Reigning in the spending

last SG · 2006-05-09T11:20:12+00:00

To economise, I’m desperate enough to consider tingkat service for dinner… it’s just a meal to fill the tum afterall I can forgo variety .. :p

Rhonda SG

No matter what your income, a certain amount will have to be set aside each month for necessities like groceries, transport, utilities bills, etc.

Depending on the amount you have after all those compulsory deductions, you may or may not have enough left to save.

And of course, under groceries, if you always pay top dollar for 'premium' products, eg. the most expensive brand of rice, soya sauce, etc... then your expenditure will increase accordingly too. Razz

I've saved a lot since moving back to my parents' - no need to buy any more toiletries, toilet paper, tissue paper, detergents, soap, toothpaste, etc! Laughing Sounds trivial but it does add up considerably! Wink

Coquitlam SG

I put some of my savings into CPF....

am treating it as a form of savings and not waiting till 55 to take it out.

Will be encashing it as soon as I thrown in my passport...

elindra SG

Sad to say I hardly have any cash savings now as everything is thrown in to pay up for our housing loans and renovation loans and whatever that is left to pay up for our furniture. I'm only glad that we didn't tie ourselves up on that stupid interest free schemes on the credit card coz you can't pay more to clear it faster. Regret on tying some up on interest free Sad

However, I have forced savings (insurance) and unit trusts which are still on-going.

Saying that if I were to have a kid, once he/she is born, I will buy an endownment plan immediately that will mature by the time they get into University so that cash can be used to pay for their education.

alexkusu SG

i was only jokin Embarassed

anyway, on the serious side, i invest in government bonds. Which are redemeable for cash few decades down the line. I guess thats good enough to thwart my temptation to spend my cash

Master -_- SG

i got myself an annuity to be paid out when i reach 45yo Laughing
can retire liaoz.. each month pay 1k

gentlerock SG

Not yet lah....got about 6 more months left to 40. So better act young now while I still can. Laughing

jetta SG

But can a 45 year old survive on 1k a month, given that the cost of living is always on the increase? Just a thought.

littlestream SG

Wah lau eh...........this sure is subtle to announce your birthday ley. Laughing

okay lah, okay lah......i'll mark it down in my calendar. Mr. Green

jetta SG

Originally posted by Meia Gisborn:

If you haven't already done so, look into participating in some kind of company-offered, tax-deferred 401K or 403B retirement savings plan. A well-managed plan should offer a selection of investment options from which you can choose one or several that match your particular risk comfort level. Most of these plans allow you to transfer money between available funds to maximize your overall rate of return. It's a little like playing the stock market (which in effect you are) except that you can't legally liquidate the investments until you retire, and you don't pay any taxes on the capital gain.

Once you've selected the funds to include in your plan, try to maximize the amount of the contributions into the plan from your paycheck. In fact, try to have the maximum amount of pre-tax dollars allowed by law deducted from your paycheck and put into your 401K/403B plan. Yes, I know it takes discipline, and your particular financial situation might not allow you to take the maximum deduction. But consider this: debt levels amongst Americans are currently at an all-time high (currently estimated to be an average of around $9000 for [b]every household), and most will not have enough money to fund their retirement years. A little bit of financial discipline now will go a long ways to help make your retirement years less of a financial stress.

Just a thought.[/b]

Thank you MG. For the longest time the military had no 401K until 5 or six years ago. I only wish we had started sooner because we're playing catch up now. I've since increase our monthly contribution since they removed the cap. You sound like a banking man, are you?

You're right. It's a well-known fact that Americans don't save. An article in yesterday's paper says for every $1 they earn, they spend $1.22. Shocked

jetta SG

They are notorious! Just driving through the neighbour you see lots of toys. Four cars in the driveway, RV, boat, etc. One financial expert here commented, just follow the Hummer and you'll see a home that'll be foreclosed soon. Honestly, I don't know how they do it here in expensive California where real estate is high, taxes are high, etc.

Christmas is a spending orgy man. People just go all out, going for broke, finding the perfect gift.

gentlerock SG

Please don't anyhow accuse hor? I never mentioned that my birthday was in early November (Scorpio baby) ok?

And before you accuse me of wanting presents, please also note that I never mentioned I'm in need of some non-iron long-sleeved business shirts, genuine leather wallet in which S$50 notes can fit comfortably and....er....new rims (17" bronze colour preferred) and tyres for my car.

Embarassed

DriftingGuy SG

Have you considered planning for a possible dual income household? Twisted Evil

littlestream SG

Laughing

Oops, gentlerock, *points to the floor* you dropped somethings.........HINTS. Mr. Green Okay, let's cross the checklist.

Month......... checked.

shirts........... checked.

wallet........ checked.

rims.......oops, timed out. boh liao.

fret not. here...........take this don't leave home without it.

DriftingGuy SG

Me too... pretty clueless when it comes to investing. I seriously wish I have a formal education in investing or finance related planning. Confused

Master -_- SG

no no no no Laughing

i pay 1k per month until i reach 45

the Bear SG

i think i'll take a week off soon.. and in that week, it'll be shoulders to the wheel to look at what i need to do to start on this Razz

i still think the insurance things my folks bought for me, which i'll continue paying forever and a day, are scams Laughing

p.s. it's "reining in" Razz

Meia Gisborn SG

Just curious: is it a fixed-rate or variable annuity? Did you opt for a fixed-term or lifetime payout?

It would be nice to retire at 45, wouldn't it? The only thing you have to worry about is an unanticipated medical emergency that could potentially wipe out your accumulated savings...

jetta SG

Rhonda, sounds like he's proposing to you. Laughing Mr. Green

the Bear SG

.. did DG just make a move on the cult leader? Laughing

jetta SG

Whoops!!!!! Senior moment!!!! Embarassed

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