Psst..pst…Millionaire wannabes…listen here – 20 Mar 2014
Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at. Well, guess what? A millionaire who is truly financially savvy won’t be easily recognizable. This is what we have dug out from one of them at knifepoint!
1. He always spends less than he earns. In fact his mantra is, over the long run, you’re better off if you strive to be anonymously rich rather than deceptively poor.
2. He knows that patience is a virtue. The odds are you won’t become a millionaire overnight. If you’re like him, your wealth will be accumulated by diligently saving and investing your money.
3. When you go to his modest apartment, you’re going to be drinking his favourite 3 in 1 coffee instead of Starbucks. And if you need a lift, well, you’re going to get a ride in his simple sedan. And if you think that makes him cheap, ask him if he cares. (He doesn’t.)
4. He pays off his credit cards in full every month. He’s smart enough to understand credit cards are for earning rewards and points. Period.
5. He realized early on that money does not buy happiness. If you’re looking for nirvana, you need to focus on attaining financial freedom.
6. He never forgets that financial freedom is a state of mind that comes from being debt free on a net asset basis. Best of all, it can be attained regardless of your income level.
7. He understands that money is like a baby; it is incapable of managing itself. After all, you can’t expect your money to grow and mature as it should without some form of credible money management.
8. He’s a big believer in paying yourself first. Paying yourself first is an essential tenet of personal finance and a great way to build your savings and instill financial discipline.
9. Although it’s possible to get rich if you spend your life making a living doing something you don’t enjoy, he wonders why you do. Life is too short.
10. He knows that failing to plan is the same as planning to fail. He also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck or wealthy parents.
11. When it came time to set his savings goals, he wasn’t afraid to think big. Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.
12. Over time, he found out that hard work can often help avoid a lot of financial mistakes. You don’t want to make too many of them. And he wonder why in this day and age, people never learn from scams, preferring to outsource their responsibilities to smooth-talking operators instead of taking charge of their investments.
13. He realizes that bad things happens, whether you like it or not. That’s why you’re a fool if you don’t insure yourself against risk. The potential for bankruptcy is always just around the corner and can be triggered from multiple sources: the death of the family’s key bread winner, divorce, or disability that leads to a loss of work.
14. He understands that time is an ally of the young. He was fortunate enough to begin saving and investing in his twenties so he could take maximum advantage of time.
15. Even though he has a job that he loves, he doesn’t have to work anymore because everything he owns is paid for – and has been for years.
16. He’s not impressed that you drive a luxury car and live in a mansion that’s too big for your family of four.
So that’s it. Now you know what your millionaire neighbor won’t tell you!
This was adapted from a longer post that originally appeared at Len Penzo dot Com. Copyright 2014.
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Private jet owners’ woe in Singapore – 11 Jun 2013
So you want to own a private jet in Singapore?
If so, you’ll be joining about 6 other Singaporeans who own private jets in Singapore. Here’s a fun fact. The price tag of a brand new private jet ranges between S$5.5m (HondaJet – 4 basic seater) to S$60 m (Gulfstream 550 – 20 luxury seater).
The annual cost of maintaining one averages S$625,000. And where does it go to? The cost of hiring pilots (At least 2 for a larger private jet), engaging a maintenance engineering team, routine overseas maintenance, as well as fuel, over-flyer, landing and parking charges.
But that’s not the point of this article. Apparently, the folks who own these jets in Singapore are unhappy that Seletar Airport where their jets are parked, sells them jet fuel at S$1.52/l compared to S$1.05 at Changi Airport and S$1.11 in Senai Airport (Johor).
You may think, wah why these Singaporean tycoons so cheapo, their fuel cost cheaper than my petrol price!! Let’s do the maths. With private jet fuel tank ranging from 4000 to 23,000l, a full tank would cost them between S$6000 to S$35,000, compared to our humble S$100 full tank at a Shell station.
The point is, even these tycoons who have many zeros in their bank account gripe about such cost differential. They have build up their wealth by sniffing out good deals and never leaving too much on the table. The same goes for fuel price. Leaving too much on the table knowing that there are cheaper jet fuel alternatives nearby makes them peeved, to the extent that they are making their displeasure known to the Singapore authorities through private jet operators. Of course, there are vested interest at play as these private jets could be leased for chartering when not in use by their owners and the high jet fuel cost eats into the margin.
Like these tycoons, be savvy. Accumulating wealth is not just about how much you earn. How much you save is equally important!
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How much are you leaving on the table when you buy a brand new car? – 7 Jun 2013
Yes, you must have read somewhere (for the umpteen time) that Singapore is indisputably the most expensive country to purchase a car, even more so than Hong Kong.
Just to illustrate, at today’s COE price averaging S$70,000 for 1.6l cars, an entry level Toyota Corolla Altis goes for S$120,000. In Malaysia, it cost about S$42,500. Faraway in US, this car is yours for about S$20,000.
As an ex-public officer, I understand the intent behind the high car tax structures and ERP gantries that mercilessly serves the objective of reducing congestion and discouraging ownership. On my part, I invest in a good GPS so I don’t waste petrol and time getting lost. “Happily retired” also means I can run my errands at off peak hours and avoid peak hours congestion and ERP charges. That’s how i adjust. Oh and I cycle (enjoy it thoroughly) and take public transport too.
If a car is a necessity to you, sure, go ahead and get one. Be mindful however of what you leave behind on the table for the dealer. I believe in a fair deal and avoid buying cars that are highly marked up.
If you study the table below which I’ve compiled from public data provided by LTA as at 1 Apr 2013, when COEs were $61,029 and $67,010 for Cat A and B respectively, you will be astounded by the additional taxes (Additional Registration Fees – ARF, Custom Duties, Registration Fees and COE) paid above the open market prices (OMV) and the dealers’ markup which varies from -2% (Yes, it’s no typo as that NISSAN model was priced to be offloaded) to more than 50%. No prize though for guessing which brands and models are highly marked up (Feel free to ask for serious freebies from their sales staff!) There are a couple of surprises though and you’ll have fun drawing your own conclusions.
As a savvy car buyer who sees my car as a form of transport rather than an ego booster, you will not see me coveting those cars with extremely high dealer margins.
Happy savvy car shopping!
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|
Car Model
|
Avg OMV
|
Taxes + COE
|
Total Base Cost
|
Dealer's Price
|
Mark up
|
---|---|---|---|---|---|---|
1 | B.M.W. 520I 2.0L AT | 41,422 | 128,904 | 170,327 | 267,800 | 57% |
2 | B.M.W. 528I 2.0L AT | 46,849 | 138,044 | 184,893 | 288,800 | 56% |
3 | B.M.W. 730LI AT D/AB 4DR | 73,795 | 192,939 | 266,734 | 413,800 | 55% |
4 | B.M.W. 740LI AT SR LED DSC | 91,023 | 228,843 | 319,866 | 473,800 | 48% |
5 | B.M.W. 640I GRAN COUPE 4DR | 78,589 | 202,930 | 281,519 | 413,800 | 47% |
6 | VOLVO XC60 T5 | 38,611 | 124,171 | 162,783 | 235,000 | 44% |
7 | B.M.W. 320I AT D/AB 4DR ABS | 36,665 | 120,894 | 157,559 | 223,800 | 42% |
8 | VOLKSWAGEN TIGUAN 2.0 TSI AT | 36,250 | 120,195 | 156,445 | 221,300 | 41% |
9 | VOLVO XC90 T5 R-DESIGN | 50,391 | 144,165 | 194,556 | 275,000 | 41% |
10 | B.M.W. 116I AT ABS D/AIRBAG | 27,412 | 99,331 | 126,743 | 178,800 | 41% |
11 | B.M.W. 316I 1.6 AT D/AB 4DR | 32,808 | 108,419 | 141,226 | 197,800 | 40% |
12 | TOYOTA CAMRY 2.0 AUTO | 24,391 | 100,225 | 124,616 | 169,888 | 36% |
13 | TOYOTA ALPHARD CVT | 43,728 | 132,789 | 176,517 | 238,888 | 35% |
14 | VOLKSWAGEN PASSAT 1.4 TSI DSG | 27,406 | 99,321 | 126,727 | 169,300 | 34% |
15 | HONDA CR-V 2.4L SUNROOF | 29,892 | 109,488 | 139,380 | 184,900 | 33% |
16 | HONDA ODYSSEY 2.4L EXV | 29,337 | 108,553 | 137,891 | 182,900 | 33% |
17 | VOLKSWAGEN BEETLE 1.2 TSI AT | 19,367 | 86,036 | 105,403 | 139,300 | 32% |
18 | TOYOTA VIOS 1.5 E AUTO | 11,077 | 75,391 | 86,469 | 113,888 | 32% |
19 | TOYOTA WISH CVT | 23,453 | 98,646 | 122,099 | 159,888 | 31% |
20 | MERCEDES ML 350 BLUEEFFICIENCY | 66,385 | 177,496 | 243,881 | 318,888 | 31% |
21 | VOLKSWAGEN SCIROCCO 1.4 TSI AT | 25,861 | 96,719 | 122,581 | 159,800 | 30% |
22 | TOYOTA LEXUS GS350 LUXURY AT | 64,609 | 173,796 | 238,405 | 307,000 | 29% |
23 | HONDA CIVIC 1.6L VTIS AT | 17,740 | 83,947 | 101,687 | 130,900 | 29% |
24 | TOYOTA LEXUS GS250 AT | 49,007 | 141,678 | 190,685 | 244,000 | 28% |
25 | VOLVO V60 T4 | 35,310 | 112,631 | 147,941 | 189,000 | 28% |
26 | VOLVO S80 T4 | 37,153 | 115,736 | 152,888 | 195,000 | 28% |
27 | TOYOTA COROLLA ALTIS 1.6 A | 15,150 | 80,622 | 95,772 | 121,888 | 27% |
28 | VOLKSWAGEN CC 1.8 TSI AT | 34,019 | 116,439 | 150,457 | 190,800 | 27% |
29 | VOLVO V40 CROSS COUNTRY T4 | 30,323 | 104,234 | 134,557 | 170,000 | 26% |
30 | VOLVO S60 T4 | 32,088 | 107,206 | 139,294 | 175,000 | 26% |
31 | VOLKSWAGEN JETTA 1.4 TSI AT | 20,994 | 88,523 | 109,517 | 137,300 | 25% |
32 | VOLKSWAGEN POLO 1.2 TSI AT | 15,572 | 81,163 | 96,735 | 120,800 | 25% |
33 | KIA SPORTAGE 2.0(A) SUNROOF | 21,319 | 95,052 | 116,371 | 143,999 | 24% |
34 | JAGUAR XJ 3.0S/C PL LWB | 79,069 | 203,931 | 283,000 | 350,000 | 24% |
35 | KIA SORENTO SUV 2.4 6AT FWD | 27,373 | 105,247 | 132,620 | 163,999 | 24% |
36 | HONDA STREAM 1.8L RSZ | 25,024 | 101,291 | 126,315 | 155,900 | 23% |
37 | TOYOTA AURIS CVT | 25,193 | 95,595 | 120,788 | 148,888 | 23% |
38 | JAGUAR XF 2.0L GTDI | 49,939 | 143,248 | 193,187 | 238,000 | 23% |
39 | MERCEDES E250 BLUEEFFICIENCY | 52,209 | 147,955 | 200,163 | 244,888 | 22% |
40 | JAGUAR XJ 3.0S/C PL SWB | 74,694 | 194,813 | 269,507 | 328,000 | 22% |
41 | HONDA ACCORD 2.4L AT | 30,784 | 110,991 | 141,775 | 168,900 | 19% |
42 | MERCEDES E200 BLUEEFFICIENCY | 50,759 | 144,933 | 195,692 | 229,888 | 17% |
43 | MERCEDES BENZ SL 500 | 152,203 | 356,342 | 508,545 | 587,888 | 16% |
44 | VOLKSWAGEN GOLF A7 1.4 TSI | 25,520 | 96,145 | 121,665 | 138,800 | 14% |
45 | NISSAN MURANO 2.5 CVT ABS D/AB | 39,717 | 126,033 | 165,751 | 179,800 | 8% |
46 | NISSAN SYLPHY 1.6 CVT ABS | 14,902 | 80,303 | 95,205 | 102,800 | 8% |
47 | NISSAN TEANA 2.0L CVT ABS | 25,208 | 101,601 | 126,809 | 136,800 | 8% |
48 | NISSAN QASHQAI 2.0L CVT ABS | 21,174 | 94,808 | 115,981 | 119,800 | 3% |
49 | NISSAN ALMERA 1.5 4AT ABS | 14,511 | 79,801 | 94,312 | 92,800 | -2% |
Car Prices as at 1 Apr 2013. All figures in SGD