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How Do i handle my money? – part 4

singapore dollar Welcome to the fourth part of how to handle my money? If you haven’t already ready the first 3 parts, please do so by navigating to the right side-bar , under “popular stuff” ^^

So in this fourth series, I would like to start on the theme of “paying oneself first”. Now what does that mean?

You see, every time we receive our allowance or salary, who do we pay? lets look at it

we pay..


the hawker, the barber, the technician , the entertainment stores . etc . But do we ever pay ourselves? Hardly, every cent that goes into our left hand, is paid to others from our right hand. Even if we do “save” up some money, we eventually spend it on something “big”.

Ultimately, none of the money we get ever stays with us.

So you may ask, why do we need to pay ourselves? The answer is simple, we cannot always be exchanging time for money. or for some, we simply do not want to change time for money. Let’s look at the typical mindset of modern day typical citizen..

Time <—> Money <—> Spend

This formula gets us stuck, because once we dont have time  ,we dont have money and we dont have money to spend ?!

That’s not what we want… If we expect to live a life of greater quality , we need to build momentum towards that goal, we have to slowly eliminate exchanging time for money, so we can spend time on more meaningful things.. Eventually, we hope to achieve the following

Money ----> More Money ---> Spend

Simply put, we let our money make us money. I know this may sound “idealistic” , but let me paint you a very simple picture ,(please note that this takes TIME), you save enough money to buy a bungalow , but instead of buying one bungalow, you bought 2 HDB flats, one for rent and one for personal stay.

You have effectively make your money work for you, because your cash is generating cash for you! Every month you get rental (automatically) without doing anything! now isnt that wonderful?

I know this is a very simplistic concept, so let me share with you something more substantial – something I just came across today.

I came across the opening of a cafe with a brand new concept and solid business model, in the opening, the senior consultant of the cafe mention that anyone interested could buy the “preference” shares for the cafe and would be entitled to monthly returns (as such is the nature of a preference share). At the end of 90 months (approx 8 years) , you would earn about 3 times what you put in, amazing? the best part, in this 90 months, you do not need to do anything.

Although you may think its “too good to be true”, to be honest, the company would’ve used this 90 months to gain leverage on the cash you put in and earned more than 3 times its original value – feel free to skip this part if you do not understand.

So part 4 of this series is simple – if you want to live a life of abundance and one that gives you more freedom , more time and more “life” , start paying yourself today. It doesn’t matter how small the amount is, start somewhere, and make sure you never spend this money on anything else other than making it work for you (not applicable to emergency cases).

Pay Yourself First

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