Without boring you with the economics of wages growth and income disparity across countries, we look at things from the man on the street.
Comparing things 10 , 20 years ago seems far for many and these days, we want instant results, instant gratification. Ask any young kids today and their dream is to become an influencer, youtube millionaire. So the bar is raised from generation to generation.
We know that the wages you got home each month is quickly distributed to your costs of living - food, transport, education, healthcare, etc. By first taking a 5-10% of that amount and leave it for investment is a wiser choice than to leave it the LAST ITEM. Make that your 2021 goal. Never mind how small the value of that amount is - you can start with low cost index fund at less than $100 or lower.
So, if you agree that most of our median wages are not increasing in tandem with the inflationary costs of living , then somewhere have to give. That means, you might be working longer hours, having more responsibilities, gotten your so-called 10-15% pay increase but the monthly expenditure are also going up as well. So , where do you find the surplus money ?
By making 10% of your monthly wage to the investment box - making it a compulsory item to deduct will inculcate a good habit and your future self will than you later. The younger you are, the better it is. But late is better than never as I always say. Do within your means, the important part is getting started and then keeping it consistent.
Here, I showed you two charts, STI vs CN50 and just looking at 2017 to 2020, the last 3 years. If one invest in STI, sadly, he is still losing money while the person who chose CN50 must be quite happy with his little windfall.
Investing is necessary because depending on one main source of income is no longer sufficient. Unless you have other ways to generate second or third source of income other than investing, then all is well. But, imo, investing carries much lesser risk compared to doing your own business. I have been there and if I could turn back the clock, I would happily pump all my lost capital into the market. Too late, haha. Pay money to learn valuable lesson !! Period.
Once you are convinced of the WHY? part of the equation, then you need to know the WHAT to invest? This simple comparison shows you picking the wrong index not only causing you to lose money but more importantly, the opportunity to make money elsewhere through compounding effect.
Make 2021 your new investment goal - put 10% of your monthly income aside for investment. Starts the habit , it takes time to build. But once you see the results, you will be motivated to stay on course. It is the same as signing up for a gym membership at the beginning of the year. What's your goal? To get 6 pack ? To lose 5kg ? To run a marathon ? Every goal requires different sets of training. Identify one and craft suitable training regime to reach your goals.
Or else, you will be all dressed up and walking around the gym like a lost soul not knowing what to do and soon, over time, you will not want to go anymore.......just like investment
Comparing things 10 , 20 years ago seems far for many and these days, we want instant results, instant gratification. Ask any young kids today and their dream is to become an influencer, youtube millionaire. So the bar is raised from generation to generation.
We know that the wages you got home each month is quickly distributed to your costs of living - food, transport, education, healthcare, etc. By first taking a 5-10% of that amount and leave it for investment is a wiser choice than to leave it the LAST ITEM. Make that your 2021 goal. Never mind how small the value of that amount is - you can start with low cost index fund at less than $100 or lower.
So, if you agree that most of our median wages are not increasing in tandem with the inflationary costs of living , then somewhere have to give. That means, you might be working longer hours, having more responsibilities, gotten your so-called 10-15% pay increase but the monthly expenditure are also going up as well. So , where do you find the surplus money ?
By making 10% of your monthly wage to the investment box - making it a compulsory item to deduct will inculcate a good habit and your future self will than you later. The younger you are, the better it is. But late is better than never as I always say. Do within your means, the important part is getting started and then keeping it consistent.
Here, I showed you two charts, STI vs CN50 and just looking at 2017 to 2020, the last 3 years. If one invest in STI, sadly, he is still losing money while the person who chose CN50 must be quite happy with his little windfall.
Investing is necessary because depending on one main source of income is no longer sufficient. Unless you have other ways to generate second or third source of income other than investing, then all is well. But, imo, investing carries much lesser risk compared to doing your own business. I have been there and if I could turn back the clock, I would happily pump all my lost capital into the market. Too late, haha. Pay money to learn valuable lesson !! Period.
Once you are convinced of the WHY? part of the equation, then you need to know the WHAT to invest? This simple comparison shows you picking the wrong index not only causing you to lose money but more importantly, the opportunity to make money elsewhere through compounding effect.
Make 2021 your new investment goal - put 10% of your monthly income aside for investment. Starts the habit , it takes time to build. But once you see the results, you will be motivated to stay on course. It is the same as signing up for a gym membership at the beginning of the year. What's your goal? To get 6 pack ? To lose 5kg ? To run a marathon ? Every goal requires different sets of training. Identify one and craft suitable training regime to reach your goals.
Or else, you will be all dressed up and walking around the gym like a lost soul not knowing what to do and soon, over time, you will not want to go anymore.......just like investment
Comment:
I believe we could see a breakout from the 2989 zone
My two cents - not hopeful on SG retail market. With more and more people getting online to buy things online, the fate of brick and mortar shops is bleak. Not forgetting live commerce where teenagers, adults are finding selling things via video can be a lucrative business as well.
A 6 month lifeline thrown to the aviation sector is encouraging but it would not help the industry. It needs the world to recover asap so that international travel can commence. SG needs that - tourists in the millions coming to visit, stay in hotel , spend money buying luxury products, etc.