While America is reeling in the possibility of a recession, here in Asia, we are facing a boom. Singapore's GDP last year grown by 7.5%. Many people started spending on luxury goods even though they are not in a need to spend extravagantly to replace a still new item.
I have heard quite a handful of people asking if they should change their 3 years old car, for a new car. Exploring what a car salesman would say to his potential car buyer.
1) No Warranty
Sales talk : Your car is 3 years old, warranty has run out.
Truth : A 3 years old car is still rather new and even if you do not have a warranty, it is still cheaper to drive on than change car.
2) Lower Installment
Sales talk : You may save by changing to a new car (lesser monthly installment, but prolong 10yrs loan)
Truth : You have paid 3 years installment, how many more years do you have left? It will be cheaper to continue with this installment.
3) Why Pay Government
Sales talk : Your current COE (Certificate of Entitlement) cost $30,000 while it is $14,000 now. Why pay government the extra when you can save with lower COE.
Truth : Import tax is about 170%. How much more will you pay for a new car as compared with the savings on COE?
I read an interesting article and shall share, with the inclusion of your savings that could otherwise be wasted on something unnecessary.
If you long for a more fulfilling relationship with your money (stretch your dollar), remember this simple truth: When your money doesn't feel appreciated (waste away), it won't appreciate for you in return (you end up having lesser).
1. Don't squander its potential
Put your cash some place that can earn more money for you. Don't demean it by locking it up in a pitiful savings account. Let's take a look at what your $20,000, say, over 20 years, could do for you.
1.1 On average, traditional bank savings accounts pay 0.3% (currently) on deposits. Your $20,000 after 20 years will be $21,236 (only grew by $1,236).
1.2 If you had invested this money in a money-market mutual fund, giving you 3-4% yield, you will have $36,415 to $44,451 after 20 years (grew by $16,415 to $24,451)
1.3 If you had invested this money in a high return investment, giving a 15% yield, your $20,000 will be worth $394,390 in 20 years (grew by $374,390)
See how a sum of $20,000 can grow with the right investment?
2. Show your sensitive side
Abusing your money, spending unwisely and being oblivious to bad habits are surefire ways to doom your financial relationship. If you cut back your wasteful spending (eg traffic fines, credit card interest, daily lifestyle, etc).
A monthly savings (in-turn, invested) of $300 over 20 years would give you a total savings of $72,000
2.1 If it's left in the bank with 0.3% interest, the $72,000 is only worth $74,194 after 20 years.
2.2 If it had been wisely invested with a yield of 10%, this $72,000 will now be worth $227,810.
3. Plan for a future together
No doubt you dream about your future, and no doubt that future involves growing old together with your money. That means you need to invest for the long haul.
When you're in your twenties and thirties, you would have more years to invest your money to make even more long term growth.
For example, if a 20-year-old saved just $100 a month in a fund earning 10% annually, he'd have nearly $1.05 million by the time he turned 65. And if he increased his contributions as his paychecks increased, his money could grow to $1.5 million or $2 million.
(source : http://www.kiplinger.com/columns/starting/archive/2008/st0213.htm)
Monday, February 18, 2008
Friday, February 15, 2008
Your Wallet Speaks Volumes
The way you handle your day-to-day cash speaks volumes about your money personality, according to personal finance experts. Here's the article I read.
Money's there ... somewhere --
You have money in your wallet, but you never have any idea how much. But who cares, if you can't find it or can't find enough, just whip out one of your many credit cards or debit cards.
People who don't know how much money they have in their wallets may also be unaware of what's in their bank accounts or even their pension funds.
These people may be afraid to see what the reality of their financial situations is. They may be tempted to overspend or even pull out a credit card if they aren't aware of how much they have available.
Keep a written tally of how much money you have (and how much you owe) to get comfortable with your financial situation.
Running on empty --
Your wallet is usually empty because you can't seem to keep cash in it for long. No matter how many times you go to the ATM, you'll find yourself staring into an empty wallet again very soon and wonder where the money went.
Similar to the person above, this is the person who is making money but they have no idea where it's going. However, unlike the above personality type, this person likely wants to know where the money is going and may be frustrated by an inability to stop spending.
The key to changing is to start paying attention to the things you do, your spending. Monitor your spending patterns and keep a notebook if necessary. Set a target timeline to know your spending and how to reduce it.
Chaotic cash --
The bills in your wallet are all crumpled up and in no particular order. There's change in the bottom of your pocketbook or even in the floor of your car.
Someone who treats money cavalierly often does not respect money or may not even care about finances. One who leaves money around are suggesting it's not important enough to put it in a safe and protected place.
The key to changing this behavior is recognizing the buying power of the money you've been discarding. Try adding up all of the miscellaneous bills and coins on a regular basis. You might amass enough money to start giving your "spare change" a little respect.
Unruly receipts --
Your wallet is stuffed with receipts, but there's no sense of order to them and you never really do anything with them. This is the person who is trying to keep tabs on their money but can’t take the next step to get them organized and do something about it.
You are like the person that buys all the latest exercise equipment but doesn't get around to using it. In order to change this behavior, you've got to get organized. Take a day to come up with a filing system for your receipts so you know what to do with them at the end of the day. If you're never going to use the receipts to track your spending, what's the point of keeping them in the first place?
File-folder funds --
All of the bills in your wallet are lined up from largest denomination to smallest (or vice versa). You have an idea of how much money you have at all times and you know what's available to spend.
These are the people who have a firm grasp on how much they are spending and how much they are saving. Such people probably have good financial habits. Be sure to also allocate some money for enjoyment/fun.
Identifying what your behavior is telling you about your beliefs about money is only the first step. Continuing to monitor your financial habits is key. Make note of the changes you make to your behavior as well as the times you fall short. One of the biggest mistakes people make is they think, “now I have this new wisdom about my money life and therefore my problems are solved”. Change takes time, but the moment you have a new awareness about what was driving your money behavior, your thinking begins to shift.
(source : http://finance.yahoo.com/banking-budgeting/article/104431/What?)
Money's there ... somewhere --
You have money in your wallet, but you never have any idea how much. But who cares, if you can't find it or can't find enough, just whip out one of your many credit cards or debit cards.
People who don't know how much money they have in their wallets may also be unaware of what's in their bank accounts or even their pension funds.
These people may be afraid to see what the reality of their financial situations is. They may be tempted to overspend or even pull out a credit card if they aren't aware of how much they have available.
Keep a written tally of how much money you have (and how much you owe) to get comfortable with your financial situation.
Running on empty --
Your wallet is usually empty because you can't seem to keep cash in it for long. No matter how many times you go to the ATM, you'll find yourself staring into an empty wallet again very soon and wonder where the money went.
Similar to the person above, this is the person who is making money but they have no idea where it's going. However, unlike the above personality type, this person likely wants to know where the money is going and may be frustrated by an inability to stop spending.
The key to changing is to start paying attention to the things you do, your spending. Monitor your spending patterns and keep a notebook if necessary. Set a target timeline to know your spending and how to reduce it.
Chaotic cash --
The bills in your wallet are all crumpled up and in no particular order. There's change in the bottom of your pocketbook or even in the floor of your car.
Someone who treats money cavalierly often does not respect money or may not even care about finances. One who leaves money around are suggesting it's not important enough to put it in a safe and protected place.
The key to changing this behavior is recognizing the buying power of the money you've been discarding. Try adding up all of the miscellaneous bills and coins on a regular basis. You might amass enough money to start giving your "spare change" a little respect.
Unruly receipts --
Your wallet is stuffed with receipts, but there's no sense of order to them and you never really do anything with them. This is the person who is trying to keep tabs on their money but can’t take the next step to get them organized and do something about it.
You are like the person that buys all the latest exercise equipment but doesn't get around to using it. In order to change this behavior, you've got to get organized. Take a day to come up with a filing system for your receipts so you know what to do with them at the end of the day. If you're never going to use the receipts to track your spending, what's the point of keeping them in the first place?
File-folder funds --
All of the bills in your wallet are lined up from largest denomination to smallest (or vice versa). You have an idea of how much money you have at all times and you know what's available to spend.
These are the people who have a firm grasp on how much they are spending and how much they are saving. Such people probably have good financial habits. Be sure to also allocate some money for enjoyment/fun.
Identifying what your behavior is telling you about your beliefs about money is only the first step. Continuing to monitor your financial habits is key. Make note of the changes you make to your behavior as well as the times you fall short. One of the biggest mistakes people make is they think, “now I have this new wisdom about my money life and therefore my problems are solved”. Change takes time, but the moment you have a new awareness about what was driving your money behavior, your thinking begins to shift.
(source : http://finance.yahoo.com/banking-budgeting/article/104431/What?)
Wednesday, February 13, 2008
Longevity Insurance
As reported on the news, the government has accepted recommendation for a Longevity Insurance scheme which targets to hold onto our Central Provident Fund (CPF) and investing it onto an Annuity plan that pays out to the insured from a certain age onwards till mortality.
(source : http://www.channelnewsasia.com/stories/singaporelocalnews/view/328324/1/.html)
With this insurance plan, it means we will not be able to withdraw most of our CPF funds upon retirement (I shall not dwell or discuss on the objection of such a scheme). The scheme is compulsory and auto-inclusion for all CPF members (with exceptions including low CPF funds and health reasons).
People’s Worry
Since the first mention about such a scheme, many are unhappy about such a scheme. People worry that they won’t lived long enough to receive sufficient payouts, near that of their money’s worth.
They also do not want their hard earned money to be forfeited should they depart, but to be paid to their family.
Government's View
Life expectancy have increased over the years. As such, upon retirement till mortality, the retiree may out-live their retirement funds. The scheme is targeted to ensure people do not run out of funds in their retirement years.
The CPF Longevity Insurance Scheme
The minimum sum (raised gradually to $120,000 by 1 Jul 2013, of which, half can come from the pledge of their property) will be split into two parts –a larger part that remains in the Retirement Account (RA), and a smaller part, the Refundable Premium (RP).
Upon reaching 55 years old, members will decide when they want the lifelong income payouts to begin.
Does This Provide Enough for Retirement?
Based on government’s computation, the average payout would be about $650 a month if the member has a minimum sum of $67,000 and starts payout at 65 years old.
Singaporean’s median age as at 2007 is 37.8 years old (source : CIA Fact Book). This group of people are 27.2 years away from turning 65 years old. With government’s calculation of 5% inflation per year, $650 in 27 years is only equivalent to today’s $277 per month. Is this sufficient?
What Can We Do To Increase Our Funds?
With 27 years, if we were to save $300 a month, we will be able to accumulate $110,363 (Principle + Interest [1%]) by the end of 27 years. Given that we spread this sum over 15 years (till 80 years old), it is an equivalent of $613 per month.
The add up of the personal savings and CPF LI scheme would be $1,263 per month. That is equivalent of today’s $537 per month.
Interest paid by banks is usually below inflation. We also need to take into account our money is eroded further by GST (currently at 7%). Why let our funds depreciate?
To better our savings, we could look into investing our funds into a highly secured (low risk) investment vehicle that provides us returns above inflation.
Should we invest the same savings illustrated above ($300/mth) into a low risk vehicle, the illustrated savings will grow as follows:
Monthly Savings : $300/mth over 27yrs
Approx Returns and Accumulative Total :
~ 1%/yr = $111,627
~ 10%/yr = $497,825
~ 15%/yr = $1,335,880
Lump Sum Savings : $20,000 over 27yrs
Approx Returns and Accumulative Total :
~ 1%/yr = $26,196
~ 10%/yr = $294,283
~ 15%/yr = $1,119,490
What do you want your retirement to be like in 27 years from now? How much spending money do you want to have per month by then? You decide.
(source : http://www.channelnewsasia.com/stories/singaporelocalnews/view/328324/1/.html)
With this insurance plan, it means we will not be able to withdraw most of our CPF funds upon retirement (I shall not dwell or discuss on the objection of such a scheme). The scheme is compulsory and auto-inclusion for all CPF members (with exceptions including low CPF funds and health reasons).
People’s Worry
Since the first mention about such a scheme, many are unhappy about such a scheme. People worry that they won’t lived long enough to receive sufficient payouts, near that of their money’s worth.
They also do not want their hard earned money to be forfeited should they depart, but to be paid to their family.
Government's View
Life expectancy have increased over the years. As such, upon retirement till mortality, the retiree may out-live their retirement funds. The scheme is targeted to ensure people do not run out of funds in their retirement years.
The CPF Longevity Insurance Scheme
The minimum sum (raised gradually to $120,000 by 1 Jul 2013, of which, half can come from the pledge of their property) will be split into two parts –a larger part that remains in the Retirement Account (RA), and a smaller part, the Refundable Premium (RP).
Upon reaching 55 years old, members will decide when they want the lifelong income payouts to begin.
Does This Provide Enough for Retirement?
Based on government’s computation, the average payout would be about $650 a month if the member has a minimum sum of $67,000 and starts payout at 65 years old.
Singaporean’s median age as at 2007 is 37.8 years old (source : CIA Fact Book). This group of people are 27.2 years away from turning 65 years old. With government’s calculation of 5% inflation per year, $650 in 27 years is only equivalent to today’s $277 per month. Is this sufficient?
What Can We Do To Increase Our Funds?
With 27 years, if we were to save $300 a month, we will be able to accumulate $110,363 (Principle + Interest [1%]) by the end of 27 years. Given that we spread this sum over 15 years (till 80 years old), it is an equivalent of $613 per month.
The add up of the personal savings and CPF LI scheme would be $1,263 per month. That is equivalent of today’s $537 per month.
Interest paid by banks is usually below inflation. We also need to take into account our money is eroded further by GST (currently at 7%). Why let our funds depreciate?
To better our savings, we could look into investing our funds into a highly secured (low risk) investment vehicle that provides us returns above inflation.
Should we invest the same savings illustrated above ($300/mth) into a low risk vehicle, the illustrated savings will grow as follows:
Monthly Savings : $300/mth over 27yrs
Approx Returns and Accumulative Total :
~ 1%/yr = $111,627
~ 10%/yr = $497,825
~ 15%/yr = $1,335,880
Lump Sum Savings : $20,000 over 27yrs
Approx Returns and Accumulative Total :
~ 1%/yr = $26,196
~ 10%/yr = $294,283
~ 15%/yr = $1,119,490
What do you want your retirement to be like in 27 years from now? How much spending money do you want to have per month by then? You decide.
Saturday, February 2, 2008
Interest Rates and How It Affects Borrowers
In recent months, interest rates have been falling. If the country's economy is doing well, interest rates are likely to go up.
Singapore's Loans and Interest
Lending rates saw an all time low in year 2004 for Singapore. Some banks are even lending at 0.5% for the First Year of the housing loan.
Interest rates starts climbing towards late 2004 and saw a massive climb in 2005 and 2006 before easing off in 2007. At the peak in recent years, lending rates were at 4% 3 years Fixed Rate. A lot of borrowers were caught with their existing Lock-in or Claw-back where they will be penalized for re-financing (including redemption) their loan with another bank.
Some borrowers even saw interest rate escalate to 5.75%. In Singapore, interest rates are one of the lowest among developed nations.
Property Boom (Singapore)
Since middle of 2006, property in Singapore started appreciating in value with the steepest climb seen during the period of May - August 2007. New developments that were asking for $600 psf in early 2006, were asking for as much as $1,500 psf in August 2007 (psf refers to Per Square Feet). Some condominium projects (in town) that were launch around middle of 2007 were even asking for around $3,000 psf.
Prices for subsidized housing (two-thirds of total housing in Singapore) had climbed high as well. A 5-room flat (5-room flats are just a classification of the flat type) in some areas were selling at valuation in early 2006 but were asking for $100,000 above valuation by 4th Quarter of 2007. Typical prices for such flat type are currently selling at about $400,000 to $500,000 per unit (usually 1,300-1,450 sqft).
Falling Interest Rates and Refinancing
Interest rates have fallen since middle of 2007 as banks compete to secure more loans during this period of property boom. Interest rates are affected by SIBOR (Singapore Interbank Overnight Rate) rates. Instead of increasing rates due to economy boom in recent years, the SIBOR rates have fallen to about 1.74% (3 months average).
Borrowers who had taken loan in recent years are now facing higher interest rate. Should they refinance or continue paying high rates? What are the trends of the interest rate movement in the coming months?
In order to refinance, banks looks at the borrower's credit rating. A borrower with bad rating are usually not granted a loan with the banks. As such, this category of borrower will find it hard to refinance.
What is the possible trend in the coming months? Interest rates will not continue falling. But at which point will rates start going up? The uncertainty could be influenced by many factors including micro and macro economy, liquidity in the economy, etc.
With the current economical situation in America, with the potential of going into a recession (negative signs since months ago), global economy will be affected. However, interest rates have already fallen so much since September 2007 (was 5.25% till 17 Sept 07), is there room for more reduction?
From the looks, interest rates (in Singapore) are likely to go up in the coming months. Before deciding on the types of packages to take, borrowers should consider which type of packages are suitable for them. Rather than going to the bank, a Mortgage Consultant would be in the best position to present to borrowers the many banks' packages and helping borrowers narrow down on what is suitable for them.
America's Loan Interest
In America, with the sub-prime and credit crunch issue, it leaves many borrowers in dire straits of not being able to pay off their loan and the banks coming after them. The latest Fed Reserve rate adjustment downwards by 0.5% comes as a relieve to many. Is it time to refinance?
Many borrowers are in desperate situation of needing to lower their interest rate in order to be able to afford and continue servicing their loan. However, with many borrowers having defaulted payments in the last year, this leaves many unable to refinance. For this group, if they are able to make large attempts to make prompt payment in the next 6-12 months, it may help them to get approval.
Those who have been able to continue paying promptly may wonder, is it time to refinance with the current rates? Fed Reserve have hinted that they will continue cutting rates if economy continue showing signs of decline (source : http://money.cnn.com/2008/01/30/news/economy/fed_rate_decision/index.htm?eref=rss_topstories)
Borrowers who have made prompt payment and able to refinance should consider if they can afford to continue paying the current rate. If they are struggling to keep up, it is time to act and cut rates. If they are comfortable with the current high rates, it is their call if they want to wait awhile longer for another cut (which is unpredictable).
Effects of Rate Cuts
Rate cuts had be inevitable as the economy faces a meltdown. The economical situation had been worrying, with businesses and consumers facing the squeeze. Weaknesses are seen in housing and job market, manufacturing and job creation faced a decline as well.
Rate cuts are aimed to help promote moderate growth over time and to mitigate the risks to economic activity and downside risks to growth remain, Fed Reserve statement said.
The other big concern of rate cuts, Inflation. Much remains to be seen.
Singapore's Loans and Interest
Lending rates saw an all time low in year 2004 for Singapore. Some banks are even lending at 0.5% for the First Year of the housing loan.
Interest rates starts climbing towards late 2004 and saw a massive climb in 2005 and 2006 before easing off in 2007. At the peak in recent years, lending rates were at 4% 3 years Fixed Rate. A lot of borrowers were caught with their existing Lock-in or Claw-back where they will be penalized for re-financing (including redemption) their loan with another bank.
Some borrowers even saw interest rate escalate to 5.75%. In Singapore, interest rates are one of the lowest among developed nations.
Property Boom (Singapore)
Since middle of 2006, property in Singapore started appreciating in value with the steepest climb seen during the period of May - August 2007. New developments that were asking for $600 psf in early 2006, were asking for as much as $1,500 psf in August 2007 (psf refers to Per Square Feet). Some condominium projects (in town) that were launch around middle of 2007 were even asking for around $3,000 psf.
Prices for subsidized housing (two-thirds of total housing in Singapore) had climbed high as well. A 5-room flat (5-room flats are just a classification of the flat type) in some areas were selling at valuation in early 2006 but were asking for $100,000 above valuation by 4th Quarter of 2007. Typical prices for such flat type are currently selling at about $400,000 to $500,000 per unit (usually 1,300-1,450 sqft).
Falling Interest Rates and Refinancing
Interest rates have fallen since middle of 2007 as banks compete to secure more loans during this period of property boom. Interest rates are affected by SIBOR (Singapore Interbank Overnight Rate) rates. Instead of increasing rates due to economy boom in recent years, the SIBOR rates have fallen to about 1.74% (3 months average).
Borrowers who had taken loan in recent years are now facing higher interest rate. Should they refinance or continue paying high rates? What are the trends of the interest rate movement in the coming months?
In order to refinance, banks looks at the borrower's credit rating. A borrower with bad rating are usually not granted a loan with the banks. As such, this category of borrower will find it hard to refinance.
What is the possible trend in the coming months? Interest rates will not continue falling. But at which point will rates start going up? The uncertainty could be influenced by many factors including micro and macro economy, liquidity in the economy, etc.
With the current economical situation in America, with the potential of going into a recession (negative signs since months ago), global economy will be affected. However, interest rates have already fallen so much since September 2007 (was 5.25% till 17 Sept 07), is there room for more reduction?
From the looks, interest rates (in Singapore) are likely to go up in the coming months. Before deciding on the types of packages to take, borrowers should consider which type of packages are suitable for them. Rather than going to the bank, a Mortgage Consultant would be in the best position to present to borrowers the many banks' packages and helping borrowers narrow down on what is suitable for them.
America's Loan Interest
In America, with the sub-prime and credit crunch issue, it leaves many borrowers in dire straits of not being able to pay off their loan and the banks coming after them. The latest Fed Reserve rate adjustment downwards by 0.5% comes as a relieve to many. Is it time to refinance?
Many borrowers are in desperate situation of needing to lower their interest rate in order to be able to afford and continue servicing their loan. However, with many borrowers having defaulted payments in the last year, this leaves many unable to refinance. For this group, if they are able to make large attempts to make prompt payment in the next 6-12 months, it may help them to get approval.
Those who have been able to continue paying promptly may wonder, is it time to refinance with the current rates? Fed Reserve have hinted that they will continue cutting rates if economy continue showing signs of decline (source : http://money.cnn.com/2008/01/30/news/economy/fed_rate_decision/index.htm?eref=rss_topstories)
Borrowers who have made prompt payment and able to refinance should consider if they can afford to continue paying the current rate. If they are struggling to keep up, it is time to act and cut rates. If they are comfortable with the current high rates, it is their call if they want to wait awhile longer for another cut (which is unpredictable).
Effects of Rate Cuts
Rate cuts had be inevitable as the economy faces a meltdown. The economical situation had been worrying, with businesses and consumers facing the squeeze. Weaknesses are seen in housing and job market, manufacturing and job creation faced a decline as well.
Rate cuts are aimed to help promote moderate growth over time and to mitigate the risks to economic activity and downside risks to growth remain, Fed Reserve statement said.
The other big concern of rate cuts, Inflation. Much remains to be seen.
Friday, February 1, 2008
7 Good Friends
Was chatting with a client previously and he asked me if I could name 7 good friends that can enrich my life. It puzzled me what he means by "enrich your life". He went on to explain, one tends to be a reflection of their choice of friends as they'll influence us in many ways.
He named, among his good friends includes Warren Buffet, Steve Jobs, etc. He further mentioned, not to be mistaken that your choice of good friends are people that you know and they know you, and you go out with. They can be anyone that you can know (yet they may not know you) and learn from.
If we mixed with party going friends all the time, we'll constantly be out partying and spending. If we mixed with investment savvy or prudent friends, we'll learn to manage funds better. Of course we need friends from all walks. But if we spend all we earn and have nothing left to invest, we will still (financially) be where we are today, years down the road.
I have not zoom down on my 7 good friends, but I have learnt from a good friend, attitude plays a big part of life. This friend had been played out by his friend many years ago and almost gotten him bankrupt, leaving him a huge debt. I still recall, when I bumped into him at a coffee shop, he was munching pathetically (looks lonely) on a steam bun and coffee (he was just taking a short tea-break actually).
I approached him and had a very brief chat about what he was doing. Weeks later, we met again when we were doing our reservist (national service). We chat indept and I learnt that his problem is approaching the tail end. It will be over in a matter of months.
What made me so interested in him, and to embraced him as a role model is, his positive attitude. While going through a rough patch, he was always smiling and joking. His reply was, "be it that I'm grumpy or cheerful, I'll still have to clear the debt. I might as well choose to be happy and positive, it helps lessen the burden and I'll get through it faster". Wise words! He cleared his debts and is now doing well in life.
I recalled working with him, he was my superior, after the reservist. He is always (still is) so up and going, so energitic. Amazing attitude. In our chinese dialect, we both shared this motto, 'Cheong Ah' (can mean, persevere, puting ur best foot forward, dash for it).
Do not fall and sit there or find a hole to hide. Instead, get up and 'Cheong' for it!
He named, among his good friends includes Warren Buffet, Steve Jobs, etc. He further mentioned, not to be mistaken that your choice of good friends are people that you know and they know you, and you go out with. They can be anyone that you can know (yet they may not know you) and learn from.
If we mixed with party going friends all the time, we'll constantly be out partying and spending. If we mixed with investment savvy or prudent friends, we'll learn to manage funds better. Of course we need friends from all walks. But if we spend all we earn and have nothing left to invest, we will still (financially) be where we are today, years down the road.
I have not zoom down on my 7 good friends, but I have learnt from a good friend, attitude plays a big part of life. This friend had been played out by his friend many years ago and almost gotten him bankrupt, leaving him a huge debt. I still recall, when I bumped into him at a coffee shop, he was munching pathetically (looks lonely) on a steam bun and coffee (he was just taking a short tea-break actually).
I approached him and had a very brief chat about what he was doing. Weeks later, we met again when we were doing our reservist (national service). We chat indept and I learnt that his problem is approaching the tail end. It will be over in a matter of months.
What made me so interested in him, and to embraced him as a role model is, his positive attitude. While going through a rough patch, he was always smiling and joking. His reply was, "be it that I'm grumpy or cheerful, I'll still have to clear the debt. I might as well choose to be happy and positive, it helps lessen the burden and I'll get through it faster". Wise words! He cleared his debts and is now doing well in life.
I recalled working with him, he was my superior, after the reservist. He is always (still is) so up and going, so energitic. Amazing attitude. In our chinese dialect, we both shared this motto, 'Cheong Ah' (can mean, persevere, puting ur best foot forward, dash for it).
Do not fall and sit there or find a hole to hide. Instead, get up and 'Cheong' for it!
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