How much are you earning per annum?

Greetings to Jeff and other gurus in this forum.

I need your advice on my situation and how I can make the best of what I have. My spouse and I are now in our late 40s. We have not achieved much despite being grads. We earn a combined income of only $140k and only live in an old EC. We own an old small car and have 3 wonderful kids.

We don't save much as we have lots of commitments, such as mortgage, car loan, tuition for the kids, parent's allowances, etc. The most we save is $25k pa, sometimes less. Our total net worth in total including our stocks/ cash/ CPF, is only about $1m.

What should I do to earn more so that I can save more? I work in a sector which is mediocre at best and not the high flying sectors. Honestly, there is not much prospect being in my company, but it pays the bills. I feel like resigning and become an entrepreneur but I'm scared of failure and high risk.

What should I do? Age is catching up.

To be honest given your age and current turbulent times (not to mention flood of Ft's who are younger and possibly more talented *don't be offended its just hard reality) I would strongly suggest you to stay in your current line of work, unless you have connections aplenty who can get you a definitely get you a job. You have too much at stake to shake the dice. The way I see it you can

1. Play it safe, if your company is crap but least reliable (i.e won't fire you in your 50's) that's a point worth considering, you have to know yourself too. Are you capable enough to be headhunted and get a salary increase? If not I think you know your answer.

Review your expenses and cut down as many luxuries possible i.e car, tuition etc (but I am realistic unlike others here, with 3 kids and no car life will be tough, cut out what you can). Focus on paying off your home loan first, least worse case scenario you have a roof over your head and your family will be safe. Invest in your kids and hope they have a successful career and in time reward you for your efforts in raising them.

2. You can try making some investments in the stock market and make a good return, again unless you have familiar with the markets or have a real living mentor (and not some forum kuku) to guide you I would suggest go with Option 1 first.

3. Start a business? Can you try your hand at it without quitting your day job? If its an online business is it something you can do at night after work and have your family help out? If its a physical business try finding contacts in that industry and volunteer to work for free on weekends to sample whats it like. Do you have energy/stamina and drive when faced with failure? If not please consider Option 1, I have witnessed more businesses fail then succeed, and the ones that do succeed usually have backers to fund them against various odds.

Consider carefully, you have family of 4 counting on you....

Originally Posted by Unregistered

Greetings to Jeff and other gurus in this forum.

I need your advice on my situation and how I can make the best of what I have. My spouse and I are now in our late 40s. We have not achieved much despite being grads. We earn a combined income of only $140k and only live in an old EC. We own an old small car and have 3 wonderful kids.

We don't save much as we have lots of commitments, such as mortgage, car loan, tuition for the kids, parent's allowances, etc. The most we save is $25k pa, sometimes less. Our total net worth in total including our stocks/ cash/ CPF, is only about $1m.

What should I do to earn more so that I can save more? I work in a sector which is mediocre at best and not the high flying sectors. Honestly, there is not much prospect being in my company, but it pays the bills. I feel like resigning and become an entrepreneur but I'm scared of failure and high risk.

What should I do? Age is catching up.

Originally Posted by Unregistered

Greetings to Jeff and other gurus in this forum.

I need your advice on my situation and how I can make the best of what I have. My spouse and I are now in our late 40s. We have not achieved much despite being grads. We earn a combined income of only $140k and only live in an old EC. We own an old small car and have 3 wonderful kids.

We don't save much as we have lots of commitments, such as mortgage, car loan, tuition for the kids, parent's allowances, etc. The most we save is $25k pa, sometimes less. Our total net worth in total including our stocks/ cash/ CPF, is only about $1m.

What should I do to earn more so that I can save more? I work in a sector which is mediocre at best and not the high flying sectors. Honestly, there is not much prospect being in my company, but it pays the bills. I feel like resigning and become an entrepreneur but I'm scared of failure and high risk.

What should I do? Age is catching up.

There are many in worst shape than you. Quit and become a entrepreneur is for people in 30s or early 40s, doing it at your age is risky. 1M is not much to fall back on if things go south.

Play the best that you can with the hand you are dealt with. I would ride it out to retirement. Take less holiday, ask yourself which expense is "must have" or "good to have", little things you can do to increase saving. But saving is very much dependent on your earning power, that why people strive to climb to the top of the ladder. No much help but to share.

I am always in for the long haul. Relationships are for the long haul.

The market may tank the next day, disasters happen etc and all the money might be wiped out. And it really doesn't matter because you can simply pick yourself up and start from where it is Work is just work, money is just money, nothing more, nothing less, a small part of life.

Success is always a journey. Agree with being on the right or the wrong side of things. It's true. No point slogging in the wrong direction. No point thinking that there's security in the job we hold. We need to invest in ourselves to be relevant and valuable to the company. Companies will not invest in us. They pay us to do a certain work or function, and that's that.


"Good post, I totally agree especially spending time with people who are important to us regardless of stature.

I too keep a circle of friends many of which are more successful then myself and I am really happy for, they work hard for it and deserve every bit they have. I value the friendship we have which is based on trust and mutual respect and advise / knowledge shared by them from their vast experiences.

Its an uncommon trait to find these days successful yet humble, judging from the sheer volume of pretentious pricks on this forum makes that evident."

Originally Posted by Unregistered

Greetings to Jeff and other gurus in this forum.

I need your advice on my situation and how I can make the best of what I have. My spouse and I are now in our late 40s. We have not achieved much despite being grads. We earn a combined income of only $140k and only live in an old EC. We own an old small car and have 3 wonderful kids.

We don't save much as we have lots of commitments, such as mortgage, car loan, tuition for the kids, parent's allowances, etc. The most we save is $25k pa, sometimes less. Our total net worth in total including our stocks/ cash/ CPF, is only about $1m.

What should I do to earn more so that I can save more? I work in a sector which is mediocre at best and not the high flying sectors. Honestly, there is not much prospect being in my company, but it pays the bills. I feel like resigning and become an entrepreneur but I'm scared of failure and high risk.

What should I do? Age is catching up.

Hello

Since this was sort of an answer requested of me, I will reply to you on my thoughts (of course these are just first thoughts, i didn'tr eally think of it deeply).

You know my view of the older folks who are already on the wrong side. You say you feel that you're on the wrong side, and I agree you are probably right (although I don't agree that $1m is a small sum). You know you're going to be slipping further to the wrong side (meaning your $1m will not be keeping up with inflation), and I agree with that.

First the good news. To even know that you are slipping to the wrong side and that there is not much time left is a big plus. Lots of people sit on their hands hoping things will change for them, or luck with come by, or you know, something falls from the sky from the government. So I see it positive that you know and you want to change.

Second good news. Your kids are probably about to be grown up and working. At least they should be fending on their own soon. So I would say that the financial situation is at its worst now, and will start to get better as long as income increases in tandem or more than expenses.

Third good news. Combined income of $140k is actually not low at all. Your likely burdens seem to be on your kids and parents.

Fourth good news. You're old but not too old to learn and create new things or start your business. It is important in whatever you do, not to stray too far from your strengths. You can't start a dot com and expect to beat the kids out of uni. You could start a company or competitor in your same business, or you could buy out your business. You need a financial advisor for that.

Now for the bad news.

Firstly, I have so far only read, but never actually met a person in their fifties who has successfully retooled himself for the future. As I said previously, there are ways and I see a lot of Singaporeans (in today's Sunday Times) doing part time study and working full time. These are people who will go ahead becasue they are changing with the times. These are the people who will pull themselves out of the wrong side and start off on the other side. So unless you ahve the motivation (and take this outside posting on this forum), apply for relevant courses and make yourself relevant for the new age. You still have lots of mileage in your tank, at least 15-20 years.

Secondly, with parents, kids, mortgage and lots of admin (and noone to do it), plus aging parents and you yourself are aging, you will have no time to embark on anything to improve yourself. You are already used to your lifestyle and you will want to continue in your lifestyle.

So to sum it all:

You need to forecast your expenditure curve going forward and match it with your income. To save more, the math is simple, more income or less expense. My preference is to generate more income by retooling, but there are costs to you, and some of these costs are non-negotiable. Otherwise, you will need to reduce your expenses. Your reduction in kids and tuition expenses will be replaced by medical expenses that are not covered by insurance.

So there is no simple solution that can be implemented in a day or a month or a year...you can't grow a cash tree in a year. But you can start growing it now! Stop sitting on your hands and gentlemen, start your engines!

That's all folks
Jeff

Hi,

In my opinion, your income is not that low, in fact it is higher than the HH median income in Spore ($95k pa). Your expenses are high because you are supporting yours kids and parents. So, in a few years time, when your kids grow up and your parents pass away, your expenses will be reduced by a big chunk. Assuming your income will grow, albeit slowly, you would be in a better position in the future.

I suggest you hold on to your current job as it sounds like a steady one even though it may not excite you any more. Perhaps you should take up interesting activities in your life so that you don't think too much of your boring job. You can take up sports or join a marathon or take up a hobby such as doing social work. Visit the old folks home and orphanages and you will realize how lucky you are.

The fact that you are staying in a condo is a big achievement in Singapore. Of course you can't compare yourself with the many more successful and multi millionaire gurus in this forum but at least you are better off than 85% of Singaporeans who live in HDB flats.

So, in sum, don't quit your job, don't venture into business and just continue to pay down your mortgage and feed your family. Over time, your expenses will go down and you can then save more.

Originally Posted by Unregistered

Greetings to Jeff and other gurus in this forum.

I need your advice on my situation and how I can make the best of what I have. My spouse and I are now in our late 40s. We have not achieved much despite being grads. We earn a combined income of only $140k and only live in an old EC. We own an old small car and have 3 wonderful kids.

We don't save much as we have lots of commitments, such as mortgage, car loan, tuition for the kids, parent's allowances, etc. The most we save is $25k pa, sometimes less. Our total net worth in total including our stocks/ cash/ CPF, is only about $1m.

What should I do to earn more so that I can save more? I work in a sector which is mediocre at best and not the high flying sectors. Honestly, there is not much prospect being in my company, but it pays the bills. I feel like resigning and become an entrepreneur but I'm scared of failure and high risk.

What should I do? Age is catching up.

Agree with not taking too much risk, especially for high risk investments. Do not succumb to scams, e.g. landbanking, gold etc,HYIP programs. Even stocks, be careful and do not go in with a speculative mindset. Even if you are conservative, if the CEO is a gambler etc, you will still be in trouble Do proper background check before entering. Nothing is safe. I certainly do not advocate starting a business, the risk is too high, and is it fulfilling? I doubt so since you are using this for monetary gain and not out of passion.

Perhaps you can look at your existing contacts, ex-bosses or colleagues and see where they are.. If you have good relationships with them, and if they are looking for good workers like you, they may be willing to pay more and hire you since it's already tried and tested. Or other companies that are willing to pay more for your experience, but the risk is the culture, manager, and colleagues in that company.

All the best!

Originally Posted by Unregistered

Hi,

In my opinion, your income is not that low, in fact it is higher than the HH median income in Spore ($95k pa). Your expenses are high because you are supporting yours kids and parents. So, in a few years time, when your kids grow up and your parents pass away, your expenses will be reduced by a big chunk. Assuming your income will grow, albeit slowly, you would be in a better position in the future.

I suggest you hold on to your current job as it sounds like a steady one even though it may not excite you any more. Perhaps you should take up interesting activities in your life so that you don't think too much of your boring job. You can take up sports or join a marathon or take up a hobby such as doing social work. Visit the old folks home and orphanages and you will realize how lucky you are.

The fact that you are staying in a condo is a big achievement in Singapore. Of course you can't compare yourself with the many more successful and multi millionaire gurus in this forum but at least you are better off than 85% of Singaporeans who live in HDB flats.

So, in sum, don't quit your job, don't venture into business and just continue to pay down your mortgage and feed your family. Over time, your expenses will go down and you can then save more.

Two years ago, we got fed up of the rat race. We sold our landed property and downgraded to a 4 room HDB flat. We cleared all our debt and paid the flat in full. After all transactions, we had a nice pile of money which we invested in the stock market to earn a decent amount of dividends from quality blue chips. Now our dividends amount to $100k pa.

Since we no longer have any loans and we sold our car, our spendings is only $60k pa. My family now living a peaceful, blissful debt free life. We love our friendly neighbours. We have set aside enough for pur kids to further their Uni education. Our investment portfolio and savings and dividends continue to grow steadily every year. We are now 52 & 55 this year.

Originally Posted by Unregistered

Two years ago, we got fed up of the rat race. We sold our landed property and downgraded to a 4 room HDB flat. We cleared all our debt and paid the flat in full. After all transactions, we had a nice pile of money which we invested in the stock market to earn a decent amount of dividends from quality blue chips. Now our dividends amount to $100k pa.

Since we no longer have any loans and we sold our car, our spendings is only $60k pa. My family now living a peaceful, blissful debt free life. We love our friendly neighbours. We have set aside enough for pur kids to further their Uni education. Our investment portfolio and savings and dividends continue to grow steadily every year. We are now 52 & 55 this year.

Be careful of the equity market. When it crashes, blue chips, yellow chips, green chips...all will fall. Spread the risk. You should know how to do that.

52, senior executive, single income 300kpa, 2 teens children. Net worth 2.8m, home is a executive hdb (~600k) and driving a old jap car. Invested in a wide profolio, except in property and shares, generating about 60k dividends. Should I be investing more aggressively, taking more risk for higher returns? Like to seek the gurus view.