QUOTE(dreamer101 @ Jun 9 2009, 04:26 AM)
lcl832002,
Let's take 50%. Your tax and EPF will take another 20 to 25%. That means you live on 20% to 25%. Hence, you have NO SAVINGS. Now, if you have NO SAVINGS, you have NO EMERGENCY FUND. That means if you have any kind of financial emergency, you will be wiped out.
Generally speaking, if you working for a company, each year you'll get salary increment, so altho now get 3K and things rather tight, 5 years later it'll generally be much better. For bachelor, saving 50%+ of 3K is not a hard thing to do.Let's take 50%. Your tax and EPF will take another 20 to 25%. That means you live on 20% to 25%. Hence, you have NO SAVINGS. Now, if you have NO SAVINGS, you have NO EMERGENCY FUND. That means if you have any kind of financial emergency, you will be wiped out.
Altho risky to get an expensive house when your salary is low, but if got rich guarantor it's worthit, coz renting means money down the drain and buying cheap house means living in problematic areas, and your property value may not go up much.
Jun 11 2009, 09:50 AM
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