Take a hike!
- MenschSGP
- Feb 26, 2018
- 2 min read
Recently in the Budget 2018, it was announced that there will be a GST hike in 3 years’ time: a 2% increase, from 7% to 9%.
Ever wondered how does it really impact you?
Let us begin with an example from our daily or weekly expenses:
It has been a long day at work and you are meeting your BAE for dinner.
And so you decided to have something better than your usual.
You walked into a restaurant and ordered something nice for the two of you.
The breakdown of the meal as follows;
From the above, you can see there is a difference of $1.10 and although it is not much for one transaction, the difference can amount to $2,400 for big ticket purchase like a $120,000 car!
Truth be told, the expenses that impacts us the most will be our daily expenses; little by little this $1.10 can actually sink a ship!
Do you know that $1.10 translate straight up as an 1.869% increase from what you had to pay at GST 7%?
Just to give you another illustration, your MILO ACTIV-GO 3-in-1 powder costs $6.50/pack (inclusive of 7% GST) and upon the effect of the GST hike, your favourite instant drink will cost an additional $0.12/pack at 9% GST!
So, both you and I know this is going to be the case in 3 years’ time, what do you do?
#1) Are you able reduce your expenses now, or in 3 years’ time & beyond?
#2) Are you going to save more money now?
#3) Are you going to make your money work for you?
Well… You can do all 3 at the same time!
First of all, start tracking your expenses daily and review your expenses at the end of the week. You will then see which are the unnecessary spendings for that week. The next step is to cut away on that particular expense the following week. Repeat this process week after week, until you are left with your necessary spending.
WELL DONE!!! You suddenly find yourself richer, with the money you saved!!!
Now, converting your unnecessary spendings into savings!
Start to apportion your income into 3 categories; 50% for Necessities, 30% for Savings and 20% for Entertainment respectively.
30% savings and more…
As your savings grow, you can channel a portion of your money into financial instruments to grow your wealth! There are various instruments like fixed deposits, bonds and equities available for your picking!
Click here to find out more.
Like what you read? Share this with your loved ones!
Comments