Many Singaporeans are savers and save quite alot, maybe it is because we have been nagged by our parents to save, our government reminds us to save, one of the spouse must be a saver too if the other is a spender. But the BIG question is where do you save your money?
After saving at least 6 months of your monthly expenses, generally speaking, some may prefer more, some prefer less…. what do you do with the rest of your savings?
Many Singaporeans will most likely put their money in the banks but few will think about it after leaving it in the bank until the next major family holiday. After the holiday trip, the bank account will shrink to a low level again…and we wonder where is our savings? How come we just can’t save enough for our retirement?
The answer is pretty straight forward, what you can touch, will disappear readily. How to prevent this?
An example would be our CPF savings. Many of us would have the money in our CPF Ordinary Account to put a down payment for our first HDB flat during our late 20s. Why? Because we cannot withdraw it at will…plus it earns interest up to 5% p.a.
Now if we can save our money in another financial institution, earn up to 4% p.a. instead of the miserable 0.125% p.a. in a bank savings account plus cannot touch the money so easily, do you think you will be able to save for your future? What you set aside now and grow at a faster pace will definitely help you to save faster and more for your future.
Remember this, you will have to stop work one day whether you like it or not. The best part is that you can call it quits anytime when you have accumulated your wealth. You can sack your boss, not the other way! How about that?
Many people grumble and can’t leave their jobs that they hate simply because they have not accumulated their wealth yet. They can leave for another company but that cannot guarantee that the new job will be smooth sailing…As we age, we will not be able to compete with our younger colleagues plus they receive a lower salary than we seniors.
Now do you see the importance of wealth accumulation?
Contact me at 90011082 for a non obligatory discussion on how you can accumulate wealth without taking unnecessary risks or see your trusted indepedent financial adviser rep.