I would like to keep things positive on this blog channel. I have no sponsorships of any kind nor do I have any paid users. I keep this blog clean and with the objective of journalling and hopefully or eventually being able to monetise. Any referral or affiliate links are how I keep the lights on this blog going. My time, effort, domain, email, research and other miscellaneous costs are worth something. My rate card per hour is not cheap and when I say not cheap I mean it, it is not cheap.
Whatever I recommend or suggest, I don’t put a gun to anyone’s head to use it. One, like any investment decision – Do your own diligence. It gets under my skin when someone starts to blabber nonsense or type in comments online without using their brains. When I get angry or upset, no one messes with me and trust me – No one does. In my roles, I don’t give two hoots if your corporate rank or life acquires you a “managing director” or “CEO”, as long as you talk shit or do funny things, I shoot my missiles in that way. The toilet cleaner and the CEO are the same = Both Humans. Sometimes the toilet cleaner would make a better people person than the highly-paid CEO.
This is a free world. We are free to choose, free to select. Don’t undermine others of their selection and choices. If you have comments that don’t help, do the favour and keep it to yourself. Unless there is a solution, don’t just rattle. I’m so sick and tired of overconfident people who don’t even hear themselves and what they say. The worse part is, they still think that they are the best or better than the rest. It is a very dangerous mindset.
I’ve said what I said. I’ll end it here and move on positively. I’m just sad for those who don’t realise it but again, I don’t mince my words. Good luck.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
Thank you in advance. It would help in every little way now that I’m in between work.
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
At the start of 2024, there were signs that new offerings were being put out for deal seekers but as it seems, after January, there has been a drag of three months. Nothing much now except for Dobin. Before we start, let me just say that this is an affiliated link and by doing some actions, you do help me in keeping the lights on this blog. Please do try the app out. I have been using it for the past 6 months and I must say it has one of the better apps available without annoying advertisements.
At the same time, I can track expenses and connect my banking apps. Today is the last day for the referral. You can sign up and refer your friends and family to get cash rewards too. Besides that point, the main aim is to use the friendly app for tracking personal expenses. Personally, I prefer this app over the rest since there are no pesky advertisements and they are done here locally in Singapore. Support local I guess.
And remember to connect at least one bank account or one credit car on Dobin.
What You Need to Do:
Open the Dobin App and tap on the referral widget on your home screen.
Share your exclusive referral code with your friends & family.
What Your Friends Need to Do:
Download Dobin and enter your promo code during sign-up.
Connect at least 1 bank account or credit card on Dobin.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
Do use my referral code please: ZUPUNWI
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
Consolidation is quite the generic word to use when we consider downsizing, restructuring and/or a natural progression some would say. Similar to any business or investing cycle, there are peaks and troughs across any period. Opportunities and investment ideas are fewer now. Low-hanging fruits are being snapped up quicker than ever before. Deals and good stuff will go out much faster in a phase where people are coming to the realisation that free money is going to be harder to come by.
This is apparent from the closure of the grab pay card (since GXS is there and it can do much better than what it originally can), credit card deals have more excluded components, nerfed perks and an increase in legal T&Cs on rewards. New payment cards have harder requirements to earn referral fees, and investment platforms have started to consolidate. With the way things are, it does look and feel like many are taking a cautious approach. People, families corporations and those with job would hold to ride through this mini storm which I call a transition or consolidation.
This also comes to fact from an unprecedented Covid travel closure which sparks an acceleration in a few sectors. Though many did not expect things to turn out that rough, they still did and made some industries redundant. In return, multiple new entrepreneurship sectors evolved, giving rise to other types of demand.
With that in mind, things will likely slow down in the next 3-6 months with the possibility of an extended period. Certainly, it would not be easy for those finding a good deal. It is however important to stay upbeat and be resilient. Things can only get better.
With that, Just to keep light on this small deal blog, check out the referral shop.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
Thank you in advance. It would help in every little way now that I’m in between work.
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
2024 has been kind to us. There’s a bit of budget around most things available to the common man out there. Today is no exception with the introduction of Max Miles Ang Pow for extra miles. This is a limited-time promotion and is valid only until 24th Feb 2024 or up to 1 million max miles. So this is going to go out pretty quick.
Here are some free miles provided by max miles: Ang Pow Link
Do use my referral link if you would like to sign up: Sign Up Here!
What’s Huat with heymax?
This Lunar New Year, heymax will be gifting every Maxer up to 1,000 Max Miles to share with friends and family as ang baos!
Additionally – you get referral bonuses and new users get more Ang Baos when they sign up! Huat ah!
Not only can you give, but you can also receive up to 10 Ang Baos filled with Max Miles from fellow Maxer
Eligibility for Activity Participation
The event will run from 10 February to 24 February 202 and you will get up to 1000 max miles
Activity Summary
Is there a limit to the number of Max Miles I can earn from ang baos?
Every user can receive and open up to 10 ang baos. There is no cap on the total Max Miles earned.
How can I redeem my Max Miles earned from Huat with heymax?
Any Max Miles earned from Huat with heymax can be redeemed through the usual redemption options as follows:
You can transfer your Max Miles to our 20+ airline and hotel partners. For airline or hotel transfers, the minimum transfer amount is 1,000 Max Miles at a 1:1 ratio.
You can redeem a minimum of 1,000 Max Miles for a $10 gift card.
Will my Max Miles expire if I don’t use them during the campaign period?
Max Miles do not expire. Any Max Miles you earn will remain with you after the campaign ends and can be redeemed through the usual redemption options on heymax.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
Do use my referral link if you would like to sign up: Sign Up Here!
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
Chinese New Year is around the corner and there seem to be multiple promotions during the festive period. I hope everyone has a great new year and I do have something that I would like to share with you. These deals are kind of hard to come by and they depend on festive, promotions and company budgets. While some people might have stability in their lives, some don’t, and let’s make that simple and happy this 2024. I have another CNY Ang Pow Promotion that I would like to offer to anyone interested.
This article is brought to you via the Life Journey Blog Affiliate Partnership with Moomoo.
This special promotion is brought to you via the Moomoo Futu Trading app. If you use a normal referral code that gives you $660 in the welcome package. By using my unique link here Sign Up link, you get an additional $20 cash voucher by funding just S$100 on top of the welcome package that I have put below. The threshold is really low here.
Moo Moo is licensed by MAS
The process is as follows:
For clarity:
a. Click on the signup link here to Open Account. Sign up and submit your details
b. Using any of the 4 deposit methods
Deposit via Direct Debit – DDA
Bank Transfer (Add MooMoo as the payee)
PayNow
Transfer via Wise (Another payment App)
c. Transfer or Fund SGD 100 and wait for your rewards. That’s a 20% Return on Investment (ROI) that is risk-free.
d. (Something special) – The first 10 who have completed the signup and funding. Put in your details here: Contact List so that I can give you a little Ang Pow of S$5 for your efforts once I have verified the sign-up is complete. My only request is that you join my telegram group at Life Journey Telegram.
Those who already have the Moomoo accounts would have been long-time deal hunters so this is specially done for all of you who don’t have a lot of funds to play around to get some cash using limited resources.
Campaign Period
The campaign will commence from 2/11/2023 at 10:00PM SGT – 23/1/2024 at 9:59PM SGT** (“Campaign Period”).
Eligibility for Activity Participation
New users who have never opened a Moomoo SG universal account and/or deposited funds before 10:00PM SGT on 2/11/2023.
Activity Summary
When new users complete tasks, they can get corresponding rewards, such as free stock/ cash coupons and free real-time quotes.
(vi) 1 Year commission-free for SG market (includes only stocks, ETFs and REITs)
(vii) Moomoo Cash Plus 5.8% p.a. Guaranteed Returns worth up to S$380 (Applicable to the first S$80K subscription, valid for 30 days only)
Deposit a cumulative amount of at least S$3,000 before 23/1/2024 at 9:59 PM, complete 3 cumulative buy trades and redeem rewards before 9:59PM SGT on 30/1/2024. Maintain assets for 30 days.
Reward 2
(i) Receive 1 x Stock Bundle#: AAPL, NVDA TSLA, SE, NIO (worth S$70)
Deposit a cumulative amount of at least S$10,000 before 23/1/2024 at 9:59 PM, complete 8 cumulative buy trades and complete buy trades and redeem rewards before 9:59PM SGT on 30/1/2024. Maintain assets for 90 days.
Reward 3
(i) Receive 3 x Stock Bundle#: AAPL, NVDA TSLA, SE, NIO (worth S$210)
Who is Moomoo?
Backed by Chinese tech giant Tencent, Moomoo makes trading accessible with a gamified, easy-to-use interface.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
By using my unique link here Sign Up link, you get an additional $20 cash voucher. The first 10 in my google forms get additional Ang Pow after verification.
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
Just earlier today. I wrote a piece about saving money and I was reminded of petrol prices. Stay tuned until the end for a nice freebie at the end which is in limited stock.
Sometimes saving money is about not spending it at all or cutting back on what we commonly call an austerity measure. Usually, that is quite drastic and meant to be a joke of some sort. However, some things have to be spent, necessities or even things that you have previously committed to paying for. It is akin to having a car and petrol prices are directly linked to costs.
For Example:
You purchased a home. You can’t stop the mortgage
You purchased a car. You can stop the financing payments (If any) and the petrol costs or the charging costs.
You purchased a subscription plan that has a contractual period. You can’t stop the payment. (Well, you can do an early termination if it makes economic sense)
I don’t wish to keep discussing the increase in GST. In a sense, this increase is necessary for economic gains and country-building. Additionally, business costs have increased, snowballing effect of the laggard inflation and upcoming soft landing is becoming apparent.
Petrol Prices
Discussing petrol prices has always been contentious with people around here. Regardless of any discussion, the price is as such. On the Price Kaki website, there’s a comparison of petrol grade 95, 98 and Premium.
Petrol Prices: Petrol Grade 95 as of 12 Jan 23
Petrol Prices: Petrol Grade for 98 on 12 Jan 23
Petrol Prices: Petrol Grade for Premium on 12 Jan 23
In this year 2024, I wish to be able to bring joy to others as much as possible so in that aspect I have a good deal for anyone who drives a car and would like to get direct discounts from the petrol kiosk.
Don’t be confused and don’t be sceptical about it. It is a good deal and I have been using it for 9 months now so it is not a sham. I have a limited fleet card on hand at the moment and would like to offer to the first 5 pax who indicate their interest on google forms here:Fleet Card Interest Gathering and First 5 GIveaways.
One condition is to follow/subscribe to my blog and also to add my telegram channel here at Life Journey Telegram. Thank you!
The first lucky 5 gets it.
Rest assured, this information is for me to understand how to address you and share that information via email. I’m gathering some interest here so let me speak with the guys and see if we can release more slots for you.
Save on Petrol Prices – Pros
1. No age or salary restriction
This is not a credit card. Anyone who has a vehicle registered in Singapore has proof of address in Singapore and a credit card for recurring payment can apply for this. There’s no bank involved in this.
2. A physical card
It is a physical card at the moment and is only available to ESSO and SHELL kiosks in Singapore.
3. Fabulous Discount on petrol prices
Perks for this card are a direct 23% or 24% for SHELL and ESSO respectively.
4. No Complications. No minimum spend or Top Up
Away with the complications of minimum inclusive spending and potential discounts. To me, cold-hard discounts are the best since they are upfront discounts.
5. Ease of Payment on petrol
This fleet card works like a credit card and you need to set up a credit card payment to pay once a month.
6. Convenience
Once you have been registered by the company, you will get a pin and each time you visit the kiosk, just the card and you can skip the cashier queue. That’s really convenient.
7. Continue to earn credit card rewards/miles/cashback
Even more, discount via double dipping and still be rewarded with your credit card rewards.
Save on Petrol Prices – Cons
1. New to Many
I understand the scepticism but what have you got to lose other than savings for your petrol.
2. No accumulation of reward points on your petrol loyalty card
You don’t earn kiosk points or rewards that you have accumulated for some time. To me, there’s a cost to everything including reward points. Just finish up your points or claims and move on to something else. But you still earn reward points for your credit card (No exclusion for most cards – At least I still earn mine on my Premier Miles Card)
3. There will be a 1.8% fee for the credit card charges
I believe that they use Stripe as their provider so the B2B fees will be at 2.4% and they roll it to consumer at 1.8%, hence the discount will be All-in 21.2% or 22.2% which is still decent.
From what i understand, one can use the giro payment and it takes 4-8weeks to set it up. There’s no fee for that however if any one Giro payment fails, thats the $10 fee slapped on your bill for the GIRO return so think wisely. I think it is still good to go on credit card recurring payments.
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
Saving money is an essential aspect of personal finance. Implementing some smart strategies can help you build your savings and achieve your financial goals. Here are a few tips on how to save money:
A Rainy Day fund is more apparent in 2024 as we all set ourselves for the soft landing ahead
Create a Budget:
Start by reviewing your expenses and income. This will give you a clear picture of where your money is going and help you identify areas where you can cut back.
Track Your Expenses:
Keep a record of all your expenses, including small purchases. This will help you understand your spending patterns and identify areas where you can make adjustments.
The envelope theory involved stashing cash away in different envelopes. This helps with the first condition – budgeting. In this day and age, perhaps a better way is to use a digital app such as Dobin.
I’ve found the ultimate personal finance app: It helps to manage my money & save on everyday purchases.
Review your expenses and identify items or services that you can live without. Consider making small lifestyle changes such as reducing dining out or entertainment expenses.
If you really still plan to have these expenses to eat out. Perhaps playing the miles game as you spend to double dip on rewards.
Kris+ is a lifestyle rewards app that gives you discounts and privileges at over 1,000 partner outlets islandwide! Earn rewards (KrisPay miles) for payments made on the app, and use them to offset future purchases!
Quote: Sign up now with my link below, and my referral code L329518 and we’ll each be rewarded with SGD 5 worth of KrisPay miles upon your first transaction on the Kris+ App
Don’t forget to check in daily every week to earn about 30 KrisPay Miles. Meanwhile, you can also utilize Google Pay to make payments via Krist+.
Quote: Use my code when you sign up and transact at least S$10 for the first time in Google the e Pay App or use my code t74cf8f
Meal Planning:
Plan your meals ahead of time and create a grocery list. This will help you avoid unnecessary trips to the store and impulse purchases. Look for sales and use coupons to save on groceries.
The CDC vouchers should do most household some good and defray some costs. More about that here if you have not claimed yours. Claiming your CDC Vouchers
Save on Utilities:
Make small changes in your daily habits to save on energy costs. Turn off lights when not in use, unplug electronics when not in use, and adjust the thermostat to optimize energy usage.
Perhaps switching to an Open Electricity Market retailer can save you 10-15% off your electricity bills.
Quote: Sign up for Senoko Energy with my referral code: “YM8SCA2D”. You will receive a S$20 rebate on your electricity bill. Browse their price plans and start saving today. T and Cs apply. Senoko is your electricity retailer
Compare Prices:
Before making a purchase, compare prices from different vendors or stores. This can help you find the best deals and save money.
Double or Triple Dip for More Savings
For comparison’s sake, if you are exchanging a foreign currency for any purpose. You can try iChange for money exchange and remittance.
Quote: Their rates are very competitive. Sent $5 for you to try it out. Download the app here https://ichange.onelink.me/Px1i/iyv9ymrr and add paul38 to receive it.
Alternatively, if you want the convenience of using multi-currency cards, there are three options that you can consider. You get the idea.
The other option is to perhaps consider using a Revolut Card as an alternative and you can get $80 when you make three $10 transactions: My Revolut Referral Link
Quote 3: Use this Crypto.com App to sign up for Crypto.com and we both get USD 50. Code: im3py887ty
Automate Your Savings:
Set up automatic transfers from your checking account to a dedicated savings account. This way, you’ll save money consistently without having to think about it.
Other than a bank standing instruction, the alternative is to use Money Market Funds for either:
Using Tiger Brokers as a platform to sign up to make that regular saving.
The other option is to select another provider such as Moomoo Brokerage Invest App for a great welcome starter kit here at Moomoo Invest App
The third option is to select Webull and get your starter kit promotion. Click here to register at Webull Sign-up link
Avoid Impulse Buying:
Before making a purchase, give yourself a cooling-off period. This will help you evaluate if the purchase is necessary or if you’re buying on impulse. As the saying goes, delayed gratification. Any new tech is always appealing and after a while, it loses its appeal.
Cancel Unnecessary Subscriptions:
Review your subscriptions and cancel those you no longer use or need. This could include streaming services, gym memberships, or magazine subscriptions[1].
Prioritize Debt Repayment:
If you have outstanding debts, focus on paying them down. High-interest debts, such as credit card debts, should be prioritized and paid off as quickly as possible.
Remember, saving money is a gradual process, so be patient with yourself. Small changes can add up over time and lead to significant savings. By implementing these tips, you’ll be on your way to building a more secure financial future.
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
Whenever or do we ever discuss the CPF system with friends and family. The actual fact is that I never really do unless it is time to do something about it. That involves tax season or even property tax season. I do feel that it is a system that we think we all know but once we delve deeper, there’s always something new to takeaway.
Let us also face it. It is a dry topic and a very long-term one. It tries to mimic a pension fund of some sort with some level of control yet it works differently for different people. I can understand why some people come to dislike the policy but in general, there’s not much hate around it. We also have to be factual that Anti-government does not mean you need to be anti-CPF. Some might differ but I think all tools that bring one to the final goal are the ultimate endpoint.
Contribution rates according to age and wages
The rules are pretty simple. Understanding that before 55 years of age, all employees have to contribute 20% of their gross salary. Subject to the ordinary wage cap which we have discussed previously.
After 55 years of age, the contribution starts to decrease. This makes sense since the decrease in employer contribution, older employees will become less expensive and it helps to make employment more affordable.
After 55 years of age, the OA and SA will be combined and set aside in one’s RA to safeguard a monthly payout in the later years. This is probably why the contribution rates start to decrease then. Further, with increasing age, the focus will be more on wealth preservation and income that can be utilized. That would be the next reason why the contribution is lesser as time goes by.
Contribution by age from the CPF website
Understanding the CPF – Did you know? What contributes to your CPF?
Understanding that CPF system – These mainly include all forms of payments that are paid out to the employee by the employer.
Basic Wages
Overtime Wages
Bonus
Cash Incentives
Commissions
Cash Incentives
Understanding the CPF – Did you know? What does not contribute to your CPF?
Termination/Retrenchment Benefits
Reimbursements
Benefit in kind
Disclaimer
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
It is very interesting to know that many people are interested to know about the CPF. Hence, I’ve decided to do a simple part series that focuses on selected and focused information so that it doesn’t take too long to read and understand. In my previous CPF series, we discussed the increase in CPF contribution on Ordinary Wages aka Salary.
CPF is a complex retirement module indeed and it has different accounts. CPFIS in turn has its pros and cons. One needs to understand it to use it to your own advantage. Most of these come at retirement as a motivation or tax deductibles. That said, it works differently for everyone so good to be in the know. One can be anti-government but we should applaud a strong and stable governance. This in turn will relate to a trusty CPF system not everyone can replicate.
Types of CPF account and what they can do
Ordinary Account:
Be happy retiring and be happy doing what you do when you retire
Though CPF is restrictive OA is the most flexible out of all three accounts before one turns 55. This is the account that one can use to invest a portion into selected CPF-approved investments (CPFIS), gold, approved insurance, and also property payments. One can look at index investing using a Robo Advisor of some sort. such as Endowus or StashAway. Endowus ticks a little better for me for the investing portion. If we look at the iShares US index Fund S&P 500 that Endowus offers to track the S&P500 (100 years of historical performance). I also have my funds consistently invested in them and it has worked well. What I really like is that they care about who invests with them and the fees.
You can check them out here at Endowus or in my previous posts which I slowly grew to like over 2 years. Asset Allocation does not time the market and during times when I’m distracted, I do not need to log into my app to proceed with my own adjustments or take action. (These take time and effort)
Asset Allocation
Special Account:
This account builds the Retirement account that will eventually be used in the retirement account in the form of an annuity. More restrictive than the OA, it has limits and can only be utilized for retirement-related financial products (Nothing much can be done in this account) It is also known that OA can be transferred to MA – This is well known to be irreversible once you have done so. Do consider your circumstances before you do anything)
Medisave Account:
This is the most restrictive of all and as it states Medisave means it can be used for certain medical payments with a limit. The MA account is also allowed to be used to purchase medical-related insurance.
Retirement Accounts
Retirement Account:
This account is non-existent until you reach 55 years of age at the point of writing. This is the combination of your OA and SA to form the annuity payout.
There are also many ways for one to contribute to your own CPF accounts. I’ll say it is a good problem to have if you need to think of fresh ways to contribute to your own CPF funds. (i.e. self-employed and looking for proper and forced retirement). Side note that CPFs are monies that are locked away in the form of something like a trust so one can’t claim your assets in your CPF (If for some reason, you are locked up in a situation of some sort)
Some ways to look at contributing to your CPF accounts
Make cash top-ups or Top up Cash + CPF
Your OA, SA, and MA – through these cash top-ups, you can earn interest. Note that these are long-term retirement uses.
Can’t say that too many times if you want to do forced savings.
Matched Retirement Savings Scheme (MRSS)
If you’re 55 to 70 and have yet to meet the current Basic Retirement Sum (BRS), you can make cash top-ups to get higher retirement payouts. The Singapore Government will match every dollar of cash top-ups made to your RA, up to a maximum grant of $600 a year. The scheme will run from 2021 for five years for a start. (Taken from the CPF website)
Helping your parents or in-laws with the CP scheme helps you and the older folks as well.
Invest your OA savings
We discussed the option of investing in a wide range of investments to grow your retirement nest egg in the form of the CPF Investment Scheme which is very highly restrictive.
As for SA, you can invest in those too but even more restricted.
Voluntary Housing Refund
If you have used CPF to purchase your house and have excess cash. One way is to kind of payback voluntarily. However, recently the cash returns outweigh that of CPF returns so with careful management, it does seem like it is better to hold cash but it is a better yielding instrument for now.
Too complicated? Leave it as it is and put the cash via this method to earn that CPF consistent return.
For CPFIS/Investing – The reason for Endowus
Like a broken recorder, why do I like using them for now:
Endowus is the first and only robo-advisor to be approved by the CPF board.
100% trailer fees back to the consumer, not the fund management fee. This is really one of a kind I’ve seen so far.
They do have a decent team that makes sense when introducing their platform in my personal opinion.
I believe all retail investors should try them out because of how they are trying to disrupt investing and make investing work for everyone.
If you like what you are seeing, do remember to check them out and do your diligence. There is no one-size-fits-all investment strategy and no one solution to life. Join my telegram group to find out more about deals and join the community to connect for ideas: Life Journey Telegram
If you like what I am sharing or if it resonates with you, do use my referral codes here at Referral Services
Happy 2024 everyone! Everyone knows 2024 has a staggering change in CPF and the government has done that to help businesses to adapt. It is strange though that the last post about CPF had a bit of viewership. Perhaps the interest in CPF has really changed over the years.
Last Sep 2023, the salary cap (OW) was increased to SGD 6,300, and from 2024, there will be an increase to SGD 6,800. What that means is that more of the money that you earn goes into your CPF aka retirement account every month. Your employers will also have to contribute more to your CPF. I can’t say if that is a good or bad thing.
I guess we are touching on a sensitive part of everyone’s life. Your Salary. Salary are always a sensitive part of most people’s discussions. However, these are all hard truths that we have to come to terms with. Some people do have that special negotiation skill to make more while doing the same thing. We just have to work more productively.
Sidetracking a little, everyone is a salesperson to themselves so don’t say that you don’t do sales. When you go for a job interview, you are selling yourself for the package that you think you are worth. You will need to justify your costs to the hiring manager.
Back on track again, today we are focusing on the monies that go to your CPF. Regarding the monies on CPF, please note the statement on the CPF website that states that:
(a) The CPF Ordinary Wage (OW) ceiling limits the amount of OW that attracts CPF contributions in a calendar month for all employees. The OW ceiling will be raised from $6,000 to $8,000 by 2026, with the first increase to take place on 1 September 2023. The increase will take place in four steps to allow employers and employees to adjust to the changes.
This means that the changes are made to let business manage their cashflow instead of a bang…a 2k addition to employers’ contribution and less take-home pay for the employee (Since 2023 costs, inflation, and goods have all increased)
(b) There will be no change to the CPF annual salary ceiling of $102,000, which sets the maximum amount of CPF contributions payable for all salaries received in the year, inclusive of both Ordinary Wages and Additional Wages.
This actually means that people who have more resources than the rest will not be able to game the CPF. This is pretty fair in my opinion since this is a tool to help Singaporeans whether they have little or a lot more resources. However, the truth is also that when you have more, there’s more that you can do that others can’t. The only takeaway is that the rich get richer but only at a cap.
(c) There will be no changes to the Additional Wage ceiling and CPF Annual Limit, where they will remain at [$102,000 – Total Ordinary Wage subject to CPF for the year] and $37,740 respectively.
Same points as (b) above. There’s that cap that restricts more from getting more if you know what I mean.
I’m quite sure everyone is aware of this but probably left that somewhere. I’m just bringing it back since the changes took effect this year. I took this off the CPF website where the Salary OW cap process will happen.
Just a disclaimer that everyone’s situation is different here so it is important to stay in the know so that you can plan your finances in advance. As the saying goes, if you fail to plan, you are planning to fail:
This is something one cannot control. Employee or Employer. We can only embrace the change.
Let’s look at it positively. This will compound interests for many and help build or supplement the CPF retirement nest.
My thoughts are that this actually does hurt business owners a little more. Over time, these staff costs will indirectly translate into services, items, goods, and whatever is sold to consumers or businesses.
In my next CPF series, I will share or talk about CPF programs and how to help your parents or elders who do not believe in CPF (Or rather too complicated to understand) You just don’t reject free money.
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