I look at my pay slip. Deduct the ordinary expenses, there is not much left. Compare to last month wages, this month I get increment. I should have more for saving, but why the amount left is still same with previous month? I go back to check my expenses, it is fuel price increase. Sooner or later, other things increase price one by one due to the oil price increase. It is inflation. The money value I get from the salary, reduce! I spend same thing for same amount with more money. The value of the money is decreasing.
Life must have improvement and development. I have to buy house, car, medical fees, tour, entertainment, and luxury, etc. There are a lot of expenses. Price of everything is increasing. If increment same as inflation, that means I cannot improve anything and I have to remain as now forever? What if lost job or accident?
If the salary increment faster than inflation, life will be easier and better. This is assuming there is no interruption to this income sources. If my increment all spend to improve lifestyle, how to pass my remaining life after retire? There is no saving.
If I use the increment for saving and don’t improve my spending for my interest, I save money in bank. My saving will increase constantly but lifestyle must remain. It is for future. If I am discipline, my saving amount is increasing, but the value in the future is decreasing!
Although bank give interest rate, now it is about 3.05% for 1 month fix deposit, but the inflation is about 3.5%. This rate is for Malaysia and not taking consideration of the fuel price, toll price, rice price, cooking oil price, steel price, and cement price after election. The saving value in the back is decrease.
If my saving can grow faster than inflation, only then in the future I can get back the same value or better value of the money. For those under employment and no other income, increment is depending on employer. The saving is depending on their discipline and wisdom. For those doing businesses or sales, their income is depending on their sales and revenue. The saving of profits is depending on their discipline and wisdom too. It is because high earning with high spending or high costing is still end up low profits.
Saving is money; money is capital. Save now and spend in the future. What is the value of the money when you spend?
Life must have improvement and development. I have to buy house, car, medical fees, tour, entertainment, and luxury, etc. There are a lot of expenses. Price of everything is increasing. If increment same as inflation, that means I cannot improve anything and I have to remain as now forever? What if lost job or accident?
If the salary increment faster than inflation, life will be easier and better. This is assuming there is no interruption to this income sources. If my increment all spend to improve lifestyle, how to pass my remaining life after retire? There is no saving.
If I use the increment for saving and don’t improve my spending for my interest, I save money in bank. My saving will increase constantly but lifestyle must remain. It is for future. If I am discipline, my saving amount is increasing, but the value in the future is decreasing!
Although bank give interest rate, now it is about 3.05% for 1 month fix deposit, but the inflation is about 3.5%. This rate is for Malaysia and not taking consideration of the fuel price, toll price, rice price, cooking oil price, steel price, and cement price after election. The saving value in the back is decrease.
If my saving can grow faster than inflation, only then in the future I can get back the same value or better value of the money. For those under employment and no other income, increment is depending on employer. The saving is depending on their discipline and wisdom. For those doing businesses or sales, their income is depending on their sales and revenue. The saving of profits is depending on their discipline and wisdom too. It is because high earning with high spending or high costing is still end up low profits.
Saving is money; money is capital. Save now and spend in the future. What is the value of the money when you spend?
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