How to stay out of debt in Singapore?
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How to stay out of debt as Singaporeans?
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We take loan to study in University.
We take loan to buy COE and vehicle.
We take loan to buy our flat.
We have to set aside the minimum sum in our CPF retirement account when we are 55 years old.
Can we do so after clearing our loan?
Any suggestions to stay out of debt in Singapore?
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Simple, if you can't afford to have something you want in Singapore, don't take loan. In that way, you can always remain debt free and have a good night sleep everyday.
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How many of us can do so?
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How many of us can buy a HDB flat without taking a loan?
HDB flat is so expensive in Singapore. How to affort without loan?
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If you want to continue your study in University, work part time to pay for your fees or work full time and study part time. About how much you left after paying your housing loan for thirty years, my advise don't hope for your CPF fund for your retirement, you need to create you own saving account for your retirement. Again that depends whether you can afford to retire in Singapore or you want to stretch your dollars and retire abroad. About cars....you can't afford it, don't buy. Save your money instead.
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It is difficult to set aside some money for saving when we have mortgage loan and renovation loan to service.
It is more difficult when we need to support our children and our retired parents and parents in law.
It is expensive to own a car in Singapore. Therefore majority of us should not take loan to buy a car that can be on the road for only 10 years.
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Ya. First go work Part TIme for Uni then try to earn as much as possible if not take loan :(. Then Go buy house first, Car not worth, only 10 yrs compare to Bus. If got money then go buy car, but remember, try to save for ur retirement next time.
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Originally posted by Llg2178:
It is difficult to set aside some money for saving when we have mortgage loan and renovation loan to service.
It is more difficult when we need to support our children and our retired parents and parents in law.
It is expensive to own a car in Singapore. Therefore majority of us should not take loan to buy a car that can be on the road for only 10 years.
About your housing loan, well, they deduct that from your cpf. About renovation loan, why must you renovate your house expensively. Is it necessary? To me, when you have a hdb, just do the kitchen cabinet and paint the house yourself....other renovation not necessary because if you can't afford it, don't spend on it...then no renovation loan. Probably, you don't even need to make a kitchen cabinet...just buy a mobile kitchen cabinet will do....and save money and no debt. If you can't afford to pay your own down payment for your hdb flat by cpf, then don't buy the hdb flat until your cpf is enough to pay for your own down payment. In the meantime, stay with your own parents, parent-in-laws or grandparents flat. Don't get married if you know you can't afford to support your own self or your future spouse. If you do get married, no need to spend so much on your wedding..instead use your money for honeymoon and for your hdb flat. About saving, try to save $50 a month when you start work and later when you can save more...do it. -
You guys and gals, should learn how to save from your school pocket money given to you from your parents. During school holidays, work part time to earn your own money and save for your future study. Be independent and don't depend on your parents always to support you. When you commence your first job as a single, make sure you continue your saving and build up your saving. About credit cards...don't think it is very high class or classy...only stupid people think like that eventhough they can't afford to owe money to the bank. In fact, when you patronise any place...they prefer you to pay cash rather than credit card.
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Originally posted by zulkifli mahmood:
You guys and gals, should learn how to save from your school pocket money given to you from your parents. During school holidays, work part time to earn your own money and save for your future study. Be independent and don’t depend on your parents always to support you. When you commence your first job as a single, make sure you continue your saving and build up your saving. About credit cards…don’t think it is very high class or classy…only stupid people think like that eventhough they can’t afford to owe money to the bank. In fact, when you patronise any place…they prefer you to pay cash rather than credit card.
But I thought need above 14 to work right? -
Originally posted by Bus Fan:
But I thought need above 14 to work right?
Just apply the fast food chain, food stall, packers, leaflets distribution etcs....there are many places you can work in Singapore. -
MoneySENSE - A National Financial Education Programme
MoneySENSE is a national financial education programme launched by Mr. Lee Hsien Loong, then Deputy Prime Minister and Chairman of the MAS on 16 October 2003. MoneySENSE brings together industry and public sector initiatives to enhance the basic financial literacy of consumers.
The MoneySENSE programme covers 3 tiers of financial literacy:- Tier I - Basic Money Management - which covers skills in budgeting and saving, and provides tips on the responsible use of credit;
- Tier II - Financial Planning - to equip Singaporeans with the skills and knowledge to plan for their long-term financial needs; and
- Tier III - Investment
Know-How - which imparts knowledge about the different
investment products and skills for investing.
Since its launch in October 2003, MoneySENSE has published over 253 educational articles in the media, organised talks, seminars and workshops that have attracted over 93,000 participants as well as issued 29 consumer guides with a total circulation exceeding 2.2 million.
MoneySENSE has also disseminated financial tips and messages in interesting ways such as a series of games at the inaugural MoneySENSE 2006 Roadshow which attracted over 89,000 visitors, organised a MoneySENSE-CPF inter-polytechnic financial education outreach that saw over 33,000 visitors, and subsequent roadshows at the Institute of Technical Education and various locations. In addition, MoneySENSE commissioned TV shows “Dollar and Sense” and “Mind Your Money” which saw over 1.1 million viewers, and various radio programmes with total listenership exceeding 1 million.
The MoneySENSE programme covers 3 tiers of financial literacy:
- Tier I - Basic Money Management - which covers skills in budgeting and saving, and provides tips on the responsible use of credit;
- Tier II - Financial Planning - to equip Singaporeans with the skills and knowledge to plan for their long-term financial needs; and
- Tier III - Investment Know-How - which imparts knowledge about the different investment products and skills for investing.
MoneySENSE is spearheaded by the public-sector Financial Education Steering Committee (FESC). The FESC provides strategic direction and oversees financial education programmes in Singapore. It comprises representatives from the Ministry of Social and Family Development, Ministry of Education, Ministry of Manpower, Central Provident Fund Board, Monetary Authority of Singapore, National Library Board and People's Association.
The FESC works closely with the MoneySENSE Industry Working Group (MIWG) to implement MoneySENSE programmes. The MIWG comprises the Association of Banks in Singapore, the Association of Financial Advisers (Singapore), the Consumers Association of Singapore, the Financial Planning Association of Singapore, the General Insurance Association of Singapore, the Insurance and Financial Practitioners Association of Singapore, the Investment Management Association of Singapore, the Life Insurance Association of Singapore and Singapore Exchange Ltd. -
Originally posted by Llg2178:
We take loan to study in University.
We take loan to buy COE and vehicle.
We take loan to buy our flat.
We have to set aside the minimum sum in our CPF retirement account when we are 55 years old.
Can we do so after clearing our loan?
Any suggestions to stay out of debt in Singapore?
University loans...borrow from your parents CPF. Should be very easy to pay off.
Cars? You don't need one.
Flat? Live with your parents.
CPF....take it as tax lor.
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Golden Rule:
Live within your means, spend within your limit, save more for rainy days.
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No car, No gf, Less social, No KTV, No cable tv, Lowest cable internet, lowest phone plan - Lower spending.
As for no debts, it is a bit impossible as you will need to save more to pay off the debts.
As for food, stick to fruits and home cooked food.
Stay healthy as the medical cost in Singapore is pretty steep.
Drink water and not branded coffee or bubble tea as they are expensive and bad for your health.
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Originally posted by Medicated Oil:
No car, No gf, Less social, No KTV, No cable tv, Lowest cable internet, lowest phone plan - Lower spending.
As for no debts, it is a bit impossible as you will need to save more to pay off the debts.
As for food, stick to fruits and home cooked food.
Stay healthy as the medical cost in Singapore is pretty steep.
Drink water and not branded coffee or bubble tea as they are expensive and bad for your health.
goood advice here.
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Just be a member of the famiLEE lol
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You go and be monk or priest then you will be debt free.
Otherwise :
For University, apply for scholarship, if you have to sign bond, just treat it like NS, better than take loan cos you still have to pay interest. Otherwise ask from the school whether they have installment plan or government's subsidies
For Housing, if you cannot buy an HDB, you can also get an living space from rental, especially I know of those super rich one who didn't stay frequent in their condominiums they always rent out to people.
Cars? Unless you are doing an sales job which some company required, otherwise look for car leasing company or if your "best" friends have one, just "borrow" it from them and return it in "one" piece.
How to get out of debt : http://www.blogher.com/how-get-out-debt
How Can I Get Out of Credit Card Debt using Diamond Cutter Principles : http://www.diamondwisdom.sg/money/how-can-i-get-out-of-credit-card-debt-using-diamond-cutter-principles
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What are good debt?
Taking a loan to buy a flat is good debt if you are using CPF to pay your monthly mortgage loan.
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What is bad debt?
Taking loan to buy a family car is considered bad debt. Therefore we should not use more than 20% of our monthly net income to service the loan.
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How to stay out of credit card debt?
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Keep record of our credit card transaction. We must make sure that the monthly accumulated amount is less than 20% of our net income.
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List down our monthly expenditure.
Know what is necessity and what is not.