Embarking on my $2 a day challenge

From now on, I decided to put away a purple note each day, as soon as I received it. Even though Singapore is heading towards a cash-light society, it is still not uncommon to use cash for day-to-day transactions. For example, we pay for our food and drinks (probably at least 3 times a day)Continue reading “Embarking on my $2 a day challenge”

Compounding Interest and Rule of 72

I always have one of this table handy to remind myself the beauty of compounding interest. At one glance, I would know how many times of the principal I would expect after T units of time and at a particular interest rate. For example, at 5% interest rate every dollar of principal would be compoundedContinue reading “Compounding Interest and Rule of 72”

Simulating the compounding of SA from young

I initiated the top-up of my child’s SA in September 2019 to kick off the power of compounding interest. A monthly $100 top-up is a small but steady way in building up her assets. To reiterate, the first $60,000 of combined balances (with up to $20,000 from the OA) earns an extra 1% interest. ItContinue reading “Simulating the compounding of SA from young”

Never too late to compound your SA and save on taxes

I started Retirement Sum Topping-Up Scheme (RSTU) or topping up my child’s SA in Sep 2019. Working out the sums, I have seen how small contributions over a long period of time could substantially snowball into a big sum. What if I look further beyond the OA to SA transfer and also do a cashContinue reading “Never too late to compound your SA and save on taxes”

Power of compounding your child’s SA from young

All Singapore Citizen newborns born on or after 1 January 2015 qualify for the enhanced $4,000 MediSave Grant for Newborns. This means that each Newborn kick-start their lives on this world with $0 in their Ordinary Account (OA) and Special Account (SA), and $4,000 in their MediSave Account (MA). Wow! This is a great startContinue reading “Power of compounding your child’s SA from young”