It’s been almost 2 months since my last posts and i am deeply sorry about it. Many of my friends have asked me what happened and my reply was ‘No time’

But today i receieved an email which motivated me to want to blog more. I got an email from CPF board to invite me to write articles for their upcoming ‘Are you ready’ Campaign and i really feel very honoured to be on their invited list. They are going to launch this initiative in 9 Oct 2011 and the purpose aims to educate singaporeans on how to make key financial decisions in their lives.

So therefore the next few weeks, i am going to write a couple of articles so that they can use for the campaign and hopefully through this event, more people can be educated financially.

If you guys have any other topics or areas that you are interested to know more, you can email me or drop me a msg at the chatbox. i will listen to you and share with you my knowledge to my best ability =)

Stay tuned!

I believed all the readers will find this question very familiar. Either we have been asking ourselves every other day or by our family members who want us to get married and set up a family.

The important question is that in this current fast pacing society, can we still save? Is it easy to save?

I guess the answer to this is really a ‘Yes’. Personally i have two brothers and one likes to save and while the other likes to spend. Both have two children. I also have a sister who is a full time mother with one child and survives based on single income.

From them, i really learnt alot on how to stay happy even though income is not high. The secret to saving is not so much on how much you bring home but rather how you view money. To my sister, having able to save a couple of hundreds can be a great joy for her and she has great plans on how to spend wisely with it. However as compared to my brother, the excitment or joy is not as much. So you can see that with the same amount of dollars, different people react differently.

Therefore the moral of this sharing is to tell you that by simply changing your view towards the dollar notes can change the way you are feeling every day. Take one more example that is myself.

i derived joy from being able to save on cab/car by taking mrt even though i own a car now. Each day as i travel for apppointments by mrt, i feel happy because i have no worries towards ERP and CBD parking. Most importantly petrol costs. I enjoy eating simple food that doesnt need me to pay for GST and service charge. I love to shop when i travel to places like bangkok or malaysia because the things are so cheap and it serves the same purpose. 

Maybe some of you may find that is it worthwhile saving that small amount of money or is it neccesary to be so ‘poor’ when you can well afford luxury items? To me, it is worthwhile because i hold on to this belief: The only thing in this world that will make you happy is FREE! Eg: Happiness, Air or appreciation of what we have. The person that tells you that buying the most expensive item will make you happy is bluffing you!

Isn’t it true? When we purchase a car, we will get concerned if we need to service or pay for all the expensive erp charges. When we purchase an ideal condo, are we not worried about the maintenances of the monthly instalment? When you buy your favourite LV bag, are you only happy when people notice? Please don’t tell me you feel happy to just own it and not want people to see or appreciate. If there is really the case, you should consider hugging it to sleep. At least it serves some purposes than collecting dust at home.

Therefore i hope that after reading this, you can start to change how you see money and from there, you will slowly find joy in saving money. It is never too late to save because at whatever age you are(as long as you are still working) , you have the rest of your life to save up! =)

Happy Saving!

Are you totally prepared for it? Have you as a parent, gotten enough coverage for yourself first? Are you concerned about saving up for your kid’s education plan? Do you have enough saving to endure you through the initial period?

Many parents that i have met experiened one thing or another as mentioned above and most of the time, i need to sit down to spend quality time with them to do some re-adjustment of their portfolio. One of the few mistakes that i realised adults made was that they committed too much into saving for their retirement during their age when they have not enough gotten themselves insured enough.

In Singapore we were taught that we should SAVE. Therefore many insurance sales-person out there will try to make sure of this point to sell to many fresh graduates the idea of saving when young. Yes, it is true that we should be saving BUT not with any insurance company per se. They need to save up for their emergency fund first then get themselves insured and when everything are settled then they look into saving for retirement.

Think about this: one young man went to buy a 25yr saving plan when he just started working as fresh grad and he committed $200 because he is able to save $1000 per month. His salary was $1800 during then. A few years have passed and he realised that he needed protection so he approached his consultant to buy a life insurance. He was asked to buy a life insurance that costs $150. So at this point of time, he would be committing $350 out of his $1800 salary and this works out to 19% of his income! Slowly he got married and have two lovely kids. Then suddenly he passed away due to a car accident! His wife called up his agent and asked how much he was covered. Guess what! The agent said ‘Auntie, i’m sorry he did not have accident plan with us and his total coverage only $130,000″

Imagine you are the wife, how would you feel? $130,000 only! Goodness, how long can you survive for only this small amount of money with your two kids?

In the above example, if he was sold a term plan of $150k for $30/mth and a participating life plan of $150 covering $100k for death and accident, his wife will be receiving $400k in total and he was only paying $180/mth using only 10% of his salary!

Let me tell you the honest truth: This is what is happening out there to many people who commits a saving plan first and realised they may not have enough money to buy life insurance when they really need it. Their agent may not also sell them term policies or accident plan because it is firstly hard for consumer to buy the idea of life insurance and secondly commission are low for them plus the overall production the consultant brings in will be considered low.

 Therefore the next time people approach you for saving plan, tell them stop being a sales consultant, be a financial planner and i will buy from you.

This brings me to think about our individual financial situations. Are we financially ready for a ‘rainy season’ in our life? Do we have an ‘umbrella’ to use when we really need it? In case you are now lost, do allow me to explain further what I mean by a ‘rainy season’ and an ‘umbrella’ in your life

Do you agree that from the moment we step out into the working society, we all have unexpected expenses coming to us every now and then? From the allowances we give to our parents, family trips, spouse’s birthday, personal holidays, friend’s birthday celebration, sickness and shopping spree, it all requires us to spend a lump sum at some point of time. Can we really save on this money? To me, yes and no. Let’s say I save on giving my parents a free holiday at the end of the year, I will feel so bad about it and eventually will blame myself for being too calculative. If I save on my spouse’s birthday, it would also seem like we don’t really care much (who doesn’t like to receive gifts!). For friend’s gathering and holiday, societal norms tend to dictate that there needs to be a gift presented, and much as it seems unnecessary, we are all eventually tied down by these norms.
We can hardly find a bunch of friends who can chill out together without spending money. Even dining at a restaurant to ‘catch up’ can easily make you poorer by $50.

Therefore the so-called ‘rainy season’ would refer to the type of expenses I mention above. You don’t spend the same amount every month but yet its seasonal. Do you save on a monthly basis to cater to such expenses? Typically I would recommend setting aside 10% of your net-income for it so that when you really empty this account, you are still safe.

To me, an ‘umbrella’ in my life would mean getting adequate insurance coverage to protect against major illness (hot topics these days), death, disability and hospitalisation. The very purpose of an umbrella serves to shelter you from either sun or rain. It is meant as a covering, and a safeguard should the weather unexpectedly change. I am willing to bet that you who are reading this article currently have an umbrella in your possession, kept somewhere in your storeroom, who only makes an appearance when the skies turn dark. Imagine heading out into the pouring rain without an umbrella.. not a feasible idea right? You don’t buy an umbrella only when you see the skies turning dark, you buy one and keep it at home, ‘just-in-case’. The same premise holds true for insurance, you don’t start scrambling only when a major illness hits you. You keep one with you at all times in a cupboard, and take it out when it starts turning dark. The consequence of not learning this concept will also render you helpless and definitely ‘wet’ (with tears maybe) when the rain starts pouring in your life.

Yet when it comes to buying insurance, you may wonder what and who to buy from. Well this answer can be easily solved by getting a reliable consultant who stays long enough to survive in this financial industry and someone who spends time understanding your needs and wants. Tied or independent agents does not really matter because it’s the agent’s character that plays the most important part. Don’t you agreed with me that even people in high governmental positions (SLA incident) can also be corrupted?

For those who are reading this, please be nice enough by informing your friends or relatives not to buy any plans from roadshow advisors that promise you freebies. Most of them try to lure you to putting down an instant lifetime commitment, whilst not having the space and capacity to thoroughly address your needs. Always remember that ‘a one time greed will make you regret for life’. Its not worthwhile Another important point that I always advocate is to not buy a savings plan as your first policy. An ethical agent always makes sure that he addresses your life protection needs FIRST before looking at other aspects. Hence, advisors who solely touch on wealth management plans are mostly not looking out for your needs, but their own. So please take note

Just my two cents worth!

Sorry for being MIA for almost one month. Been busy adapting to my new found low-purine diet due to my Gout. It’s really not easy to find food outside with my condition and i have a whole list of ban food that i cannot touch.

Nevertheless i take it as a form of healthy living that i adopt at a younger age =) Went for a blood test and thank God that it is all cleared except that i have a high level of uric acid which results in my gout. Through this experience, i told myself that i must not take my health for granted. If you are healthy now, it doesn’t mean you won’t contact anything in future hence we always have to be healthy.

Last month i have also bought myself a car - Mitsubishi Colt Plus! Despite the fact that it is a liability, i have decided to go ahead with this upgrade. Well it was really a small upgrade for me in the sense that i gotten a off-peak car instead thus reducing the monthly committment. Again by owning a car, i realised even more things about the idea of having a car.

First of all  to those that think by having a car will be more convenient, i have to be totally agreeable with you! My girlfriend stayed in town and each night if i will to take public transport to send her back and i go home, it will takes about one hour. Plus it will also be taking one hour if i will to meet client at west area. Previously i have been doing so and it was really tiring, The fact that i can endure for so long was because i thought of the money saved and it made me felt justificable. But for now, i just want to make my life easier =)

But although it helps you to save time, one has to see how he/she makes use of the extra time. If one simply just decide to slack at home to do nothing while having the extra time by having a car then i think it’s not productive. If they make use of the time to go for another appt or go home to do work then i will think it’s helpful to own a car.

Owning a car does not help you to save money! I have to emphasize on this! As a matter of fact, i think one will spend more money because one will tend to go for late night supper, buy more grocery since have space to bring home, modify their cars or travel to many other places for dating. I supposed for those who owns a car will be nodding their head with me =) Plus with all the ERP and carpark charges, it wont be surprised that owning a car will actually make you poorer.

Well all in all, i will still think that if the monthly committment of a car is within 20%  of your income and you can still save 30% of the gross salary then it will be a good idea to have one! Happiness index of having a car rates 7 out of 10!

Updates on my work would be that i am very happy to inform you guys that i have managed to clear my target much earlier than expected this year despite the fact that early this year, the economy is not doing very well. Much have to attribute to my loyal and faithful clients who have trusted me and supported me all these while. With many new products in the market, i am better able to equip myself and value added them better! I will continue to work hard and not to let you guys down!

Coming into December is an exciting things for me because i will be heading for my annual ICT and that will be the time where all our good old friends can gather together to talk and bond together! It’s also a time where we evaluate our achievments and to see what are the miracles that can happen if you really believe in it. Never give up because we have not reach the end point.

To all the sales people out there, one word of encouragment for you:

*****Your success does not depend on anyone but yourself! You are the key! *****

All the best to my readers out there!

God bless you!

Pete

Being a man, there are as many responsibilities as compared to a woman except that it is all different nature. We need to provide for the family, taking care of our loved one to ensure they are not neglected and we also need to excel in our career or else we feel so lousy about it. All these stress could possibly make a man go crazy if we don’t take a short break.

Therefore yesterday i actually took a 15 minute break after i reached home to be alone. Spending time with myself and God really helps in achieving balance in mindset. Or else i feel that it will be very easy to get burnt out. We can only love others if we love ourselves. If you notice those nasty people around us, they usually are the type that don’t love themselves. Hence it is very important to spend some time each day to get in touch with your inner self. Moreover by taking 1 minute to appreciate all the things you have currently will make you a better person in a way that you don’t take things for granted.

Last time i have always wanted alot of unimportant material stuffs and i thought i be happy after i have it. But end up i realised even after achieving everything, i was not happy. What actually makes me happier is when i think of the fact that i am still alive and i have my family members and best friend with me. There is no point to have everything in the world but you don’t have anyone with you by your side. Thereafter i realised this simple method, this is how i keep myself happy every other day!

Another things that you can take note is that we CANNOT please everyone. So don’t bother to please all people around you epecially in work place. There are those people that just want to make things difficult for you and trust me, God knows about it and they will have their day too.

Alright, that’s all i want to share for the day. Hope you have a great week ahead and take whatever you think its useful to apply in your life now!

Allow me to share my personal health in general with you =):

In term of my wealth, i have started to live a more simple life. Meaning i buy what i need and have stopped buying branded goods that is for temporary show. I have taken quite some time in order to master this simple habits. Previously i have always wanted branded things and would go for high quality products and tell myself that it is for long term use. However after living in denial for 2 years plus, i came to realise the best things in life is FREE. Eg: being able to breath fresh air is the most amazing things to do! Having a chance to stay home to rest and reflect on your life is also free and it’s super important. I have saved money in both bank and insurance. I do unit trust and stock investment. I do invest in business too. Therefore with all these in place which i still need to improvise, i think i am being quite healthy.

Comes to body health, i think i am currently in the pink of health. From my latest body check from Sky Fitness Gym, everything inside my body is normal. Body fats are also in healthy range. In fact, i need to put on another 4 more kg on my lower body to be more proportionate. Have been doing cardio and weights training every wed morning and go for run at least once a week. Again in this aspect, i felt i am very healthy considering my job scope and years of working =) Some of my friends put on weights ranging from 5-15kg after their NS. Thank God for the wonderful body that He blessed me!

Perhaps last aspect on healthy will be on the mindset. Many people in my industry tend to fail to do well because of few reasons but the main reason that i gathered is this issue on mindset. Actually to be fair, mindset problem is one of the main reasons for people not doing well in whatever they are doing. Often than not, many of them have the ‘I-don’t-care’ attitude and ‘I-deserve-higher-pay’ mindset. Due to these two mindset, many of them find themeselves switching from one job to another and always complaining about their boss and job. I do feel for them some times but then again they could possibly deserve it. I mean do they ask themselves if they are adding value to their boss or companies? In today society, if you can’t add value to your boss, you are OUT OF THE GAME! Companies loyalty scheme are in place to keep people from staying and not be promoted. They don’t promote you based on loyalty but the amount of revenue or value you can bring in the company. It’s the ugly truth that all of us have to abide in. In this aspect of mindset, i felt that i am still on the right track of being very motivated and positive towards my job.

I believed strongly in adding value to your job and being always motivated by certain things. The one things that i find it hard to do is to find your motivational sources because it changes according to life stages. You need to constantly do reflection in order to find it. It’s a habit that you need to cultivate daily =)

Just my two cents worth of sharing. Hope to hear some from you too! =)

Today is my convocation day and it finally marks the end of my journey in SIM. Although i will upgrade myself in future but i doubt i will be going for my Masters but who knows right? Never say never =)

Anyway I would like to congrat to my other fellow friends who graduated same time as me and to those that helped me alot during my last 3 years esp during exam period! Really treasured the friendship over there and the help given. Without you guys, i guess my life would not be so wonderful. Being in the part time program, it had taught me the skill to juggle well between work and studies committment.

It’s all about adjusting your priorities in life. Do what is more important and also what yields you the most result are the key to do well. It’s really hard to have the best of both world. Not that it cannot be done but it’s hard =) In fact, there are only 1 first class honours student in my banking and finance couse for part time! So you can imagine the difficulities faced by most working adults.

Nevertheless, all the studies are over for me and now i am going to another stage of my life where i need to stablise my career and set up my future family. Not going to be easy also but i believed that if you really want something badly in life, you will make it!

Remember: It’s all about your choice!  Good luck!

That’s why today I decided to come to airport to chill =) Having a cup of latte whilst doing strategic thinking. I love such moments as I can slow down my pace and reflect on all the things that has happened in my life and learn from the experiences that I’ve had.

Let me do a recap of the experiences that I have gained in the past two months:

1)      During conversations with guys younger than me, I realized that the decisions made during the younger years have the ability to completely alter one’s fate. I made the decision to join the financial industry despite many objections while doing my part time degree and after 4 years, I have never looked back. If I had not made this move, I wouldn’t be where I am now and this website wouldn’t be in existence. I also wouldn’t have learnt so many valuable life lessons in life and met amazing people.

2)      After one of the major exercise that I had during my course, I was reminded that one’s attitude in life decides whether or not you’re poised for success. Eg: If you are always positive about things, you tend to make the best out of it and try to learn new experiences from it. Successful people that I know, especially my boss Merry Riana, has an excellent attitude towards life. She has been going around sharing with many others that the most important things in life can be achieved by having the right attitude. Losers, on the other hand, focus a lot on what they can’t achieve and blame anything and everything except themselves.

3)      We can plan but if the plan that you have is not what God has intended for you, it will not materialize. As a result, you need to see from this point of view and tell yourself that God breaks your plan so that HE can allow the bigger plan to materialize. Every failure in our life serves a purpose. It doesn’t happen without a reason. So seize the chance to learn from the mistakes and grow!

4)      Saving is a virtue! Being able to save and possessing the willingness to save isn’t easy. This is especially so in Singapore where things are so expensive coupled with low wages, it can be quite taxing on normal folks. It takes great determination to weather out temptation and remain as normal =) Although it may seem very extreme but that was what I learnt. We can save money if we really take a step back to reflect on our wants and needs. You have to ask yourselves whether you deserve to buy these items and whether the purchase value adds to your life.

5)      What kind of lifestyle do you desire? Have you asked yourselves why you are  working so hard? Do you desire a relaxed lifestyle when you retire? If the answer is yes, then I suggest that you should migrate overseas =) After I came back from Australia, I learnt that it doesn’t take much effort to lead a relaxed lifestyle there. The culture is such that anyone can lead such a lifestyle. The per hour wage is about A$15-20 and working hours are from 9-6pm. After work time is meant for family bonding whereas weekends are meant for gathering with friends or colleagues. Even if you are unemployed, the government will also provide you with social benefits. So basically it is a choice of abandoning everything in our home country or to migrate to another place to start all over again. We need to find a purpose for working hard. We can’t just work without a reason because one of these days, you will just wear out and find life meaningless.

Well that’s all for my two cents worth of sharing. Hope you can gain some insight through my experience. It’s always good to leverage on others than to go through itself.

Before you get the wrong idea, i am not getting married by any means but it is just that i will be taking over the ownership of my current house due to some reasons. This is actually quite a good news for me because it will mean that i will finally own an asset which will be providing me passive income and an opportunity to make capital gains when times is good. I felt that it comes at the right time because currently i am single and not having much commitments therefore by putting my money inside the house will be considered as a good investment.

My plan is to do a small renovation and after that will rent out the whole unit to let me earn some passive income and i will move out to rent a small place to stay. This way, i will not have to worry about the loan repayments since it will be covered by the rental and i also don’t have to fork out extra money to pay for my room rental too. Tho it’s going to be quite different staying alone but for the sake of future investments, i think it is a small price to pay =) Hopefully by 3 years, i will be able to save up to buy my first condo. And if i do so, i will be renting it out and i will stay in HDB together with my wife (if im married). The thought of dreaming about having my own condo excites me so much!

Another thing that i wanted to do this year as i mentioned earlier is to save up to 40% of my earning per month. To do so, i have listed down what are the neccessary adjustments that was needed in my current lifestyle:

1) Cut down on restaurants with my date to once/twice a month
2) Get busy so that i have no time to spend money!
3) No more expensive things for myself for at least next 6 months
4) Cutting down on entertainment activities to once a month
5) Less cabs taking

Well i believed that by strictly following these five things, i will be able to save up quite abit of my earnings and do regular investments. I’m also going to be more active in investing in unit trust to build up for my future. 2010 seems to be a good year to do regular investment since there are prominent signs of recovery. I believed that as a financial planner, we have to abide by the rules of saving and investing before we can preach what we believed strongly in. At least that is my motto when i’m handling business with my clients.

I often shared with my clients that it is not really how much you earn but how much you save! With that in mind, i am going to drill it deeply in me at least for one year and i will see how much can i really save. Good luck to me in saving! =)

The above two are part of my 2010 resolutions! I still have others that i will share soon!