At a gathering of some sort, I was certainly disturbed when I heard my friend say,
" Nevermind the 30 years, just deduct from my CPF money. As long as they dont deduct my cash its ok."
Interesting.
I went to check out the HDB website and i found a very useful calculator.
http://services2.hdb.gov.sg/webapp/BB29MTHLY/BB29SMTHLY
For a loan of 300,000 , paying it out for 30 years its $1202 per month. Well sounds ok rite?
HDB offers one of the lowest interest rates of 2.6%
But if we use 30 X 12 X 1202 thats 432720.
Which is $132720 more than $300K. Ouch!
Just sharing what i found out about loans.
Sunday, April 20, 2008
Thursday, April 17, 2008
Million Dollar Rat
"I have a million in my bank, Im a rich rat." says million dollar rat.
Rich you are my friend, but your`re still a rat running that endless wheel.
For me(just my humble view) it is just:
Passive > 120% X life expenses
Why 120% X life expenses? the 20% is like a buffer and safety net for the unexpected events in life. These 20% will be used to purchase investments of lower risk nature, such as govt bonds or FDs. A simple rule would be a easy rule to follow. A person with this can retire. (IMO)
Passive Income > 200% X life expenses
This is my aim in life. Sounds crazy rite but haha its my aim. A person with this can retire in style. Be the jet setter u want to be and retire in the countryside with STYLE haha.
Rich you are my friend, but your`re still a rat running that endless wheel.
For me(just my humble view) it is just:
Passive > 120% X life expenses
Why 120% X life expenses? the 20% is like a buffer and safety net for the unexpected events in life. These 20% will be used to purchase investments of lower risk nature, such as govt bonds or FDs. A simple rule would be a easy rule to follow. A person with this can retire. (IMO)
Passive Income > 200% X life expenses
This is my aim in life. Sounds crazy rite but haha its my aim. A person with this can retire in style. Be the jet setter u want to be and retire in the countryside with STYLE haha.
Rich Rat, Poor Rat
"Woa look at that BMW! Darn, that rich guy." says Mr Poor Rat.
It is so common to see BMWs and other expensive cars around in Singapore. There is nothing wrong with driving a expensive car, there is nothing wrong with spending thousands of dollars on a handbag.
What is important if a person so chooses to be rich, is to understand a simple concept.
Passive income > Life expenses
If a person has 100K passive income a month, whats wrong with driving a 300k car?
But if a person makes 10k a month and chooses to drive a 300k car, is he really that rich after all?
All im trying to say is this: We can only know if a person is rich or poor, if we know his passive income and life expenses clearly. Not by what he drives or consumes.
For all that we know, that BMW driver could just a Rich Rat, running in a wheel which is the same as the thousands of Poor Rats out there.
It is so common to see BMWs and other expensive cars around in Singapore. There is nothing wrong with driving a expensive car, there is nothing wrong with spending thousands of dollars on a handbag.
What is important if a person so chooses to be rich, is to understand a simple concept.
Passive income > Life expenses
If a person has 100K passive income a month, whats wrong with driving a 300k car?
But if a person makes 10k a month and chooses to drive a 300k car, is he really that rich after all?
All im trying to say is this: We can only know if a person is rich or poor, if we know his passive income and life expenses clearly. Not by what he drives or consumes.
For all that we know, that BMW driver could just a Rich Rat, running in a wheel which is the same as the thousands of Poor Rats out there.
Strike Toto or be Healthy, Choose 1
Often i hear people say they want to be rich, they do not want to work or they do not have enough money to spend.
It is true that money is important, but what about health?
I always hear people say ," Ohh if only i can strike Toto, i can stop working, i can buy this, i can buy that."
Never have i heard people say, " ohh iff only i can be healthy when im 65."
Health is a much broader concept which requires multi-prong analysis. Simple stuff such as eating your vitamin pills and slow jogs in the park contribute greatly to healthy living. Sometimes when i take my stroll through mac richie park, i feel so grateful that im able to enjoy our warm climate. I hope more singaporeans can visit our parks instead of consuming excessiving at fancy resturants or go shopping for branded goods.
It is true that money is important, but what about health?
I always hear people say ," Ohh if only i can strike Toto, i can stop working, i can buy this, i can buy that."
Never have i heard people say, " ohh iff only i can be healthy when im 65."
Health is a much broader concept which requires multi-prong analysis. Simple stuff such as eating your vitamin pills and slow jogs in the park contribute greatly to healthy living. Sometimes when i take my stroll through mac richie park, i feel so grateful that im able to enjoy our warm climate. I hope more singaporeans can visit our parks instead of consuming excessiving at fancy resturants or go shopping for branded goods.
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