How much savings do you have?

My advice is relevant to those who just started work as well as to millionaires and billionaires. If you womanize, sodomize, you will be in big trouble in your relationship and finances. If you are engaged in gambling, no matter how rich you are, if you continue, your wealth will eventually be wiped off. Smoking and drinking will harm your body, remember health is wealth.

I do agree with you that we should despise those who are retired and spend their time wastefully, engaging in sinful activities like back biting, gambling, drinking, womanising, sodomising, etc. But for those who has retired from professional work and spend their time on charity work, we should celebrate them for their noble deeds. Charities nowadays are lacking of good professionals as volunteers.

Originally Posted by Unregistered

Your "advise" or "secrets" don't really apply to the many millionaires here. Many are not qualified to buy BTO flats by the time they got married because of their high incomes. Also many are too busy earning big bucks to spend their time on those frivolous vices you mentioned below. And how many people are really gay?

Taking public transport is fine, but try telling it to a family with young kids, elderly parents and who earns a few hundred $K a year. It is actually more cost effective to have a car when you frequently ferry your family members around.

What is important is to work hard, earn, save and invest, and to live a meaningful and useful life for yourself and society. Do not fall for the excuse that lazy people use - to live simply and therefore no need to work hard or worse, don't work at all.

I find the underprivileged derived more help from generous people who are successful in life than those who are not.

Originally Posted by Unregistered

Secrets of saving:

1. Buy a home you can afford. Be happy with a BTO HDB flat. This is very cheap. If you are a graduate couple who bought your BTO flat for $200k, you can easily pay it off within 5 years from your annual combined bonus. If you have a $150k loan, if your take home bonus combined is $30k pa, you can clear within less than 5 years.

2. Do not buy a car, take MRT and bus. You can save as much as $2000 per month.

3. Do not eat at expensive restaurants. Just buy $3 meals from hawker centers. Take away and you will save on drinks.

4. Do not gamble. Gambling is stupid as you will definitely lose money, for sure.

5. Do not smoke or drink. Total waste of money as well as incurring medical cost in the future as you will get lung cancer, liver cancer, etc.

5. Do not womanize. You will be in a costly divorce. You will also get all sorts of sexually transmitted diseases, AIDs, and you will spend so much money on medicines and doctor fees.

6. Do not sodomize and be a gay. You will get AIDs and will incur huge medical bills and will die young.

7. Do not be a glutton. Eat in moderation and fast. You will get diabetes, heart diseases, etc.

The advice given above on Saving is simplistic (almost to the point of constant self denial). It assumes that to Save, all people should live a very simple life, without the little luxuries that make it bearable.

Instead of reducing expenses only, we should think about how to increase our income. For example, a second property. There is nothing sinful or harmful about enjoying little treats and luxuries now and then e.g. eating out once a week. having a glass or two of wine.

My approach (together with spouse) to saving was not to buy a car. Without car expenses, we managed to put together a downpayment for our small freehold condo. Because the condo was relatively small and cheap for our incomes, we managed to recover fast from the cash outlay and save enough cash again buy a second investment property 3 years later and it is now tenanted out.

We still eat out at least twice a week, enjoying the good food all over Singapore. We have a little wine fridge which we fill with reds, whites, dessert wines and beer and we drink in the weekends or after a particularly hard day of work. We go for walks in the neighbourhood (all condos and greenery) at night. We still save, but our lifestyle is very comfortable. Why suffer so much just to save?

A good friend of mine got a wake up call when he saw many of his colleagues from all levels - junior staff, middle and senior managers - got retrenched due to restructuring. He realized he could be next. So, while he is still safe, at least for now, he has taken some action in his life to be prepared. He sold his condo for $1.5m (he bought it at $600k in 2003 and paid off the loan), and use the cash proceeds to buy a 5 room HDB flat for $500k. He then invested the cash balance and some cash savings totalling $1.2m in strong global blue chips which give him annual dividends of $60k pa. He didn't buy a new car after his car COE expired and he now takes the MRT. Being debt free, he and his family only spends $70k pa. He is earning $80k pa and his wife earns $50k pa. Now they save $120k pa.

You unknowingly brought out the benefit of buying / investing in a good property while one is able to. Buying / investing in a property is like forced saving. Every month a fixed amount is automatically deducted from your CPF/salary. Your friend's astute move to get into a condo has paid handsome dividends. I am sure he is way ahead of his peers who went the road of BTO flats.

Originally Posted by Unregistered

A good friend of mine got a wake up call when he saw many of his colleagues from all levels - junior staff, middle and senior managers - got retrenched due to restructuring. He realized he could be next. So, while he is still safe, at least for now, he has taken some action in his life to be prepared. He sold his condo for $1.5m (he bought it at $600k in 2003 and paid off the loan), and use the cash proceeds to buy a 5 room HDB flat for $500k. He then invested the cash balance and some cash savings totalling $1.2m in strong global blue chips which give him annual dividends of $60k pa. He didn't buy a new car after his car COE expired and he now takes the MRT. Being debt free, he and his family only spends $70k pa. He is earning $80k pa and his wife earns $50k pa. Now they save $120k pa.

Actually he was just following the crowd when he bought the condo. He first started with a cheap BTO flat and then he upgraded to a condo when he saw his uni friends upgraded to condos. He did not want to lose face so he upgraded. He said he was lucky to follow the crowd. He was not astute at all. Sometimes following the crowd is good.

Originally Posted by Unregistered

You unknowingly brought out the benefit of buying / investing in a good property while one is able to. Buying / investing in a property is like forced saving. Every month a fixed amount is automatically deducted from your CPF/salary. Your friend's astute move to get into a condo has paid handsome dividends. I am sure he is way ahead of his peers who went the road of BTO flats.

Can any of you, guide me about stocks? Like is there any recommendation of stocks that I should consider? What is the minimum amount I should fork out for starter. Thanks in advance.

Originally Posted by Unregistered

A good friend of mine got a wake up call when he saw many of his colleagues from all levels - junior staff, middle and senior managers - got retrenched due to restructuring. He realized he could be next. So, while he is still safe, at least for now, he has taken some action in his life to be prepared. He sold his condo for $1.5m (he bought it at $600k in 2003 and paid off the loan), and use the cash proceeds to buy a 5 room HDB flat for $500k. He then invested the cash balance and some cash savings totalling $1.2m in strong global blue chips which give him annual dividends of $60k pa. He didn't buy a new car after his car COE expired and he now takes the MRT. Being debt free, he and his family only spends $70k pa. He is earning $80k pa and his wife earns $50k pa. Now they save $120k pa.

I salute your friend. Instead of complaining and whining about his predicament, he took positive steps. He did not have a big ego and humbled himself to downgrade and go on life without a car. This is the kind of man we should all look up to.

Wife and Me Mid 30s
Combined 160K per annum
HDB with 25 yr mortgage left, Jap car fully paid up.
10K in stocks, almost 2k in monthly insurance payments.
Savings Combined 50K.
2 Toddlers at home and a domestic helper.

Originally Posted by Unregistered

Wife and Me Mid 30s
Combined 160K per annum
HDB with 25 yr mortgage left, Jap car fully paid up.
10K in stocks, almost 2k in monthly insurance payments.
Savings Combined 50K.
2 Toddlers at home and a domestic helper.

You are very lucky to be able own a flat, a car and you can afford a maid.
Your salary is also quite high. How much is your total net worth?

Late 30s married with 3 kids

Cash $540K
Stocks $260K
Insurance cash value $130K
Home value net of loan $1.8M
Others (car, jewelry, etc) $100K