This is important =]
The world has changed. Actually what I really mean, is our society has changed. I used to think I come from an average income family. Well, we are not rich but neither are we poor. We can make ends meet and still afford the luxury of branded goods every now and then. That was my mentality - as a child growing up, during the 90s. Afterall, I had always thought either you are rich; or you are very poor; or you belong to the remaining > 70% of average income Singaporeans, earning 1-2k per month. That was what I thought.
Looking back, I think I am pretty naive and gullible. Actually, these thoughts I made up, I could be right. But our society now just makes it look so wrong.
Rising prices
From 1990-1999, every damn coffeeshop or hawker centre you go to, you can buy a plate of chicken rice or wanton mee or almost any other food for $2. That was the "standard" price for almost 10 years. Now, finding a stall that still sells at $2 is as difficult as proposing to a girl, bar McChicken. And that was just a simple example showing the exorbitant price increase, over recent years, of a simple daily necessity.
I remember during my childhood days, my mum used to top-up $10 for her transitlink farecard, and each top up could last her 1-3 weeks. Well, if you top up $10 for your ezlink card these days, that will barely last you 3 days! And in recent days, the increase in prices have been nothing short of 'spectacular'. Sharp increase in prices of chinese herbs, including chrysanthemum; chinese new year goodies like bak-kwa to abalones; and even my fucking Sara Lee pound cake rose to $4.80!
The inflation
It was reported in the papers inflation could hit 5% this year and up to 6.5% this month. Now what the hell does this mean? It means with the cost of living going up, your money is shrinking by the minutes. It means 10 years down the road, that $5000 in your bank could become $3000. It means that microscopic 0.2% interest the bank is paying will speed up the devaluation of your dollar much quicker than you can say "I don't want to buy insurance". It means, you really need an endowment plan with a 6-9% probable return as an inflation hedge.
Looking back, I think I am pretty naive and gullible. Actually, these thoughts I made up, I could be right. But our society now just makes it look so wrong.
Rising prices
From 1990-1999, every damn coffeeshop or hawker centre you go to, you can buy a plate of chicken rice or wanton mee or almost any other food for $2. That was the "standard" price for almost 10 years. Now, finding a stall that still sells at $2 is as difficult as proposing to a girl, bar McChicken. And that was just a simple example showing the exorbitant price increase, over recent years, of a simple daily necessity.
I remember during my childhood days, my mum used to top-up $10 for her transitlink farecard, and each top up could last her 1-3 weeks. Well, if you top up $10 for your ezlink card these days, that will barely last you 3 days! And in recent days, the increase in prices have been nothing short of 'spectacular'. Sharp increase in prices of chinese herbs, including chrysanthemum; chinese new year goodies like bak-kwa to abalones; and even my fucking Sara Lee pound cake rose to $4.80!
The inflation
It was reported in the papers inflation could hit 5% this year and up to 6.5% this month. Now what the hell does this mean? It means with the cost of living going up, your money is shrinking by the minutes. It means 10 years down the road, that $5000 in your bank could become $3000. It means that microscopic 0.2% interest the bank is paying will speed up the devaluation of your dollar much quicker than you can say "I don't want to buy insurance". It means, you really need an endowment plan with a 6-9% probable return as an inflation hedge.
posted by Kelvin at
1:29 AM
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