General money management tips?

[havetheveryfun]

buibuiforeveralone



Guess I was wanted a little more freedom and it was quite a convenient move since I'm basically staying with some old friends for a minimal fee. They might be moving out in a while though so... might need to go through the process of finding a place again or moving back to the old family pod.

Top 4 links when I did a search. Every author has their own bias but personally I don't really like to borrow even though buying a house is an investment. Stems from my fondness for freedom perhaps.. Might consider buying a place when I can afford it or if I meet someone to settle with.

https://dollarsandsense.sg/4-reasons-renting-home-better-buying/
https://blog.moneysmart.sg/property/buy-rent-next-home-singapore/
https://www.imoney.sg/articles/buy-or-rent/
https://blog.bankbazaar.sg/renting-vs-owning-house-singapore/

$800/month for rental is minimal fee? ur frens are ripping u off

 

[easyippt]

Yeah that's the thing. It spirals to a lot later on.

As long as u can pay it for the rest of your life then it is ok. Will be very expensive later.

 

[JuniorLion]

Likewise. I'm leaning towards getting it too. It's honestly quite a big headache relieved knowing you can essentially get everything at private speed.

It's definitely your risk-profile and how comfortable you are with things.

Some people have one-track mind and will be pushy on their views that it's the absolute gospel truth, and anyone not doing what they propose are doing sub-optimal things.

Not everything is about dollar and cents. Some things simply cannot be measured like that.

 

[easyippt]

Yeah it's a decent place and we're splitting the apartment equally amongst us.

$800/month for rental is minimal fee? ur frens are ripping u off

 

[easyippt]

Thanks. I actually appreciate views from both sides since I've been fed mainly with the opinions of proponents. It's then up to me to balance the discussion myself I guess..

It's definitely your risk-profile and how comfortable you are with things.

Some people have one-track mind and will be pushy on their views that it's the absolute gospel truth, and anyone not doing what they propose are doing sub-optimal things.

Not everything is about dollar and cents. Some things simply cannot be measured like that.

 

[BBCWatcher]

Quoting myself:

That [the highest tier private hospitalization insurance with rider] would be an insurance luxury in Singapore. I have no objection to JuniorLion or anyone else buying luxuries. If you can afford it, and if you’ve handled your necessities first, no problem.

Why all the dumb sniping here? What rational person would disagree with what I wrote?

Obviously the highest tier private medical insurance is not an insurance necessity in Singapore. The vast majority of Singaporeans don’t have it, and health metrics are superb. (Singaporeans have nearly the longest life expectancies in the world, infant mortality is incredibly low, etc., etc.) So do you want an insurance luxury? It’s up to you! I’d recommend you nail down your necessities before you start buying luxuries, but adults can do almost anything they want with their money, if they have money.

 

[easyippt]

No worries bud I know where you're coming from and honestly it's also a consideration personally. I think the difference lies in how people have different thresholds for whether private health access is a necessity or luxury.

Quoting myself:


Why all the dumb sniping here? What rational person would disagree with what I wrote?

Obviously the highest tier private medical insurance is not an insurance necessity in Singapore. The vast majority of Singaporeans don’t have it, and health metrics are superb. (Singaporeans have nearly the longest life expectancies in the world, infant mortality is incredibly low, etc., etc.) So do you want an insurance luxury? It’s up to you! I’d recommend you nail down your necessities before you start buying luxuries, but adults can do almost anything they want with their money, if they have money.

 

[mikenus]

I use the concepts of JAR system taught by T Harv Eker for financial management and further increase my savings by asking myself if this is a need or want when looking to buy anything

I read blog post from ASSI to learn how to maximize my CPFs as part of my bond components

 

[Incognito1979]

Hi,

I'm a 30ish bbfa from the edmw section that has a sudden realisation that financial planning is important and something i should start thinking about early. I'm hoping to pen my thoughts in this thread and keep this post updated as it goes along for my own reference - hopefully useful to others as well.

INCOME
Sad

EXPENSES
Housing
- room rental 800/month

Transport

Daily expenditure
- got to start tracking

Parents
- i've been allocating 20% to my parents and it seems like a comfortable number so far

Significant other/kids
- bbfa

What is your goal? What is the end game? If you don't have those you re just running around blindly...

 

[easyippt]

Honestly I've been asking myself that for a while now and I can't say that I've come to any answer. But for now I'm just caring for my parents and trying to have a decent work life schedule for some side hobbies. End game hopefully will be a family of course. In terms of finances I'm not too sure - maybe enough to be comfortable retiring? I'm not sure how far ahead I can plan since there are different variables like starting a family with kids that'll affect my expenses significantly. For now I'm just trying to increase my income and keep expenses at a minimum. Not sure if I interpreted your question correctly.

What is your goal? What is the end game? If you don't have those you re just running around blindly...

 

[easyippt]

Thanks I'll take a look at it

I use the concepts of JAR system taught by T Harv Eker for financial management and further increase my savings by asking myself if this is a need or want when looking to buy anything

I read blog post from ASSI to learn how to maximize my CPFs as part of my bond components

 

[easyippt]

There's so many options available... feeling old already as I'm trying to process the pros and cons of each plan

I rather save the money from subscribing to ElderShield (and the renamed CareShield) and pay for Medishield IP upgrade instead!
ElderShield at its current form is a complete waste of money and insurers are making great profits, laughing all the way to the bank!
CareShield is as bad with their premiums jacked up by almost >50% over next 5 years and starting to pay earlier at age 30 (instead of 40).

 

[ceciltan]

Most basic rule. Spend less than u earn.

 

[havetheveryfun]

I rather save the money from subscribing to ElderShield (and the renamed CareShield) and pay for Medishield IP upgrade instead!
ElderShield at its current form is a complete waste of money and insurers are making great profits, laughing all the way to the bank!
CareShield is as bad with their premiums jacked up by almost >50% over next 5 years and starting to pay earlier at age 30 (instead of 40).

point is there is nothing you can do about those, so why waste your time on thinking about these stuff.

 

[trailblaze]

Simple money management such as tracking daily monthly expenses, income flow, using management apps all a basic.
But very important point is : wat r yr short, intermediate n end goals?
Hit $1mil cash reserve asap? Afford a $700k bach pad in 10yrs? Early Retire at 55? Take a round the world in 30days tour by age 45?

No goal means no motivation to do tis daily crunch of a troublesome tracking

 

[iamveryguailan]

ts you are still young, 26 this year only, can plan further ahead also..

 

[Incognito1979]

Honestly I've been asking myself that for a while now and I can't say that I've come to any answer. But for now I'm just caring for my parents and trying to have a decent work life schedule for some side hobbies. End game hopefully will be a family of course. In terms of finances I'm not too sure - maybe enough to be comfortable retiring? I'm not sure how far ahead I can plan since there are different variables like starting a family with kids that'll affect my expenses significantly. For now I'm just trying to increase my income and keep expenses at a minimum. Not sure if I interpreted your question correctly.

That's good enough for a start. But you need to start asking more detailed stuff. How much is enough for you for retirement?
By when? And then have targets. Example 1 million by 35. And then work backwards. What do I have to do to achieve this. Increase salary, cut down expenses etc. You get the gist. Obviously all may not go according to plan but you have a plan. Else you will realize you're always kinda trying, but you've no idea where you stand. And after awhile everything gets lost in your "busyness" and ten years later you're nowhere further from where you started.

I'm pretty extreme. I always wanted to have family and kids and so my target was no later then 35 to get married (I wouldn't recommend this though honestly. I was just blessed I managed to hit this target. lol)

 

[ceciltan]

Forgot to add regular investment in Singapore pool is also a good money management tip.

 

[havetheveryfun]

Simple money management such as tracking daily monthly expenses, income flow, using management apps all a basic.
But very important point is : wat r yr short, intermediate n end goals?
Hit $1mil cash reserve asap? Afford a $700k bach pad in 10yrs? Early Retire at 55? Take a round the world in 30days tour by age 45?

No goal means no motivation to do tis daily crunch of a troublesome tracking

That's good enough for a start. But you need to start asking more detailed stuff. How much is enough for you for retirement?
By when? And then have targets. Example 1 million by 35. And then work backwards. What do I have to do to achieve this. Increase salary, cut down expenses etc. You get the gist. Obviously all may not go according to plan but you have a plan. Else you will realize you're always kinda trying, but you've no idea where you stand. And after awhile everything gets lost in your "busyness" and ten years later you're nowhere further from where you started.

I'm pretty extreme. I always wanted to have family and kids and so my target was no later then 35 to get married (I wouldn't recommend this though honestly. I was just blessed I managed to hit this target. lol)

safe to say an extra $500-$1000 or more in passive income for everyone can't be an unsuitable goal

 

[easyippt]

Simple money management such as tracking daily monthly expenses, income flow, using management apps all a basic.
But very important point is : wat r yr short, intermediate n end goals?
Hit $1mil cash reserve asap? Afford a $700k bach pad in 10yrs? Early Retire at 55? Take a round the world in 30days tour by age 45?

No goal means no motivation to do tis daily crunch of a troublesome tracking

In terms of objective goals yeah I don't really have any numbers to hit yet. Probably why I wasn't motivated to ask myself all these questions before..

ts you are still young, 26 this year only, can plan further ahead also..

No ah moi ish older..

That's good enough for a start. But you need to start asking more detailed stuff. How much is enough for you for retirement?
By when? And then have targets. Example 1 million by 35. And then work backwards. What do I have to do to achieve this. Increase salary, cut down expenses etc. You get the gist. Obviously all may not go according to plan but you have a plan. Else you will realize you're always kinda trying, but you've no idea where you stand. And after awhile everything gets lost in your "busyness" and ten years later you're nowhere further from where you started.

I'm pretty extreme. I always wanted to have family and kids and so my target was no later then 35 to get married (I wouldn't recommend this though honestly. I was just blessed I managed to hit this target. lol)

Yeah this is exactly what I need to do. Damn never really saw it from the "working backwards" point of view. You sound like you know a lot of people who are going through the same thing as me lol.
I've wanted to get married too but after a while that desire somehow faded away. Think I'll want to sort out my own issues before finding a partner.

Forgot to add regular investment in Singapore pool is also a good money management tip.

Lol might be misinterpreting but you mean like buying 4D? Not too interested in looking at areas to park my money at the moment since nothing's too fixed and I might need to access it.

safe to say an extra $500-$1000 or more in passive income for everyone can't be an unsuitable goal

Haha for sure man. Anyone would want extra passive income. How'd you go about getting your 500-1000 passive?