Extra cash for better control of your finances.

Last year, in July, I blogged about how a bank offered a solution for us to "get on top of our finances". 



Today, I received an offer from another bank to give us "better control" of our finances.

Look at the E.I.R. and this is in a low interest rate environment!

Using leverage to invest could be a good idea because when it works, gains are magnified. However, when things go wrong as they sometimes do, it could be very ugly.

Now, when people borrow to fund consumption, what do we make of it?

"traditional" problems – such as people living beyond their means and racking up debt on credit cards and auto loans – drive many bankruptcies. Source: CNBC

Debt driven consumption is definitely wealth destructive. Too much of it and it could destroy lives.

"Once you get into debt, it's hell to get out. Don't let credit card debt carry over. You can't get ahead paying 18 percent." Charlie Munger

ASSI offers the basics to better financial security in 4 simple steps in:

Wage slaves should be fearful! (note publication date).

Now, this is what I call "better control".

Related posts:
1. Get on top of your finances.
2. Two questions which will help us build wealth.
3. The secret to avoiding financial ruin.
4. Mature and sophisticated consumers lease cars!
5. First time car buyer? Get a Mercedes Benz!
6. Cooling measures for cars spurned.

The Dirty CPF-HDB Scheme To Trick Singaporeans?

I would like to share a few comments from a reader on my FB wall when we discussed a very hot article that has been circulating lately. 

Title of the article: "Truth Exposed: The Dirty CPF-HDB Scheme To Trick Singaporeans."



Wah! With a title like this, sure to become viral and it did.






So, what are the reader's comments?

"Well and we have a lot of Singaporeans complaining that they earn too little to make a living... 

"So many are being fanned by this CPF topic and arguing about it everywhere. I would choose to drive a taxi or do some carpentry work instead of arguing over those facts.

"Additional 30 to 50 dollar per day over 1 or 2 years will be a big deal to me..."







And

"A lot of Singaporean are just too spoilt and are unable to see a picture even 5 minutes before them. Lazy and shallow minded, overly comfortable.

"I won't be surprise they and their children remain in the current society status 50 years from now. Children's success are often parent's upbringing and child's willingness for achievement.

"With such mentality, I believe they would and personally feel they should just remain where they are or go lower."





Too harsh but, from my observations, there could be some truth in the comments.

As for what I think about the article, I don't think that it is saying anything new.

The "what" is the same.

It is the "how" that is different.

A new angle on some familiar material.






Make the PAP government look bad and it will excite a whole lot of fellow Singaporeans and probably quite a few foreigners as well.

I made a few comments in FB regarding this and I want to share a couple of them here with readers who don't follow me on FB:

"The CPF provides a minimum safety net for Singaporeans who stay employed for much of their adult lives. 

"The money is primarily meant for retirement use.





"We are allowed to use it for some other purposes including housing in the meantime but please remember that the money is primarily meant for retirement use.

"So, if we take out all the money for whatever reasons, we have to bear in mind the opportunity cost involved although some people might not look at it this way."

AND

"In an environment of very low interest rates in Singapore, the current CPF rates are acceptable. 

"However, if interest rates were to be as high as those in Indonesia or Malaysia, then, it would be totally unacceptable.

"This is the reason for the CPF to be pegged to long term SGS rates. It addresses the issue."


There are always two sides to a coin. 






We can either choose to use the system to help us achieve our goals or vilify it and imagine that it is beating us. 

Read the related posts below (and the very good comments that follow) if you are interested in the other side of the coin.

Related posts:
1. Young working Singaporeans, you are OK!
2. Build a bigger retirement fund with CPF-SA.
3. How to get free medical insurance in Singapore?