I finally managed to finish this book. I stopped the first time because all the thou and thy were confusing and a little too much for me. But I managed to complete the book this time and not only is it a great beginner book to get started on finances, it covers a lot of ground. Let’s look at the teachings of the book.
Start thy purse to fattening
Idea: Set aside 10% of our earnings. The classic pay-yourself-first approach. This money will be the investment fund for the future.
What I do: I set aside (at this moment of my life) 90% of my take-home pay. 60% to investment, 20% to my future HDB fund, 10% for future insurance payment. I know it is a little extreme, but like I mentioned in my About Me page, I did not save much (if at all) in 2016. So I am just trying to catch up with lost time.
Control thy expenditures
Idea: Do not spend over the 90% limit and on top of that do not spend unnecessarily.
What I do: With the limited amount of money I have to spend, I stick to a very strict budget which i keep track using YNAB Classic¹.
Make thy gold multiply
Idea: Invest the money from the 1st cure to get the money to work (earn interest) for you. The idea is to let compounding work for you.
What I do: I invest in ETFs that track local and international stocks. Namely ES3 and IWDA. Other than my investments, most of my cash is parked in an OCBC 360 account. I only satisfy 2 of the bonus criteria (salary and payment) and with the most recent OCBC 360 update, I might be looking into changing my main bank account.
Guard thy treasure from loss
Idea: Invest in safer options. Preferably in an area of your own expertise, or with people who are experienced.
What I do: This is the main reason I invest in mainly ETFs that tracks a variety of individual stocks. I am basically riding on the inflation rate (I might be wrong but in my brain this is correct). Let’s just hope there won’t be any deflation happening to Singapore. LOL.
Make of thy dwelling a profitable investment
Idea: Own your own property so as to not spend on the rental.
What I do: Saving up for my future HDB so that I can get one once I am applicable for one. I do not want to grow old, but for my HDB I want to turn 35 asap!
Insure a future income
Idea: Buy insurance. Or alternatively, have a rainy day fund for the future.