Dec 2007 marks A New Round of Taxi Fare Increases in Singapore!

The funny part was that I sat in a premium mercedes limousine taxi on friday and the driver told me that he would rather have the taxi companies reducing their charges to the taxi driver, rather than an increase in fares.

hmm… thats an interesting thought, I would like to see if that idea gains any more traction..

Anyway, back to our taxi fare increase in Singapore.

Many of my long time readers would know that I am a long time supporter of taking taxis instead of driving your own car to town. Mathematically, it has been cheaper.

Now with the change in taxi hikes being rather substantial - a typical trip that would be normally metered at $8 would go up to $10: followed by a peak period surcharge of $3 instead of $2 and an additional 35% on that $10. We have a grand total of $16.50 without ERP tolls compared to $10 without ERP tolls.*

That is a 65% increase in taxi fares.*

Have you ever seen your investment portfolio increase by 65%? Petrol, in comparison, has only gone up an average of 10%.

Sure, if you take longer journeys, the increase might only be closer to a 40% increase.

Now would be a good time to review your transport plans - you can have other options with car prices being relatively low these recent years. You could take one of the fabulous trains we have to the fringe of the city and park your car there, and then drive home or you can even take a train all the way home.

Keeping a steady investment portfolio requires a consistent review of your spending approach, and not merely your investment returns. How difficult do you think it would be to increase any of your investment income streams by 40% compared to re-designing a spending pattern.

When I first suggested that people use taxis as a preferred mode of transport to car ownership about 7 years ago, that was taken with hesitation. At that time, cars cost twice what they cost today and taxis were almost half what they cost today. At that time, it made good sense. In today’s context, you would need to take out your calculators and start counting.

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Remember the key to building a long term portfolio to Finance Your Passion in life - a great money management plan includes both precise spending and consistent growth.

Anyone can outspend even their 2000% annual investment return. There is always something to buy. If Michael Jackson can go broke shopping, you can too.

Find out more about our next Finance Your Passion Workshop to start planning your $5 million retirement fund. Have the freedom to pursue your passion in life.

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As smart Personal Financial Wizards, we change our spending and investment instruments to the best ROI available in the market.

For me, I am still taking taxis in the afternoons to meet clients. It is cheaper than maintaining a chauffeur and I get to prepare my presentations while the driver drives. At other times though, I am definitely more inclined to hopping on a train and bringing reading materials I have to clear or my ipod stocked with some audio course to learn new life strategies!

Finance Your Passion in Life!
Winston

P.s.: Each person may have a different taxi consumption pattern - The same mercedes limousine taxi driver told me that you usually cannot get a mercedes taxi during peak periods because they have a pool of regular customers who pre-arrange with them. Maybe, if you have been driving your petrol guzzling luxury sedan and  always stuck in traffic jams in the CBD, you might want to get one of their phone numbers. A chauffeured mercedes limousine taxi might be cheaper and more relaxing for you.

Remember, it is not the “instrument” that matters, it is what gives you the best return on your money at all times!

* Taxi price increase varies between the taxi companies, the example given is not meant to be exact pricing. It takes in the approximate pricing charges for taking a cab from the city center during peak hours on a weekday.