Tag Archives: Finance

Irresponsible Credit Card Marketeer

Was lunching at a shopping mall near my home just now and came across a credit card roadshow booth.

The credit card marketeer approached me to sign up for a S******* C******** credit card as there’s a promotion for 5 years annual fee wavier plus freebies if I sign up during the roadshow. Showing my disinterest, I walk off but that young prick just keep on pestering me to sign up. So I told him that I already have a credit card from another bank and do not wish to sign up for anymore, then he keep on pestering me while I try to walk away.

Then that young prick, not giving up, tell me a reason to get another credit card so that I can expand my credit facilities. He told me if I sign up the card, I can increase my credit facilities. Say if I currently have one card I can only have a credit limit of SGD$5,000 and with another card I can double that limit. So if I need SDG$8,000, I can use my credit card from 2 different bank and withdraw money of up to $10,000. Upon hearing his stupid reason, I shoved him aside, gave him the finger and walk away.

What a stupid reason, get another credit card so that I can increase my own debt?! By making use of the credit limit available to get myself into debt?! If I really need that SGD$10,000 I would rather save it up than to get myself into debt.

Don’t what kind of training does the bank or the credit card marketing companies gave to these credit card marketeer to get people to sign up for a credit card. No wonder country like America are in debts because most of their fucking people are just spending on credit without any savings or jobs.

Live within one’s means

Har! Finally get to read something similar what I have blogged about in the local news media.

 

“MANY Singaporeans are still clinging on to a lifestyle of excesses, incurring debts they could have avoided, said an MP in Parliament on Tuesday.

Urging them to be prudent and to steer clear of excesses in these trying times, Mr Wee Siew Kim, MP for Ang Mo Kio GRC, said Singaporeans caught in financial bind must make the hard adjustments – a point which was raised in President SR Nathan’s address at the opening of the second session of Parliament last week.

In his speech during the debate on the President’s address, Mr Wee said on Tuesday that while the financial freefall seems to be over, the economy may drag at the bottom for some time.’Yes, there is always the temptation to talk up the market, and in the process spawn an upturn through a resurgence of confidence. But we need to be prudent.

‘Pay cuts, and worse still, job loss are entirely possible, especially if the economy is unlikely to rebound vigorously. Hence the advice to steer clear of excesses and live within one’s means bears repeating and repeating.’

Voicing his concern over some Singaporeans’ excesses, Mr Wee said: ‘In my interactions in the community, I sense that this has not sunken in for many Singaporeans. Many cling on to a lifestyle that is from a past that is fuelled by a bigger pay packet.

‘They continue to incur debts, living in bigger apartments that one could no longer afford, continuing to incur large utilities and phone bills and unable to see ways to reduce expenditure. Many hold out for good times to return. Their lifestyles must change.’

He called on the Government to make it easier for these people to make adjustments.

Giving examples of how such help can be given, Mr Wee said the government can make it easier for Singaporeans to downgrade from their large Housing Board flats.

‘Whether it is a third or fourth HDB loan, going forward, as they are prepared to live within their means, and take up the commitment of being self-reliant, why not relax some of the policies that were clearly appropriate in former better times, not so now.

‘In many cases, compulsory acquisition and its attendant loss through the discount to market deal them a double blow. Recognising that these are trying times – hope and assurance would go a long way to assuage the pain for many – and housing comes to the top of mind.’

Mr Wee made clear he was not asking the Government to open the floodgates but to relax certain rules for some families and create a clear way forward.”

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_381903.html

Live within one's means

Har! Finally get to read something similar what I have blogged about in the local news media.

 

“MANY Singaporeans are still clinging on to a lifestyle of excesses, incurring debts they could have avoided, said an MP in Parliament on Tuesday.

Urging them to be prudent and to steer clear of excesses in these trying times, Mr Wee Siew Kim, MP for Ang Mo Kio GRC, said Singaporeans caught in financial bind must make the hard adjustments – a point which was raised in President SR Nathan’s address at the opening of the second session of Parliament last week.

In his speech during the debate on the President’s address, Mr Wee said on Tuesday that while the financial freefall seems to be over, the economy may drag at the bottom for some time.’Yes, there is always the temptation to talk up the market, and in the process spawn an upturn through a resurgence of confidence. But we need to be prudent.

‘Pay cuts, and worse still, job loss are entirely possible, especially if the economy is unlikely to rebound vigorously. Hence the advice to steer clear of excesses and live within one’s means bears repeating and repeating.’

Voicing his concern over some Singaporeans’ excesses, Mr Wee said: ‘In my interactions in the community, I sense that this has not sunken in for many Singaporeans. Many cling on to a lifestyle that is from a past that is fuelled by a bigger pay packet.

‘They continue to incur debts, living in bigger apartments that one could no longer afford, continuing to incur large utilities and phone bills and unable to see ways to reduce expenditure. Many hold out for good times to return. Their lifestyles must change.’

He called on the Government to make it easier for these people to make adjustments.

Giving examples of how such help can be given, Mr Wee said the government can make it easier for Singaporeans to downgrade from their large Housing Board flats.

‘Whether it is a third or fourth HDB loan, going forward, as they are prepared to live within their means, and take up the commitment of being self-reliant, why not relax some of the policies that were clearly appropriate in former better times, not so now.

‘In many cases, compulsory acquisition and its attendant loss through the discount to market deal them a double blow. Recognising that these are trying times – hope and assurance would go a long way to assuage the pain for many – and housing comes to the top of mind.’

Mr Wee made clear he was not asking the Government to open the floodgates but to relax certain rules for some families and create a clear way forward.”

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_381903.html

Live within one's means

Har! Finally get to read something similar what I have blogged about in the local news media.

 

“MANY Singaporeans are still clinging on to a lifestyle of excesses, incurring debts they could have avoided, said an MP in Parliament on Tuesday.

Urging them to be prudent and to steer clear of excesses in these trying times, Mr Wee Siew Kim, MP for Ang Mo Kio GRC, said Singaporeans caught in financial bind must make the hard adjustments – a point which was raised in President SR Nathan’s address at the opening of the second session of Parliament last week.

In his speech during the debate on the President’s address, Mr Wee said on Tuesday that while the financial freefall seems to be over, the economy may drag at the bottom for some time.’Yes, there is always the temptation to talk up the market, and in the process spawn an upturn through a resurgence of confidence. But we need to be prudent.

‘Pay cuts, and worse still, job loss are entirely possible, especially if the economy is unlikely to rebound vigorously. Hence the advice to steer clear of excesses and live within one’s means bears repeating and repeating.’

Voicing his concern over some Singaporeans’ excesses, Mr Wee said: ‘In my interactions in the community, I sense that this has not sunken in for many Singaporeans. Many cling on to a lifestyle that is from a past that is fuelled by a bigger pay packet.

‘They continue to incur debts, living in bigger apartments that one could no longer afford, continuing to incur large utilities and phone bills and unable to see ways to reduce expenditure. Many hold out for good times to return. Their lifestyles must change.’

He called on the Government to make it easier for these people to make adjustments.

Giving examples of how such help can be given, Mr Wee said the government can make it easier for Singaporeans to downgrade from their large Housing Board flats.

‘Whether it is a third or fourth HDB loan, going forward, as they are prepared to live within their means, and take up the commitment of being self-reliant, why not relax some of the policies that were clearly appropriate in former better times, not so now.

‘In many cases, compulsory acquisition and its attendant loss through the discount to market deal them a double blow. Recognising that these are trying times – hope and assurance would go a long way to assuage the pain for many – and housing comes to the top of mind.’

Mr Wee made clear he was not asking the Government to open the floodgates but to relax certain rules for some families and create a clear way forward.”

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_381903.html

Out of Reach

Received a call from a friend of my yesterday when I was sick and resting in bed. But his conversation with me woke up me from the bed and was totally engross in this conversation of ours.

Here’s what the conversation is about. This friend of my received a call from a particular bank regarding a credit card application that his employee has applied for. In Singapore you need to have a minimum annual salary of SGD$30,000 to get a credit card, so that average out to be a salary of SGD$2,500 per month.

However this employee of my friend is earning a salary of $1,700 per month and why the bank call up my friend is because his employee send in his credit card application together with a employment letter issued by my friend’s company. Some details in the employment letter seems to have been altered, like his basic salary has been amended to $2,100 and there’s an addition of $500 car allowance too which was not in the original employment letter.

Last evening my friend has terminated his employee’s service with his company.

Just can’t understand why some people want to apply for loan or credit card for lifestyle they cannot afford. Isn’t it better for them to be contented with what they currently have instead of chasing a “glamorous” lifestyle which they cannot afford?

It’s not your fault being born poor, but it’s your fault if you die poor.

Needs or Luxury?

Once upon a time, our forefathers work hard enough to satisfy the basic needs of necessities. As times go by, the bad side of capitalism starts to invade us.

We start to become more affluent, with the spending power, we are bombarded with advertisement around us urging us to buy luxury items which does not constitute to our cycle of basic needs. With the riches able to afford these luxury items without feeling a pinch as they are able to fork out huge amount of cash for their purchase.

As time goes by, the lower/middle income folks become envy of the rich. Without the cash to afford these luxury items, thus the needs of these group of people gave birth to a new type of companies in the new economy which is known as credit and finance company.

Now the lower/middle income folks are able to buy the luxury items that was only made affordable to the riches, thanks to these credit and finance companies. But what these folks do realised is that they are enslaving themselves in a world of debts. 

Some smarter folks make use these credit and finance companies reward system to purchase items thus gaining reward for themselves and able to meet re-payment period with spare cash-in-hand without heading into negative liquidity.

But some folks get themselves laden with debts having to worry how to make end meets, worry about their basic necessities, worry about providing basic needs to their family, worrying about cash flow and getting themselves into negative liquidity.

Let me emphasise more on the latter than the formal as the formal have bountiful of cash-in-hand to let them “play” around with the credit system to get the benefit out of it.

Case Study

Mardy is a young chap and has been working as an executive in a multi-national company for 3 years after graduation, earning a monthly salary of $3,000 after deduction of provident funds and with an estimate annual 4 months of bonus annually, thus his total annual income is $48,000. 

Mardy likes to spend on luxury items,

– He wanted to keep himself in shape and fit so he decided to pick up cycling as a sport. But instead of getting a mid range bicycle which can fulfill his needs of getting in shape, he decided to get a higher end bicycle and over the years traded-in and upgraded his bicycle parts to satisfy his need for speed instead of getting in shape.

Thus, he spent about $20,000 just by trading and upgrading his bicycle parts.

– Mardy is also a movie buffs, besides heading to the cinema with friends, he also likes to buy DVD and watch at home. He surfs around audio visual forums on the Internet and was influenced by the formers that getting some mid-range amp, a good quality blu ray player and speakers will be better choice for him.

He was tempted with the idea and therefore went ahead with his purchase of a home theater component systems and a HD plasma TV for $7000 when a home-theater-in-a-box and a full HD LCD TV setup which cost $2500 will do the job, since Mardy is not an audiophile, and only spend 4 hours per week to watch his DVD and Blu Ray movies.

– As his workplace is about 25km away from his home. Mardy feels that it’s a chore to wake up early in the morning to squeeze in the crowded public transport system. So he decided to get a car to travel from home to his workplace and in the evening from his workplace back to his home; and also for the occasional weekend drive to town. He decided on getting a low fuel consumption and small fuel tank capacity Japanese car for this purpose.

But he changed his mind and decided on getting a higher fuel capacity car so that he will be comfortable in it while driving.

After expenditures on luxury items and luxury lifestyle, he has an savings $8,000.

One day, while Mardy was driving, he was involved in an accident. The knock down a pedestrian and was sued. He has to pay a hefty fine plus compensation for the pedestrian he has knocked down. After selling his luxury items and withdrawing all his savings, he was still not able to pay the compensation amount. So in the end, he declared bankrupt to have his assets to be sold off to pay for his debt.

What we can see from here even though Mardy initially have a positive liquidity, but he has not planned from unforeseen future circumstances that will bring down his liquidity.

So the old wise saying of “saving up for rainy day” seems to have been forgotten by our generation who are in pursue of luxuries and slaves to advertisements.

If Mardy has not purchased that higher bicycle, upgrade the bicycle parts; be contented with a simple home-theater-in-a-box system and a LCD TV; purchased a low fuel consumption, low fuel tank capacity car. He would not be a bankrupt, he might have some funds for the compensation or he might even be on a well deserved holiday.

So think twice before you spend your hard earned money. Are the stuffs you are buying is really what you need and does an alternative cheaper brand but better quality serve your need? Are you going to get old and join the tin can collecting folks? Or do you want to retire in comfort?

Drop me a comment on this blogspot should think my views and case study above are incorrect.

Needs or Luxury?

Once upon a time, our forefathers work hard enough to satisfy the basic needs of necessities. As times go by, the bad side of capitalism starts to invade us.

We start to become more affluent, with the spending power, we are bombarded with advertisement around us urging us to buy luxury items which does not constitute to our cycle of basic needs. With the riches able to afford these luxury items without feeling a pinch as they are able to fork out huge amount of cash for their purchase.

As time goes by, the lower/middle income folks become envy of the rich. Without the cash to afford these luxury items, thus the needs of these group of people gave birth to a new type of companies in the new economy which is known as credit and finance company.

Now the lower/middle income folks are able to buy the luxury items that was only made affordable to the riches, thanks to these credit and finance companies. But what these folks do realised is that they are enslaving themselves in a world of debts. 

Some smarter folks make use these credit and finance companies reward system to purchase items thus gaining reward for themselves and able to meet re-payment period with spare cash-in-hand without heading into negative liquidity.

But some folks get themselves laden with debts having to worry how to make end meets, worry about their basic necessities, worry about providing basic needs to their family, worrying about cash flow and getting themselves into negative liquidity.

Let me emphasise more on the latter than the formal as the formal have bountiful of cash-in-hand to let them “play” around with the credit system to get the benefit out of it.

Case Study

Mardy is a young chap and has been working as an executive in a multi-national company for 3 years after graduation, earning a monthly salary of $3,000 after deduction of provident funds and with an estimate annual 4 months of bonus annually, thus his total annual income is $48,000. 

Mardy likes to spend on luxury items,

– He wanted to keep himself in shape and fit so he decided to pick up cycling as a sport. But instead of getting a mid range bicycle which can fulfill his needs of getting in shape, he decided to get a higher end bicycle and over the years traded-in and upgraded his bicycle parts to satisfy his need for speed instead of getting in shape.

Thus, he spent about $20,000 just by trading and upgrading his bicycle parts.

– Mardy is also a movie buffs, besides heading to the cinema with friends, he also likes to buy DVD and watch at home. He surfs around audio visual forums on the Internet and was influenced by the formers that getting some mid-range amp, a good quality blu ray player and speakers will be better choice for him.

He was tempted with the idea and therefore went ahead with his purchase of a home theater component systems and a HD plasma TV for $7000 when a home-theater-in-a-box and a full HD LCD TV setup which cost $2500 will do the job, since Mardy is not an audiophile, and only spend 4 hours per week to watch his DVD and Blu Ray movies.

– As his workplace is about 25km away from his home. Mardy feels that it’s a chore to wake up early in the morning to squeeze in the crowded public transport system. So he decided to get a car to travel from home to his workplace and in the evening from his workplace back to his home; and also for the occasional weekend drive to town. He decided on getting a low fuel consumption and small fuel tank capacity Japanese car for this purpose.

But he changed his mind and decided on getting a higher fuel capacity car so that he will be comfortable in it while driving.

After expenditures on luxury items and luxury lifestyle, he has an savings $8,000.

One day, while Mardy was driving, he was involved in an accident. The knock down a pedestrian and was sued. He has to pay a hefty fine plus compensation for the pedestrian he has knocked down. After selling his luxury items and withdrawing all his savings, he was still not able to pay the compensation amount. So in the end, he declared bankrupt to have his assets to be sold off to pay for his debt.

What we can see from here even though Mardy initially have a positive liquidity, but he has not planned from unforeseen future circumstances that will bring down his liquidity.

So the old wise saying of “saving up for rainy day” seems to have been forgotten by our generation who are in pursue of luxuries and slaves to advertisements.

If Mardy has not purchased that higher bicycle, upgrade the bicycle parts; be contented with a simple home-theater-in-a-box system and a LCD TV; purchased a low fuel consumption, low fuel tank capacity car. He would not be a bankrupt, he might have some funds for the compensation or he might even be on a well deserved holiday.

So think twice before you spend your hard earned money. Are the stuffs you are buying is really what you need and does an alternative cheaper brand but better quality serve your need? Are you going to get old and join the tin can collecting folks? Or do you want to retire in comfort?

Drop me a comment on this blogspot should think my views and case study above are incorrect.