I have a meaningful & fulfilling job and I will be happy to work til 67, or later. However, health may not permit. And the younger ones always have fresher ideas, cost less and who knows...
When that happens, the amount I have gathered had better be able to sustain me (& any dependent) til the end of time....
i'm not a calculated saver albeit a conscious one.
i don't set targets or budgets. i just spend as necessary. over the past 7-8 years i must say i had been quite disciplined in my finances.
as of now, i have about 1 year of current income (inclusive of ideal bonus that i hope for optimistically in the next few months) in my investments dominated by ncps, and about 1 year of current basic income in savings. returns are not much to consider but on a minimal spendings mode, i can probably last 3 years without a job?
at first look and thoughts, i should be quite a good saver? although i'm not overly surprised with the reported figures, i thought myself as being far ahead.
on closer inspection, i kinda suspect i'm not too far off. i don't have the figures but vague snapshot figures tell me that my finance has gone flat in at least the past 1 year.
1. 10% of my take home goes to parent
2. 20% goes towards the various insurances
3. 10% goes to basic expenses (commute, food, mobile, internet)
my basic expenses is already about 40% of my take home. if i happen to live like a hermit, i can save up to 60% which sounds like a lot. but i guess the 60% was easily taken up by self improvement (self financing mba), lifestyle upgrade (more pamper meals and wines), and treats to colleagues and friends on some occasions.
that aside, i've friends who give a much higher percentage to their parents, expenses on dates, kids, home loans, etc. which i'm spared. a couple of my ex-colleague's kids' expenses is ~60% of their take home!
so my point is, 20% is in fact not something to sneeze at.
what is ncps?
i find forumers here are quite hardworking..and keen to upgrade themselvese.g. enroling into MBA..
i guess i am more of one of those laggers around in this island...
non convertible preference share?
Just to echo what Blackjack has said with 3 reality examples we faced in investing:
1) When choosing companies, all things being equal, do you prefer a company who can grow their profits via top line revenue growth or another company who grows their profits through cost cutting?
2) In a recession, do you prefer Singapore's model of growing ourselves out of it, or do you prefer the Western Europeans current model of austerity (saving your way out)? Which country/region mutual funds or ETF would your prefer?
3) Company A dividend payout policy is 40%. However, it's earnings growth is 20% a year. Company B dividend payout policy is 90%. But it's earnings has stagnated for years. Which one is likely to be a dividend trap?
Don't get me wrong. I am a saver. That's why I am aware that it is earnings growth that helps me "attain" financial freedom. Savings or living withing my means is what helps "maintain" my financially free status
Same same but different!
Jared, here are my thoughts
1. Neither, would choose the ones with the most predictable earnings.
2. Singapore, in my memory did not have any crisis, the state did not have any problem paying its obligations/debt. Govt debt?? What govt debt? The people/companies did encounter a few recessions.
3. Who cares if it's a trap, Co.B for sure. Why? No company will be able to grow 20% over a prolonged period of time.
Over time Co. A will become Co.B, if that is the case why choose 40% when you can have 90%?
Most of the time Mr market will assign a dividend yield to the company. If we ask our self why SMRT is A% and LMIR is B% or SPH is 6%+, and NOL is 0% now then we may invest accordingly. If suppose you are allowed to invest in only one company in SGX with all your money, which company will you choose? There is no right or wrong in choosing which company. Only you must know what you want and the amount of risks you are comfortable with, then choose accordingly. NO?
Jared Seah Wrote:1) When choosing companies, all things being equal, do you prefer a company who can grow their profits via top line revenue growth or another company who grows their profits through cost cutting?
2) In a recession, do you prefer Singapore's model of growing ourselves out of it, or do you prefer the Western Europeans current model of austerity (saving your way out)? Which country/region mutual funds or ETF would your prefer?
3) Company A dividend payout policy is 40%. However, it's earnings growth is 20% a year. Company B dividend payout policy is 90%. But it's earnings has stagnated for years. Which one is likely to be a dividend trap?
Don't get me wrong. I am a saver. That's why I am aware that it is earnings growth that helps me "attain" financial freedom. Savings or living withing my means is what helps "maintain" my financially free status Wink
Same same but different!
Hi Jared,
Your underlying message is absolutely right. The top 1% income-earner who is a spendthrift will surely have a bigger nest-egg than the bottom 1% income-earner who is a miser. To be really rich, a person must have both money-making ability and money-hoarding instinct. However, if a person has to choose one or the other, I am sure the savvy people over will prefer which one. (Make money more important than save money lah, of course!)
Saving is a habit that can be developed by everyone. Not anyone can develop the Midas touch even if they work very hard and are very smart. To make money, you need to take risk. No risks are involved in saving money. Society and the economy will be better off if enough people thinks big, acts big and become a successful entrepreneur who creates useful products/services (not Ponzi schemes, please!). But we have to be honest with ourselves whether we got what it takes. If yes, go for it man! Like Big Toe recommends, give it your best shot and put your heart and soul into it. If no, then the safer bet to getting a comfortable retirement as an average middle-income person is to save hard and be good at your job. Grow rich slowly but surely.
By the way, is Jared Seah your real name?
http://help-your-money.blogspot.com/
1) Hyom,
Yes, Jared Seah is on my IC. When I started blogging in Dec 2010, I was having my Chinese renaissance moment. Something about stand don't change name, sit don't change surname kind of tood tood moment... Got carried away. LOL! I even show my pic
Of course got technique! Show maciam no show with the tiny pic... Ha ha!
I studied at Hua Yi Primary School (English stream); but it was only reading the Zao Bao on Hua Yi Secondary School's (a chinese stream school during my time) celebration last year that I finally understood the meaning of 华义.
2) Big Toe,
Interesting. As a equities man-whore, I tend to tag along using Newton's Law of Motion. Jump on to a train when it's moving, and when it slows down, hop on to another
Did you see the news on the passengers that sit on top of the trains in Indonesia? I think I am like one of them. If fall, game over. But the thrill of the ride! Of course I do it now when I single and "not so old". If not now, when?
Cheers and have a super CNY everyone!
Quote:Yes, Jared Seah is on my IC. When I started blogging in Dec 2010, I was having my Chinese renaissance moment. Something about stand don't change name, sit don't change surname kind of tood tood moment... Got carried away. LOL! I even show my pic Wink Of course got technique! Show maciam no show with the tiny pic... Ha ha!
I studied at Hua Yi Primary School (English stream); but it was only reading the Zao Bao on Hua Yi Secondary School's (a chinese stream school during my time) celebration last year that I finally understood the meaning of 华义.
Brave man to put your real name and private information online. I don't do that but I respect people who do that. I think I had better PM you privately because I actually think it is not healthy to release too much private info online. Who knows? It might be used against you one day.