Rising standard of living and you.
Our standard of living has gone up so high that life has been very competitive. More and more people are talking about high paying jobs, bigger cars, long vacations, 5- star hotels, diamond rings, exquisite dining and many other luxuries. However, what people had failed to talk is how much their income has rose. Does it tally with the high inflation rate and high standard of living? Are they having too many debts?
With debt easily bought by people, there are bound to be many problems. People will start paying debt and not saving money. I have seen people whose debts are more than 50% of their income. . I also met people that do not have savings and have two kids that are growing. Still, they still want buy more debts. In Singapore, one of the many reasons why people cannot get rich is because most people are stuck with debts that are more than 50% of their income. . All this financial problems are very common, and these are the setbacks that you have that will hinder you from achieving your financial goals
The common luxury that many people in Singapore buy is car loans. Almost all Singaporean wants to own a car. Well, the car dealers are not helping either; they come up with attractive ways for consumer to buy debts. With as low as $1, you can drive a car home in Singapore.
I am not saying that you cannot buy a car, dream of luxuries and increase your asset. What I want to tell you is that you must not forget the reason why you are working and why must you avoid having too much debts
Personally, I save 40% of my income without fail. It is not an easy task but I just have to do it. What I did was that I have a budgeting plan that is realistic and I track whatever that I buy. It took my 8 months to perfect my budgeting skills and spending pattern but it was all worth it.
I am not suggesting that you must have the same saving habits as mine. However, financial experts suggest that 10% of your income should be saved. Anything less than that, you are gone. It is better to start small than just planning for the day that you will start saving. If you have dreams of having your financial freedom day, you must start with saving your money. Saving money is your key to your financial freedom.
With debt easily bought by people, there are bound to be many problems. People will start paying debt and not saving money. I have seen people whose debts are more than 50% of their income. . I also met people that do not have savings and have two kids that are growing. Still, they still want buy more debts. In Singapore, one of the many reasons why people cannot get rich is because most people are stuck with debts that are more than 50% of their income. . All this financial problems are very common, and these are the setbacks that you have that will hinder you from achieving your financial goals
The common luxury that many people in Singapore buy is car loans. Almost all Singaporean wants to own a car. Well, the car dealers are not helping either; they come up with attractive ways for consumer to buy debts. With as low as $1, you can drive a car home in Singapore.
I am not saying that you cannot buy a car, dream of luxuries and increase your asset. What I want to tell you is that you must not forget the reason why you are working and why must you avoid having too much debts
Personally, I save 40% of my income without fail. It is not an easy task but I just have to do it. What I did was that I have a budgeting plan that is realistic and I track whatever that I buy. It took my 8 months to perfect my budgeting skills and spending pattern but it was all worth it.
I am not suggesting that you must have the same saving habits as mine. However, financial experts suggest that 10% of your income should be saved. Anything less than that, you are gone. It is better to start small than just planning for the day that you will start saving. If you have dreams of having your financial freedom day, you must start with saving your money. Saving money is your key to your financial freedom.
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