We are just over a week into the New Year.
So, have you managed to keep your New Year’s resolution? Did you even bother to make one this year?
I did. And so far, I am still on track, which is more than we can say about Donald Trump, who is going off the rails, spectacularly….
…. But back to my New Year’s resolution. Mine was a relatively simple one. It was to “ta pao” any food that I don’t manage to finish whenever I go out for a meal.
Consequently, I try to remember to bring with me a takeaway container whenever I leave home. Bringing your own tubs, or better still a tiffin carrier, is just as important to protecting the environment as avoiding food wastage.
There is a method to my thriftiness. Today’s leftovers is tomorrow’s lunch. It’s an easy way to not only save money but avoid overeating, too. What’s more, some things just taste better second time around.
There is a financial takeaway to this, too, namely, saving is just delayed spending. If we can invest what we don’t need today, we should have even more to spend later.
One easy way to do that is to “ta pao” any dividends we receive into more shares by reinvesting them. Many companies in Singapore operate dividend reinvestment plans that will let you take your dividends in the form of shares rather than cash. It is a low-cost way to accumulate more shares.
We can extend the logic of “ta pao” to our regular paycheques, too. We should try to put aside any cash that we won’t need as soon as possible. If you reckon you already have enough cash savings, then put anything more than that to work in the stock market….
…. and don’t forget to “ta pao” those dividends. It is the first important step of compounding, which is a great way to watch your investments grow.
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Disclosure: David Kuo does not own shares in any of the companies mentioned.