As long as you're not building wealth, you're going to struggle.
The purpose of work must be to add value to something that you own. If you draw a salary, all you're doing is helping someone else get rich.
I actually wrote a fairly lengthy reply to the same effect before deleting it, because what the TS is in fact talking about is the erosion of his present standard of living from doing what he's always been doing.
And we all know that implementation of action to ensure future financial well-being, not just for TS but for most salaried workers, will necessarily require a further curtailment of present living habits. And that isn't quite the idea of the original post.
But it is absolutely true. Think of the blood, sweat and tears you all put into your salaried jobs. And then think about who the ultimate beneficiaries are. The decide whether you're happy with the status quo.
I actually wrote a fairly lengthy reply to the same effect before deleting it, because what the TS is in fact talking about is the erosion of his present standard of living from doing what he's always been doing.
As long as you're salaried, it's like running a tread mill with someone constantly cranking up the speed. You run faster and faster just to stay in the same spot.
The 80s and 90s were no different although everyone likes to refer to the good old days as being far better than the present.
I spent 12 years working for someone else and had nothing to show for it at the end except some meagre savings.
I decided to create my own little enterprise and retired 7 years later... not a multimillionaire but comfortable enough to not have to worry about money anymore.
__________________ Tips for ALL samsters.
Keep your identity secret.
Do not divulge personal information eg phone numbers, real names & addresses.
If you do arrange social meetings through this site, do NOT reveal your primary sammyboy nick.
As long as you're not building wealth, you're going to struggle.
The purpose of work must be to add value to something that you own. If you draw a salary, all you're doing is helping someone else get rich.
Boss,
I read your retirement thread before. Am reading it again as a refresher. I agree with its contents and advices.
Like you advocated, I do not work to enrich anyone but myself. This is why I can talk cock at this time of the day. LoL. The difficulty which is not explicit (or I didn't read far enough) is transiting to the asset class. A simple coffee shop costs $15m. Residential homes are cheaper at $1m a pop.
I just can't get over the idea of debt. Some dare take out 4 or 5 loans. I shudder at the thought of what banks will do when there is a negative equity.
Ironically, I like the CPF, and think it should be a major retirement tool. Just plonk in more than the MS. A lot more. No one can touch our RA. Not creditors, not children, sometimes not even ourselves. Managed by a triple A financially rated govt. Why not?
But my worry, if any is not retirement. Its the journey to retirement.
Like you advocated, I do not work to enrich anyone but myself. This is why I can talk cock at this time of the day. LoL. The difficulty which is not explicit (or I didn't read far enough) is transiting to the asset class. A simple coffee shop costs $15m. Residential homes are cheaper at $1m a pop.
I just can't get over the idea of debt. Some dare take out 4 or 5 loans. I shudder at the thought of what banks will do when there is a negative equity
But you are enriching someone else. It is a fact and it doesn't matter how you feel about it.
Bring indebted from property investment is now a moot point for most salaried employees. Loan restrictions presently lock almost everyone out of property as an investment class.
There are so many other ways to invest your excess cash, if any, and your time.
I avoided debt by starting out providing a service which was not capital intensive and which I could do from home viz instant name cards. I grew it from there without having to take on massive debt.
Quote:
Originally Posted by MoJoe313
Boss,
I read your retirement thread before. Am reading it again as a refresher. I agree with its contents and advices.
Like you advocated, I do not work to enrich anyone but myself. This is why I can talk cock at this time of the day. LoL. The difficulty which is not explicit (or I didn't read far enough) is transiting to the asset class. A simple coffee shop costs $15m. Residential homes are cheaper at $1m a pop.
I just can't get over the idea of debt. Some dare take out 4 or 5 loans. I shudder at the thought of what banks will do when there is a negative equity.
Ironically, I like the CPF, and think it should be a major retirement tool. Just plonk in more than the MS. A lot more. No one can touch our RA. Not creditors, not children, sometimes not even ourselves. Managed by a triple A financially rated govt. Why not?
But my worry, if any is not retirement. Its the journey to retirement.
__________________ Tips for ALL samsters.
Keep your identity secret.
Do not divulge personal information eg phone numbers, real names & addresses.
If you do arrange social meetings through this site, do NOT reveal your primary sammyboy nick.
I avoided debt by starting out providing a service which was not capital intensive and which I could do from home viz instant name cards. I grew it from there without having to take on massive debt.
But boss, businesses don't last. Unless you own a bank. Assets do. I think you mean slowly accumulating money to own an asset? It can be a painfully long process...
But you are enriching someone else. It is a fact and it doesn't matter how you feel about it.
Bring indebted from property investment is now a moot point for most salaried employees. Loan restrictions presently lock almost everyone out of property as an investment class.
There are so many other ways to invest your excess cash, if any, and your time.
How am I enriching someone else when I am not a salaried worker?
But boss, businesses don't last. Unless you own a bank. Assets do. I think you mean slowly accumulating money to own an asset? It can be a painfully long process...
Businesses have value which have nothing to do with physical assets. Businesses don't last that's why you have to work hard and then cash out.
My first business was sold for $50,000. The value was based on the balance sheet and future earning potential. The assets of the business were only worth $5000 which consisted of a 2 laser printers and a computer which had already been almost fully depreciated.
The 2nd business, a web and graphic design company was sold for close to $500,000 dollars. Again the physical assets were not worth much.
I then put $200,000 into a computer peripheral start up with 4 other investors. When it went public we managed a 10x return on investment.
All this was over a period of less than 7 years and it earned me far more than slogging away for 12 years for someone else.
__________________ Tips for ALL samsters.
Keep your identity secret.
Do not divulge personal information eg phone numbers, real names & addresses.
If you do arrange social meetings through this site, do NOT reveal your primary sammyboy nick.
Bro,
I like that your wife is not helping sk2/lancome/loreal grow their empires. Mine is really compassionate. She helps Channel too. And clothes. Its like OMG. With the number she has. She can go 3 years without repeating her clothes. Quarrelled over this too many times. Gave up. She wins. I just have 5 shirts, 3 pants and 1 shoe. We too grew up poor. She is over compensating for what she didn't have. I just accepted it.
You are probably right in that I didn't plan for increased dependents. How is one to react when my parents just showed up at my place broke and homeless. I just couldn't turn them away. The number of kids are also unexpected. So suddenly from a carefree single life, I found myself straddled with a huge family. It does get overwhelming at times. Because of my experience with poverty, I can take pain. But sometimes, it does get to you. That day I started this thread was one such rare day.
So in part, the heavy costs are a result of my decisions. But after numerous cost reviewing exercises, one can't deny it used to be easier for the middle class just years ago. I hope we are still called the Middle Class. It is not as though I cannot survive. But there is not much joy if one has to thrift all the time. It is hardly called Middle Class.
I can understand inflation. It is hyper inflation I can't deal with. QE and low interest rates take the cake. Bad policies increased the Gini coefficient.
1. Auctioning shopping malls land plots to developers directly, put certain essential goods at the mercy of capitalists. Owners try to meet their ROI by increasing rents. NTUC finest, Cold Storage etc pass down the cost to consumers. The game continues next year. Populate this format throughout the country, and this is why we are in this mess. There are fewer low cost wet market landlords to be found. Tell me, when was the last time you found Aeroplane chess, a game we used to play, for sale. It is not as though our kids want higher end toys. Low end toys just can't be found!
Same for food at food courts. The G realized this error by building 2 hawker centres. It recently decided to ramp up to 12. It showed the seriousness of it.
2. I am using the above as one of many policy errors I see happening. Don't want to mention others less I be interpreted as being politically partisan. I am not.
I wonder if we as a country are really richer when all we are trying to do is to purchase the same basket of goods.
It is a known phenomenon that our Gini is one of the highest in the world. There is a diminishing middle class. It is either super rich or poor. You may still be comfortable now. When this trend (or policy) continues, you just get pushed down the ladder one day. Unless you belong to the asset class, not the working man class. Good luck to us all.
You don't have any neighbourhood shops around you? I recently bought those Styrofoam airplanes/birds for my older child. Total cost $3... In return for hours of fun.
There is still a middle class. But, you are middle class, living like a upper class. Of course you cannot turn your parents away. I also wouldn't do that. But does it cost that much to feed them?
How much money are u giving your kids for pocket money? Have you considered cutting that down? Ask them cut down on other spending?
The middle class lifestyle is available in Singapore... If my siblings can live a comfy lifestyle on a fraction of what you have (their kids older than mine)... I find it hard to believe you cannot.
__________________
Thanks for the memories to the OG D1 OKTs who provide good service.
You don't have any neighbourhood shops around you? I recently bought those Styrofoam airplanes/birds for my older child. Total cost $3... In return for hours of fun.
There is still a middle class. But, you are middle class, living like a upper class. Of course you cannot turn your parents away. I also wouldn't do that. But does it cost that much to feed them?
How much money are u giving your kids for pocket money? Have you considered cutting that down? Ask them cut down on other spending?
The middle class lifestyle is available in Singapore... If my siblings can live a comfy lifestyle on a fraction of what you have (their kids older than mine)... I find it hard to believe you cannot.
Don't see how I am living like an upper class when I have only 5 shirts and my only extravagance is enrichment classes for my kids. Nonetheless, an enriching discourse. I have learnt alot from our exchanges. Thanks bro.
Businesses have value which have nothing to do with physical assets. Businesses don't last that's why you have to work hard and then cash out.
My first business was sold for $50,000. The value was based on the balance sheet and future earning potential. The assets of the business were only worth $5000 which consisted of a 2 laser printers and a computer which had already been almost fully depreciated.
The 2nd business, a web and graphic design company was sold for close to $500,000 dollars. Again the physical assets were not worth much.
I then put $200,000 into a computer peripheral start up with 4 other investors. When it went public we managed a 10x return on investment.
All this was over a period of less than 7 years and it earned me far more than slogging away for 12 years for someone else.
Ah. Smartster. Trading businesses and cashing out. No wonder I am not getting this part of the equation right.
haiya mai di di kao peh cheng hu la. wu eng meh? tik tui tong cho cheng hu ma si sio siang eh la.
bo lui? cho part time la. hun ki mai sio, jiu mai lim, zar bor ma mai pia!
Ah hia,
Hun ki zha zha bo sio liao. Zar bor ah bo piak. Kwai kwai teh chu pak puay ki, kua kia. Bo kao peh, manna si Singapore lang. Wu a lao lang kong wa lang si Champion Grumblers. Wa ba lu tia eee a wei, confirm plus chop nia
27-04-2015, 09:08 AM
