An unbeatable level of certainty in wealth building.

Although we have to take chances sometimes, I always try to inject a high level of certainty in my life. 

Generally, I do not like leaving things to chance because there is a chance that things could go wrong.

So, when people tell me I should have taken a 5 year loan to buy my car because the interest rate is only 2.68% per annum and I could use the money to invest for higher returns, what do I say to them?






Apart from telling them that the effective interest rate is really higher than that, I would ask them how sure are they that they would not suffer a capital loss or that the investment returns would not dip or disappear in those 5 years?


(If we could only afford to buy a car by taking a huge loan to do so, wouldn't we be financially better off not buying the car?)

Without taking a car loan, however, I know I have avoided a hefty sum in interest payment over a 5 years period. That is certain.







When people tell me that some financial gurus tell their students that they don't need to keep cash aside as emergency funds, that they only need to have credit cards and lines of credit, how certain are they that their debt would not one day snowball (or, worse, the credit lines terminated)?

Imagine dealing with an emergency with borrowed funds and having to pay interest. 





Remember that if we have to dip into an emergency fund, the situation could be dire and it could also happen at a time when our source of income dries up.

Sometimes, it is not whether we are responsible borrowers or not. 

Sometimes, life just throws us a curve ball or deals us a bad hand of cards. I think you get the idea.

I have an emergency fund although I have what might seem to be a comfortable passive income stream. Why? 

Is there any certainty that my passive income stream would not slow to a trickle or dry up one day?







This is also why I strongly believe that we need a risk free and volatility free component in our investment portfolio. 

So, I max out the benefits of my CPF membership. 

It might not make me rich but if everything else failed, I know I won't become old and destitute.






As investors, often, we have to take risks but, as savers, a penny saved is a penny earned. 

We should all try to be good savers first on our journey to financial freedom because that level of certainty in wealth building is unbeatable.






Leave fewer things in life to chance? 

Yes, please.

Related posts:
1. Don't think and grow rich.
2. A meaningful emergency fund is important?
3. A note on the CPF.

ASSI presents "No more money".

Watch out, Hollywood! 

Here comes AK!





And the Oscar winner is....

Yes, I know. I'm dreaming.

Related post:
9 wealth building blog posts.

What the new MAS rules for car loans mean in $ terms?

ASSI has many blog posts on the ownership of cars in Singapore. A few of these are about the cooling measures implemented by the government to inject some financial prudence into those looking to buy a car.

Of course, there were people unhappy with the cooling measures but I feel that it is like taking medicine. It probably doesn't taste good but if we need it, we should take it because it is going to make us better. 

For those who need to take a loan to buy the car they want, not buying the car is probably going to make them financially healthier. I don't think that is a bad thing.

Anyway, for whatever reason, the government has decided to make it easier for people to buy cars in Singapore now. Notice I did not use the word "own" because as long as the car is not fully paid for, we don't own it. We get to use it but we don't own it.

So, what are the changes? 

Car buyers are allowed to borrow up to 70% of the asking price (for cars with OMV of $20,000 or less) and for up to 7 years instead of only 5 years.

I have previously said that we should try to keep the loan figure to a maximum of $20,000 and the loan period to a maximum of 3 years if we absolutely need a car and if we absolutely must take a loan. This keeps the cost of financing minimal.

Assuming a price tag of $100,000 for a car, the new rules allow a $70,000 loan to be repaid over 7 years!

What does this mean?

Previously, in another blog post, I said:

... if a person were to buy a $100,000 car and if he were to take a loan for $50,000 at an interest rate of 2.5% per annum for a period of 5 years, he would be paying $1,250 x 5 = $6,250 in interest...

Now, this same person could borrow $70,000 and assuming the same interest rate of 2.5% per annum but for a period of 7 years, he would be paying $1,750 x 7 = $12,250 in interest. 

Financing cost will almost double! 

The more we borrow, the longer we take to repay, the more we pay in interest to the lender.

How is that not wealth destructive?

To take loans to pay for consumption (home renovation, furniture and home appliances are a few examples that come to mind) is generally unwise. 

Cars are very expensive and rapidly depreciating items in Singapore. To take a loan to purchase a car in Singapore because we want one is without any doubt most unwise.

Related posts:
1. Car dealers unhappy with LTA.
2. Car loans are different from home loans.

A step towards achieving ZEN as an investor.

We are probably familiar with a similarity between fishing as a hobby and investing in stocks which is  that both require patience. 

What about gardening? 

I believe it requires plenty of patience too especially if we decide to grow plants from seeds.

I decided to grow Sunflowers from seeds recently and here are some photos taken over the last one week with the last one being the most recent:

Gardening not only requires patience but also understanding and accepting that some seeds are bad and will never germinate. 

No matter how good a gardener we are, this is something we have to accept.

As long as we have more good seeds than bad ones, we should be happy.

How does this tie in with investing in stocks?

Hint:

"In this business, if you're good, you're right six times out of ten. 

"You're never going to be right nine times out of ten." - Peter Lynch





Related posts:
1. Investing or gardening...?
2. Know our goals...
3. How to have peace of mind as investors?

A reader's insights into AK the investor.

An email from a reader:

There are many articles - both new and old - recently that you've been sharing recently on saving money that I feel are definitely useful to the general public. 

With regards to investing, I now understand not only how to screen stocks better but also why you stop blogging about your nibbles and what you have invested in.

Entry and exit points are partly dependent on each person's financial capabilities because we don't know how Mr Market is gonna swing the next second. 

Also, maybe, you don't wanna be held accountable for other people's orders (but really though, why are they following your steps when they probably can't tank the next drop and average down; a good stock on the slide = greater value = higher dividend yield). 

After all, it's their own money and not AK's. So, they should really take care of the downside for I always believe the upside will take care of itself.

But having said that, I also understand why some are not investing or give up investing altogether after a while. The incremental numbers they see are probably smaller due to the fact that they are not hugely invested.

Whenever you blog about your quarterly dividends from REITs, I'm sure your blog's traffic spikes because everyone must be thinking, 

"Wow, if only I had that kinda money for me!" 

A fantasy?

But do they have the temperament to act like AK when everyone is looking away from a gloomy market?

The more important but sensitive question is, what did AK do to amass such amounts at the start and yet not spend it but invest it instead? 

Related posts:
1. How did AK create a 6 digits passive income?
2. Buffett and Munger don't like to pay full prices.
"... bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past," Charlie Munger.

Have a genie and even children can enjoy passive income.

OMG! -.-"





Child:
"I want that car!"

Mom:
"No. You have many toys at home already."

Child:
"I want!!!"

Dad:
"OK, OK. Daddy buy for you later."

Mom:
"No means no! You don't spoil him."

Child started to cry.




Grandpa:
"Aiyoh, simi lah. He wants, just buy for him lah."

Mom:
"Pa, no lah. He has many toys at home already."

Child sat on the floor, kicking his legs, his cries grew louder.

Grandpa:
"Aiyoh! See lah! Now like that! Come, Ah Boy, don't cry liao. Ah Gong bring you go next door and buy the car."

Crying ceased abruptly. Boy smiling happily took his grandpa's hand and skipped out of the restaurant.





Mom:
"URGH!!! I really hate it. Your father is always interfering with the way I bring up our kid."

Dad:
"Er... Dear, let's order the BBQ pork ribs. You like it, right?"

Sigh...

The mother probably felt angry having her authority undermined. 

However, I would worry more about how the kid would grow up thinking that whatever he wants, he only needs to ask for it. If he doesn't get it, just throw a tantrum and increase his chances. Simple!





A strong feeling of entitlement? 

You think so? 

I think so too.





Now, it is a toy car. When he becomes a young adult, what then? A Mercedes Benz?

"We are seeing more kids bringing their parents to the showroom to book a CLA-Class or A-Class," said a senior executive at Mercedes Benz. 
See: First time car buyer? Get a Mercedes Benz.

Genies in magic lamps are supposed to be immortal. However, human beings are not. 

Don't be a genie to your children or grandchildren. You are not doing them a favour acting like one.




Related posts:
1. Your children will become what you are.

2. How to have children and retire comfortably?

3. Make CPF a part of your child's savings plan.

4. Teaching young children financial literacy.

5. At what age to start investing?

AK shares 5 reasons to buy a diesel car.

By now, many readers have found out that AK bought an "inexpensive expensive" car.  Why the peculiar phrase?

Well, the car might be from an "atas" brand but it is rather inexpensive to run and it is also less costly to the environment. Yup, the car runs on diesel.


I love my new car and if you are wondering what is so good about a car that runs on diesel, here are 5 reasons to consider one:

1. Diesel cars are less expensive to buy than their equivalent petrol versions with the CEVS. What is CEVS? Carbon Emission-Based Vehicle Scheme. Cars that produce less CO2 will enjoy subsidies and it could be a big $XX,XXX deal!

2. Amazing fuel economy! I could get as much as 20km per litre with relatively smooth traffic on the expressways. What about driving about town? If not caught in a traffic jam, I could get as much as 15km per litre.

3. Diesel is much cheaper to buy compared to petrol. When the time comes to refuel, remember that 95 Octane petrol costs about 80% more than diesel here in Singapore! After all the discounts at the pump, I pay about 82 cents a litre for diesel only. Yes, I know, only.

4. Diesel cars are cleaner these days. Hey, Euro 5 standard, ok? Don't refuel with cheaper diesel from across the Causeway. Those have higher sulphur content. They are still stuck at a lower standard. Later, your diesel car "poon orh yen" (i.e. spew black smoke) like those J.B. trucks, don't say diesel cars no good hor.

5. More torque! I really love this! You must experience this for yourself. My car flies and I thought my old car was good! I am still learning to be very gentle on the accelerator.

Although I have already granted ROFR (i.e. right of first refusal) for this car to a friend who bought my last car, I might just drive this one for the full 10 years. 

I am in love.

Related posts:
1. My new car's fuel consumption.
2. My passive income all gone...
In the comments section, a reader shared with me that diesel cars give off other types of pollutants. Cham. How like that?
http://www.theguardian.com/environment/2016/feb/05/the-truth-about-londons-air-pollution

NeraTel is an investment for income no more?

I have been a NeraTel shareholder for many years. In the middle of 2013, I significantly increased my investment in the company. At that time, I had this to say:

This is a net cash company and has a record of paying consistent and meaningful dividends. Its last payout was 4c a share with an EPS of 5c. At today's closing price of 61c, we are looking at a dividend yield of 6.56% which is very decent. With its recurring revenue streams, dividends are probably sustainable.

I started accumulating at 40.5c a share and the bulk of my investment are at 60c to 63c a share. Yielding about 5% annually, over the years, my investment in NeraTel paid me thousands of dollars in dividends. As an investment for income, it was pretty good.

Its share price went up and its share price went down. I did a few trades but I mostly held on tight to my investment for income. Movement in the share price didn't bother me.

Recently, I received many messages from readers, most of them asking me if they should sell their investment in NeraTel and some did as its share price rose from a low. I said I might consider partially divesting if its share price were to go higher, all else remaining equal.

Well, the share price did move higher and a good reason to reduce exposure to the stock surfaced:


Ingenico’s offer of S$88 million represents 35% of Nera’s market capitalization of S$251.5 million as at close of trading on 19 May 2016. Based on Nera’s FY2015 financials, its payment solutions business accounted for approximately 26% of the Company’s total revenue of S$181.5 million and approximately 21% of its total earnings of S$13.4 million. 

As an investor for income, I was most interested in NeraTel's payment solutions business for its more predictable income generating ability. The other two business segments with their more lumpy revenue are not as comforting.

While I understand that a large part of the gains from selling the payment solutions business would be distributed to shareholders, how much would it be on a per share basis? 

Although a back of the envelope calculation suggests that it could be as much as 17c or so a share, give or take a cent, it could be a case of killing the goose the lays the golden eggs.

Breakfast.

With this in mind, I decided to reduce my exposure to NeraTel significantly, booking a nice capital gain in the process. 

With more than decent capital gains and dividends received over the years, the rest of my much reduced investment in NeraTel is probably free of cost. 

It would be interesting to see how the management unlock or create value for shareholders in future.

See: http://infopub.sgx.com/FileOpen/20160520_NTL_Media%20Release_Disposal_PS.ashx?App=Announcement&FileID=405815

Added on 16 Jan 17:

Related post:
NeraTel: Aggressive selling as 3Q disappoints.
"As I invest primarily for income, I am mainly concerned whether NeraTel is still able to pay a meaningful dividend. I am also concerned if the balance sheet is still strong, naturally....NeraTel's balance sheet is still strong. Operating cash flow has also remained positive."

AK learns to embrace Y.O.L.O.

Caller:
"Sir, I would like to introduce a money saving card to you."

AK:
"Save money? I like. Tell me more."

Caller:
"You will get 50% discount when you dine at XXX, YYY and ZZZ!"

AK:
"Er...."

Caller:
"And the membership costs only $300 a year!"

AK:
"Thank you for calling but I am not interested."

Caller:
"Why? This card helps you save money. If your dining bills amount to $2,000 a year, you would save $1,000!"

Wow! This guy's math is up to scratch but AK is also not stupid. Since AK is not stupid, why AK never buy the money saving card?

AK must be stupid!

Friend:
"I going to Europe for vacation next week."

AK:
"For how long?"

Friend:
"Two weeks lor. Go to Europe must be at least two weeks or else not worth."

AK:
"Wah! Will spend a lot of money lor."

Friend:
"No lah, will save a lot of money."

AK:
"Really?"

Friend:
"Ya. I calculated already. I will save several thousand dollars buying my Prada, LV, Gucci and Tag over there!"

AK:
"......................................"

My friend's maths is better than mine. A1 for A Maths. I got only C5 for A Maths.

AK is definitely stupid!

Bro:
"I going to Japan for holiday again next month. You want to go with me?" 

AK:
"I love Japan. Maybe next year. Save money first."

Bro:
"You need to save money one meh? You so much money liao."

AK:
"Aiyah. Cannot anyhow spend mah. Must budget for it. A trip to Japan would still cost quite a bit of money."

Bro:
"Don't think like that lah. The savings would more than make up for what the trip would cost."

AK:
"Er... How so?"

Bro:
"The cameras there are cheaper. Buy one Nikon already save a lot of money liao. Buy more stuff that are cheaper than in Singapore lor."

AK:
"Wah! Like that also can. You win already lor!"

Bro:
"Ah bar den..."

Why AK didn't think like that?

Stupid AK, stupid AK!

Y.O.L.O. can be a good thing. It could help us to save money. So, we should embrace Y.O.L.O.

Don't be like stupid AK who doesn't know how to save money.
(For those who are even more dinosaur than AK, Y.O.L.O. stands for "You Only Live Once". It has a nice ring to it too. Er... Or is it "You Only Lived Once"? I blur.)
Related post:
A story about a lady in my life.

My passive income from 2015 all gone!

I always say that we have to be careful to avoid activities which lead to wealth destruction, especially if we want to achieve financial freedom at a faster clip. 

Even though I have never specifically said what I consider to be wealth destructive, I suspect that, intuitively, all of us know what they are or am I too optimistic?

I guess in today's world, many things can be wealth destructive and it would be quite difficult to list down every single wealth destructive activity. So, how do we know if something is wealth destructive? 





I might be putting my neck on the chopping block here but, in a nutshell:

As long as something does not create wealth directly or indirectly but consumes wealth to keep it going is wealth destructive.

If we want more of something, we don't want to do anything that will destroy it. So, if we want to be wealthier, we don't want to do anything that will destroy wealth. 

Simple logic, right? 

Simple logic this might be but it is not easy for many to adhere to.

Believe me, however, when I say that it might be difficult at first but, after a while, we will get used to the virtuous cycle of wealth creation. 

It will become easier. 

It will become a habit.

Remember that as we grow older, we become creatures of habit and it could be harder for us to change. Know some older folks with bad habits that they cannot kick? 

So, we should try to acquire good habits as soon as possible. The best time to start is always now.

In recent months, however, I wondered if a good habit could eventually become a bad one?

Everyone knows that AK is pretty frugal and is very careful with spending money but, actually, AK is quite happy to spend money on his family and is quite generous even with friends. It helps that that AK's family is small and friends few, maybe. 

However, AK was not as ready to spend money on himself.

Was?

AK has been learning to treat himself better. He bought new clothes, basically renewing his whole wardrobe. Well, he didn't have much of a choice, having lost quite a bit of weight. He also has healthier (and costlier) eating habits now.

AK sold his car and was without a car for 2 months but now has a new car, a car that costs almost as much as his passive income for the whole of last year!

Pause.

Pause.

Pause.

OMG! 2015's passive income gone, all gone!

What happened?





AK has some friends and readers to thank for this transformation. Without their suggestions, nagging and, sometimes, scolding, AK would not have transformed. 

Why use the word "transformation" and not "improvement"? 

Well, is it an improvement?

I used to think that friends who keep encouraging us to spend money are 损友 which means "bad friends". I remember a Chinese movie in the 80s with this title too.

Could friends who keep encouraging us to spend money actually be good for us?

I am so confused now. 

How? 

I blur.

Related posts:
1. A car loan is different...
2. My food bill grew... 
3.. Get a Mercedes Benz...

AK's letter of encouragement to his readers.

I wrote a reply to an email from a reader but I think it could well be a letter of encouragement to all readers of ASSI.

So, with a few changes, here it is:

"Dear readers,

"Knowledge is power and self knowledge is the most under rated. If you understand this and if you have greater self knowledge, you will become stronger. We are all different and have different circumstances.

"Sometimes, people are encouraged and, sometimes, people are discouraged by AK's achievements.

"Those who are discouraged might wonder how did AK amass his wealth and whether they would be able to do it too?

"There is a blog post (or a few) in ASSI on this. I shared quite openly. I think some will remember.

"I am sure everyone who invests in sound income producing assets will do better over time. Really? How can I be sure?

"Well, did AK expect that he would do so well today, say, 20 years ago? Honestly, no.

"I had an inkling of what had to be done and I set out to do it.

"Having a system that works well is important but luck is important too and I have been lucky not once or twice but more than a few times in the last 20 years.

"The Global Financial Crisis was unlucky for many but it was a lucky break for me, for example.

"If we do the right things, we are helping Lady Luck to help ourselves.

"Keep doing the right things and the right things will have a higher chance of happening for us."

Patience is, sometimes, the hardest thing on our journey to financial freedom.

Be patient.

Don't give up.

All in good time.


Related posts:
1. The secret to AK's success.
2. How did AK create a 6 digit passive income?
3. To retire by 45, have a plan.

"How much money can you save?"

I visited a friend recently and he mentioned that he would be taking a couple of vacations from next week.

Going to Japan, Spain and France!

I know he just bought a second property a few months ago and he even said his savings, including money in his CPF account, was totally depleted after the down-payment.





So, I asked him why wasn't he saving money to pay for that second property?

AK:
"Wow! Really living the good life. Haha. Thought you saving hard to pay for XXXXXX payment."

Friend:
"It's just a trip. How much can u save?"






I don't know.

How much do you think he could save?

$6,000?

$8,000?


$10,000?

Enough to pay 1% of the loan for that investment property?





1% so little?

Keep thinking that way and we would be sabotaging our finances. 

Do you believe me?

I should ask him to don't think and grow rich:
Don't think and grow rich.

Also, do you know that a housing loan could be an "evil" instalment scheme in disguise:
The evil instalment scheme and their minions.





Who threw a shoe at me?

Who? Who?

Related posts:
1. A dollar saved is a dollar earned.
2. Think you cannot reduce spending?

AK saves money now and avoids hefty bills in future!

Whenever we talk about dental services, we think of the dollar sign. Almost everyone I know thinks that visiting the dentist is not only scary but very expensive. So, many do not make regular visits to the dentist.

Well, oral health is important and not taking care of our teeth might result in costly dentures or implants in future. I am sure there are other things that could go wrong but I will leave the horror stories to the dentists.

A single implant costs $5,000, I found out. A visit to the dentist for cleaning plus a filling would cost less than $100. 

$5,000 could pay for 50 visits to the dentist! If the visits take place half yearly, $5,000 is enough for 25 years!

Wait a minute. Cleaning plus a filling for less than $100? Yes, that is correct.

If you are a Singaporean like I am, you can get good and relatively cheap basic dental services in Singapore. 

Seriously, look at my bills from recent visits to the dentist:

$30.20.

$35.50

Where got $100? 

OK, AK's maths fail.

That's less than $70!

Did I get your attention? 

Do you want to find out more?

Visit these websites for more information: NHGP and Singhealth. Yup. Polyclinics.

Just make a call or make an online booking. It is that easy.

No welfare in Singapore? 

Well, this is another something which Singaporeans could easily take advantage of and we should.

Save a chunk of change while saving our teeth? Sounds good to me.

Related post:
1. Health screening in a polyclinic.
2. AK answers 3 questions on retirement.

Understand "cai png" and be an independent investor!

The beauty of living in harmonious multi-racial and multi-cultural Singapore?

Food! 

Glorious food!

This is going to be a back to front blog post. 

See if you can decipher what the very creative and non-Chinese reader who does not eat cai png is trying to say (before reading AK's email he was responding to).





Reader says...

"Typical AK reply. Heh. But I think I'd reply like you also once I've reached your level of understanding. ;)

"It's like a person wanting to eat cai png and asking which liao is nice.  Maybe to me, eating liao A, B and C is recommended but to another person it  is not.

"At the end of the day, it's the same outcome - the cai png still  gets you full. But did you overpay for the cai png or do you really see it  as an economic rice?





"Guess that depends on how often you visit the cai png  stall and determine by yourself which liao is the most value-for-money,  probably by tasting every single one and eventually zooming into a few that  suits your tastebuds.

"Sometimes eating a plate of 3 vege that costs $3.50 gives more value-for-money than eating 2 vege + 1 meat for the same cost, if not more. But some people would prefer to go for the 1 meat e.g. har cheong gai because it's a crowd favourite and don't mind paying more or compromise on 1 less vege.

"At the end of the day, my plate and your plate looks and costs different but we all buy from the same stall.

"Hope you caught my references to real life scenarios there. Buay pai hor?"

Got the message?

Blur?

Clear?

Not sure?

OK, the reader was responding to AK's reply to his earlier email:

"I am going to borrow from Charlie Munger:

"You need a different checklist and different mental models for different companies. 

"I can never make it easy by saying. ‘Here are three things’.

"You have to derive it yourself to ingrain it in your head for the rest of your life."





AK says...
"It is hard for me to share how to pick stock in an email or even at a talk.

"I just do a lot of talking to myself in my blog."


Got the message?

OK, who threw that shoe at me?

Who? Who?

Related post:
New to investing and would like to chat?

How did AK's student go from zero to hero?

Some know that AK was a teacher and continued teaching as a private tutor on and off for many years. Tutoring was one of AK's jobs for a few years when he was holding on to 3 jobs in his younger days, working 7 days a week. 

Looking back, it does seem unbelievable but it really did happen. 

Some might think that AK was really money grabbing. Well, in a way, I suppose. 

However, I really did enjoy teaching and, so, tutoring didn't feel like much of a chore for me. I even tutored 2 students for free for 2 years before they took their PSLE because their families could not afford the fees. So, it wasn't all for the money, I guess.

Anyway, some time back, I met up with one student who decided to help out in his father's business selling t-shirts. It is a difficult business. More and more people buy cheaper and more fashionable clothing online these days. It is one of those businesses that are badly affected by the online shopping trend. AK told him so.

Maybe, it is due to filial piety and some other reasons which the student would not say, he decided to continue helping his father. However, he did say that he was worried about his own finances because he was not paid a lot and he would like to buy a 2 room HDB flat when he turns 35 a few years later.

I asked him how much was his take home pay and found out that it was $1,500. 

I asked him how much was he saving and found out that he saved next to nothing.

I told him he was not going to be able to buy even a tile at that rate and he nodded, eyes reddened.

What could AK do? 

Nag lor, as usual.

Recently, I met up with the student again and he felt better about himself.  

What happened? 

Apparently, he paid attention to AK's nagging.

1. He quit smoking. Well done! AK told him he was burning away money literally now and in the future by smoking. He still had a deep throaty cough that wouldn't go away. That is worrisome.

2. He no longer buys Starbucks coffee or Gong Cha bubble tea. Well done! Do you believe me when I say those drinks are bad for our physical and financial health.

3. He has been stashing away a minimum of $500 a month in savings. Well done!

Although he felt better about himself, he was still feeling inadequate with a savings rate of $500 a month. It was obvious to me that his self esteem was still low. That's not good.

So, I told him earnestly that for someone who was taking home only $1,500 a month, saving $500 a month meant a 33% savings rate. Compared to someone who took home $5,000 a month and saving $500, all else being equal, he was doing a phenomenal job. 

That cheered him up.

Always keep the big picture in mind and if we can only take baby steps in the beginning, take them. Don't forget. Every step brings us closer to our goal. Every bit adds up.

All of us have different circumstances. Doing the best we can and doing better over time is what should matter to us and I was so happy when I heard his parting words:

"I will try to be a better person and do better each day. Thank you."

Don't want to be a zero? Well, all of us can be a hero. We just have to zero in on the right things.

If AK's student can do it, so can you!

Related posts:

1. A common piece of advice on savings.

2. Don't thank AK but thank yourself...

3. Get the most out of ASSI...

Tea with FunShine: Easy Loans.

Here is another thoughtful guest blog from FunShine:

First World Problem - Easy Loan

Received a phone call from a local bank.

They are offering loans at 0% interest rate. I was puzzled. 0%?

Have a bit of time and entertained the call. I asked what are the hidden charges, he added, there is a small admin fee.

I asked how much? He shared it's only $138. I did the maths and it's only 1+% quite cheap.

I asked when is the repayment period? He shared that it is 6 months.

I asked further, so what is the interest rate if people default? He shared that it is 25%.

I thank him for the call. And put down the phone.
With the information, I was thinking, I can take the money and roll it in the stock market. 

However, 6 months is too risky. No point take on this risk. If I am wrong, the interest rate is 25% and will wiped out my earning.

Thinking a bit deeper, I go, how many people honestly got such loan for their wants items?

For friends that have been reading about my life, you should know that I am a very prudent person and try to live a frugal life, just that God has blessed me with many things.

I am puzzled when people need to take a wedding loan, renovation loan, kid education loan and it goes on and on. (AK says "A happy marriage is worth waiting for.")

The only loan that I will take is a housing loan. If not I will take a loan and have my assets backed it up such that if I default, my assets will be gone but I do not need to stress about the repayment.

At the age of 36 and having worked for the past 11 years in social services, you have seen many cases where people made many interesting financial decisions.

I really hope that in Secondary school there is a subject that teaches the youth how to manage their money. As what I find lacking is financial literacy.
I have friends that are middle income and draws a good salary but are living from pay cheque to pay cheque. These are intelligent people but their money management skill is unique. (Read AK's e-book: "Don't depend on wage increases."

Got a bit of time so decided to write on this. Meanwhile, I am happy for that local bank, as I am vested in it. I am trying to collect all the three local bank stocks.

I am just left with DBS. Still waiting for a good enter price.

Have a good day and watch over your income and spending when you can.

First World Problem - Easy Loan

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