True
wealth comes from not having great possessions, but in having few wants…an ancient Greek’ s saying
Money is never enough
In 2 years’ time, I
will be entitled to use my CPF saving for my continuation existence in this
Mother Earth.
Since the 1st
day of my working life back in 1985; I have set myself a goal that, by the age
of 45years old; to achieve, my 1 million dollars target of combined current
asset, cash saving and insurance policy.
I have missed this
lifelong financial target, by a couple of years due to several major worldwide
economic troubled issues. To recall some of these unfortunate worldwide event;
there is this great recession in 1985, the dotcom burst in 2000, 2001 9/11 T-attack,
SARS and 2008 USA financial trouble, and recently mid-2015 (China’s
GDP growth is declining by the months) .
This is my last league
of my working life. Now, I am ready and want to do something completely
different with my life. I have spent more than 25years in Engineering. However,
along the way, I do have this sinking feeling of financial insecurity as I will
lose a big chunk of my monthly pay cheque if I decided to 100% “retire” by age 55.
So to lessen this
“big-bang” feeling of total financial insecurity; for the last 2 years, I have re-calibrated my financial expectation by taking on a new
career, that still can continued to give some monthly earned income, but with a
much lesser “mental stress factorial”
to deal with.
Expenses
The entire year of
2014, has been very tough on me financially. Because there is basically no
change in my family lifestyle; family quarrel over money is unavoidable at
times.
Today, I still keep my
2.0L family car with me (mainly parked at the HDB carpark). Overall living Expenses
are way above my monthly take home income. Fortunately, while planning for my
pre-retirement; I have accumulated sufficient fund to see me and my family
through this transitional period.
So it is very important to have cash reserve with you…. Some FP,
will recommends that you, need some 6 months amount of your last drawn paycheck
in your saving bank account.
Income
Among the 3 major BC manpower group
(Locals, Malaysian and PRC); the local BC is the poorest. Beside the monthly
CPF contribution, I have zero dollars saving from my present net take home
income.
For the 1st
4 months, as a trainee BC, my family and I are living off from my take home
salary, after deducting CPF contribution, of about S$1300/-. This is definitely
not enough for use for a family of 4.
It is indeed a good
gesture from the Government to provide some financial assistant via the WIS
programme. I did benefit from this WIS for about
3 months. However, once I am on revenue able services, and doing
more overtime and allowance, my gross income exceeded $2500/-mth, and WIS
stopped immediately, alamak...
IR8A
My financial difficulty
or constraint is further compounded by the fact that, for FY2014, my income tax
payable is close to S$5000/-. I have opted for a Giro payment of some $416/mth
deduction from my bank saving account.
My advice is that, for
those, whom have medium to high
last drawn salary; and planning do to what, I am doing now for a lesser
monthly take home income job for your pre-retirement odyssey; please consider
budgeting this taxable sums ($$$), into your overall financial planning for
your 1st year of a much reduced take home income and expenses.
Otherwise you will be caught with surprise on both ends of the burning candle; and you may be subjected to more mental stress then.
I am glad that, I could
manage this tax-payable for FY2104; because of the reserve that I have. Till today, I still continue
to keep a lifestyle like before, but I certainly need to review it soon.
For FY2015, my tax
payable is way reduced to a total of just $425/-, after a 50% taxpayable rebate from the
FY2015 budget.
I hope, for FY2016, may
be just a token only lah; Boleh-kah, Mr. Finance Minister !.
Allowances and OT
There are several $$ allowances
been given to BC; depending on your attendance record, service quality,
non-accident or mishap and others, I will be given some $400/month, on top of
my basic salary of SGD1625/-. The allowances and incentive are variables and
certainly is deductible.
The max OT hour allowed
under the Labour Law is 72hours/month. However, working long OT hours is not my
preference. Daily OT hours to be done is mandated by the duty number that you
have been assigned to do.
Ever since, on an average, I have worked some 50hours/month. I do abstain myself form working during my
restday. When the journey is flair
weather; and with good service incentives and driving records for a particular
month, my gross income is close to S$3200/-.
So you can see, that,
just with a basic salary of S$1625/-, to start with, my gross income, can come close to doubling
that amount. However, for my age and into my last phase of my active working life;
is it not my preference to clock-in excessive OT hours.
Getting sufficient sleep and rest of at least 6 hours per
day is more important to me. So, whenever, I have been assigned with service
duty number that do not requires any OT to be done; I am happy and
thankful to the rostering supervisor !
Annual Leave and encashment
I appreciate that, even
as a junior position; I am entitled to a 14days of paid annual
leave. Previously many years ago, I still remember, I was only entitled to what
the employment act stipulated, 7 days only. Yes, I will use fully these numbers
of annual leave days for my vacations.
I will plan ahead to
have some break time in March when my wife is having her school march holidays,
my birthday (Sept) and traditionally, in December for my wedding anniversary.
However, most of my FW
colleagues, will usually, “cash-out” as many balance days of unused AL as possible!
Letting Go
After some 2 years into
this new career life; I have learned to live below my means and
not
comparing myself with others. I will be scrapping my car next year,
and use more public transport (anyway, can travel on complimentary) to commute.
Not comparing myself with others; no more lavish lifestyle and most importantly, stay debt and mortgage
free.
At the end of the day, I
hope, this will help to minimize impact to my living standard when I finally stop working in few years times.
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