Prodigious Accumulators of Wealth (PAW) : These are people who are disciplined enough to live below their means, and use their surplus money to invest and increase their net worth.
These people need not necessarily have high incomes. They can have a range of incomes, but their net worth is much higher than most other people in their income group.
Current Net Worth > Expected Net Worth
Under Accumulators of Wealth (UAW) : These are people who are not disciplined enough to live below their means. They may live from paycheck to paycheck or they may live above their means, sustaining their spending habits via credit and loans.
Current Net Worth < Expected Net Worth
How do you calculate expected net worth?
Multiply your age times your realized pretax annual household income from all sources except inheritances.
Divide by ten.
This, excluding any inherited wealth, is what your net worth is expected to be.
So for example, my NS pay is say $470. My age is 19.
Therefore: 470 X 19 = 8930
8930 / 10 = 893
My current expected net worth is $893. If you take away the cash I’ve saved up and I’ve been given from young, minus my earned tuition cash, my current net worth (cash earned from NS only) is much less than $893.
So I’m a UAW. Damn.
I did this test with my friend at HQ. He too went to JC, so he faces the same spending pressures. His expected net worth is the same, but his current net worth (likewise, only considering cash that he only saved and earned in NS only) is double of mine. The fact that he has served 3 months more NS still doesn’t make it an excuse for me to have less than half his net worth.
I spend too much.
So I decided to take some measures. As said earlier, to make things easier on oneself, make things automatic. My monthly savings account deducts a certain amount from my NS pay and transfers it to a high interest fixed deposit.
But what about the excess cash that I (hopefully) manage to save? It does not generate much interest. The normal 0.25% p.a. interest on your savings account is below Singapore’s inflation rate. (2% GST increase on everything you buy? and a further hike to 10% GST in the next few years?)
So basically not only do I spend a lot, but money that I’m saving and keeping in the bank is losing its value just by sitting there.
Life sucks eh?
Not exactly. If you look around, you can actually save and make your money grow, or at least sustain itself. My monthly savings account will eventually provide me with the capital to invest when it matures in 2 years time, when I actually know how to at least not lose my money by making the wrong choices.
So what about the depreciating money in the bank?
I suggest 2 options. Put it into a fixed deposit account to generate interest that will at least cover part of the loss due to inflation.
POSB provides the best services for our age group: Minimum $1000 deposit. Period of 1-12 mths available. So basically you can select a 1 mth tenure, and when it matures, your money will lock itself for another month, unless you call the bank to do otherwise.
OCBC provides a little higher interest, though minimum cash required is $5000. Tenure policies are similar.
Interest rates for both is about 0.375%
* Go check the rates yourself first, before doing anything, don’t blame me if anything is wrong you lazy shit.
Another option is to have a high interest savings account. That’s what I’m doing, (as I want to have the freedom to use my cash anytime anywhere and not lock in a fixed deposit)
And guess what? I found a damn good alternative. The Fairprice savings account. Its like a normal savings account from OCBC, BUT it has neither minimum deposit nor minimum amount needed in the account.
Plus its interest rate is 1%.
Its bloody higher than an f.d. plus it offers you the fluidity of nets. And you get linkpoints if you use the card at NTUC.
Cool. But I hope they approve my application for it though, I think I have too many accounts in OCBC. ( And all of them have no money.) haha.
I guess being a clerk in CD ain’t so bad eh? Who has the time to read up on all this shit at commando camp?
Speaking of work, my officer is going for his honeymoon. And now I’m in charge of his stuff. All the submissions for performance indicators, stats on payments and lots more of other stuff. I’m flattered that he trusts me, but hey! I’m only an NSF. I don’t understand all your stats calculations and all your numbers. I’m not in NTU yet! Aiyoh.
But he did speak to the director about my promotion predicament, and I’m “slated” for promotion in November. At least that’s what I read in the minutes of one of his meetings.
I should not have been penalised for my meningitis la. For goodness sake, you ask me to do all your thinking shit, you call me your asset, you promise me SGT if I pass my IPPT ( you might as well promise me a million bucks cos IPPT is like learning how to fly) but you don’t try to keep your asset happy. If this were the private sector, I would have left already.
Cannot tahan. I really feel like a stupid mat now. Given work I barely understand how to do and I still have to do it. Thank god I’m friends with one of the civilians who can help with all the calculations.
Maybe I should show him my MJ report card. (I never got above E for maths in 2 years of JC, except for the giveaway promos, where people got 98/100 and I barely passed. Hoho.)
How I managed to do the A levels is beyond my small mat brain.
Anyways, enough talk about money and stupid CD stuff.
I SAW MY STUDENTS SWIMMING TODAY! Hoho.
As I was walking home, I heard screams of help. Being the heroic CD clerk, who barely knows how to do CPR cos I forgot ready, I went to peek over at the pool. I saw 2 ang moh girls spraying each other with a water gun. Then I realised it was 2 of my students. So, being the concerned tutor, I went over to ask whether the small kid finished her homework. Lo and behold, she didn’t.
But now I know why she’s so tired for tuition, and why a P5 girl has tan lines all over her body. Not that I look, ok?!?!
Aiyoh she’s not the studying kind la. She wants to be an actress. I think she has talent. You should see her eyes water when I scold her during tuition.
As for her older sister, kudos to your smart ass, man. She’s the one who’s going to ensure that I retain my job next year. She scoring 80++ for her subjects.
Woohoo. Spell “iron rice bowl” anyone?