Moderators: alvin, learner, Dennis Ng
star88 wrote:Hi Dennis,
"Save at least 10% to 20% of your income" does this include the Endownment Plan from Insurance or we call it Saving Plan?
star88 wrote:Hi Dennis,
Min $20,000 for UK Endowment plan, min how many years? My insurance endowment is 25 years.
Dennis Ng wrote:Some people thought that Power of Compounding only works for money, over the years, I discovered that this is NOT True.
It took me 15 years to reach my First S$ 1Million, but might just take me 2 years to reach my 2nd. Power of Compounding works, not just in Personal Finance, but in every area of your life. For eg, I read 1 hour each day....however, even though I spend the same time NOW as I do 10 yrs ago, now I learn so much more becos of the compounded knowledge/experience I have. The sooner you start, the earlier Compounding can work for you.
Dennis Ng wrote:With inflation rate in Singapore currently at 5%, it means that if you borrow Housing Loan and interest rate is less than 5%, you're actually paying NEGATIVE interest (or earning by borrowing).
eg. Housing Loan interest rate 3%, Inflation 5%, you actually GAIN 2% by borrowing since your S$1 now is only worth S$0.95 1 year later.
Think about it.
Yet, there are still people who do NOT want to take Housing Loan or minimise Housing Loan when they buy a property in Singapore today.
stanlee wrote:Dennis Ng wrote:With inflation rate in Singapore currently at 5%, it means that if you borrow Housing Loan and interest rate is less than 5%, you're actually paying NEGATIVE interest (or earning by borrowing).
eg. Housing Loan interest rate 3%, Inflation 5%, you actually GAIN 2% by borrowing since your S$1 now is only worth S$0.95 1 year later.
Think about it.
Yet, there are still people who do NOT want to take Housing Loan or minimise Housing Loan when they buy a property in Singapore today.
and we lend bank at interest less than 1% and insurance at 3-5%..sigh no wonder i'm getting poorer and poorer
Dennis Ng wrote:stanlee wrote:Dennis Ng wrote:With inflation rate in Singapore currently at 5%, it means that if you borrow Housing Loan and interest rate is less than 5%, you're actually paying NEGATIVE interest (or earning by borrowing).
eg. Housing Loan interest rate 3%, Inflation 5%, you actually GAIN 2% by borrowing since your S$1 now is only worth S$0.95 1 year later.
Think about it.
Yet, there are still people who do NOT want to take Housing Loan or minimise Housing Loan when they buy a property in Singapore today.
and we lend bank at interest less than 1% and insurance at 3-5%..sigh no wonder i'm getting poorer and poorer
Hi stanlee,
yup, most people are getting poorer and poorer without them realising it.
We need to learn how to grow our money at returns higher than inflation to become Richer.
Last year silver price was US$17, now US$34, whoever who bought silver then has not made 100% and which is definitely more than enough to beat the inflation in the last year itself.
With global competition, do NOT hope salary to increase, unlikely to happen, the way to reach Financial Freedom is learn to grow your money, this is how I reached Financial Freedom when I was aged 39 (3 years ago), not through earning a high income.
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