Are you a saver or a spender? Do you spend lavishly on luxurious items, eat at expensive restaurants or go on expensive holiday destinations? Do you set some part of your salary or business profits into personal savings every month?
I was taught to save at a very young age at 12 years old. Back in 1969, school children participated in a savings scheme by purchase of stamps for sticking onto a card. This card belonged to the Postal Savings Bank (the current POSB).
My late mother was a saver even when she had little. She kept the allowances given to her every month and then deposited them with the banks.
My saving habit continued when I was married and had my own family. We saved to pay the housing mortgage. We set aside money to pay yearly premiums on our life insurance policies. We took advantage of tax relief by putting money into the Supplementary Retirement Scheme (SRS).
After so many years, the amount in my SRS has grown. My accumulated premiums paid on life insurance policies have grown too. All these help me with my retirement. I can draw down on these to spend in my later years. The compulsory savings in CPF are there for me to tap on too.
When I was saving, naturally I had to forgo spending on things or travels. With more spending, savings will drop and vice versa. I had to forgo instant gratification in the past that money can fulfill when I was saving more.
What I am driving at is that we need to spend wisely but we must also save for the future. Saving is a good habit to cultivate.
Copyright © 2019, limkimtong for Living Investment
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