Quote:
Originally Posted by Unregistered
Unbelievable but true. Even if I assume zero inflation, I will need to save $720k !!!
I think I will need to give up my car, maid and holidays. Force save $36k a year.
Thanks for the advice.
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I was waiting for such a discussion to emerge. When I mentioned in my previous post in another thread that having $1 mil (even excluding the value of your primary residence which does not generate any income but costs money to maintain) does not make one a millionaire, there were some strong objections.
https://forums.salary.sg/investments-...html#post41155
In today's high inflationary environment, where there are many young graduates entering the workforce and earning good salaries, the price of goods and services would necessarily get pulled up by the generally high level of affordability. And it will continue to rise if you believe in the Singapore story.
It is indeed wise to start saving and investing as early as you can. Everyone of us have different circumstances which may impede our ability to save but sometimes, not always, it is a matter of making a lifestyle choice in order to overcome some of these obstacles and start somewhere.
I have attended Stephen Covey's "The 7 Habits of Highly Effective People" several times when I was working at different organisations. Each time I attend a refresher course, I find something of value to take away. I find that it is a good and logical system (I don't sell the system nor am I vested in any way in the system).
The "habits" I personally find highly applicable are:-
(1) Be Proactive
(2) Begin with the End in Mind
(3) Put First Things First
(4) Think Win Win
If you are not acquainted with Stephen Covey's work, you can probably google or buy his book if you wanna find out more. Putting some of his ideas into consistent practice can significantly enhance your life.
His last habit is to "Sharpen the Saw" which is to regularly improve and contribute. Sharing in this forum is one of the ways I try to cultivate this habit.
I have ran a business unit before and the only way to meet growth objectives is not by cutting people or cutting costs but to continuously find ways to grow the business and grow your employees' wealth, experience and confidence as the business grows. There will always be a limit to cost cutting and I find managers who practise this method totally unfit to be managers. Bereft of ideas, they have no choice but to resort to this to survive. In our personal life, we will have to do this too if we are not able to find ways to continue earning money hence my strong interest in personal investments and accummulating sufficient capital to continue generating returns even long after I retire, I hope!