He earns $8,000 a month but chooses to take public transport

Nice one...You need to be staying in Singapore...

So, I’ve this friend. He prefers not to be named so let’s just call him Glenn. Glenn is a thirty-five-year-old department manager in a MNC, having gone through the typical Singaporean path of going to a Singapore JC then a local university with a scholarship. He started work since he graduated, job-hopped two times and now, he’s ready to settle down in this company, drawing a gross pay of $8,000 a month.

Single, rich and without commitment, he has a few credit cards but every morning, he still takes a bus to his office at Tuas, despite having the financial capability to buy a car.

So, why does he do this? Here’re the reasons he provide, and to be honest, it’s just so convincing that anyone owning a car could just sell off theirs now.

It’s a depreciating asset
“I won’t say it’s an asset at all—you’re essentially ‘renting’ the car because it belongs to a bank. Even if you pay for it in full, the depreciation is so high that you’re practically just burning cash as every day passes.”
Well, this is clear-cut for many.

It’s not convenient
“I know this seems unbelievable, but hear me out first. You see, some people, after work, would want to buy some food. If you’re driving, you’re just getting from point A to B. Yes, you may stop somewhere to buy food, but that’s a detour. If you’re taking the train, the infrastructure in Singapore would allow you to buy whatever you need on your way to somewhere. Want to grab some breakfast on the way to work? You can get it from any MRT station.”

Peak hours are unpredictable
“There have been train breakdowns, but they’re not as frequent as jams in expressways during peak hours. My understanding is that peak hours jams are almost an everyday affair—someone could spend an hour or more from Jurong to Tampines because of the jams. With trains, without breakdown, it’s an absolute one hour journey. We all don’t like uncertainty, right?”

You can’t do things in cars
“Time is precious and the time spent in driving requires full concentration; however, taking public transport gives you the freedom to catch up on old friends in Facebook, or if you’re a workaholic, read up on a report. To me, anything that can save my time is a good thing.”

You won’t get high blood pressure
“I’ve driven before and within that short frame of time, I think my blood pressure increases by a tad. Driving in Singapore is like a test of your patience—if you’re driven, you’ll just relax and sit as the driver complains. So, why not?”

Public transport in Singapore is awesome
“Agree or not is hugely subjectively, but if you’ve been to many places, especially the sub-urban areas, you’ll know how good and efficient our system is, albeit the breakdowns.”

Cockroach Theory- A beautiful speech by Sundar Pichai.

Cockroach Theory 

A beautiful speech by Sundar Pichai - an IIT-MIT Alumnus and Global HeadGoogle Chrome:

The cockroach theory for self development

At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady.

She started screaming out of fear.

With a panic stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach.

Her reaction was contagious, as everyone in her group also got panicky.

The lady finally managed to push the cockroach away but ...it landed on another lady in the group.

Now, it was the turn of the other lady in the group to continue the drama.

The waiter rushed forward to their rescue.

In the relay of throwing, the cockroach next fell upon the waiter.

The waiter stood firm, composed himself and observed the behavior of the cockroach on his shirt.

When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.

Sipping my coffee and watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behavior?

If so, then why was the waiter not disturbed?

He handled it near to perfection, without any chaos.

It is not the cockroach, but the inability of those people to handle the disturbance caused by the cockroach, that disturbed the ladies.

I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it's my inability to handle the disturbances caused by their shouting that disturbs me.

It's not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.

More than the problem, it's my reaction to the problem that creates chaos in my life.

Lessons learnt from the story:

I understood, I should not react in life.
I should always respond.

The women reacted, whereas the waiter responded.

Reactions are always instinctive whereas responses are always well thought of.

A beautiful way to understand............LIFE.

Person who is HAPPY is not because Everything is RIGHT in his Life..

He is HAPPY because his Attitude towards Everything in his Life is Right..!!

5 Common Mistakes Made by Singaporeans in Search of Their Dream Home

So you fell in love with the penthouse's infinity pool or were bowled over by the sea view from the living room. But before you eagerly hand over the booking fee or deposit, stop right there. There's nothing worse than sentencing to yourself to a life of home loan repayments only to realise that your dream home is more Headache than Heaven. Here are five common mistakes Singaporeans make when they commit themselves to a home.

Not planning your finances properly
Many people make the mistake of assuming that they can afford to make a property purchase if they're able to pay the booking fee or option fee. They then panic when they realise they don't have enough for the full downpayment of 20% of the purchase price, aren't able to secure a home loan or don't have enough money for other fees like stamp duties or legal fees. Here are some things you should do before committing to a property.
Check that you can afford the downpayment – It sounds like a no brainer, but you'd be surprised how many Singaporeans end up having to forfeit the option fee because they later realised the downpayment was too much. Note that you can use cash and/or CPF to make the downpayment. Find out more about downpayments elsewhere on MoneySmart.

Check loan eligibility – Find out if you're eligible for a home loan and how much you can borrow before you commit to a property, not after. Check out MoneySmart's Home Loan Wizard.

Check how much you have in your CPF Ordinary account – You can use your CPF funds to pay for the downpayment as well as loan installments. You'll also need to know how much you can use in CPF funds in order to calculate how much you need to borrow.

Get a quotation from a lawyer – You'll have to factor in the cost of legal fees, which are usually between two and five thousand dollars.

Check how much stamp duty you have to pay – Buyer's Stamp Duty adds up to a hefty sum, but the situation gets really serious if you already own another property and have to pay Additional Buyer's Stamp Duty.
Not checking for existing damage
If you're buying completed property, there's really no excuse to not check for existing damage. Most contracts will declare that you're purchasing the property on an as-is-where-is basis, meaning you accept the property in whatever state and condition you found it in at the time of signing the contract.

This means that if you later discover the walls are encrusted with dog faeces, you have only yourself to blame because you're supposed to have inspected the property. So when the agent or owner is showing you around, don't be too dazzled by their spiel about the beautiful view and instead take a long, hard look at the less sexy parts of the property like the following:

• Check for water leaks, water stains and mould, especially in the bathroom and around water pipes.
• Check for cracks in the walls, windows, doors and door frames.
• Check for cracks in the toilets and sink enamel.
• Check that the toilet flush, showers, taps, water heaters and air con units are working and that there are no leaks.
• Check that there are no missing tiles.

Not prioritizing what's important to you
That flat might have an awesome balcony and a scenic views over the Singaporean jungles, but if it's located in an area so ulu you need a helicopter to get to work, you might end up kicking yourself later. Here are some factors you might want to consider.

• Accessibility – A long commute not only costs you more money but also swallows up many hours each week. While living close to an MRT station might raise property prices, it could be worthwhile paying a bit more to cut your commute.
• Proximity to affordable amenities – If you want to shop at NTUC rather than Cold Storage, or eat at hawker centres daily, make sure these exist near your new place.
• Facilities – If you are buying private property and there are any facilities you use regularly such as tennis courts or gyms, factor in the cost of paying for them externally if your property isn't equipped with them.

Overpaying for non-essential fixtures
If you're about to purchase private property, there's a chance that the price of your apartment is going to be inflated by some of the fixtures and facilities on the condo grounds over and above what you have to pay in management fees.

For instance, if your condo has a luxurious interior with a great view or a fancy rooftop jacuzzi, you'll be charged a premium. Check out the prices of other properties in the area to confirm how much of a premium you're being charged.
For renters: not fully reading the rental agreement
If you're renting a place, just finding a nice apartment and bargaining a good price aren't enough. Make sure you read the rental agreement in detail, or else you might find yourself in for a nasty surprise. In addition, be aware that you can negotiate the terms of the contract before you sign it. So by not going through the contract thoroughly, you're essentially giving the landlord free reign over what to put into it.

Some things to look out for include whether utilities and wifi are included in the price of the rent, whether there are any rules restricting your use of the property and who's going to have to pay to fix the toilet if it floods. If you're clueless on what you should be looking out for on your rental agreement, here's a breakdown of what to focus on. Follow MoneySmart on Facebook for more tips on how to make sure you can afford the home you want without going overboard.

MAS could set up a website which compiles the REIT fees charged

Check out Reit manager's fee, not just dividend

5 Tips to Raise Financially Savvy Kids

Very useful article from Dr Wealth.

It is more important than ever to teach kids how to be financially savvy from a year age. Unlike the previous generations who were not as wealthy, the younger generation these days do not need to worry about money thanks to the wealth built by their parents. Given the tougher economic times, the previous generations learnt about the value of money the hard way.

While Asian economies are generally doing much better and households are becoming wealthier, there is also an alarming trend where many of the young people do not have much savings despite working for a couple of years. Worse still, many have racked up credit card debt and personal loans. How do you ensure that your children do not fall in the same trap?

1. Teach Them That Money Does Not Grow on Trees

The most important lesson these days which many kids don’t seem to understand is that money does not grow on trees. They seem to think that money just appears magically, which is why they kick up a fuss when the parents do not buy them new toys. Teach them that money is finite and that parents need to work to earn the money.

2. Make Them Work For Money

There is no better way to teach kids the value of money other than working for money. Let them earn money through jobs like helping out at work especially if you have a family business or running errands. Be careful though not to offer monetary rewards for housework chores, as that should be something where everybody in the household contributes.

3. Show Them How to Budget

Even if you are unable to get the kids started on earning money, you can certainly still introduce them tobudgeting. You should first understand the expenses involved, such as buying food and drinks at school before giving them daily pocket money. After some time, gradually move to weekly pocket money instead. Explain to them that the money is to be used for the whole week, so they need to budget how they want to spend daily to make sure that they do not use all the money at the end of the week. By the time they become teenagers, moving to a monthly budget might make sense as well.

4. Get Them Involved In Outdoor Activities and Sports

Kids these days spend too much time on the Ipad/Iphone and video games. Get the kids involved in outdoor activities such as hiking and sports such as soccer and stuff. Not only are these activities low cost or free, they help to keep the kids healthy and build up social skills as well as family bonding especially if you make them a family activity.

5. Get Them Started on Investing

What happens to the money which they save? The idea of keeping them in a piggy bank is outdated. You need to teach them aboutinvesting concepts and perhaps even help to pay interest on their savings so that they can watch their money grow. As they grow their money, it will motivate them to save even more. When they are ready, you can begin to teach them more advanced financial concepts like running a business, investing in dividend stocks etc. In fact, a good way is to help them start investing using a regular investment plan.

If you are able to do all of the above, you can be sure that your child will have a head start in their personal finances and the financial discipline instilled would carry them through life, turning them into a financially responsible and savvy adult.