What is inflation? In very simple terms, a bowl of noodle long long time ago cost 20cents. Now it is at least $3.50 at foodcourts. 20yrs later? I think $10/bowl is not an impossible mathematics.
Recently a 油条王 (You-Tiao King) opened up in Yew Tee MRT. A typical looking you-tiao is selling for S$1.00!!! I cannot believe how much flour can cost me.... but it is actually happening. When I was still in primary school, it was selling only for 15cents.... And my father had been complaining how his Kopi-O had risen to $1.20 for one of the food courts he visited.
So how to beat inflation? Here are the 10 recommended ways...
1. Cut down spending, leave within your means
2. Try to save 20% of your pay, or more....
3. Do not be overly conservative
4. Don't rely solely on guaranteed products
5. Save regularly via an investment platform
6. Take on sensible level of investment risk
7. Invest for returns that will beat inflation
8. Understanding the power of compounding
9. Invest in asset classes that will appreciate
10. Limit exposure to depreciating assets
Sounds easy and logical? But not easy to do. If you do not have the discipline in saving regularly, it's time to start now. Engage the service of a competent financial planner if you face difficulty. One important key advise is to pay yourself first'. How the old man/lady (a.k.a. YOU) is going to survive in their golden years depends on how much you are saving for them now.
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