How to break out of this cycle?? - Singapore's Online Community

shingshing · 02-07-2007, 02:29 AM

After so many years of education, it seems that the salary that you're fetching can't even net off the amount of $ you've spent on education for the past 2 decades.

From kindgergarten up to poly/uni and any further studies ie. masters/honours, add up all the amount of $ u've spent on sch fees & ccas etc. It's got to be a HUGE sum of money. Assume $85,000.

Now, assuming u're fetching a salary of $2,500 as a fresh grad from uni. U try to save 20%. 20% to CPF. 20% to parents for allowance. 20% - 30% could be your normal spendings. And the remaining 10%-20%, you use them to pay for utilities, handphone bills, insurance etc. These are your PRESENT spendings.

In other words, what you're earning in future are used to pay off future expenses. And whatever savings u've left are meant for emergencies, marriage, investments etc. In fact, most of the time your savings are always NOT enough for these events.

But what about the PAST spendings that you've incurred for your 20yrs+ of education fees? Those are mostly borne by your poor parents!

Assuming these $85,000 education fee is treated as a loan from your parents and you need to repay your parents $85,000 once you graduated and find a job out there. Do you really think you can repay this sum of money?

I really doubt so.

So, even though you have a collection of different degrees, the salary you are fetching can't even bring back the amount of money you've invested in education!! That's becoz you've to pay off your PRESENT SPENDINGS!

And the main thing is, you are still poor, you are still pathetically working for bosses, you are struggling to be financially sufficient, you are saving real hard for that dream car of yours, you can't afford to pay for housing (unless by installments through CPF), you need more money for marriage and you need even more money for your children!!

Its just like a cycle! Education can only guarantee us a stable job but how to make it rich?!

The rich only gets richer, the poor remains as poor!

**lonerlost** · 02-07-2007, 02:31 AM

Thats why you see people betting lol!
Investments, lots of luck and hard work is needed to break the cycle.
No shortcuts I guess

**id_peace** · 02-07-2007, 12:11 PM

reinvest your excess into something useful i guess.. I am also paying like crazy with the output far more than the input

**seantoh** · 02-07-2007, 06:37 PM

Hi all,

Nobody tell us the truth about all this. I been through the same just like you. There are a lots of secrets not taught to us in our life at all. That's why I have written my book to share people how they can overcome that.

**djchris** · 02-07-2007, 06:43 PM

	Quote:			Originally Posted by seantoh
	Hi all, Nobody tell us the truth about all this. I been through the same just like you. There are a lots of secrets not taught to us in our life at all. That's why I have written my book to share people how they can overcome that.

Here's something to get you on track...

Firstly, get your savings on track first. Make sure you are saving a decent amount every month.

Next, reinvest these savings to sort of make them work harder according to your risk appetite and time horizon.

**Jesper** · 02-07-2007, 10:35 PM

U got to plan way ahead before u graduate. Yes i do agree that this is a cycle. There are many ways to break out of this cycle. It is all up to you to decide which path u wan to take. U can set up a business, since the internet has improvise the way to set up a business, or just use the online auctions to sell off your stuff.

The path is tough if u wan to break out of the cycle. That is why so many of us are still in the cycle.

shingshing · 03-07-2007, 11:27 AM

:cry3:

**Ican** · 03-07-2007, 12:16 PM

The problem with many grads is this....they got lots of degrees....They thought that with degrees, they can live comfortably and earn big bucks. What they don't realize is this...degrees are juz the keys....keys to opportunities...however, if you don't even know how to identify opportunities....how do you know which door you need to open?

Not many ppl realize this, without an objectives, without a purpose....no matter how many degrees you have, you will be running in circles, trying to figure things out.

However, we have heard or read about people who, without degrees, without even a dip, could make it in life. Got to start wonder why and ask "how they do it".

In conclusion, you need to determine what are the objectives you want to achieve. Who you want to be and what you want to do. And is what you are studying going to help you achieve that? That is the only way you can break out of the circle.

**wenchong1985** · 03-07-2007, 03:20 PM

stable job is what the government want us to have , and stay as it is... dont even thinking about moving over the "stable job" part, the government will press u down...

"a good dog is a dog that follow orders and shut up..."

if this is a chaoic world, everyone got chance to make it rich! and also got the chance to die also

**panzergrenadier** · 03-07-2007, 04:02 PM

After a while, when age catches us with us all, it does not matter so much about our salaries so long as it can give us a comfortable living.

Because you realise one day, you can never make "enough" money. :biggrin4:

Be well and prosper.

**xueren** · 03-07-2007, 05:26 PM

how about the time and money spent on tuition and cca?

Sometimes i regret spending too much money on my education but ..then again, it is quite worthwhile if you think that you can earn the money you have invested in your education using the remaining 50 years of your lifespan,if you have earned your first degree when you are at 25 years old.Work out the sum,you earn quite a lot ..

**sex-on-heels** · 03-07-2007, 05:37 PM

Precisely.

The last I counted, I need about 12 years to start paying off my uni fees. And then, I have to save up for my future survival. And then, take care of my parents.

When can I actually start actually living life and enjoying it without every cent that I earn be allocated to my loan repayment?

It's sad. I'm getting chills just thinking about the commitments I'm putting myself through. Education doesn't come cheap!

When is the travel around the world dream ever gonna be realized...Sigh.

shingshing · 03-07-2007, 07:00 PM

	Quote:			Originally Posted by sex-on-heels
	Precisely. The last I counted, I need about 12 years to start paying off my uni fees. And then, I have to save up for my future survival. And then, take care of my parents. When can I actually start actually living life and enjoying it without every cent that I earn be allocated to my loan repayment? It's sad. I'm getting chills just thinking about the commitments I'm putting myself through. Education doesn't come cheap! When is the travel around the world dream ever gonna be realized...Sigh.

Yes...u are with me... :cry3:

**shangerrard** · 04-07-2007, 12:03 AM

You'll need alot of hard work and perserverance to overcome this problem. Bo doubt that some people are just lucky, but as it is, this is the game of life. A throw of the dice, or a spin on the wheel will bring you either forward, or land up somewhere where u don't want to be at. This is the element of luck. However, you don't need to be lucky to make things happen; if you wait for your lucky break, chances are that it might not happen.

For the employed, it's great that every month you're receiving your paycheck, getting a fixed amount every month with the occasional bonus. However, chances of you breaking out of the rat race is not easy as it seems. Firstly, making more money doesn't make you rich, nor wealthy - it boils down to how much you can save. Some people work hard, earn more, and spend even more! They start to work, get married, buy a HDB, work harder for their family, pay increased, more money, sell the HDB and move to a bigger apartment / condo, make more money, buy a bigger house. But what most people don't see that while owning a bigger house maybe an asset in the future, take into consideration the time you need to finish paying for the house, cos only after the house is fully paid for, then it becomes an asset. As long as you're still paying for something every month in instalments, that object is a liability, coz you don't make money out of it.

It's important for someone who wishes to break out of the rat race to have an open mind, to review options every now and then. This options will come under multiple streams of income, so as to supplement the monthly paychecks that you're already receiving. This can come in the form of investments (note that you need to pick the right vehicle for your long-term investments), small business partnerships or other sources of income. Ultimately, it is these external streams of income that will give you the extra cash that you need to pay off your debts, or for your retirement. I'm currently already started on my path to financial stability, and ultimately financial freedom. Think big, draw out your masterplan, and put some action into it. It's not a question of when and how, coz the answer to how is in you and the answer to when is now.