How much do you earn a month...

[karmatrix]

Hi rain, i also agree with the others, don't rush into getting a car. It's so easy to get tempt when you see just about everyone around you is buying one. But look and probe deeper, most are struggling to upkeep and paying off the loans.

 

So much better to be cash rich then loaded up with liabilities.

[46racerX]

i'm not stereotyping..juz tt there's an increasing trend..

n if u see rizwan's blog.the post on the monthly instalment on malay papers n whole price on the english paper being the marketing strategy is quite interesting

 

this office gerl came to me..n ask..hw to buy comp using courts instalment plan after receiving her first pay..

i didnt tell her this.although i didnt noe y at tt time.mebbe i didnt realy thought abt it but juz wana help her noe the process..but after calculation the the amount is like two times the cash price?wah kao

[karmatrix]

The installment plan is the greatest idea that has ever came up in the business world.

 

Suddenly, things previously only the rich can afford. It opened it up to everyone, a chance for almost everyone to 'own' their desires. When used appropriately, it is a great tool. When get sucked into it, before long, you'll start to realise every single thing you own is on loan. Think hard before getting into debt.

[Throttle]

 

I have 1 credit card since 2003, but so far I've used it only twice. Scared lah abt the penalties upon not paying up. I've heard people who got into trouble with the cards & quite sad about them not having some financial discipline.

 

 

And i think bankrupts can happen to anyone, not neccesary stereotyped to any specific race.

 

Why worry about using credit card, dude?

 

as long as you budget your spending so that when the bill comes, you can pay it in full.

 

Credit card actually saves you money in that way!

 

cheers

[Rain1407]

i also agree with the others, don't rush into getting a car. It's so easy to get tempt when you see just about everyone around you is buying one.

 

Yeah I know bro, just considering only... I'm not the follower just for the sake of impressing people. Nice for others to see but the pain in my wallet nobody knows...

 

this office gerl came to me..n ask..hw to buy comp using courts instalment plan after receiving her first pay..

 

Wah for a computer she wants to take loan? Why lah? I think its better off if she saved a few months for the product. Unless its urgent lah she like need it for work or something. But personally for me, no way! My mother taught me since young it's either cash or nothing at all!

 

Why worry about using credit card, dude?

 

as long as you budget your spending so that when the bill comes, you can pay it in full.

 

Credit card actually saves you money in that way!

 

Ah? U serious ah bro? You are the first one to tell me this leh! Most people I know are either in credit card debt or againts using it at all. I'm interested abt the saving money part. What do u mean?

 

I thought :

 

Computer = $1500 (advertise)

 

Buy cash = $1500

 

Credit card = $1510 (lets say lah)

 

Why becasue, u are "using" the bank money to pay first mah. Surely got a small fee to pay right?

[nhyone]

Computer = $1500 (advertise)

 

Buy cash = $1500

 

Credit card = $1510 (lets say lah)

 

Why becasue, u are "using" the bank money to pay first mah. Surely got a small fee to pay right?

 

Two things to watch out for,

 

1. Some merchants ask you to pay 2% more. Or, others give you 2% discount if you pay by cash. (Always ask.)

 

2. You may not get the best prices in places that accept credit cards.

 

Otherwise, if you pay in full every month, there's no reason to avoid using credit cards.

[yappiez]

like limbat, my CFO pays me very little... luckily got credit card if not sure die.

I love my credit cards.

 

But having said that, I only use it within 'our' means and always pay up on time. Convenience comes at some price if you want to start comparing this 2% and that 2%...

 

nothing is free in this world.. even convenience.

[Throttle]

Credit cards save, time, effort and money when you use it at places which do not distinguish between cash and credit or are willing to accept credit cards without additonal charges passed on to consumer.

 

Most places are already like that except for those sole proprietor type businesses which request for consumers to pay the cost of using credit cards.

Such businesses cannot go far if they dont change their attitude. but thats a diff story altogether.

 

With a credit card you have one month of free credit.

So cash can remain in the bank to earn interest.

However, this will really apply more realistically if you are talking about hundreds of thousands.

 

Another way it can help you save is the free vouchers and discounts that you may get for using credit cards. the points I chalk up every month can get me $40 - 50 of free petrol so thats "free" money

this is base on my monthly credit card spending of $3k to $5k on average.

 

However I am not one who sign up a card for freebies.

to me, convenience is the most essential when using a Credit card.

I have 3 credit cards which I basically seperately use for different purposes.

[Mustis]

I think wat TachiTJRS had layout is an important view to our lives. We tend to take prestige over small important factor in our life. Having a car to some is a requirement to send kids to school, parents to go around singapore or overseas. The questions lies if you can pay the car without struggling nd knowing that u have enough for others.

 

As for TachiTJRS he has to get another job just to pay for the car. Thus he loses spending important quality time with his frens, girlfren or even family. Now this are important than cars. Coz if we lose them, we can never get them back. Unlike cars u can buy another new one. TachiTJRS learn from this path and he is an example to us to think really well before buying a car. Today in singapore i can see alot of youngsters having cars. Now i dont noe if they are paying fully or their parents are paying it. Regardless of any reason, we have to think about money issues here. Having loans and struggling to pay stuff is not a good path to go through. So before you buy a car due to u need one or just becoz others have and u want it too, think and reflect for the future in reality. Dont live life in dreams !!!!

[wait4me]

Yes I was during the Harry tan days.

He is a fair guy. good man, in my opinion

Passed away not too long ago..

 

"One family unbroken, we join in one acclaim,

one heart one voice uplifting, to glorify Thy name."

 

he passed away already ??

still remember he always like to give half days whenevr we win in rugby

[Throttle]

yes Passed away I think just before or after national day .

 

Up and On

[Rain1407]

As for TachiTJRS he has to get another job just to pay for the car. Thus he loses spending important quality time with his frens, girlfren or even family. Now this are important than cars. Coz if we lose them, we can never get them back. Unlike cars u can buy another new one. TachiTJRS learn from this path and he is an example to us to think really well before buying a car.

 

Yeah I do know a couple of people who is in Taichi's similiar position. I pity them. One guy i know does some despatch work during weekends. But his wife is not working so can be understood why he works so hard to support his family & that picanto.

 

he passed away already ??

still remember he always like to give half days whenevr we win in rugby

 

Sorry ah fellas who is this Harry Tan? The late man seems to be important among u guys.

[doubl3mint]

ah, what would i do without a credit card.

 

hsbc for caltex, uob for shell, dbs for esso *grin*

 

use that card bro! why lose out on the extra savings. oh but then your pulsar already super-saver.

 

and for that monthly fish & co dinner, iirc, i think citibank got discount too

[wait4me]

yes Passed away I think just before or after national day .

 

Up and On

 

oh man .....

up and on , up boys

 

Sorry ah fellas who is this Harry Tan? The late man seems to be important among u guys.

 

throttle is my senior in school , and Harry Tan is our late principal

[Rain1407]

but then your pulsar already super-saver.

 

and for that monthly fish & co dinner, iirc, i think citibank got discount too

 

i gotta return the Pulsar back to my uncle liao... He got tired of getting stuck in the morning jams. Gotta get my own bike soon.

 

And yes me got Citibank.

 

throttle is my senior in school , and Harry Tan is our late principal

 

Oh understood. Sorry for your loss. I'm sure he is a great man.

[cantopop]

Our total home package is around 4k.

 

We only have the savings bonds of $310 for our kids & saved closed to $1k to $1.5k per month in our joint account.

 

Your savings of 25%-37.5% is acceptable but not excellent. You should aim for 50%-70% savings minimum.

 

Car should pay in cash. Cost of car should not exceed 25% of your annual salary.

Car related expenses should not exceed 5% of take home salary.

[Sky99]

Your savings of 25%-37.5% is acceptable but not excellent. You should aim for 50%-70% savings minimum.

 

Car should pay in cash. Cost of car should not exceed 25% of your annual salary.

Car related expenses should not exceed 5% of take home salary.

 

i think its kinda impossible for the cost of car not to exceed 25% of annual salary.

[cantopop]

i think its kinda impossible for the cost of car not to exceed 25% of annual salary.

 

if cost of car exceeds 25% of annual salary, then should not consider owning car.

[Throttle]

if cost of car exceeds 25% of annual salary, then should not consider owning car.

 

In principle, i agree.

thats what i do.

[Throttle]

Your savings of 25%-37.5% is acceptable but not excellent. You should aim for 50%-70% savings minimum.

 

Car should pay in cash. Cost of car should not exceed 25% of your annual salary.

Car related expenses should not exceed 5% of take home salary.

 

Do you do that?

If so welcome to the club

[yappiez]

if cost of car exceeds 25% of annual salary, then should not consider owning car.

 

Wah. very tough to own car then... Combined annual of 120k, 25% is 30K. Cannot even buy a cheapo car....

 

everyone out there is damn rich or they are using other rules..

[Throttle]

Everyone have their own rules, just dont bite more than you can chew, it's fine. In everything there is give and take, like a balancing scale.

 

But remember, for normal salaried people like us, spend more on car, means less savings for other things. See where is your threshold and your comfort level. An equation of risk versus opportunity cost.

 

Car is your slave, dont be a slave to your car.

[cantopop]

Do you do that?

If so welcome to the club

 

car is 25% of annual income.

car related expenses is 2.1% of monthly income.

[cantopop]

Wah. very tough to own car then... Combined annual of 120k, 25% is 30K. Cannot even buy a cheapo car....

 

everyone out there is damn rich or they are using other rules..

 

Car ownership is not for the lower income.

If you cannot afford it then don't own car.

 

John Mccain's definition of rich is US$5million annual salary.

So we're not rich but sensible.

[GoSlow]

so eg $240k annual income can only buy $60k car. seems like many ppl shoulnt be buying car. me included.