Be Frugal

Found a Page which can't be more accurate about methods to save. There's no big deal and no need to go to the extend to which I go to; some of my army friends can testify. But why should you be frugal?

“It is thrifty to prepare today for the wants of tomorrow.”

Aesop 620 BC-560 BC

A dollar saved is more than a dollar earned. With merely income taxes and GST, to earn one dollar you've spent, you would need $1*1.1(income tax)*1.07(GST)=1.177. in reality, to put into actual perspective, to buy that computer of $2000 you would need to earn $2354. In addition chew on this: what if you decided to invest it?

Not saying any risk, the singapore stock exchange has an average gain of 6.38% over ten years. this just means that compounded, $1000 invested 10 years ago is now worth $1856. In terms of the same computer, the same computer costs, $1856*2=$3712 ten years later. Not that cheap.

There was this story I read from http://www.firstmillionchallenge.com/. It put it rather plainly, about how important money is, when you need it. If now, you have only left $10000 which could be used for 2 issues, one of which is to, maintain life support for your girlfriend who met with an accident which every month costs $1000, would you? What if you're that unlucky and you happen to have to support your elderly parents too? How would you expect to get out of the fix then?

I hope my point was brought across with an impact. For some actions to take to help your bank balance, read this link, I found it helpful and I think it'll help you too.

http://gradmoneymatters.com/2007/08/what-i-do-to-live-frugally.html