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Get on top of your finances.

Monday, July 29, 2013

When we say we want to get on top of things, it means that we want to be in a position of control.

So, when I say I am on top of my finances, it means that I don't have a financial burden on my shoulders and I don't owe anyone any money. I am not chained down by anyone over finances.

So, I couldn't help but frown when I saw this:

What kind of brochure is this?
See top left corner for a clue.
Well, if we are borrowing for an investment that will generate a higher return (ROI) than the cost of debt, I guess it might be a good idea to borrow. However, look at the effective interest rates per annum:

15.44% for 12 months
13.44% for 24 months
16.11% for 36 months

How confident are we of getting a ROI higher than these interest rates?
Of course, if we are borrowing to fund consumption, heavens forbid!

If we need to borrow to fund our lifestyle, obviously, we cannot afford our lifestyle.

How to get on top of our finances? For a start, don't get into debt!

Related post:
The secret to avoiding financial ruin.


AK71 said...


"I am investing not to become a millionaire or to have luxuries or such, I am investing for passive income to substitute my inability to work, to supplement our measly income, to help with medical expenses and to live a frugal but comfortable life, that's all....

"And you are so RIGHT about gearing and debts and such, with zero debt we can afford to live knowing that we have exactly what we have, and everything else is a bonus...."

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