IT IS true that many middle-aged workers do not have enough money or financial resources for their retirement, and the Central Provident Fund payouts may not be enough to meet their expenses or keep up with inflation.
At this age, many are not interested in long-term saving strategies. Yet they are also worried about the future as their net worth is meagre and expenses keep climbing.
While there are things in life we cannot control, we can control how we respond to them. One always has the ability to change one's financial situation, but it will take time and patience, and some mindset change.
First, one has to accept responsibility for one's financial situation. This does not imply that a person caused the situation, but taking responsibility sheds the anger and blame and helps him move forward.
Second, one has to set realistic expectations about growing one's money. Forget quick-rich schemes; wealth accumulates gradually at first but the pace will pick up eventually.
Third, one has to have three accounts - for spending, saving and investing.
Lastly, one has to understand that the net investable income (the amount of cash left after spending and saving) determines how quickly one grows wealth.
Creating wealth requires one to understand the economic dynamics of supply, demand, wealth and greed. Once a person is able to recognise and exploit those dynamics, he will be able to provide for his retirement.
It is never too late to start on a journey to build wealth for ourselves.
Wong Shih Shen
At this age, many are not interested in long-term saving strategies. Yet they are also worried about the future as their net worth is meagre and expenses keep climbing.
While there are things in life we cannot control, we can control how we respond to them. One always has the ability to change one's financial situation, but it will take time and patience, and some mindset change.
First, one has to accept responsibility for one's financial situation. This does not imply that a person caused the situation, but taking responsibility sheds the anger and blame and helps him move forward.
Second, one has to set realistic expectations about growing one's money. Forget quick-rich schemes; wealth accumulates gradually at first but the pace will pick up eventually.
Third, one has to have three accounts - for spending, saving and investing.
Lastly, one has to understand that the net investable income (the amount of cash left after spending and saving) determines how quickly one grows wealth.
Creating wealth requires one to understand the economic dynamics of supply, demand, wealth and greed. Once a person is able to recognise and exploit those dynamics, he will be able to provide for his retirement.
It is never too late to start on a journey to build wealth for ourselves.
Wong Shih Shen
