Tuesday, July 19, 2005

How much to save for the future?

Someone asked for my advice: how much of my earnings should I save for the future?

My advice - you should save 10 to 15 percent of your earnings. They are for the following:

- in case you lose your job
- for unexpected medical and other expenses
- to supplement your savings for retirement

Many people think that they do not earn enough to meet their living expenses. This is not correct. If they look at how people who earn less cope with their budget, they will find that it is possible to set aside the savings.

They can cut down expenses on buying a car, or they can buy a smaller flat, or spend less on holiday or children's tuition.

It is a matter of priority.

Make some savings. Take care of your future first. Then, you can take care of others.
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3 comments:

sentosa said...

Totally agree with your view. I sometimes admire people who doesn't earn much yet they can still survive.

Sometimes, we can even learn something from people who earn less, but i guess sometimes some people are just blinded by their materialistic..

July 20, 2005 12:28 AM
Midnight said...

IMO, one has his needs and priorities. The govt. is offering flat that we are pretty affordable. Housing part is covered. What about transporting? kid needs to go to school. the crazy bus companies are installing more fancy stuffs in the bus and transportation fees increase.

I work overseas; and I was shocked to learn the a SBS feeder service costs me one dollar where it used to cost me 35 cents years back.

I think the govt. needs to step in and regulate the cost of necessity services such as transportation, self-help courses, medical services, etc.

Sorry for the rant. Some things beyond comprehension like why do we need a small TV in a bus?

July 24, 2005 8:25 AM
winston said...

Pay yourself first.

July 26, 2005 1:14 AM

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