DBS: 43% jump in earnings! Be a millionaire!

In a video I produced recently, I made some points on why Warren Buffett and Charlie Munger are not investing in banks now.

Then, in a video I produced in response to record earnings reported by DBS, I also made note of a few points.

For the benefit of readers who do not follow my YouTube channel, here are the videos.

This is the transcript of another video I produced recently.

Again, this is for the benefit of people who do not follow me on YouTube or prefer reading to listening.

Do you know that millionaires' effective income tax rate might actually be lower? 

This is true in the USA and it is also true in Singapore. 

Remember how much income tax I had to pay? 

Regular long time readers might remember. 

Yes, nothing. 

I didn't have to pay any income tax. 

This is because my passive income does not attract any income tax. 

No one would have guessed that I am a millionaire just by looking at me. 

Contrary to popularized images of millionaires, actually, most millionaires are very low key people who avoid ostentatious behavior. 

Most millionaires are people who live within their means, budget and spend wisely. 

They are mostly focused on ensuring their financial independence first. 

These are habits that take discipline, but ones we can all adopt to begin growing wealth. 

If these facts prove anything, it's that every one of us can strive to become a millionaire. 

And many of us can become millionaires. 

From 2012 to 2022, the number of millionaires in Singapore grew 40% to 240,100. 

This is according to a list published by investment migration company, Henley and Partners, together with global wealth intelligence firm, New World Wealth. 

In the World's Wealthiest Cities report, Singapore is now in the fifth spot. 

Millionaires are high net worth individuals with investable wealth of one million US dollars or more. 

So, it excludes the value of our home. 

Don't be envious of millionaires. 

Unless severely disadvantaged, all of us can be millionaires. 

There are many millionaires in our HDB estates and they lead simple lives. 

We might not know much about them because they are not very talkative. 

They are not crazy like AK who talks to himself regularly. 

Millionaires in our HDB estates are more common than you might think. 

People who have above average income would often tell me that it is difficult to build wealth in Singapore. 

However, if they were to examine their lifestyles, they might be surprised at how much money they could actually save if they were to make thriftier consumption choices. 

From experience, I know it is possible to build wealth more rapidly in Singapore simply by avoiding extravagance and excesses. 

Some readers who decided to make changes to their consumption choices with an eye on wealth building wrote to me, happy with their progress. 

Get the whole family in on the project and the success rate would be even higher. 

Remember, it is always the toughest in the beginning but if we are determined and disciplined, we can become wealthier. 

For most of us, the road to becoming a millionaire will have to start with baby steps. 

"The Millionaire Next Door" is a book which is a must read for many people. 

In fact, I would go as far as to say that the majority of the population should read it. 

So, do you want to be a millionaire? 

If AK can do it, so can you! 

Related posts: 

1. Income tax payable? 

2. STE: The millionaire next door.