a important thing i learn about myself is that i am okay to "pay" to be lazy and have my life simplified
i pay to have my burdens taken away, and that removal of mental burdens gives me more opportunities in life
sometimes i pay in opportunity cost, sometimes i pay in actual extra dollars, but i still pay nonetheless
i will elaborate
when i was younger and poorer, i would always do things the most optimal and efficient and usually cheapest way possible, to maximize my returns (usually at the cost of time x effort)
this sort of makes sense, since at that point of time i had plenty of time and energy, but not enough money
now when i am older and hopefully wiser, i realize that for many things in life, the low-cap, high efficieny promo rate is actually unnatural and not sustainable
and i think it is important to recognize the shift in mindset, as i no longer value marginal dollars as much as i used to when i was young, and i value marginal time and energy reclaimed back at a significantly higher value
this phenomenon of "unnatural" can be commonly seen in credit card sign up promos, credit card monthly bonus spending caps or special FD rates, etc etc
or even in things in corporate tax, where there is a partial tax exemption on initial income
wow, 4.25% corporate tax rate? yeah, *first $10,000
wow, 8.50% corproate tax rate? yeah, *next $190,000
the "true", real, honest, sustainable, natural state of things is not the discount, promo, or special offer rate
(ofc i am not stupid i also know that the reason these unnatural things exist is due to things like marketing and user acquisition budget. just saying, in case you think im stupid)
the real rate is the high throughput rate
the real corporate tax rate is 17%, because go big or go home
the real SGD risk free rate is around 4%, because if you yeet $10M, that's still what you are going to get
the real USD risk free rate is around 5%, because if you yeet $100M, that's still what you are going to get
you think i dont know you can have 6/4mpd credit cards which are so much higher than the 1.6mpd general spend rate? ofc i know, but they all have 1-3k monthly caps
you think i dont know you can open ocbc 360, uob one, scb bonus saver and earn "high" SGD rates? ofc i know, but they are also only for the first $100k each
if your NW is like $300K, then swee, got 3 accounts like this, okay, can
but then you also need to make sure every month you hit the criteria
which actually the salary part is very easy if you have your own company since sure will have SAL code when you process payroll... for yourself, lol
for GIRO payments, i find it a hassle to fill out the manual forms and have them switched
for credit card spending, it is a real mental chore to rememeber this card spend how much during what statement period
rather than remember credit card spending to earn a few thousand extra interest, my brain power is better used making a few hundred thousand gains
unless of course you are saying you really have nothing better to do and your time and energy is so abundant, that spending time on this menial task is still +EV for you, in which case, very good (for me, my time and energy is not abundant, but ultra scarce. i have so many things i want to do, but not enough time)
anyway, if you have $3M sgd cash, then how?
still put $100k x 3 into those accounts, then 2.7m go where?
moomoo cash plus special promo? sorry friend, that one only $60k subscription.
exactly. you just find what gives you the max throughput risk-free rate, which is about 4%
and see, that is the problem of a lot of things in life
the capped promo rate is unnatural
the true real natural state of things is when things are limitless
you must learn to recognize when the environment is just a curated simulation
versus when the environment is truly showing reality
because 1 of them will warp your perception and get you killed in the other
while the other will steel you against everything, and let you completely dominate in the other
when i see yewtubers like honey money sg and others talk about this promo that promo, sure that makes sense for them, when their NW is small and they can still sybil attack for promotions
but when your NW because large, doing all this is a waste of time
oh, this first 300k i get 5% while the balance 2.7M i get 3.8%?
wa so shiok my weighted average returns from 3.8% goes to 3.92%?
if your liquid SGD cash was 10M instead of 3M, the needle moves from 3.8% to 3.836%
in my opinion, this min-maxing for promotion rates and deposit-restricted high yield becomes a waste of time as you get richer
i rather earn less and not have to thing about all those conditions and spending on different credit cards some tiny joke amount ($500 / $600 / $800 a month? who knows, they change rules every year)
such things are discrete physical things that do not scale your upside and hold you back
if you life was filled with just maintaining these burdens, how far will you be able to go with the upside that they provide? i imagine, not very far
automate, delegate them away, or reject them altogether
embrace the limitless
and you too shall be limitless
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