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Sunday, October 5, 2008

What is some of the best financial advice you’ve received?

For the first time ever, I got tagged and I'm responding to it! Silicon Valley Blogger from The Digerati Life tagged me to answer the question:

What is some of the best financial advice you’ve received?

Since I was brought up in an environment where 'Money is not everything' and 'Money is the root cause of all evil', you can't expect much of financial advises. Instead, focus was given on education of oneself to secure a promising job and hence, a bright future. (Reminds of of the famous book, Rich Dad, Poor Dad).

However, if you ask me what is some of the best financial lessons I've learnt, then, I can point out one or two.

Compounding interest will definitely be an eye opener for me to the financial world. When I was about to purchase my house, I started to look into all places where I may possibly have stashed away some cash.
My search revealed a mix of good news and bad news.
The good news - I had some amount of cash stashed away.
The bad news - I had it for a few years and it was all kept in a normal savings account!

Savings account only gave a miserable 0.2% interest per annum. At least if I had the initiative to transfer them to Fixed Deposit account, I would have made a 3.5% - 4.0% per annum. Hmmm.. looks like my money was resting in a corner without doing any work for me. My mistake!

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