how many percent do u save from your monthly income ?
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Today the trend is debt. After graduated, if no scholarship, need to pay back study loans. After having family, pay back housing loans and car loans.
Then, we need to satisfy humans desire to buy buy buy - new gadgets, new toys, new cars, new clothes, watches, shoes, travels, mobile phones...always upgrade upgrade, upgrade. Looking at crowds at Orchard can see many people spend spend spend and look at all the big cars flashing around.
Spending future money in terms of 0% installment, credit cards, overdrafts... nowaday even students can easily can credit cards with no minimum requirements. :lovegrin:
We change hand fones like changing clothes. :devil:
Then, we need to satisfy humans desire to buy buy buy - new gadgets, new toys, new cars, new clothes, watches, shoes, travels, mobile phones...always upgrade upgrade, upgrade. Looking at crowds at Orchard can see many people spend spend spend and look at all the big cars flashing around.
Spending future money in terms of 0% installment, credit cards, overdrafts... nowaday even students can easily can credit cards with no minimum requirements. :lovegrin:
We change hand fones like changing clothes. :devil:
Robert Kiyosaki's "Rich Dad Poor Dad" has an interesting take on this. He reasons that you should save before you pay your debts, so that you will be forced to be creative in making more money.
He calls it "Pay yourself first"... and you take this savings, and invest it.
Otherwise... you will have nothing to show in 20 yrs.
That said, naturally he advises limiting your consumer debt.
He calls it "Pay yourself first"... and you take this savings, and invest it.
Otherwise... you will have nothing to show in 20 yrs.
That said, naturally he advises limiting your consumer debt.
When I was a kid, I was already thought this...but this common sense doesn't mean all of us are doing...so we should be discipline.... but looking at iPod Touch, how to be discipline? :lovegrin:
Sion
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i tried to save a certain amt every mth....but after a while when new gadgets come out....i will "blow everything" away.........hahaha...tough lah. Must have discipline.......
If your debt interest is 8% and above (credit card 24%)...then i guess it is good to pay off the debts first.
unless you are extremely confident that your investment made within a year can earn you at least 10% and above.
Interest 3-5% still managable...but over 8%....is too much.
Should pay off debts first before investment.
Saving is sin, and spending is virtue...
Interesting article written by an Indian Economist
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger.
But where from do Americans get money to spend?
They borrow from Japan, China and even India.
Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is in trillions.
Result:
The US has taken over $5 trillion from the world. So, as the world saves for the US, Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US!
A Chinese economist asked a neat question. Who has invested more, US in China, or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India. We have invested in US over $50 billion. But the US has invested less than $20 billion in India.
Why the world is after US?
The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US. So US imports more than what it exports year after year.
The result:
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted itself, reduced the savings rates, even charged the savers.
Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the Indian GDP. Thus, savings, far from being the strength of Japan, has become its pain.
Hence, what is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend.
Dr. Jagdish Bhagwati, the famous Indian-born economist in the US, told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India, seeing the consumer spending.
"Saving is sin, and spending is virtue."
But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!
Interesting article written by an Indian Economist
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger.
But where from do Americans get money to spend?
They borrow from Japan, China and even India.
Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is in trillions.
Result:
The US has taken over $5 trillion from the world. So, as the world saves for the US, Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US!
A Chinese economist asked a neat question. Who has invested more, US in China, or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India. We have invested in US over $50 billion. But the US has invested less than $20 billion in India.
Why the world is after US?
The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US. So US imports more than what it exports year after year.
The result:
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted itself, reduced the savings rates, even charged the savers.
Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the Indian GDP. Thus, savings, far from being the strength of Japan, has become its pain.
Hence, what is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend.
Dr. Jagdish Bhagwati, the famous Indian-born economist in the US, told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India, seeing the consumer spending.
"Saving is sin, and spending is virtue."
But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!
And factor in annual inflation rate of abt 3%....so those think their investment generate 4% is gd....minus the inflation rate yr investment only generates 1% only.....:thumbsd:
Money in that case is spoken as a collected pool of money in securities. And it's a large sum of money. It's borrowed by the US major companies/investors, then broken down into smaller sums to lend to people.
For the average individual, which is like everyone, there's no way for you to borrow that kind money and not return within the specified period. Unless you're an amazing investor, you'll probably have your stuff taken away by the lender.
To make full use of our life, it's best to use all our money. Let's say, I die before I can finish spending my $500 in bank, then I loss out $500 already. :bsmilie:
If I die with lots of bills and debts, then the bank will lose out. :bsmilie:
If I die with lots of bills and debts, then the bank will lose out. :bsmilie:
:bsmilie: for me, the day before payday = less than $20 in bank, everything increase except pay
10 yrs ??
no la , i m not so optimistic , mayb 3, max 6yrs , my job can b outsouce 1 , so i also feel sad , i dun hve a higher qualifications to take to the top, n my current pay is not low enuf as compare to the foreign influx. so neither here nor there , hai:sweatsm: die big time liao
think cannot buy dslr lor ahahahahahah
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