A young father of two says money not enough.

Hi AK,

I am 37 this year. Married with 2 boys, 6 and 2 year old 

My wife not working and take care of our children 

Recently I have been feeling very fan , keep thinking money not enough to bring up our kids , I had a job which I don't really like , I am still here because I need to bring home an income to support this family.

I need advise from u. If now 1 got 100k in FD, how to make better use of it. Thanks AK

I LIKE YOUR BLOG

Hi D,

Welcome to my blog. :)

While keeping a look out for a better paying job which you might enjoy more, think about how to reduce expenses at home and increase income in other ways. Make sure that the ways you have identified to increase income involve doing things you enjoy or at least don't dislike. Of course, if you do this, what you have will be more savings. Having more savings always makes people feel better.







Ask if that $100K in FD is your emergency fund. At age 37, you should have an emergency fund that will cover regular expenses for 12 to 24 months. The excess, if any, you could invest for income. You might want to split the excess into half, investing half now for income and the rest for in case the stock market crashes. Which stocks to invest in? I will leave that to you. :)
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Don't be "fan" (frustrated), to use your word. You have something precious and that is your family. :)

A well known local investor, Dr. Michael Leong, said before that family is more important than anything else (including money). Don't forget that.

We only need so much money in life. The rest is for showing off.

Know how much money we need and work towards that. 

Do what you need to do for your family.

Don't compare with others.

Unless we are the richest person in the world, there is always someone richer.





Related posts:
1. Greater financial well being is not beyond us.
2. How much should we have in emergency fund?
3. Free "e-book": Do not depend on wage increases...

Have a $327K home loan and $200K in savings.

What to do?

Hi,

I have been following your blog for last two years and would like to have your opinion on whether to pay off my mortgage or to invest the money I have in my bank.

I have a mortgage loan of S$327,000 of 12 yrs tenor at current interest of 1.625% per annum.  Following year about 1.9% to 2% per annum.  Currently, I have about S$200K idle in my bank and do not know whether to pay off the mortgage or invest it in bonds, etc.  I was advised to invest in UOB United SGD Bond, but I'm not sure about it.

Appreciate your professional opinion on the matter.  Thank you.

Best Regards,

M

Hi M,

Alamak. I am not a professional. So, if you want a professional opinion, I have nothing to offer you. -.-"

This is my unprofessional opinion:

You managed to lock in interest rates of less than 2% on your home loan for the next 2 years and you wonder if you should invest your money for higher returns which really isn't difficult. However, if your investment horizon is only for 2 years (because you managed to lock in low interest rate for the next 2 years), then, better not. Investing is best done if we are using money we won't need for anything else (and we wouldn't have to liquidate our investments at a time not of our own choosing to meet those needs).

As for buying into a bond fund, er, I won't touch a bond fund even with a 5 feet pole. ;p

Best wishes,
AK

Related posts:

1. Get income from investments to pay interest.
2. Nobody cares more about our money. (Bond funds).