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Two questions which will help us build wealth.

Saturday, March 22, 2014

Very often, when people buy things, the thing they wonder about is whether they can afford it or how can they afford it?

Affordability should never be the main question.

Try these:

1. Is this necessary?

2. Is it value for money?

Simple questions.




Always ask these two questions before we buy anything and, in all likelihood, we will be saving more money in future.

Related posts:
1. Three point turn.
2. Needs and wants.
3. If we are not rich, don't act rich.

9 comments:

EY said...

Hi AK,

Wah, you talking to me ah?

1. Buying things to make us look good or feel happy is ALWAYS necessary.

2. Buying things from direct sources or past season sale is usually superb value for money.

So like that really can save loads of money by spending money leh!

=.=" (I know this will be your response!)

Hahaha. Thanks for the reminder. I'm making good progress, constantly asking myself Q1. Shopping bill below $100 this month! :D

AK71 said...

Hi Endrene,

Er... Would you believe me if I told you that I was not talking about you at all? ;p

Hmmm... You have made a persuasive case (for yourself). OK, you win. LOL!

genmumbles said...

Indeed, these 2 questions will also help us save time and effort! Less things to toss out during spring cleaning.

AK71 said...

Hi genmumbles,

If we ask only question number 2 and miss out number 1, we could end up collecting quite a bit of stuff which we hardly use. ;p

r said...

Hi AK,
Am glad that i get to read up your blog almost every other days.
Although you have a specific goal for your blog to bring more financial savvy information to people but you do not make it sound so rocket science and easy to read.
Really enjoy just reading up posts from you to constanly remind on our right track!
Thanks AK

AK71 said...

Hi r,

I am glad you enjoy my blog. :)

I don't know everything and I don't know very much either. I just share what I know and what makes sense to me. ;p

Gary said...

Good blog and reminder for me to stay simple! =)

AK71 said...

Hi Gary,

I try my best but I have weaknesses too. In fact, I am going to blog about one later. ;p

AK71 said...

Although many might dislike it, I feel that consumption tax is more sensible than income tax. If a person works hard to have higher income, why should he be slapped with higher taxes?

If a person wants to pay less consumption tax, then, be more prudent when it comes to making consumption choices. I have blogged about how asking two questions could help us build wealth before. A consumption tax should encourage some prudence in personal finance, shouldn't it?

Wong Souk Yee suggested reducing GST from 7% to 3%. How is the country going to replace the lost tax revenue? I definitely wouldn't want to see higher income tax rates.

Wait, actually, I wouldn't mind GST being lowered to 3% and having higher income tax rates since a retiree with no significant earned income wouldn't be paying any income tax anyway. I selfish a bit here. ;p

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