Cents Wise Dollar Foolish

Who can we really rely on?

2011-11-04T02:48:00.000-07:00

My thought for the day. When things are bright, your shadow will be standing behind you big and clear. But when things are dark, even your own shadow does into hiding.

So at end of day, who can you really depend on? Be good to yourself.

Be wi$e.

I had signed up, again!

2011-06-28T01:54:00.001-07:00

I am pleased to update that I had registered, again for this year's Standard Chartered Marathon on-line at 10.58am. This will be my 6th marathon, provided I do complete.

This year's theme is "Run For A Reason". My? I am running for my dearest wife and precious daughter, as a demonstration of my strong commitment & discipline to them as husband and father.

So do cheer me on!

I have a dream!

2010-12-02T00:24:00.000-08:00

My wife has a dream. She wished to pursue a accounting degree certificate in ACCA, because she knew she has the capability to do so. She also wished to put on a mortar boar

d and be the first in her family to do so. What she did not expect is the many challenges that came up along the way.

The very first challenge was having to work and study part time. She did not come from a wealthy family, so she does not have the luxury to study full time. The demands from her work was over whelming and she need to balance heavy work load requiring urgent attention, so she can only study during weekends and attend selected classes. Unfortunately some of her papers required students to devout much time to study, practise. As such, she need to retake some of the papers along the way.

The second challenge was to balance family time. While she was coming to level 3 of her papers, we met and married. She wanted to be a good wife, so she unselfishly stop for few years so as spend more time with me. For this I am forever grateful to her. She then continued until the next challenge.

The third challenge was preparing arrival of our daughter. As we are first time parent, we were very excited and she being a responsible mother, decided to hold her pursue again, so that she can give her best attention, from pregnancy till our gal was about 2 years old. She then continued again as our gal grown up to be obedient and even help my wife with simple housework!

Despite all the challenges and continuous changes to Accounting Standards, my wife pressed on, study hard and finally passed her exam during Jun 2010! She recently attended graduation ceremony on 27th Nov. She was very happy and proud and we were all there to congratulate her too.

The steps leading to the stage was a short one (5 steps), but it took one great determination, conviction, perseverance to reach one's goal.

To my wife, I like to say I am proud of you!

GE RUN 2010

2010-11-08T01:46:00.001-08:00

In one of my earlier post, I paid compliment to my wife for completing her ACCA Exam. Recently she outdone herself again, by completing in the GE Run, held on 31 Oct 2010.

Like me, she has make the GE run a yearly ritual. Usually she will run with her very close cousin and hope in few years time, to run with our precious daughter. What make this year's achievement so remarkable :

1) My wife was feeling unwell weeks before the run, so it affected her training significantly. In fact she only managed to do some quick training 1 week before the run.

2) The day before the run we took our very first family overseas holiday at Batam. The challenge is that to take care of our girl since this being her first overseas trip too. So we were kept tired from packing, taking care of her during trip and unpacking. In fact, my wife only managed to sleep around 1am!

3) She managed to run 90% of her race! Even more outstanding, she completed the run around 30 minutes! This is no mean feat, as I know many young soldiers struggle to run 5 km within 30 mins!

To my loving wife, I salute you!

Zen When You Drive

2010-10-25T03:46:00.003-07:00

Over the weekend, a good buddy of mine sms me, about a terrible accident. It involves a Subaru STI slammed into expressway flyover wall. Fortunately the driver and passenger were not seriously injured. Perhaps they were just very lucky.

Friends who know me and traveled in my car know that I drive with Zen. I rarely horn at others nor do I raise my temper that easily. Driving in Singapore road can be very challenging, as people are already stress with life, plus there is a "I am first" attitude. Therefore it is very common to see many unsafe drivers making dangerous moves, switching lanes without indication. I had on countless occasions witnessed such reckless driving and endanger myself.

I could have choose to react angrily like most of us. However I choose and force myself to remain calm, as I remind myself that I am also holding on to a weapon, as I could have also injured or kill others/myself if I choose to let anger get over my head.

It is not easy to remain calm. At that moment, I tell myself I am not being weak not to react strongly, but I am actually being stronger in my mind so that at end of day I know I am responsible to my loved ones to make it home safely.

Be zen when you drive, be wi$e.

Steve Jobs' 2005 Stanford Commencement Address

2010-10-19T02:55:00.000-07:00

I was away from office attending a 2-days course on encouraging the heart. It is a course on how to motivate staff. It was a interesting course and learned some ideas from colleagues from other division.

What I remember and felt most impact was a video clip shown by the facilitator(Ms Jean Ang from PACE who did a great job) about a speech by Steve Jobs. It is a pretty long video but it is a very good speech, which is very inspiring and meaningful.

http://www.youtube.com/watch?v=UF8uR6Z6KLc

I hope it will make a positive change on you too. Enjoy!

Be wi$e.

Where to buy cheapest electrical appliances?

2010-10-11T02:22:00.000-07:00

On 2nd Oct 2010, 2 days before celebrating our 7th year of marriage, my wife told me a bad news. Our trusty Samsung washing machine somehow begin to behave weirdly. The panel refuses to respond to my wife's command. After hours of trying we raised our white flag.

So our options, either repair or get new one. After deliberation, repair is not a wise option. Our quick check noted repair cost would be around $200, which does not make economical sense since it cost almost like a new machine. Further life span at the most extend by few years only. So we did quick research and decided on model. Question is where to find best deal.

We checked Courts, Audio House, Harvey Norman (who all proclaimed lowest cost). We checked website and followed up with phone call. Fortunately we also used to buy from this shop located at Alexandra Village, and was glad that it offers the lowest price compare to the big boys. Therefore we buy from them again (as we did for our old washing machine and TV). The delivery was on time and no problem faced. In fact my wife likes the washing machine very much. The contact as follows:

Hong Liang Electrical Enterprise

123 Bukit Merah Lane 1 #01-70 ALEXANDRA VILLAGE, 150123, Singapore

p: 62736109,62783331 f: 62732269

Lesson learned is that always compare and don't be taken in by advertisement. Checking is very easy, using internet and phone calls. So really no excuses for you, unless you choose to profit them.

Be wi$e.

Keep Healthy

2010-09-29T21:27:00.000-07:00

Last evening together with my wife and fellow colleagues, we paid a visit to a ex-colleagues who we were informed unwell.

About 3 years ago, she left the company due to health reason and been resting at home. She was still chubby then and can move around easily. However, when I entered her house last evening, I was shocked to see her wheel chair bound, and she can't hardly talk, only able whisper softly and need to use those alpha board to point letter to "talk" w us. She was on feeding tube previously, good news now she can start drink milk and fluid. She slim down a lot......

Fortunately her family is very united, she been under lots of care. She has a excellent maid who is well trained and her brother is also taking care of her full time.

Although physically she deteriorated since I last visit about 1 to 2 years ago, the good thing is that mentally she is ok and can smile and laugh with us. She is much stronger than we are.

When we bid farewell, many thoughts went through my mind.

Firstly - reinforced my motivation & conviction to keep healthy.

Secondly - there is life besides work, work, work.

Thirdly - be contended with life.

Be wi$e.

How Health Insurance Works?

2010-09-26T23:08:00.000-07:00

We all know is important to have medical insurance, but do you really understand how it works? We tend to rely on papers and agents suggesting us buy this and that, but do you really know what medical insurance you buying? Most important of all, does it really cover your risks when you need it most?

How does health insurance work?

Imagine you have a $100,000 heart surgery, which is a covered medical expense under your health insurance plan, and let’s say this health insurance plan has a $1,000 annual deductible, 20% coinsurance after deductible, and $2,000 out-of-pocket limit per year.

What is a Deductible?

Typically, a deductible is the amount of money you must pay each year before your health insurance plan starts to pay for covered medical expenses.

So with a $100,000 heart surgery bill, you are responsible for paying the first $1,000. After this $1,000 deductible is met, the insurance company will pay a percentage of the bill in what is called the coinsurance.

What is Coinsurance?

Typically, coinsurance is a cost-sharing requirement where you are responsible for paying a certain percentage and the insurance company will pay the remaining percentage of the covered medical expenses after your deductible is met.

For a health insurance plan with 20% coinsurance, once the deductible is met, the insurance company will pay 80% of the covered expenses while you pay the remaining 20% until your out-of-pocket limit is reached for the year.

What is Out-of-Pocket Limit?

Typically, the out-of-pocket limit is the maximum amount you will pay out of your own pocket for covered medical expenses in a given year.

For a plan with a $2,000 out-of-pocket limit, you will pay a $1,000 deductible and $1,000 coinsurance while the insurance company covers the remaining $98,000 of the heart surgery bill. Even if you are hospitalized again in the same year, the insurance company will pay 100% of your covered expenses.

Here's one more concept... Some health insurance plans offer co-payment.

What is Co-payment?

Typically, a co-payment or co-pay is a specific flat fee you pay for each medical service, such as $30 for an office visit, after which the insurance company often pays the remainder of the covered medical charges. Let’s say you are not feeling well and went to see your doctor who charges $200 for the office visit. If your insurance plan has an office visit co-payment of $30, then you will only be responsible for the $30 and the insurance company will cover the remaining $170.

Hope above info is useful for you. Be wi$e.

Land Swap with Malaysia

2010-09-20T23:12:00.000-07:00

SINGAPORE and Malaysia yesterday sealed a landmark land swop deal to settle the issue of Malayan railway land in Singapore, which has long dogged bilateral ties. The swop involves three plots of railway land in Tanjong Pagar, Kranji and Woodlands, and another three in Bukit Timah.

For a graphic illustration of the swop, please see picture above.

The key question in many minds is that is it a fair deal for Singapore? Well guess is a question that can only be answered in the future. Some interesting (and very idiot) questions I have :

1) Do I need passport to enter "M'sia's" Land?

2) If I dine or shop there, do I pay in ringgit or SGD?

3) Can police catch me if I litter there?

4) Can we display Singapore flag or fire works in the land parcel during National Day?

5) Lastly most important question, would Mas Selamat be kept there too?

Be wi$e.

Running Half Marathon - My Mountain

2010-09-12T23:48:00.000-07:00

I am very proud and happy to declared that I had completed my 5th half marathon on 12 Sep 2010 in the SBR & AHM 2010! It is by no means small feat, especially this is my very first time running as a veteran, or they very nicely call it "Master".

Due to experiences gained and being determined, I was better prepared and trained this time round, hence I was able to maintain my pace and strategy. In fact I was able to overtake many young soldiers during the last 5KM. Interesting to note some of them were commandos, guards, armour etc. So I must be not that bad after all.

However to be fair, I also met many senior citizens who are more fit than I am. They were able to maintain constant pace and some even over took me, I salute them!

I did observed that over the years I met lesser old friends in such race. Hope all my friends are doing well too.

Having said that, reasons why I ran are not to "win" others, but to keep winning. I ran :

1) to push myself to stay fit. As long as my body permits, I intend run one marathon every year. So far I had done 4 full marathons. Next one coming up 5 Dec 2010.

2) to remind myself to be disciplined, not only in health but in all matters I believed in.

3) to gain a bit of pride and challenge for myself & my loved onces, especially my wife and daughter. The tougher it is, the sweeter the success.

4) to be like 20's when I am already past 40's.

5) to be ready to run with my gal when she starts her first long distance race.

My friends did advised me that it is a boring sport and is punishing to the body. Well, my reply is that it is better watching TV whole day. Our body like our mind, need to exercise so as to keep fit. Marathon to me is a means to what I believe in. It is a mountain that I climb every year, to feel good and enjoy when I reach the summit. I may switch to cycle and swimming if running is not a option.

What's your mountain? Be wi$e.

Why I Opt Out Elder Shield?

2010-08-26T18:03:00.000-07:00

Last night I had a great time dinner with my ex-classmates. It is always great to catch up and connect.

One of the topics we discussed was about Elder Shield. This is because once you turned 40 years old, you are "AUTOMATICALLY" covered unless you opt out. I was busy then and I did not pay attention, so I was upset my medisave was deducted, fortunately we have 90 days to cancel the plan. My friends asked why I opted out?

Well, let's presume you have basic knowledge of Elder Shield (please see CPF website for more details).

The main reason why I do so is mainly making your money work harder, and making a choice between putting your money in Medisave or ElderShield. Following is a great article from MOH website, with a reader's critic. To be fair, I also included MOH's reply.

MEDISAVE PAYS MORE

First, the chances of your needing ElderShield are small until you reach your 70s.

By then, the Medisave used to pay ElderShield premiums would have grown to about as much as an average ElderShield payout.

The other posibility is you will never make an ElderShield claim. In that case too, Medisave is the best choice.

HIGHER RISK

Second, ElderShield doesn't decrease your financial risk. It increases it.

The reason is simple: If you put your money in ElderShield, you must take it out of Medisave or use cash.

And if you take it out of Medisave, it won't be there should you need it.

Buying ElderShield means you will have extreme disabilities covered. That's good.

But you will have less money for the more common medical bills that can be paid through Medisave.

INSURANCE OR SAVINGS?

Third, it may be incorrect to call ElderShield 'insurance'.

Most insurance pays you a large sum of money when a disaster strikes.

ElderShield pays a small amount.

This makes it more like a savings policy, but an unusual one. You get back your savings only if you make a claim.

But the chances of a successful claim are small.

How small? Just-released data shows that after one year, only 400 people have received ElderShield payouts.

That's 400 out of 740,000 policyholders, which comes to just one out of every 1,850.

The number of claims will increase as the population ages.

But here is the biggest shocker: Even people making a successful claim are unlikely to get back more than their premiums plus interest.

MORE TRANSPARENCY?

Fourth, being an opt-out scheme for all CPF members makes ElderShield a sure-win for insurers NTUC Income and GreatEastern Life.

Should ElderShield meet a higher standard of transparency than other insurance?

For instance, it is useful to know the actuarial estimate of expected payouts over a person's lifetime.

So far, MOH has declined to provide this data.

All about mobility

TO make an ElderShield claim, you must be unable to perform three of six daily activities like mobility, bathing, feeding, getting out of bed, dressing and toileting.

How likely is a successful claim?

The Ministry of Health and the two insurers won't say, but consider this: If you are paralyzed from the waist down and confined to a wheelchair, you would think that would give you one disability, lack of mobility.

Sorry, that's wrong.

Because you can't move around in your wheelchair, you do not lack mobility, according to ElderShield.

You don't qualify for ever one of the three disabilities need for a successful claim. andnbsp; Safer to leave money in Medisave

TO receive an ElderShield payout, the disability must be so severe that many policyholders will not live long enough to collect the maximum payout of $300 per month for five years.

Most will collect payouts for less than three years (36 months).

For payouts of 36 months x $300 per month = $10,800 total payout.

Imagine a woman named Mrs Tan.

She turns 40, does not opt out of ElderShield and chooses a one-time payment of $3,000 for lifetime ElderShield coverage.

If left in Medisave earning 4 per cent per year, $3,000 would have grown to $10,800 - matching her ElderShield payout - by age 72.

Most severe disabilities occur after age 72.

After 72, she will receive more money by simply leaving her money in Medisave, even if she later makes a successful ElderShield claim.

This shows that even when an ElderShield payout occurs, it will likely pay less than simply leaving the money in Medisave earning 4 per cent interest.andnbsp; xxandnbsp;

What you can expect

Investment at age 40

andnbsp;

$3,000 in ElderShield

$3,000 in Medisave

Payout at age 72
Claim	No claim
$10,800	$0
Vs
$10,800	$10,800

Four scenarios for Mrs Tan are she 1) joined or 2) did not join ElderShield. And she is 3) eligible or 4) not eligible to make a claim

Reply From MOH

Reply to the New Paper article "4 reasons to opt out of ElderShield"

1. We thank Mr Larry Haverkamp for his article "4 reasons to opt out of ElderShield" (TNP, 28 Jan 04) and for the opportunity to explain the rationale for Eldershield, a severe disability insurance scheme, to your readers.

2. ElderShield provides Singaporeans basic financial protection to help defray out-of-pocket medical and other expenses in the event of severe disabilities. The payout has been set at a modest rate of $300 per month for a maximum of 60 months so as to keep the premiums affordable, especially for the lower income.andnbsp; It serves the same purpose as other insurance schemes, like car or fire insurance. People purchase them for peace of mind, knowing that they would be protected should the unfortunate happen. At the same time, they hope that they will not be unlucky enough to make a claim.

3. Last year, 500 ElderShield policyholders became severely disabled and made successful claims.andnbsp; 40% were between 40 and 60 years of age. This shows that even younger Singaporeans cannot ignore the risk of severe disabilities, and could benefit from the financial protection which ElderShield provides.

4. The claim number in the first year seems small because Singaporeans aged 70 and above who are more likely to suffer severe disabilities are not covered under ElderShield. They are covered under a separate scheme, the Interim Disability Assistance Programme for the Elderly (IDAPE). As ElderShield will cover existing policyholders for life, the number of ElderShield claims will increase over time as policyholders age. In fact, experience in the developed countries, such as the United Kingdom, shows that 35% of males and 45% of females will be disabled in their lifetime.

5. The two private insurers operating ElderShield were selected through a competitive bidding process to ensure that Singaporeans get the best value for the premiums they pay. In fact, two other private insurance companies who were offered to operate ElderShield on the same terms had declined. The Ministry has done its best to ensure that Singaporeans enjoy competitive ElderShield premiums.andnbsp;

6. The ElderShield operators are subject to supervision and regulation by the Monetary Authority of Singapore like all other insurance companies in Singapore. As Eldershield is a new insurance product in the Singapore market, the Ministry has also put in place a mechanism to review their claim experiences at the end of five years. Premium rebates will be given to the insured should the the claims be lower than projected.andnbsp; We thank you for your feedback and would like to assure your readers that the Ministry will review the Eldershield scheme regularly in order to fulfil its role as a low cost severe disability insurance scheme.

Regards, KAREN TAN (MS) DEPUTY DIRECTOR, CORPORATE COMMUNICATIONS for PERMANENT SECRETARY MINISTRY OF HEALTH

So should you opt in or out? Choose wisely
Be Wi$e.

You Are Stronger Than You Think You Are

2010-08-23T03:25:00.000-07:00

Today is a very joyous and wonderful day for my wife, whom I love and respect a lot.

She is a working mother, having to take care & teach our very smart and active 3 and a half year old gal. On top of that she is also very busy with her profession as she is looking after a big and complicating account for one of the business unit in her company. Working late and not seeing the evening sun is a norm.

13 years ago, she decided to embark on a very tough journey, to work and study part time for ACCA. This requires her to take several papers, and is as tough, if not tougher than degree in Accountancy. Along the way, she has cleared some papers at first try, while others more than once cos' she is too overloaded with work and family commitments.

There are also unplanned "delays". She has to take few years break due to our wedding and also giving birth and taking care our precious princess. So in a way, I delayed her journey by few years. I do my best to support her, giving her encouragement. I remember fondly those evenings where I waited for her after class, usually around 10pm and escort her home. This is the least I could do.

So I was very happy when she told me today around 12pm when ACCA releases results, to our joy, she cleared her very last paper! She is finally graduated!

I am so happy and proud of her! She been wanting this since that long ago! Now we are looking forward to take photos with our loved ones with her wearing graduation suit and mortar hat!

She really earn my respect for her perseverance!

To all my friends, please do not give up. Keep trying. The journey is hard, but victory will be sweeter!

Be Wi$e!

Carpe Diem ~ bit by bit: For The 1st Time

2010-08-17T05:04:00.000-07:00

Carpe Diem ~ bit by bit: For The 1st Time: "Since many days ago, I've been an avid reader of blogs. However, the thought of creating my personal blog never occur to me. It was Hub ..."

Like to share with you my wife's blog!

Sad Day

2010-08-17T04:53:00.000-07:00

When I stepped in office this morning, I received a sad and shocking news that one of my staff passed away while in sleep. He has been with this company for many years and due for retirement soon.

His health has not been in the best condition, yet he still continue to work, to support his family and I reckon also that he want to stay active. It sadden me that he cannot take solid food and he has to feed himself via tube everyday while all of us enjoying our lunch. Although he is a quiet man, he is a very motivated and responsible colleague, get tasks done.

Needless to say, my department was in a sad mood, especially few of them who are closer to him, can't help but breakdown. I suggested them to take leave and rest, but they prefer to carry on, working hard around the empty cubicle and chair.

At moment like this always remind me how fragile life is, and re-examine what is it you want in life? What are those things that matters? I think I do know. I will share more in my other blogs. Do you?

Be Wi$e.

War is stupid!

2010-08-02T00:27:00.000-07:00

Since young, I have been wanting to visit the old ford factory as this was the place where British surrender to Japan and hence began Singapore's arguably darkest period, from 1941 to 1944.

My mother had shared with me many horrible stories, and the humiliation that many Singaporeans went through, many lost their lives. I had also read from many books, movies and nothing beats when I am physically present at the place. The room of shame is still intact, the table and chairs where General Percival signed the surrender documents.

Fortunately Japan did surrender after US drop the deadly bomb. I was glad to witness copy of agreement signed by Japan on surrender to British Gen Mountbattan.

End of day no country win and many lives lost. I hope peace will last forever.

Be WiSe.

Why Instant Water Heater Don't Last Nowadays.

2010-07-27T23:42:00.000-07:00

Recently my wife and myself were hunting around for a instant water heater as our current gas city takes longer to heat up, hence is not water efficient. Like more savy couples, we did research on line, looking for the best heaters around and value for money.

Since our childhood days, we been "educated" that 707 is the most reliable brand and trustworthy, which can last for years. Even our own parents suggested us this brand. However, based on my wife's research, this brand is less reliable nowadays. Rather many postings suggested many other brands, which is nicer in design, and cheaper. The catch is some also commented generally not that lasting.

So that put us back to start point, which one to get?

My wife then suggested we go to IMM to explore, as many shops sell such stuff. Of course they recommend us those which we had researched. We were almost decided to get "Aeragas". Before we called it a day, we bypass a small shop near to level 3 car park exit, so we decided no harm browse around. We were glad that we went in.

We were served by this guy "Steve" who is very helpful and honest. He firstly explained why most instand water heaters (including 707) don't last cos' they had switch to using plastic parts, cylinder to hold water! This is cheaper and due to its narrow shape, the heater are more savy in looks and flatter. He also said usually last 4 to 5 years, which is common feedback in forums. He then show us the only brand left still using copper cylinder "Rega". This is manufactured in UK and been around for years too. However due to its bulky shape and outdated design, it is not well accepted by consumers. However, Steve show us the parts, including thicker wires used compare to other brands. Further it is at $260, which is even lower than many other brands. Steve also explained that 707 used to use copper cylinder, but stop doing so as it is more expensive. So they switch to plastic to compete, at expense of durability.

Of course we decided to go for Rega as it is more value for money in long term. Lesson learned for me is that it still pays to talk to the right people after research from net.

Be wi$e!

Great Dinner!

2009-10-12T20:27:00.000-07:00

Like most couples, especially with kids, having couple time nowadays is a gift. Lots of arrangement need to be made and the guilt feeling leaving child aside. But then again it is important as couples to still make time to spend special moments.

Last night my wife and myself was having a great dinner, at a very nice and expensive Jap food restaurant, celebrating our belated wedding anniversary. We enjoy ourselves, chit chat and share some jokes. The cost of buffet dinner is about $45 per head, so although we can afford it, still is back of my mind, expensive.

While we were having a great time and I was able to pay, guess what. A great friend of mine, my mentor actually, sms me, informing me one of my favourite counter, SPH, has just declared a final dividend of 18cts to be paid in 23 Dec. I did a quick calculation and I would be getting close to $2K passive income, for not doing anything much! And my dinner is more than paid for! Really made my day!

I will talk about more on passive income in my other blogs.

Be Wi$e.

How to Plan (2)?

2009-09-30T02:42:00.001-07:00

Dear reader, if you are still following, I like to congratulate you! This shows your determination to make that change. Earlier I wrote about listing down your assets, next thing is to list down things which are drawing down your money. In another words, is complete reverse of assets. The idea is to keep this list as small as possible, and the objective is to ensure assets > liabilities, meaning your net worth is positive! Whether how much is sufficient is a later topic. But first check whether your net worth value.

So what are common examples?

1. Your house. If you are staying in your house and you need pay loan every month, then technically it is a liability, as it draw down your money. You may argue your house value is increasing, so how can it be liability? Well, if you think about it, you can only unlock the value if you sell it, meaning either you need to fork out loans to get a new house eventually, or you are dead.

2. Debts. This include loan from banks, credit cards (which please avoid!), parents, friends etc.

3. Car. No question about this, especially in Singapore.

4. Insurance premiums. As per house, it is drawing down your money every month.

5. Expenses, including your misc like eating out, transport, clothing, holiday.

Be Wi$e.

How to Plan?

2009-09-28T19:07:00.000-07:00

The most important first step on planning your financial matter, is your determination, commitment and motivation to get it going on regularly. My experiences is that it can be very tedious and lots of effort required to be put in, especially on the initial stages. However, once you get the hang of it and with a clear picture of your net worth at any point in time, you will find that all efforts are worthwhile. Another way I motivate myself is that I see myself as a Company, so that I am obligated to prepare financial statements diligently.

Listing down what you own.

Items to be listed are those financial assets which belong to you. The thing to take note that assets here should be items that can earn you active or passive income which can finance your expenses. So your house which you are staying in, your car, jewellery etc should not be included.

Some possible items that you can list down:

Cash at bank account, including savings, fixed deposits.
Stocks & Bonds.
CPF.
Property, if you are renting out and generating income.
Debts owe to you, if any.

Actually most information can be readily available, you can check your latest statements or check on line easily. Simply no excuse to say "I don't know".

Be Wi$e.

Why no planning is not wise?

2009-09-23T00:17:00.000-07:00

My favourite quote from Alice In Wonderland.

Alice: Would you tell me, please, which way I ought to go from here?
The Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cat: Then it doesn't much matter which way you go.
Alice: …so long as I get somewhere.
The Cat: Oh, you're sure to do that, if only you walk long enough.

As you can see, it is very important that whatever we do in life, we need to be clear what we want to achieve. Else, without this beacon light, it will be too late when we reach the end of road.

Many friends I know still fail to understand this. When I ask them what they want to achieve in financial freedom, most of them simply reply : "I want to be rich!". But rich is relative terms, $10 to you might be no big deal but is one week expense for others.

Wise tips

I strongly urge all to plan what you hope to achieve in your journey to financial freedom. You need to really know what you have, in terms of your assets and liabilities. From both, you will then know how much is your net worth now. Then you can have a clearer idea how to protect and grow your net worth.

The initial steps to list down your assets and liabilities can be a tedious process, and likewise updating every month. But believe me, once you get the hang, is easy as breeze. I have been preparing my own Balance Sheet and Cash Flow Statement since I started work in Jun 1994.

Some possible objectives:

1) I want to have $2,000 money to spent every month after I retire till expectant age

2) I want to finance for a house / car while saving $500 every month

3) I want to achieve 5% return every year on my investment till retirement age

Be Wi$e.

Latest Saving Rate Table

2009-09-15T03:22:00.000-07:00

One of my very wise friend had taken the trouble to tabulate and publish the latest saving rate. Please see his blog http://singapore-savings-account-rates.blogspot.com/ for more details.

For your easy reference, published below in full.

List of Best Savings Account Rates :

Best Savings Account | Savings Account Rate | Savings Amount Required

CIMB StarSaver account rate = 1.2% for monthly savings amount of S$500 and more

OCBC Monthly Savings Account savings account rate = 1.08% for monthly savings sums above $800-$5000

UOB i-Account savings account rate = 0.80% on fresh funds

Maybank iSavvy savings account rate = 0.75% p.a. for $50,000 and above

Fairprice Plus savings account rate = 0.60% pa for S$50,001 to S$500,000

RBS Millennium Account savings account rate = 0.55% pa for sums above $500,000

State Bank of India savings special account rate = 0.50% pa for sums above $1000

Be Wi$e.

Why Saving is not wise?

2009-09-14T03:27:00.001-07:00

As shocking as you can see from the picture, yes savings is not really the wise way to manage your finances. Since young, we have been taught the importance of savings (remember POSB squirrel program?), which is true to a certain degree. However the problem is habit dies hard, so till date, I still have many friends, including my parents, still thought saving is best.

Why savings is not wise?

1) We are losing money everyday!

The bank is paying miserable less than 1% while the inflation is easily 3 to 5%, so everyday, our money is shrinking by at least 2%. What it means that $1 today in saving banks will buy lesser things in future! So if you think you are happy receiving that interest amount every month or year end, there is nothing to congratulate yourself actually.

2) We are working for the banks!

Banks are paying us less than 1% while it charges its customers around 5% or more! By a simple act, they make 500% returns using our money! So instead of bank working hard for you, (if you still believe those nice banks advertisement), the reality is you are working hard for them. If loan defaults, they can go after their assest, else, our savings is not guaranteed actually (less till Dec 2010 in view of current crisis. Actually Hong Kong started, so Spore must follow, else huge capital outflow).

So how to become wiser?

Maintain only a float fund or amount which you usually spent before next salary. Suspose you spend about $2,000 cash per month, you just need to maintain that amount or slightly more so that you can easily withdraw from ATM, when the need arises.

Be Wi$e!

Are we financially wise or foolish?

2009-09-11T02:04:00.000-07:00

In our society, we have been educated and trained well, be it academically or skill sets. I must agree that we have a pretty good education system, which gives everyone equal opportunity, and if one is capable, he or she will be given more opportunities to excel.

However, one very critical aspect, which is very lacking still, is finanical knowledge. I am not referring to accounting or financial ratios, NPV etc. People tend to mistake that knowing all these will help in their survival skills, especially in their profession. Sadly this is not.

The only source of knowledge we gained are through informal sources, like media, advertisements etc which can be bias and untrue. Open the papers or radio and one keeping seeing banks "encouraging" people to take up credit card loans, cash line etc. We also assume that big banks which sell unit trusts, minibonds are really the best investment tools. How silly we are.

I have asked myself the title question, and I admit I was very foolish then. Not that I am in huge debt or lost money, in fact, I never took up any huge debt, less my home and car loan and I dont' speculate in market. But I could have been smarter in handling my own finanical matters. I am fortunate that I have good friends who open my mind, and I been reading up the right materials, which guide me with better wisdom in my journey to finanical freedom.

I will talk more on some of the foolish mistakes I made.

Be Wi$e.

What is this blog about?

2009-09-07T03:56:00.000-07:00

One of the sad thing that is happening still is the lack of adequte financial knowledge. Since young, I have been "educated" by insurance agents, media which tend to be bias. As such many painful lessons learnt along the way.

Fortunately I have the blessing of good friends who show me the light, and providing me the more correct and independent source of information, helping me along the way, on my journey to finanical freedom.

Therefore I decided that to also share with you on precious lessons I learn, so as to avoid the same mistakes that I made by being cents wise dollar foolish.

I will post more blogs along the way.