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15-12-2011, 05:51 PM
Let's bring it closer to home.
Singapore inflation at around 5%.
Bank interest? Not even 1%...
CPF ordinary = 2.5% (OK plus 1% to sweeten the deal but still below 5% leh?)
CPF special = 4% (Plus 1% that means we lent money for free... Must take lesson from Ah long! We spoil market.)
But wait! I've got a bank HDB loan at 3.75% that I can pay up in full anytime. Why pay up in full when I can pay back the bank with money that's worth smaller and smaller?
Once in a while, the small guy (me!) can also play the "inflate away your debt" game
Please note that "sensible" debt is different from "leveraging to the hilt"!
http://singaporemanofleisure.blogspot.co...on-my.html
Singapore inflation at around 5%.
Bank interest? Not even 1%...
CPF ordinary = 2.5% (OK plus 1% to sweeten the deal but still below 5% leh?)
CPF special = 4% (Plus 1% that means we lent money for free... Must take lesson from Ah long! We spoil market.)
But wait! I've got a bank HDB loan at 3.75% that I can pay up in full anytime. Why pay up in full when I can pay back the bank with money that's worth smaller and smaller?
Once in a while, the small guy (me!) can also play the "inflate away your debt" game
Please note that "sensible" debt is different from "leveraging to the hilt"!
http://singaporemanofleisure.blogspot.co...on-my.html
Just google singapore man of leisure