Do you make enough money and are you paid fairly? (AKA Do you need financial assistance or do you want it?)

Every so often, we will hear of people who say that we don't make enough money. 

Then, we might also hear of people who say we should have free education, free healthcare and the best is not have to pay for anything in Singapore.

Now, don't get me wrong, who wouldn't want to have free everything? 




In an imaginary and perfect world, perhaps, this dream would come true but until such a world is created, it would remain a dream.

Why would it remain a dream?

After all, there are people who are saying that it is possible to have free this and that. 

Once every few years like now, their voices are louder than usual.

When the Creator made this world, he made it so that we could live off the land. So, things should be free, right?





However, if we had wanted food, we would have had to hunt and gather. If we had wanted more, we would have had to work harder. 

Free? 

Free from having to pay with money, perhaps, but we would still have had to pay with time and effort.

Free? I hardly think so.

In an imaginary and perfect world, everyone would get everything for free and no one would have to pay for anything. 

In this real and imperfect world of ours, if someone is getting something for free, someone else is probably paying for it.





Really?

Things cannot be free?

So, how like that?

What to do?

Well, if we have to pay for the things we want in life and if we want to have a better life, we have to work harder and smarter. 

Our ancestors progressed from being hunters and gatherers to becoming sedentary farmers, for example. 

They spent long hours in the fields. 

They worked harder and smarter too.

Things haven't really changed.




Of course, we can talk about how some progressed to become landowners but that is the next step. 

For people who are not even contemplating working harder and smarter, that next step will remain elusive, as they remain where they are.

I understand that there are some people who genuinely have difficulties in making ends meet despite their best efforts. 

They could be physically or mentally handicapped. They could have issues at home that hampered their efforts. 

If we are a caring society, we will help these people. They might need monetary help and help should be offered.





If we are physically and mentally whole, if we do not have insurmountable problems at home, I do not think we have any good reason to complain that we don't have enough money. 

Why? 

If we want some money, go make some.

Such people don't need monetary help.

They want monetary help.

If monetary help is given to these people, they immediately become a burden to society.

1. 
A friend who was from a poor background asked if I could lend him about $800 to pay for his fees at a local polytechnic many years ago. 

Even though I wasn't making a lot of money back then, I lent him the money. 

He promptly paid me when he received his monthly salary. He is doing very well now.



2. 
Another friend who is also from a poor background asked if I could lend him $500 because he wanted to go to Hong Kong for a vacation with some friends. 

I was financially more comfortable by then and he knew I was. I rejected him. 

We are no longer friends, it seems.

I share these two examples to show how we have choices in life.

Being in Singapore, we are more fortunate than many in the world.

Overworked and underpaid? 

Then, make a change.

3.
I know a lady who was very well paid working in one of the big audit firms. She felt she was overworked and underpaid. 

I asked if conditions might be better in the other firms. She said they were all the same. 

Then, she wasn't overworked and underpaid. It was the industry norm. Her salary was easily thrice as much as mine back then!

4.
I know another lady who was relatively well paid working in one of the big law firms. She wanted shorter working hours. 

So, she took a pay cut and moved to a government statutory board. It was a trade and one she was happy with. 

If she had gone to another big law firm, conditions wouldn't have changed.

I share these two examples to show that, for most of us, if we want something, we have to give something. 




We cannot just take and not give.

At one time, I was holding two jobs. 

In fact, if I were to include a job in the informal sector of the economy, I had three jobs at one time. 

For a few years, I was working seven days a week. I am not very smart. So, I worked harder. 

I didn't have much of a social life and, I guess, I still don't. 

Mind you, I am not complaining.





Before we complain, before we ask for help, before we even ask for our CPF money to be returned to us at age 55 (which is another topic), stop and think if we are doing anything to improve our lives first. 

If we are doing something, ask if it is enough.

Related posts:
1. Do you want to be richer?
2. The very first step to becoming richer.
3. How to have a comfortable retirement?
4. How to tell if you are rich?
5. The Millionaire Next Door.

What is next for a 30 year old saving $36K a year?

On our road to financial security and financial freedom, if we are good savers, half the battle is won. If we make above average income and are able to save way more money than the average person, we could have won more than half the battle.

Y:
I have been highly focusing on saving money all these while, i seems to forget to grow the money.

Now that i am going to have a new home, albeit a small one. I do not want to want to put myself in a stage that i have to be consistently worrying about money. This is why i see that master AK has planned well and hope to point me in a better direction.

AK:
If you are a good saver and I think you are, that is half the battle won. like emoticon

As an investor, you have to think what kind of investor you want to be or most suitable to be. I will blog a bit about our conversation and a bit more later today.


For now, since you are a good saver, concentrate on doing it well. $3K a month means $36K a year or $360K in a decade. That is no small change.

Y:
I just wanna live and spend more time with my family, so i decided to work really hard for a number of years and save as much as i can when im still young. And right now, i think i am at the stage where i need to utilize the money i save to prepare for the next stage of my family.
 read your post of CPF SA account, so i plan to fill the SA account up when i still have the ability to do so.

just that, i am still figuring out all the STI ETF debate and reits dividend suitable for a short term investment. Personally, given i am such a "saver"-minded, i find it hard sometimes to let go of the money to invest. So i am still learning to take risk and go for whats best for me.

understand the risk of giving very specific advice as most likely Master AK will get blamed if things doesn't go as planned. I take your conversation as a sharing session, so that i can improve along the way. Thank you for taking your time to listen to me, Master AK!




Lots of money stashed away? That is a good problem!

AK:
OK, now I understand your situation and your mentality better. smile emoticon

If you are risk averse, then, risk free rates are what you should be going after. The only attractive risk free rates now are the ones we get from the CPF.


If you believe in saving money for retirement and if you believe in annuities, then, the CPF-SA is where you want to lock your money.


However, if you are not sure if you might need the money for a second property or to fund your children's tertiary education in future, then, you might want to do a voluntary contribution (VC) to your OA, SA and MA. There is no income tax relief for doing this unlike a CPF-SA top up but you will still get to enjoy pretty good risk free rates. wink emoticon


When it comes to investing, there is always some risk involved. You must be able to stomach market volatility. If you don't think you are the type, then, it might be a good idea to avoid.


If you want to try anyway, then, getting into an STI ETF through the services offered by POSB or OCBC and then putting in money regularly is probably less stressful an option.

Each one of us is different but we should be prudent and we should find our own way, a way that does the job and gives us peace of mind.

Related posts:
1. 30 years old with $150K liquid assets.
2. Greater financial well being is not beyond most of us.
3. Tea with Matthew Seah: OCBC BCIP.
4. Why should we buy a big and expensive home?
5. Get the most out of ASSI for financial security.