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We hear these two lines all the time:
"It is so easy to spend money."
AND
"It is hard to make money."
Perhaps, we should also remember these two lines:
"If we are not careful, it is easy to get into debt."
AND
"It might be really hard to get out of debt."
So, what is the secret here? Don't get into debt!
When I was a secondary school boy almost 30 years ago, $1m was a lot of money and during a class discussion, I asked how was it possible to spend all that money? The teacher looked at me like I was some alien and my classmates laughed at me.
Well, a HDB 3 room flat in D4 in those days cost only S$50,000 or so. Cars were much cheaper too. Of course, prices have shot through the roof by now. However, back then, I seriously could not think of how anyone could spend all that money with ease.
I remember always tracking the interest rates offered by the banks on our savings in those days and how I would shift my savings from one bank account to another to get the highest interest rates possible.
Now, when I look back, my efforts were pitiful since my savings were so little but an extra S$50.00 a year in interest collected mattered so much to me then. Those were hard times.
Some will again say that I have a peasant mentality to wealth building, but I know myself and I rather be a happy peasant.
Increase our income, reduce our expenses and don't get into debt.
Do all these and we might not become filthy rich, of course. Do the opposite, however, and we are in for financial ruin.
Related posts:
1. To be a happy peasant.
2. From rich to broke?
3. If we are not rich, don't act rich.
4. Today's millionaires.
5. Not enough money to be married.
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