household income

[MMM]

kaitlynangelica:

In fact, that sum of money will deplete very fast ( maybe in 3 years ) time if one no longer has a source of income.


Just sharing my views...........

Was having this conversation with hubby on what would we do if we strike S$10Million angpow draw? We were like 10 million is x number of years salary and it will probably be depleted before we are old?

So I told him that, if he strike $10MM, let's continue to work. But at that point, we are working not because of money but it is to pass time and interest, so it's less stressful. Well... better still get a retrenchment package closer to retirement age, then we can really enjoy life after that. Haha... we are just dreaming. I didn't buy those ang pow draw. Cannot even strike $60 how to strike $10MM???

[mintcc]

kaitlynangelica:

For those ppl that I have seen in the course of my work, their liquid cash savings actually far exceeds that amount and I am thinking, my gosh, when can I get there?

you mean liquid cash as in cash excluding $$ in insurance(cash value), Funds, stock etc?

Actually if it is the combine savings for two including investing instruments then may be it is not be so far from a decent target for mid or late 30s people. Assumming the sum is the combine savings for retirement and kids education.

[skunk]

ks2me:

Don't mislead la, skunk, you are probably shrewd with your financial management, so to do what you are doing is possible for you only.

I'm not saying not to save....but not to save excessively. 6 months to 1 year of combined income is enough. Money invested in a better property, insurance, music/martial arts/swimming/art classes for the children, a family holiday for everyone to bond, more nutririous food on the table, all these I rather than just keep it in the bank. That's what i mean by good spending I see little value in money in the bank.

[skunk]

kaitlynangelica:

Skunk,

I don't agree with this. Why should more savings lead a perspon to become arrogant?

U don't have to agree. I've seen with my own eyes how money changes people. Take everything away from someone, see him crumble. Give him $100M and see him crown himself God.

Once again, I'm not saying don't save....savings are good, but not excessively. Spending wisely is wiser than saving wisely hehe.

[Funz]

For us, we maintain a min liquid or semi liquid savings equivalent to about 6 months expenses.


Liquid savings will be equivalent to about 2-3 months’ expenses. The rest will be in semi liquid form. My definition of semi-liquid are those that are invested but can be taken out with short notice and does not incur capital loss in the process. Like those in fix or term deposit or endowments.

We do not believe in leaving money to idle in the bank.

After I left the corporate world, I realise that I was a bit like the frog in the well. I was working in MNCs all the time and naturally, most of my peers are in similar jobs and have similar earning capacity. So I thought that is the average. Only after leaving the corporate world did I get to see other spectrums and realise that that is not the norm.

[Funz]

own biz.

[Busymom]

So if one has excess cash, what is the best investment to put that excess cash? :?


Property (when prices seem to have gone crazy) or stocks?

[nettie]

do our homework and invest in Stocks-Blue chips or property.


I heard this on the CNN...

When pple are buying, we dun buy and we should be scare. When everybody is selling, please buy more.

[Andaiz]

nettie:

do our homework and invest in Stocks-Blue chips or property.


I heard this on the CNN...

When pple are buying, we dun buy and we should be scare. When everybody is selling, please buy more.

Good advice, nettie....but when people start selling, sometimes too scared to buy too...coz can go lower! :roll:

Herd instinct mah...easier said than done but we sometimes need that internal clock, plus discipline and insight to see what is a \"fair price\" coz you definitely win some and lose some! :xedfingers: win more than lose

[KSP]

The concept of investment can be easily obtained by just buying some top investment guru books ~$20-$100 or by attending their talks which can be a few Ks.


But the most important is how to control our emotional during the investment process or during the up and down cycles. There are always this greed and fear that lead us to make mistakes in investment.

If everyone can be follow what the gurus say, then there will be no low and middle income groups.