Found it made quite good sense.
As Fredrick Petrie puts it: "Savings is 20% numbers and 80% psychology”(reminds me of investing and trading :p).
He also points out the issue for most people is that they start budgeting for everything else and see what's left over for savings and investing.
It's a pretty bad logic there.
Petrie suggests a "self-tax".
I prefer Robert Kiyosaki's "Pay yourself first". =)
The idea is simple, with current day iBanking (I speak for OCBC because I used it, not sure about the rest), you can automatically lock money every month into your account into saving goals (set it on the day you receive your pay).
Alternatively, just schedule fund transfer to an higher yielding account (which should not have an ATM/Debit/Credit card, just iBanking, so you can't grab cash from it easily, which should be good enough to deter spending) on the day you get your pay.
The general suggestion is saving 20% of your pay, could be more or less for some, but I think one should actually calculate how much you need for retirement then partition the money that way.
But of course, make sure the amount is realistic. I may save almost half my pay but other people may have more commitments (necessities please, not wants). Make a list of all current expenses, and trim away the extras as much as possible.
Hope it helps you in your first step to saving more!
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