As we approach the year of the Rat and bid farewell to the Pig, this is the time when people get excited about the ang baos or red packets. I remember that as a kid, I used to look forward to the Chinese New Year. This is the one time in a year when relatives or even strangers are obliged to give you a little something for good luck. I used to get a few hundred bucks which was a lot considering I was still a poor student back then.
Now, my main job is to GIVE ang baos. It’s still quite fun preparing the $ and stuffing the red packets. I always believe it’s a bigger blessing to give than to receive. I hardly receive any ang bao now other than from my parents. However, you can always give yourself an ang bao. What do I mean by this?
The Medisave limit resets every January. The limit for 2020 is $60,000. I have always make it a point to top up my account to the new limit as early as possible. This allows the full $60,000 to work to earn the 5% interest for the full year. And this is a compounding ang bao. The interest earned will in turn earn 5% interest as well.
Don’t wait. Give yourself an ang bao. Happy year of the Rat!