Average income workers have a choice to be rich!

I went out to lunch with my mom before sending her to the hospital. 

I went to a supermarket nearby to buy some chocolate which was on special offer before going to a bank to enjoy a cup of tea while waiting for her to call when she was done.

I like buying things at knocked down prices (i.e. the chocolate) and I like free (i.e. the tea). 

Anyway, there was a big screen TV right in front of me with ads flashing. 

One ad asked:

"When you have to stop working, can you afford to?"

It is a straight forward question that is also depressing because it suggests we don't have a choice as to when we stop working. 

We stop working when we have to. 

We stop working when we are told to. 

Wait a minute, that sounds like a prisoner in a labor camp serving time. Alamak!

Don't you hate the feeling of working because you don't have a choice? 

Yes, of course, you do. 

I would be surprised if you don't.

This is probably why you are reading my blog and others like it. 




You want to be financially free so that you do not have to exchange the most precious resource you have (i.e. time) for money anymore. 

You don't want to serve time. 

Time serves you.

So, instead, I would ask:

"If you want to stop working, can you afford to?"

I am going to be brutally honest. 

Not many people can. 

This is something only the rich can do. 

If you are not rich, continue to serve time. Ouch!

AK, you are terrible! 

Bad AK! Bad AK!

The truth hurts. 

So, what to do? 

Become rich lah!

I believe that even average income workers can become rich and I am not talking about "striking millions at TOTO" kind of rich. 




I am talking about "not having to exchange time for money anymore" kind of rich.

Why do many average income workers find this impossible? 

Do you believe me if I were to say it is not because they make an average income? 

The truth is many of them find this impossible because they can afford so many things in life and would get them in a heartbeat. 

This is why they cannot afford to stop working.

This is based on a true story:

Guy: "I think we should go to Europe on a vacation. The Euro is so cheap now."

Gal: "Wow! Good idea! I can buy all the branded goods there! So much cheaper than in Singapore!"

Guy: "I have $10,000 saved up this year. We can have a good time there."

Gal: "I am so happy! I think we deserve it."

Oh, they definitely deserve it! 

If this is the way they are going to live, year after year, they deserve to be destitute and get VIP (i.e. Very Impoverished Person) seats at Roy's next "RETURN OUR CPF" rally in Hong Lim Park.

This is based on a reality show I watched:

Guy: "I prefer Hawaii for our honeymoon. I don't want to go to Phuket."

Gal: "But we cannot afford it. We have a budget, remember?"

Guy: "I know we cannot afford it but I think we deserve it. We can take a loan."

OMG! That guy is an IDIOT! 

I probably exclaimed so loudly that my neighbors got a fright.

Hey, woman! Financial freedom gives us options but you don't need financial freedom to opt out of this relationship. 

I think you can afford to dump that fellow. 

Do it before your finances end up in the dumps and you cannot afford anything else!

Spend all the money we make, we will always be poor.

Borrow money to fund our lifestyle, we will be poorer than poor.

Don't let people ask you (and not at the bank):

"When you have to stop working, can you afford to?"

Ask instead:

"If you want to stop working, can you afford to?"




The difference between the two questions is one of choice. 

We have choices in life and if we want to continue having choices in life, choose carefully.

Yes, even average income workers have a choice to be rich!

Related posts:
1. Avoid financial ruin.

2. Save 100% of your pay.

3. Recession proof your life.

4. How much can you save?

5. Prepared for retrenchment.

Do online contribution to Medisave and get $88 Ang Bao.

"For those under 65, the Basic Healthcare Sum next year will be S$54,500, up from S$52,000 previously, the authorities said."
Source:
CNA, 16 November 2017





The Basic Healthcare Sum (BHS) which was known as the Medisave Contribution Ceiling (MCC) in the past has been raised from $49,800 to $52,000 in 2017. 

This means that we can voluntarily contribute $2,200 now. 

Of course, for those who are gainfully employed, this contribution will enjoy income tax relief.

For people like me whose CPF-SA has already hit or exceeded the prevailing Minimum Sum or Full Retirement Sum, this is about the only avenue we have to pump more money into our CPF to earn a 4% interest. 




Of course, for those of us whose mandatory contributions (MC or contributions from earned income) are lower than the CPF Annual Limit ($37,740), we can also do regular voluntary contributions for the difference, maxing out the CPF Annual Limit. 

The CPFB will apportion the contribution to our OA, SA and MA. 

How much goes into each account will depend on our age group.

I am so glad to be promoted to the next age bracket which means more of my regular voluntary contributions will go to my CPF-SA which is paid a higher interest. 

One of the reasons for me to be happy with ageing.





We can do a contribution to our CPF-MA online.

Here is how to do it:

Go to CPF e-Cashier homepage.

Enter details and choice.

Check allowable contribution

$2,200 this time of year.

Contribute online using eNETS

It is done!

I contributed only $2,000 because that is the daily limit for me.

How much interest will $2,200 earn in a year? 




At 4%, that is $88.

Some people might say $88 is not a lot of money. 

What will AK say? 

It is still money and good money from the government too.




How do we build wealth through saving money? 

Slowly and steadily, every dollar adds up.

From my FB wall.

Don't underestimate the power of saving a few dollars a day, every day. Don't underestimate the power of compound interest.

What? Don't have $2,200 to contribute to your CPF-MA? 

Oh, you need the money buy your daily cup of Starbucks coffee? 

OK lor. You are free to choose.




I choose to have free medical insurance. 

It is such a no brainer.

I forgot to mention that 88 is such an auspicious number too. 

Huat, huat ah!




Related post:
How to get free medical insurance?