Here’s how that Ah Beng became richer than you
Painful isn’t it, seeing that nice car/branded bag you thought would look better if you were driving/carrying it.
People i know who can continue to spend even though times are bad do it because they have always factored in the spending.
I see you’re going - huh? Ok here’s how they do it… i call it segregation of accounts.
- Account for his subaru wrx - 20% of his money
- Account for his girlfriends - 20%
- Account for his business - 40%
- Account for his backup - 20%
This my friends, is the start of building that base i mentioned in my first post “Get richer climbing that pyramid”.
Separate your accounts by intention/purpose!
1. POSB Savings & UOB Campus Current (Utility Accounts)
- POSB Savings is my base account where i deposit my pay and inflows of cash. Since the interest is only 0.25%p.a., money is quickly distributed to my other accounts.
- UOB Campus Current opened since University days, acts similarly plus a cheque book for added convenience. Interest @ 0.35%p.a.
2. Maybank Save Up (Liability Account)
- this is where i keep money set aside for my car loan, medisave, tax and other liabilities
- the account’s unique feature is the 5% rebate on my monthly tax contribution on top of a 0.5%p.a. interest
- this beats almost any savings bank rates for the same amount of money placed
Do check out the relevant details from Maybank on whether the account is suitable for you:
3. Maybank iSavvy & OCBC Fairprice Plus (Savings Account)
- this is where i save most of my money for my current family, future family, retirement, property and others earning 1.08%p.a. for deposits between $5,000 to $50,000.
- Fairprice Plus has an interest of 1%p.a. and comes with a debit/credit card with nets facility. This helps with withdrawals and transfers versus iSavvy which only has an atm card.
And so that’s a snippet of my accounts and how i use them - build yourself a system to make it easier to save and spend.
Are you still only using one POSB account for everything?
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