when i was just a students with not much money i can earn, get few hundred dollars from my parents just to pay for my study fees and part time job for my daily meal expenses which totaled up is less than 1K dollars(SGD as i am currently stay in SG).
Slowly after i graduated, joined the training of my company, passout as an aircraft engineer from an apprentice with just 1k plus low pay increase to 2k plus and through observations on the colleagues of mine and surrounding friend who actually earn double/triple than my apprentices pay, and myself.. theirs, my expenses really increases. In the end of their/my savings? is still the same.. so i was thinking what is actually that makes a person to really spend more when salaries up and saving less.. really have to control on some of the money that is silently losing away.
When more money comes into your pocket, you will feel secure with your life, you will felt that you can spend slightly more in your life to make yourself life better. Few examples belows are bad habits that i felt is wrong.
First, As a friend of mine, normally taking bus and mrt to work or meeting up friends, with just only 1-3 dollars spending on it with longer time, he thinks that life should sometimes make it easier and then one time or two times can just take a cab to work or meeting up, so should be ok la.. so he spend 20 dollars on it and thinks that just 7 dollars difference is just nothing since he has the money in his pocket. BUT what if he spend 10 times per months? it will be 200 dollars already which compare to 60-90 dollars per month of full public cheap transport to anywhere you like. so this can actually save up 110 dollars per month.
Next, the hdb renting. For the better pay like one of my colleagues, he actually spending up to 1.8k per month W/O electrical and water bill surcharge sharing with other 2 peoples just for own privacy. and most of pilots i known most of them actually renting those condo which cost up to at least 800 dollars per month. Please remember that for all the rental we are paying actually are helping the other people paying the installment. So for this i felt that actually can save up alot of money if you are able to find a nominal price of rental, 400 -600 per month with electrical and water bill one common room. with own privacy. this can actually save up at least 400 dollars. if able to stay in cousin house better, save all up. Or, ever think of what if you buy up a hdb housing and rent out? pay a lum sum of money, own the house paid by cpf, rent it out and get the money back to cover up ur property, which sometimes can get extra cash in hands. ^^
Third, credit card expenses. Please bear in mind that if you get the credit card, doesn't means you are rich. you are able to get it because bank know that you are able to pay for it according to your salary.the higher salary, the higher margin you can use. It is just a tools for your convenience to swipe the card in EMERGENCY if you forget to bring the cash out or online booking. Don't ever overuse it. Like always thinks that i can owe the bank further months without interest if i just pay at least 50 dollars this months and thinks that next month my money actually comes in and i shall pay for it.
Forth, consumer's product, liability product. with higher pay, people tends to think that able to buy better products like IPhone, HTC.. or start own some liabilities like motorcycles, cars...For owning a vehicle in sg is not a bright idea as those liabilities are not owned by you (10 years the most as COE expired) and those extra charges comes in.. parking fee, maintenance fees, insurance fees, road tax fees, installment fees and etc. Although understand that those really can make alot of conveniences and save up alot of times and feel that really worth for money but actually in money spending wise sure shoot up more than your normal expenses on your public transport.
Actually for those examples above if you really take note actually can save up few hundreds dollars. One of way i am currently using right now is make the excel file and record and monitor up every single dollars you have spend per day. And you will find that actually really spend alot in one particular area. For example, cigarette, one day one pack with 10 dollars, one month? 300 dollars!
For my thinking now, i shall really take note on those little expenses and everyday's spending to cut down and maximise my saving so that i can do investment on those assests that i am able to generate cashflow. Housing is my 1st target for the next few years. (Remember my P gangs ^^)
SAVE WISELY, SPEND WISELY
