IntroductionHey, hey, hey. What’s up, my fellow iguanas? Welcome back to another episode of The Investing Iguana, where I teach you how to grow your wealth and achieve financial freedom. I’m your host, Iggy, and today I have a very special video for you. I’m going to share with you the secrets of 233 millionaires. That’s right. 233 millionaires. How did they get rich? What do they do differently? And most importantly, how can you copy their success and become one of them? If you want to know the answers, then stick around, because this video is going to blow your mind. But before we dive in, I want to ask you a favor. If you enjoy this video, please smash that like button and subscribe to my channel. It really means a lot to me. And if you have any questions or comments, feel free to drop them below. I love hearing from you and I will try to reply as many as I can. OK, let’s get started. The source of this video is a website called Rich Habits: 10 Key Commitments for Success. It is based on a book by the same name, written by Tom Corley, who spent five years studying the habits of 233 wealthy individuals and 128 poor individuals. He discovered that there are 10 key commitments that the rich make for success, and that anyone can learn and apply these commitments to their own life. So what are these 10 key commitments? Let’s go over them one by one. 1. Cultivate daily habitsThe first commitment is to cultivate daily habits that support your goals. The rich know that success is not a fluke, but a result of consistent actions over time. They have routines and rituals that they follow every day, no matter what. These habits include reading, learning, exercising, meditating, networking, planning, and tracking their progress. According to Corley’s research, over 85% of rich people read at least two books per month, and 79% read professional literature to stay updated in their field. They also spend at least 30 minutes every day on self-education or self-improvement. This shows that the rich are avid readers and constant learners. They know that the key to success is to never stop learning and growing. 2. Set daily, monthly, yearly, and long-term goalsThe second commitment is to set daily, monthly, yearly, and long-term goals that align with your vision and purpose. The rich have a clear idea of what they want to achieve in life, and they break it down into smaller and more manageable steps. They also write down their goals and review them regularly. According to Corley’s research, 80% of rich people focus on accomplishing some single goal, and 67% write down their goals. They also have a written plan for achieving their goals. This shows that the rich are focused and organized. They know that having a goal is not enough; you need to have a plan and take action. 3. Enhance self-worth dailyThe third commitment is to enhance self-worth daily by developing confidence, optimism, and passion. The rich have confidence in themselves and their ability to achieve their goals. They are also optimistic about their future and passionate about their work and interests. According to Corley’s research, 94% of rich people pursue something they are passionate about, and 76% believe that good habits create opportunity luck. They also have positive affirmations that they repeat every day. This shows that the rich have a positive attitude and a strong sense of self-worth. They know that confidence, optimism, and passion are essential for success. 4. Pay attention to physical health dailyThe fourth commitment is to pay attention to physical health daily by eating well, exercising regularly, and getting enough sleep. The rich know that physical health is the foundation of mental health and performance. They take care of their bodies as well as their minds. According to Corley’s research, 76% of rich people exercise aerobically four days a week, and 57% count calories every day. They also avoid junk food and limit alcohol consumption. This shows that the rich are health-conscious and disciplined. They know that health is wealth. 5. Build and maintain relationships dailyThe fifth commitment is to build and maintain relationships daily by networking with like-minded people, nurturing friendships, and giving back to the community. The rich know that relationships are the key to success. They surround themselves with supportive mentors, peers, and partners who can help them grow and achieve their goals. According to Corley’s research, 88% of rich people network and associate with other success-minded people, and 86% make happy birthday calls. They also volunteer for charitable causes and donate money to worthy organizations. This shows that the rich are social and generous. They know that success is not a solo journey, but a team effort. 6. Live a disciplined life dailyThe sixth commitment is to live a disciplined life daily by avoiding procrastination, making decisions decisively, and controlling emotions. The rich know that discipline is the bridge between goals and accomplishment. They do not let distractions, doubts, or fears stop them from taking action. They also do not let emotions cloud their judgment or interfere with their relationships. According to Corley’s research, 81% of rich people maintain a to-do list, and 70% make decisions quickly and stick with them. They also avoid gossip and negative emotions. This shows that the rich are productive and decisive. They know that discipline is the master key to success. 7. Complete today’s tasks on timeThe seventh commitment is to complete today’s tasks on time by prioritizing the most important and urgent ones, delegating or outsourcing the less important ones, and eliminating the unnecessary ones. The rich know that time is the most precious resource, and they use it wisely. They do not waste time on trivial matters or activities that do not contribute to their goals. According to Corley’s research, 67% of rich people watch less than an hour of TV every day, and 63% spend less than an hour on the internet for leisure. They also limit their email checking to three times per day or less. This shows that the rich are efficient and effective. They know that time management is life management. 8. Live with a wealth-building mindsetThe eighth commitment is to live with a wealth-building mindset by adopting a growth mindset, embracing challenges, learning from failures, and seeking feedback. The rich know that mindset is everything, and they cultivate a mindset that supports their success. They do not see themselves as fixed or limited, but as flexible and capable of improvement. According to Corley’s research, 84% of rich people believe good habits create opportunity luck, and 76% believe bad habits create detrimental luck. They also believe in lifelong learning and self-improvement. This shows that the rich have a growth mindset and a positive outlook. They know that mindset determines reality. 9. Save 10% of every paycheckThe ninth commitment is to save 10% of every paycheck by living below your means, investing wisely, and diversifying your income streams. The rich know that saving is the first step to building wealth, and they make it a habit to pay themselves first. They also invest their money in assets that generate passive income, such as stocks, bonds, real estate, or businesses. According to Corley’s research, 94% of rich people save 20% or more of their income, and 80% have at least three streams of income. They also invest in financial education and seek advice from experts. This shows that the rich are savvy and smart with their money. They know that saving is earning. 10. Control thoughts and emotions dailyThe tenth and final commitment is to control thoughts and emotions daily by practicing gratitude, meditation, positive thinking, and affirmations. The rich know that thoughts and emotions are powerful forces that can either help or hinder their success. They choose to focus on the positive aspects of their life, rather than the negative ones. They also use techniques such as gratitude, meditation, positive thinking, and affirmations to calm their mind, reduce stress, increase happiness, and boost confidence. According to Corley’s research, 82% of rich people are grateful for what they have, and 75% meditate at least 15 minutes every day. They also have positive affirmations that they repeat every day. This shows that the rich are mindful and happy. They know that happiness is a choice. ConclusionSo there you have it. The secrets of 233 millionaires. These are the 10 key commitments that they make for success. And guess what? You can make them too. You can learn from these habits and adopt them in your own life. You can become rich too. But don’t just take my word for it. Try it for yourself. Pick one habit from this list and start practicing it today. Then add another one tomorrow. And another one the day after. And so on. Until you have mastered all 10 habits. And then watch your life transform before your eyes. Introduction: How much to be happy in SG?Hi there, and welcome to The Investing Iguana, the show where I help you make sense of the world of personal finance, investing, and retirement planning. I’m Iggy, your host and guide on this exciting journey. Today, we’re going to talk about a very interesting topic: how much money do you need to earn to be happy in Singapore? $100,000 to be Happy in Singapore?You might think that happiness is a subjective feeling that can’t be measured or quantified, but some researchers have tried to do just that. They have identified a certain income level at which people tend to report the highest levels of happiness and life satisfaction. This is called the “satiation point”, and it varies depending on where you live and how much it costs to live there. So, how much do you need to earn to be happy in Singapore? According to a new research by S Money, a financial comparison website, you need to earn US$75,320 annually (approximately S$103,007 at the current exchange rate) to be happy in Singapore. That’s right, over 100k Singapore dollars per year! More $ = More Problems?That sounds like a lot of money, doesn’t it? Especially when you consider that the median salary in Singapore in 2022 is approximately S$60,900 (US$44,500). That means that more than half of the population is earning less than the satiation point. Does that mean that they are unhappy or dissatisfied with their lives? Not necessarily. Happiness is not only determined by income, but also by many other factors, such as health, education, social relationships, leisure activities, and personal values. Money can buy you some comfort and convenience, but it can’t buy you love, friendship, or meaning. In fact, some studies have shown that after reaching the satiation point, happiness levels off or even dips. This is because people tend to adapt to their higher income and raise their expectations and desires accordingly. They may also face more stress, competition, or envy from others. As the saying goes, “more money, more problems”. What other routes to happiness?So, if money is not the key to happiness, what is? Well, there is no simple answer to that question, but some possible suggestions are:
How are other countries faring?These are just some of the ways that you can increase your happiness without increasing your income. Of course, everyone’s situation is different and there is no one-size-fits-all solution. You have to find what works best for you and your circumstances. But if you’re curious about how much money you need to be happy in other countries around the world, here are some interesting facts:
ConclusionYou can see the full list of countries and their prices of happiness on S Money’s website. You can also use their calculator to find out how much money you need to be happy in any country based on your current income and lifestyle.
But remember: money is not everything. Happiness comes from within and from how you live your life. So don’t let these numbers discourage or pressure you. Instead, use them as a reference point or a motivation to improve your financial situation and your well-being. That’s all for today’s episode of The Investing Iguana. I hope you enjoyed it and learned something new. If you did, please give this video a thumbs up, share it with your friends, and subscribe to my channel for more content like this. And don’t forget to leave a comment below and let me know: how much money do you need to be happy in Singapore? I’d love to hear from you. Thank you for watching, and I’ll see you next time on The Investing Iguana. Stay happy and stay smart! IntroductionHi everyone, welcome back to The Investing Iguana, where we talk about all things money and finance in Singapore. I’m your host, Iggy, and today we’re going to look at 7 signs that you are above average financially. Now, you might be wondering, why does it matter if you’re above average or not? Well, it doesn’t really matter in the grand scheme of things, but it can be a useful way to benchmark your financial progress and see how you compare to your peers. After all, we all want to know if we’re doing well or not, right? But before we get into the signs, let me just say that being above average financially doesn’t mean you’re rich or successful. It just means that you have more money than most people in Singapore. And having more money doesn’t necessarily mean you’re happier or more fulfilled. Money is just a tool that can help you achieve your goals and live the life you want. So don’t get too obsessed with the numbers or the rankings. Focus on what matters to you and what makes you happy. Alright, with that out of the way, let’s get into the 7 signs that you are above average financially in Singapore. Sign #1: You have no high-interest debtThe first sign that you are above average financially is that you have no high-interest debt. High-interest debt is any debt that charges an interest rate of more than 10% per year, such as credit cards, personal loans, or payday loans. These types of debt can quickly eat away at your income and savings, and trap you in a cycle of debt that’s hard to escape. According to a report by ValueChampion, the average debt per adult in Singapore is S$73,618, which includes housing loans, car loans, credit card debt, and personal loans. Of course, not all debt is bad. Some debt can help you build assets or increase your income, such as a mortgage or a student loan. But high-interest debt is usually bad because it doesn’t add any value to your life and only costs you more money in the long run. So if you have no high-interest debt, congratulations! You are already ahead of many Singaporeans who are struggling to pay off their credit cards or personal loans. You are also saving yourself a lot of money in interest payments that you can use for other purposes, such as investing or saving for retirement. Sign #2: You have an emergency fundThe second sign that you are above average financially is that you have an emergency fund. An emergency fund is a stash of cash that you can use to cover unexpected expenses or emergencies, such as a medical bill, a car repair, or a job loss. Having an emergency fund can help you avoid going into debt or dipping into your long-term savings when something goes wrong. But how much emergency fund do you need? Well, there’s no one-size-fits-all answer to this question. It depends on your income, expenses, lifestyle, and risk tolerance. However, a common rule of thumb is to have at least 3 to 6 months’ worth of living expenses in your emergency fund. This means that if your monthly expenses are S$3,000, you should aim to have at least S$9,000 to S$18,000 in your emergency fund. According to a survey by Manulife, only 28% of Singaporeans have enough savings to last them six months or more if they lose their income. This means that most Singaporeans are living paycheck to paycheck and are vulnerable to financial shocks. If you have an emergency fund that can cover at least 3 to 6 months’ worth of expenses, you are definitely above average financially and have more peace of mind than most people. Sign #3: You have a positive net worthThe third sign that you are above average financially is that you have a positive net worth. Net worth is the difference between your assets and your liabilities. Assets are anything that you own that has value, such as cash, investments, property, or jewellery. Liabilities are anything that you owe to others, such as loans, mortgages, or credit card balances. To calculate your net worth, simply add up all your assets and subtract all your liabilities. For example, if you have S$100,000 in cash and investments, S$500,000 in property value, and S$300,000 in loans and mortgages, your net worth is S$100,000 + S$500,000 - S$300,000 = S$300,000. Having a positive net worth means that your assets are more than your liabilities. This means that you have more wealth than debt and that you are building equity over time. Having a negative net worth means that your liabilities are more than your assets. This means that you have more debt than wealth and that you are losing equity over time. According to the Credit Suisse Global Wealth Report 2022, the average mean and median net worth per adult in Singapore is S$483,575 and S$125,729, respectively. However, these figures are skewed by the high property values and the high-income earners in Singapore. A more realistic way to measure your net worth is to compare it to your income. A good rule of thumb is to have a net worth that is at least 2 to 3 times your annual income. For example, if you earn S$60,000 a year, you should aim to have a net worth of at least S$120,000 to S$180,000. So if you have a positive net worth that is at least 2 to 3 times your annual income, you are above average financially and are on track to achieving financial freedom. Sign #4: You have multiple streams of incomeThe fourth sign that you are above average financially is that you have multiple streams of income. Having multiple streams of income means that you earn money from more than one source, such as your salary, your side hustle, your investments, or your rental property. Having multiple streams of income can help you diversify your income sources, increase your cash flow, reduce your reliance on a single employer, and achieve your financial goals faster. According to a survey by GoBear, only 36% of Singaporeans have more than one source of income. This means that most Singaporeans rely on their salary as their main or only source of income. While there’s nothing wrong with having a stable job that pays well, relying on a single source of income can be risky and limiting. What if you lose your job or face a pay cut? What if you want to retire early or pursue your passion? What if you want to grow your wealth faster and enjoy more financial freedom? If you have multiple streams of income, you are above average financially and have more options and opportunities than most people. You are also more resilient and adaptable to changing economic conditions and personal circumstances. Sign #5: You have a retirement planThe fifth sign that you are above average financially is that you have a retirement plan. A retirement plan is a strategy that outlines how much money you need to retire comfortably, how much money you need to save and invest for retirement, and how long your retirement savings will last. Having a retirement plan can help you prepare for your golden years and avoid running out of money in retirement. But how do you create a retirement plan? Well, there are many factors to consider, such as your desired retirement age, your expected retirement expenses, your expected retirement income, your expected rate of return, your expected inflation rate, and your life expectancy. You can use online calculators or tools to help you estimate these numbers and create a retirement plan that suits your needs and goals. According to a report by Manulife, only 25% of Singaporeans have invested in a retirement plan12, revealing an average savings gap of S$677,000. This means that most Singaporeans are not saving enough for retirement or don’t have a clear idea of how much they need to retire. If you have a retirement plan that covers your basic needs and lifestyle preferences in retirement, you are above average financially and have more confidence and security than most people. Sign #6: You have an investment portfolioThe sixth sign that you are above average financially is that you have an investment portfolio. An investment portfolio is a collection of assets that you own for the purpose of generating income or capital appreciation. These assets can include stocks, bonds, funds, ETFs, REITs, cryptocurrencies, or alternative investments. Having an investment portfolio can help you grow your money faster than saving alone, beat inflation, diversify your income sources, and achieve financial freedom. But how do you create an investment portfolio? Well, there are many factors to consider, such as your risk appetite, your time horizon, your investment objectives, your asset allocation, your diversification strategy, and your rebalancing frequency. You can use online platforms or tools to help you research, analyse, buy, sell, and manage your investments. You can also seek professional advice from financial planners or robo-advisors if you need guidance or support. According to the Credit Suisse Global Wealth Report 2022, financial assets account for 57% of personal wealth for Singaporeans. This means that more than half of Singaporeans’ wealth comes from investments rather than cash or property. However, this figure may not reflect the true picture of the average Singaporean investor. According to the DBS Investor Sentiment Survey 2021, only 38% of Singaporeans invest regularly, while 28% do not invest at all. This means that many Singaporeans are missing out on the benefits of investing or are not investing enough or consistently. If you have an investment portfolio that matches your risk profile and investment goals, you are above average financially and have more potential and opportunity than most people. Sign #7: You have a positive money mindsetThe seventh and final sign that you are above average financially is that you have a positive money mindset. A positive money mindset is a set of beliefs and attitudes that support your financial success and well-being. Having a positive money mindset can help you overcome financial challenges, achieve your financial goals, and enjoy your financial journey. But what does a positive money mindset look like? Well, it can vary from person to person, but here are some common traits of a positive money mindset:
According to a study by OCBC, only 23% of Singaporeans are confident about their financial future. This means that most Singaporeans are worried or uncertain about their financial situation and prospects. If you have a positive money mindset that empowers you to take charge of your finances and live your best life, you are above average financially and have more happiness and satisfaction than most people. ConclusionSo there you have it, 7 signs that you are above average financially in Singapore. How many of these signs do you have? Let me know in the comments below. And if you enjoyed this video, please give it a thumbs up and subscribe to my channel for more videos like this. Thanks for watching and I’ll see you in the next one. This is Iggy from The Investing Iguana, signing off. Peace!
Introduction: The Perils of Tax Evasion in Singapore The Lion City, as Singapore is often called, is renowned for its strong economy, excellent public services, and high standard of living. But the benefits come with responsibilities, like paying taxes dutifully. While some might be tempted to dodge or evade taxes, the risks and penalties involved can be devastating, especially for those who are investing or planning for retirement. In this article, we dive into 10 facts that every Singaporean should know about tax evasion penalties. 1. Legal Definition of Tax Evasion Tax evasion in Singapore isn't just about dodging payments; it's a legal offense that encompasses fraudulent activities to reduce your tax liability. This includes intentionally misrepresenting information, hiding income, and falsifying documents. Tax evasion is an offense under the Income Tax Act and can lead to severe penalties, both monetary and non-monetary. It's essential to understand the legal boundaries to stay compliant and protect your assets and investments in Singapore. 2. Financial Penalties: The Immediate Cost The most immediate impact of tax evasion is the financial penalty imposed. Singapore's tax authorities can levy a penalty up to four times the amount of tax evaded. This substantial monetary burden can derail your financial plans, whether you're saving for a home, investing for growth, or planning for retirement. The immediate financial outflow can also impact your liquidity and may necessitate the liquidation of some assets to meet these obligations. 3. Imprisonment: A Possibility You Can't Ignore It's a sobering thought, but imprisonment is a real possibility for tax evaders in Singapore. You could face jail time ranging from a few weeks to several years, depending on the severity of the offense. The consequence of imprisonment extends beyond the sentence period; it has a long-lasting impact on your reputation and future earning capacity, making it a dire setback for anyone, especially those in investment and business sectors. 4. The Impact on CPF Contributions Tax evasion doesn't just risk immediate penalties; it can also affect your Central Provident Fund (CPF) contributions. A penalty or imprisonment could lead to a loss of income, and by extension, reduced CPF contributions. This has a ripple effect on your retirement planning, as CPF is an essential aspect of long-term financial stability for Singaporeans. 5. SRS: Another Victim of Tax Evasion Supplementary Retirement Scheme (SRS) contributions are another aspect of financial planning that can be negatively affected by tax evasion. SRS is a voluntary scheme that offers tax benefits to incentivize retirement savings. If you're found guilty of tax evasion, not only do you risk losing those tax benefits, but your overall financial reputation takes a hit, making future investment planning a cumbersome process. 6. Influence on Investment Portfolios If you're into investing, tax evasion can be a perilous road. The financial penalties could force you to liquidate valuable investments abruptly, potentially leading to losses and a reduced portfolio size. Moreover, some investment opportunities might require a certain level of financial credibility, which would be compromised if you're convicted of tax evasion. 7. Long-Term Effects on Credit Score Tax evasion can have lasting implications on your credit score. A poor credit score makes it difficult to get loans for housing or starting a business in Singapore, affecting both your personal and professional life. It also increases the cost of borrowing due to higher interest rates imposed as a risk mitigation measure by financial institutions. 8. Social Stigma and Professional Repercussions In Singapore's close-knit society, a conviction for tax evasion can lead to social ostracization and professional setbacks. It could result in the loss of employment, hamper career advancement, and even thwart business opportunities. This intangible yet significant impact should not be overlooked when considering the risks of tax evasion. 9. International Ramifications In an increasingly globalized world, the consequences of tax evasion in Singapore could extend beyond national borders. Many countries share financial and tax-related information; hence a tax evasion conviction could affect your overseas investment plans or employment opportunities. This international reach adds another layer of complexity and risk to tax evasion penalties. 10. Lifetime Impact on Financial Health Beyond the immediate financial and legal repercussions, tax evasion can have a lasting impact on your financial health. The combined effects of monetary penalties, reduced investment opportunities, and a tarnished reputation can create a cycle of financial instability, making it challenging to achieve the financial milestones you aim for in Singapore. Conclusion: Securing Your Financial Future in SingaporeUnderstanding the risks and penalties associated with tax evasion is crucial for anyone involved in investing, retirement planning, or simply looking to maintain a healthy financial life in Singapore. Given the severe implications, ranging from financial penalties to a lasting stigma, the best strategy is to stay informed and compliant. This not only safeguards your assets but ensures a more secure and prosperous financial future in the Lion City.
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