I bet most people bemoan not having enough money. Few people are
ever in a position in which they claim that they have more than enough
money and wouldn’t want more. That’s why so many of us want to invest.
And indeed, investing will help to grow your wealth. Money that is
invested is money which is working for you 24 hours a day, 7 days a
In contrast, debts, whether from credit cards, car loans,
renovations loans are all draining money from you constantly. Before you
even start investing, clear your short terms debts first. And
sometimes, the best way is to not even incur them in the first place, so
very often, it’s the money that you didn’t spend that will form the
base capital for your investments.
We live in a materialistic society and it is almost impossible to
keep away from spending. The key is moderation, and to be aware of your
expenses so that you don’t spend more than what you can afford. In
today’s world, where credit cards are readily available, and where there
are many purchases which allow for installment repayments, awareness of
how much you are spending is very important.
Furniture, and electronic items which allow 12 months or even 24
months repayment periods should not be seen in terms of their monthly
cost. In the end, the total cost is what you will eventually pay, even
if you get to pay that over 12 months instead of straight away. If a
person couldn’t save up that money to pay it off right away to begin
with, he may not be able to adjust his spending downwards in the
subsequent 12 months for it either.
A car is one of the biggest-ticket items that you can spend your
money on. So, be very careful when you are thinking of buying a car.
It’s not just the upfront cash you may have to fork out, or even the
monthly car installment payments, which are substantial. There is also
petrol, parking fees, maintenance, road tax, ERP, car insurance, to name
the most common costs. All these could easily add up to a few hundred
dollars as well depending on the type of car you purchase. Personally, I
believe I have managed to save a substantial amount of money simply
because I did not buy a car the minute I started working. I still take
the MRT to work and back every day.
Especially at the initial stage of building up your wealth, saving
is very important. So, be aware of the big ticket items. Be it an
extravagant wedding, expensive furniture, electronics, a car, sometimes,
it’s the money you didn’t spend that will be key.