Managing our Cash Flow

Below are some of the basic terms pertaining to Cash Flow :
1) Income - Money that we earned through salary, bonus, dividends, commission, profit, interests...
2) Expenses - Money that we spent on housing, food, transport, clothing, entertainment...
3) Assets - These are physical items that can be either Positive Cash Flow OR Negative Cash Flow.

Example of Positive cash assets are stocks (equity), bonds, funds, fixed deposits and business and Negative cash assets would be luxury housing, flashy cars, country clubs and credit cards.

Management of Cash Flow - Poor 
The poor are most likely to spend whatever they earn and hardly save and invest on their saving. They have no financial planning and if they are retrenched or pay cut, it is tedious to survive.

Management of Cash Flow - Average (Middle)
Beside taking care of their usual expenses, the average or middle class will tend to spend their saving on negative cash assets. They may appear wealthy but they will suffer just like the poor if they loose their job or having pay cut.

Management of Cash Flow - Rich
The rich will invest in positive cash assets and spend on negative cash assets. They are able to save, invest wisely and generating sufficient passive income to cover their expenses.

Rule of Thumb - If we cannot increase our INCOME, please reduce our EXPENSES.
                        - SAVE a portion of our income and INVEST wisely.

Overview

In most Asia countries like Singapore, most of us start working around age of 24 to 25 yrs old after completion of National service and Tertiary education. The ladies will start earlier 3 yrs due to exemption of National service. 
We intend to change jobs during the first few years of our working life in order to seek our ideal or preferred occupation. Once we have decided after accumulating enough experience and knowledge, we are approaching around age 30.
Most of us will need to work for 30 to 35 yrs or maybe 40 yrs before reaching our retirement age. (With the latest update 2 days ago, the government is encouraging us to work till age 68 due to our longer life span.)
How are we going to achieve sufficient saving before reaching our retirement years ?
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We need to plan our financial earlier...