Nikon D300s, 50mm, 18-105mm, Sigma 30mm F1.4, Sigma 50-150mm F2.8, Samyang 8mm F3.5
Sometimes we loose sometimes we win and sometimes we have to compromise.
We are firm when we hang the.... and we are flexible enough to pay respect when we were there.
This is what survival all about.
Just want to know why do you feel SMALL
But i think spending within your mean maybe one of the solution.
I know of a Middle-income earner who save more than 50% of his monthly salary.
It is the life style that you choose and it decides your spending pattern/habit. if you want 'quality' than you got to spend 'quality' money including contributing to GST.
U can have a meal for $6 including drink and also having a meal at $500/person.
I cut my hair at a shop at $10 or I can choose to give it to David Gan at $2000/hour.
This may work:
Earn 'middle' income and spend at 'Lower' income. But but but..... it may not be good for the economy.
What I meant was that the CPF, while intent is good, the execution isn't. Before, flats can be seen as an asset, but since the asian financial crisis, it seems more a liability rather. coupled with the increasing minimum sum, what is the actual value one gets in return for the monthly "contributions" of 45 years of work (assuming working form 20 - 65 years).
But at least we still have the CPF locked and secured earning interest above the market rate. Many have none. Many also have negative ?????
Inflation, higher cost of living etc are artifically created by man. Man created the problem, man must learn to solve the problem.
Everybody tells everybody that he spent e.g. $50,000 renovating his flat(He actually spent $10,000). Eventually $50,000 becomes a norm. Who is winner? The renovation contractor. Who is the suckers? We.. We we We create the inflation!!!
I was told that renovation contractor made 100% profit(correct me if I am wrong), if not they will not do the job..
When in Australia, we tell the people there.. your product is cheap cheap and cheap! So I increase to add value to my goods. So cost of living goes up.
You started to adjust, i also must do so as if do not, my earning becomes less.
Last edited by kzone; 14th November 2008 at 02:28 PM.
well inflation is a much less scarier monster than it is often painted out to be ; the media uses CPI (consumer price index) much of the time. like it or not, this is often an overestimation of inflation; since it does not take into account that people can shift their preferences in response to price increases, since the market's goods do not increase uniformly in price. nonetheless, i do think that interest paid in relation to inflation is of course a valid concern.
if you insist that it is possible, just a matter of mindset, then pardon me while i call you overly idealistic; that or just playing devil's advocate for the sake of doing so.
Last edited by night86mare; 14th November 2008 at 03:58 PM.
Where on earth could you owe a bank $x,xxx,xxx to live in a place that belongs to the bank for 25 years? Of course, Singapore is a Great Nation!
always the Light, .... always.
From all the confusion, I can see that I really need to work on making myself clear.
This is the type of safety net that you get here in Singapore.Dr Lily Neo (Jalan Besar): Sir, my single constituents told me that they needed to skip one meal a day to live on the $260 per month. And now, MCYS is going to give them $1 more a day. But, Sir, $1 a day will not be able to buy them one meal a day in any hawker centre
Am I correct to say that, out of $260 per month for PA recipients, $100 goes to rental, power supply and S&C, and leaving them with only $5 a day to live on? Am I correct to say that any basic meal in any hawker centre is already $2.50 to $3.00 per meal? Therefore, is it too much to ask for just three meals a day as an entitlement for the PA recipients?
Dr Vivian Balakrishnan: How much do you want? Do you want three meals in a hawker centre, food court or restaurant?
The last stated inflation for the past year was 6.7%, as of Sept 2008. http://www.singstat.gov.sg/news/news/cpisep2008.pdf I don't know just what CPI is indexed to here, but it is definitely understating the inflation as far as I can see. Just about everything I usually spend on went up around 20% on average.
For example, lots of hawkers raised their prices from $2.50 to $3 (20%) or $3 to $3.50 (16.7%), and / or the portions also got smaller, and / or the quality gets worse, so in effect, the price actually went up more than the stated 16.7% or 20%. My family buys tiepan tofu from a particular stall pretty often. The amount of egg has been getting lesser and lesser (and they sometimes "forget" to put egg in the dish also), until today, when there was suddenly one big piece. This big piece of "egg" looked and tasted like they added flour and water (think soggy pancake in gravy *gag*).
And actually, you were right. I was talking about literal pension schemes - preferably ones where the payouts are indexed to inflation. Sure I can switch to cheaper stuff, but how many times can you do that before there aren't any cheaper stuff to switch to?
And for a final note, some figures to think about:
Assuming average annual inflation of 5%, interest rates of 1%, original amount of $10,000:
No. of years, How much $10000 is worth x years from now
Person A - $10000 salary, $4000 tax (40%) = $6000 after tax
Person B - $1000 salary, $250 tax (25%) = $750 after tax
Person C - $500 salary, $50 tax (10%) = $450 after tax
Total tax collected: $4300.
Amount left for benefits after costs and other uses etc: $1000 (assumption only)
With a normal progressive tax / benefit system, the poor get taxed less, and the rich get less benefits. With some arbitary numbers for illustration purposes:
Person A - $6000 + 10% of benefits = $6100
Person B - $750 + 40% of benefits = $1150
Person C - $450 + 50% of benefits = $950
That we have very little in the way of benefits is a point that I think no one will argue.
With CPF and lower taxes that only A has to pay however, A's salary may be lowered, but by less. B and C aren't much better off.
Person A - $10000 salary = $8000 after 20% tax
Person B - $1000 salary = $1000 = $1050 after random ad hoc bonuses
Person C - $500 salary = $500 = $650 after random ad hoc bonuses
Now for the arguable points:
1) CPF is supposed to be used in place of the benefits
2) The reason why CPF contribution for low wage workers is lower because they don't have enough take-home salary every month to live on if a full 20% deduction is made
If they have barely enough to live on every month, do you think they will be able to save? With lower CPF contributions, and next to nothing for benefits, who are they going to turn to when they are in need? What are they going to use for a pension when they're old? Minimum wage may be a possible answer. Throwing away their future is not.