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HOW IS SHOEBOX APARTMENT LIVING IN SINGAPORE? (AK's home is a hut in the sky and it makes sense.)

Saturday, December 27, 2014

UPDATED:
Seeing how some people in Hong Kong are living in apartments ranging from 150 square feet to 200 square feet in size makes me feel like I am living in luxury!

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I keep telling people that my home is a hut in the sky. 

It is a tongue in cheek way of saying I live in a high floor shoebox apartment. 

Yup, it is one of those apartments smaller than 50 sq m (538 sq ft) in size described by the ex CEO of CapitaLand as "inhuman". 

Of course, he was not the only one who had something negative to say about shoebox apartments.




To be quite honest, I was a sceptic too. 

My old place was almost 1,000 sq ft in size, had two bedrooms, two bathrooms, a big kitchen, a big living area and a balcony. 

Almost everyone who visited told me then that it was a perfect size bachelor pad.

At the time, I already had friends staying in shoebox apartments and I knew what a 463 sq ft apartment looked like. 

The first word that came to mind when I visited the place was "tiny". 

Space was tight. 

In between furniture and fixtures, there was only enough space for one person to walk around. 

Well, maybe two if the people were smaller in size.

Tiny!




So, it was a leap of faith for me to buy a shoebox apartment more than two years ago and, to be quite honest, I was somewhat worried about the space issue after the whole deal went through. 

I made copies of the floor plan of the apartment and made scaled measurements of furniture, exploring different ways of making everything fit while still having enough room to move around.

Now, having lived in a shoebox apartment for a while, I find that they are, actually, very livable. 

The trick is not to clutter up the apartment with stuff. 

Staying in a shoebox apartment makes people think more carefully about what they buy for their home. 

The question "Is this necessary?" takes on another layer of importance.





Kitchen is in the living room? Yup!

For me, the necessary furniture to buy in a shoebox apartment would be:

1. A bed.
2. A wardrobe.
3. A sofa.
4. A desk and two chairs.
5. A TV console.

Depending on the size and layout of the shoebox apartment, smaller size furniture might have to be considered. 

However, if the apartment is not smaller than, say, 441 sq ft, and the format is not oddly shaped, pretty decent size furniture, including a queen size bed and a two seater sofa should be able to fit quite comfortably.

I have learned to appreciate that living in a shoebox apartment has many advantages and, strangely, although I had much more space in my old place, I do not feel that my current home is less livable. 

Let me see if I can rattle off a list of things.






Tiny apartments are the norm in Japan.

1. The first thing that comes to mind is that there is less underutilised or wasted space. 

I had lots of space in my old place but most of it was underutilised.

I paid for space I was not using.


When I sold my old place after staying there for more than 4 years, I remember that the kitchen was in an almost pristine condition.




2. There is less cleaning to do in a shoebox apartment which saves me a lot of time. 

I remember that a thorough cleaning of my old place, including the underutilised kitchen, took me almost 6 hours! 

The shoebox apartment takes me less than 2 hours to clean.




3. Financially, the shoebox apartment is less burdensome as it was much cheaper to buy and I also pay less in property tax. 

We always hear people saying Singaporeans are asset rich but cash poor. 

Although not always the case, many people "over consume" when it comes to their homes. 

Real estate can be good investments for income but, unless we have and are willing to rent out spare rooms, our homes are consumption items.

Paying less for my home means that I have more money to invest for income.





4. I enjoy equal access to the facilities in the condominium which includes the car park but I pay much lesser in monthly maintenance fee compared to my neighbours who bought the larger units in the condominium. 

Of all the facilities available, why did I mention the car park? 

Isn't that the most boring thing on the list?





Well, I remember telling some friends that considering the fact that a car park lot is about 100 sq ft in area, I got a pretty good deal since bigger units are also entitled to only one car park lot each. 

Proportionally, a 441 sq ft apartment would gain 22.6% more space while a 1,034 sq ft apartment would gain only 9.7% more space, for example. 

Interesting, isn't it?


I thought this was somewhat extreme.





Anyway, although we might feel unhappy with the rising costs of living, as long as Singapore's economy chugs along nicely, things will only become more expensive over time. 

So, apartments will become more expensive too. 

Smaller formats are more affordable, for sure, but beyond affordability, many are concerned about whether they would compromise on the quality of life.

If we believe that a HDB 4 room flat, 970 sq ft in size and has 3 bedrooms, is about right for a family of 4 or 5, then, each person in the family would have 242.5 or 194 sq ft of space, proportionally. 

A shoebox apartment that is 441 sq ft in size would, therefore, provide plenty of room for a single person or even a couple. 

It is all relative, isn't it?





Finally, I have been watching a program called "Tiny House Nation" recently. 

This is a movement in the USA and we all know how the Americans love their big houses. 

I remember a friend from the USA told me that a 1,300 sq ft apartment was tiny for a family of 5 when I was staying with my parents in an apartment which was about that size.

Anyway, I really enjoy watching "Tiny House Nation" and to learn that more Americans are downsizing, being less wasteful and more environmentally conscious.




Images from "Tiny House Nation."
"In “Tiny House Nation,” renovation experts and hosts, John Weisbarth and Zack Giffin, travel across America to show off ingenious small spaces and the inventive people who live in them, as well as help new families design and construct their own mini-dream home in a space no larger than 500 square feet."

If you want to find out more about "Tiny House Nation", here is the link:
http://www.fyi.tv/shows/tiny-house-nation/videos

Shoebox apartments might not be right for everyone but they could be right for some. 

Definitely, we could live large in a tiny home.




Related posts:
1. Housing and the CPF.
2. Slaving to stay in a condominium.
3. Affordability of housing in Singapore.
4. How big is a 452 sq feet apartment?
5. Smaller apartments' prices more resilient.

AK's birthday wish is for everyone to be wealthier.

Friday, December 26, 2014

UPDATED (10 JAN 17):
People say this Oyster Omelet best.

Quite yummy. $5.00 only. We are so lucky to have good food at reasonably affordable prices in Singapore.
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I always say that packing food to work daily would save us plenty of money. 

My mom prepared a bento for me today.
Steamed rice, stewed fish and ginger.

If we want to eat out, we can also visit the many hawker centres in Singapore which I think have good and inexpensive food.

When my family asked where would I like to go to have dinner to celebrate my 43rd birthday, I suggested Whampoa Market! Surprised?
Actually, there are many millionaires in our HDB estates and they lead simple lives

We might not know much about them because they are not very talkative (like I am) but they are more common than we think they are.

I like fried Ngo Hiang et. al. very much.
Realised I don't have a photo showing only the food.
This is the best shot after some cropping.
The Hokkien Mee was already half eaten. -.-"
Decided not to have a birthday cake.
Just stacked 3 waffles on top of one another.
Then, just eat with ice cream! I like!

(Apologies for the photo quality. The photos are in my mobile phone. I used a digital camera to take the images from the screen of my phone and cropped them. I am such an IT dinosaur, I know.)

Good company. Good food. Good price.

We don't have to go to "atas" restaurants to be happy.

People who have above average income would often tell me that it is difficult to build wealth in Singapore but if they were to examine their lifestyles, they might be surprised at how much money they could actually save if they were to make thriftier consumption choices.


I know it is possible to build wealth more rapidly in Singapore and some readers who have decided to make changes to their consumption choices with an eye on wealth building have written to me to say that they have made good progress. 

Get the whole family in on the project (which some readers have done) and our success rate would be even higher.

Remember, it is always the toughest in the beginning but if we are determined and disciplined, my birthday wish for everyone to become wealthier will come true.

Related posts:
1. AK's free birthday cake (2010).
2. Good food at good prices (2011).
3. The Millionaire Next Door.
4. Financial freedom is a family affair.
5. If we are not rich, don't act rich.
6. Be $48,000 to $60,000 richer in 10 years.

Do we need new or is old good enough? (How to be richer? Another personal story of frugality.)

Thursday, December 25, 2014

UPDATED (22 DEC 16):

Related post: Never bored in retirement.
Old game but still a fun game!

As I play the game, I am also watching the anime online. All 180 episodes! I can binge watch!

All for FREE!

Wahahaha! Bad AK! Bad AK!

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I hear friends talking about getting good ear phones so that they can enjoy music on the go many times before.

A friend actually brought me to a shop in the basement of ION Orchard to look at these super earphones before and when I saw the prices, my jaw dropped.

I don't know if you believe me but a pair of these diminutive ear plugs, yes, they look like ear plugs, could cost more than $300 or $400! 

How could something so small cost so much? It is simply mind boggling! What is more amazing is that some people actually buy the latest (expensive) ear phones as and when they become available!


When recommended to get a pair for myself, I politely declined, saying that I don't have use for earphones. Actually, that is not true. I do use earphones. I use them when I watch movies on my iPad. I use them when I travel. I use them when I go to the gym (once in a blue moon).

However, my earphones didn't cost me $300 or $400. They didn't even cost me $15, if I remember correctly.

So, what do my earphones look like?



I don't know if they still sell earphones like these. They come in a plastic case with a nifty rotating feature to reel in the cords neatly. I like the neat design very much.

I happen to leave my earphones on my desk today because I used them in the gym yesterday. A friend who was visiting remarked at the "antique".

Well, I must have had these ear phones since I was in college or when I was in National Service. I cannot remember exactly. So, they are pretty old but they still work.

I have shared in various blog posts before on the things I have and some of these things I have had for a long time and still using today. (See related posts below.) These ear phones are another example.

I don't see the need to get the latest gadgets which are usually rather expensive, anyway.

If the older stuff still work, unless there is a very good reason, we shouldn't replace them.

Waste not, want not.

Related posts:
1. Some of my stuff (Part 1).
2. Some of my stuff (Part 2).
3. Some of my stuff (Part 3).
4. How I earned $9,216 with a mug?
5. AK denied Starhub extra income!

A meal for $2.00 from McDonald's!

Wednesday, December 24, 2014

My Christmas Eve lunch:


A McChicken Burger and a 16oz cup of Iced Milo.


$2.00 only.


A friend told me about McDonald's Surprise Alarm and now I get a surprise almost every day!

For more information, see: McDonald's Surprise Alarm.

This is not an advertorial. I just like McDonald's and I like freebies. LOL. ;p

Related post:
McDonald's Singing Bones Kitty!

An important message from AK as ASSI turns 5.

It was on Christmas Eve of 2009 that ASSI was born out of boredom and curiosity. Yes, it has been 5 years! 5 incredible years of (mostly) happy blogging!

The journey has not been all smooth sailing but we have had many more days of good weather than bad. The stormy days were made more bearable because of the kind words of encouragement from many of you and that kept me going. You know who you are. So, thank you from the bottom of my heart.


As we celebrate my blog's 5th birthday, I wish to remind everyone that most of us in Singapore will be able to find financial freedom using some common sense and following some tried and tested principles in personal finance and investment.

Regular readers will know that this is true and some have shared with me that their savings, investments and passive income have grown tremendously in the last few years. New readers who hoped to find some mysterious get rich fast method in my blog have been disappointed or so I was told but to those who have decided to become income investors, I am hopeful that all will find success.

There were also readers and guest bloggers who have contributed comments and guest blogs, respectively. They have shared their experience and shown us how they were able to achieve or work towards financial freedom as well. So, if you are among those still wondering, please remember that financial freedom is not just a dream.


As we celebrate the festive season and be charitable to those who need help most, we want to be reminded that nobody cares more about our money than we do. The blog post that received the most "Likes" this year in ASSI is one example of how we should give more thought to how we treat our money.

Which blog post am I referring to? This one:

FREE Investment Linked Policies or Term Life Policies?

Share the link to the blog post and it might be one of the best presents to give to your friends and family this festive season.

"... what makes sense for the investor is different from what makes sense for the fund manager. And, as usual in human affairs, what determines the behaviour are incentives for the decision maker." Charlie Munger

HAVE A MERRY CHRISTMAS!

Related posts:
1. ASSI turns 4.
2. Retiring before 60 is not a dream.
3. Nobody cares more about our money than we do.

Tea with EY: Get a lifetime income of >$2K a month.

Tuesday, December 23, 2014

I am very pleased to publish another thoughtful guest blog by EY. If you are concerned about retirement funding adequacy and if you wonder how it could be achieved in a risk free manner, you should read this:


What can we learn from squirrels?







A big part of my retirement planning revolves around optimising my CPF-SA to generate at least $2,000 of monthly cash flow at 65 years old. With this in mind, I set the target at 32 years old to meet the CPF Minimum Sum by 40.

I hit 40 more than a week ago and have managed to accumulate $161,671.23 in my CPF-SA which coincides with the CPF Minimum Sum of $161,000 effective 1 Jul 2015.


Assuming that I continue to contribute $4,800 (based on approx. 14 months of income) to CPF-SA till 55 years old, my CPF-SA balance would grow to $391,833 by then.


In 15 years’ time at 55, I would expect the CPF Minimum Sum to be adjusted to $200,000. After setting aside this amount in the CPF-RA account to participate in the CPF LIFE plan, I would have $191,833 left in my CPF-SA.




















If I stop contributing to my CPF-SA at 55 years old and leave the balance to earn 4% interest, my CPF-SA would have grown to $285,991 at 65 years old.


At 4% interest, I could collect $11,652 per year or $971 per month, without touching the principal amount.


For the CPF-LIFE plan, I intend to participate in CPF LIFE Basic which allows me to leave a larger bequest for my family. With $200,000 in RA at 55 years old, the monthly payout at the draw down age (DDA), currently at 65, is $1,316 - $1,467.


This would mean I would have a life time monthly income of $2,287 - $2,438 each month.


When I kick the bucket, my family will receive the following bequest:








Now, the pertinent question – ‘Would $2,000+ of income a month be sufficient to meet my retirement needs in 25 years’ time?


I don’t know. Really. What I do know is not putting all my humpty dumpties in one basket. Besides this fixed income plan, I will be actively building up other income sources.


Related posts:
1. Level 1 financial security for Singaporeans.
2. The best insurance to have in life (is passive income).
3. Millionaire or not, plan early for retirement.

Get a 75% price discount on a smoked turkey sandwich!

Monday, December 22, 2014

I really like having smoked turkey breast sandwiches but they are usually quite pricey.

Whenever I am in the supermarket, I would check out the cold cuts and see if there are some special offer items. If we don't mind eating stuff which are expiring in 2 or 3 days, we can usually get rather good deals. For example,

Eat by 25 Dec 14, Christmas Day!

Half price! What a deal!

Of course, it was not the first time I bought this product at half price from Cold Storage supermarkets. Just trying to create an air of excitement here. Yeah!

This brand has a good selection of cold cuts but I like the smoked turkey breast the most. I like to think that it is the healthiest option there is. See?

99% fat free and has the healthier lifestyle stamp!

Anyway, this is about 200 grams of turkey and is enough for me to make 4 sandwiches, each with 2 slices of meat.

If you are interested, here is the list of ingredients to make the sandwiches with:

1. 200 grams of smoked turkey breast. $4.75.
2. 8 slices of Gardenia wholemeal bread. $1.65.
3. A small cucumber. About $0.40.
4. 4 slices of cheese. About $0.80.
5. Some trans fat free margarine. $?.??.

Packed and ready to go!

Each gourmet sandwich would cost less than $2.00 to make but you would have to be like me and not mind having the same thing for breakfast and lunch. However, if you are making breakfast or lunch for the whole family, this is not an issue.

Biting into my lunch!

We can have "atas" food without the "atas" prices.

Related post:
Gourmet sandwich by AK Deli.

Grow some plants that bring wealth and good luck?

Sunday, December 21, 2014

It has been quite a while since I had my own outdoor space at home. Today, I went to a plant nursery to get myself a few potted plants to start populating my new pad. Here are two of them:

They look quite cheery, don't you think?

I chose these plants because they don't need much care. Perfect for me. However, they do need to be in a bright and preferably shaded location or so I was told. Perfect for the outdoor space I have at home since it doesn't get any direct sunlight.

The one in the blue pot is a Dracaena Fragrans while the one in the black pot is a Pachira. The one in the blue pot is also known as an Iron Tree in Asia. When an Iron Tree flowers, it will bring good luck to the owner. So, I hope it flowers.

I kept an Aloe Vera plant that grew to be a giant before and it flowered multiple times. If you are new to my blog, see the related post at the end of this blog post to look at the photos I took of the Aloe Vera plant before.

The Dracaena Fragrans is also an organic air purifier. Apparently, it removes pollutants such as formaldehyde, xylene and toluene. I am not a chemist. So, don't ask me for details but they sound like nasty stuff. Source: NASA Clean Air Studies.

The Pachira plant is believed to bring wealth and is also known as the Money Tree. It also cleans the air of smoke. Anyone here living or working with smokers? Go get a Pachira plant.

I just found out that it could grow to be 15 feet tall although the size of its pot could limit its growth. Oh, dear. I could be in trouble if mine grows much bigger. I better be mentally prepared. Source: Care for Pachira plants.

Now, I have another thing to do on Sundays apart from the laundry.
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UPDATE: 19 FEB 2017
My Money Tree today:

Compare to the photo at the top of the blog and you will see how much it has grown in just 2 years.
Also read: Know our goals, have the right conditions and patience.

Related post:
AK's Aloe Vera plant flowered?


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