While this may have led to undervaluation of the said stock, it is equivalently essential to understand if the drop in share price reflects any change in the underlying fundamental value of the company (e.g. questionable accounting practice/snowballing of debt).
• Price Anchoring: Some restaurants have included ridiculously priced premium items in their menus to make the next most expensive dish seems cheaper. Customers would deem it reasonably priced compared to the most expensive item and would gladly ordered them. This may have been so despite the fact that the ordered dish could be pricey elsewhere. 

Overcoming the Anchoring Effect