Little Guy in Little Red Dot
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How Much To Save A Month To Be A Millionaire?

The answer is to save as much as you can!

You might think that this is a rubbish answer, but i think this is very true.

If you only think about it, and do nothing about it, nothing happens.

Take small steps to move towards your goal of a million dollars. Start by saving at least 20% of your take home pay (net pay) and you will be able to see your savings grow month by month.

The main idea is to pay yourself first with the 20%. In order to see money in your bank, this is the ultimate first step to take. Do not make the mistake of saving only whats left at the month end, because normally you will be left with nothing at the end of the month.

I made this mistake of saving whatever is left after deducting all the expenses in the past, I was able to save some money but soon it became stagnant as there is no fixed amount I save each month. Sometimes more sometimes less.

After applying the “pay yourself first” technique, I was able to see significant improvements in the numbers :)

20% is just a guideline, and you should strive to spend less than you earn and save as much as you can. Before buying anything, ask yourself if this is a need or want.

I came out this guideline for myself today:

If I consider this item to be expensive, this means that I don’t really need it.

I realise that if I really need to buy an item, no matter how expensive it is, the cost is usually not my deciding factor but the brand or the model is. This shows that I really need it.

After saving an amount of 6 months to 12 months of emergency cash, you can start to invest the rest in the various investment tools that you are most comfortable with.

I realise that investments is very important in personal finance to grow wealth but use this tool with care.

Every one wants to become a millionaire but not many is discipline enough to do what it takes to achieve it.

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I came across this interesting article “Generation Debt” on TheSundayTimes today.

It says that according to survey, age of 20-something have the highest rate of loan default in Singapore, with those who are married the worst of the lot.

As a 28 year old, I have seen a lot of my friends belonging to this generation.

I used to be in this category, but i manage to pull myself out of it by clearing my debts as fast as possible. It sucks and sucks even more. But its worth the effort and determination.

Living like a hermit during the debt-clearing time, I cut down as much as possible on the expenses and output as much as possible of my pay to repay the debt.

Made use of 0% fund transfer from banks (they charged a fee of 1.5% to 2% though) and borrowing from a few close friends (thanks buddies, saved me a lot in interest rates and bank fees) to tide me over the dark period.

No entertainment, no merry making, no eating out, no life.

Thats my determination!

Time passed and I am glad that I have saved enough to prepare for my customary wedding and buying a house and going on a honeymoon.

*Tip* It helps to have a wife who is a saver!

These young adults buy things based on wants and not needs.

They change handphones every other month when new models are released, buying every gadgets from Apple such as iphone and ipads. Often spending more than they can afford to.

It is important to know where your money goes to, this can be done by tracking every expenses for a month or two which then you can work out a budget based on your spending habit.

Make it a point to save at least 10% of your net income by paying yourself first. Get separate savings account, one for pure saving and one for expenditure. Get that 10% into the pure saving account.

Start financial planning as early as possible, learn ways to invest the savings to make higher returns.

Make money work hard, not work hard for money!

Want to be lazy and save some money on public transport cost? It isn’t too hard to achieve that!

2 banks in Singapore are issuing credit card that enables you to save money and be lazy if you are using the bus/MRT/LRT everyday.

The 2 credit cards are:
POSB Everyday Card by POSB
Citi SMRT Platinum Visa Card by Citibank

Both cards work the same way, you need to apply the EZ-Reload so as to enjoy the benefit of 2% rebate on the EZ-Reload transactions.

The biggest plus of having EZ-Reload is that you can save time on the ez-link Top-Up as it is billed to the credit card. Saves time on finding General Ticketing Machines (GTM) and Add Value Machines (AVM) to top-up the amount when it runs low. It also saves wallet space as one less card is needed.

Both POSB Everyday Card and Citi SMRT Platinum Visa Card offers 2% rebate but if you charge less than $600 on Citi SMRT Platinum Visa Card, it only rebates you 1.7%.

Because of this, I have switched to using POSB Everyday Card as my main travel card for the full rebate.

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