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This guy has 800K in his CPF. (AK responds to HWZ Forum.)

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Unless we are rich, be pragmatic and not romantic.

Saturday, January 30, 2016

A conversation with a reader:

Dear AK,

Finally, my husband and I have set aside $10K as emergency fund and will be contributing to this fund on a monthly basis. T

o us, this is a "giant" step as we never have any such funds before we got married.

We enjoyed reading on the couple who could save $100K in 18 months and valued their beliefs. 

The post got us thinking, if we continue saving $2000 for 5 years, we would have at least $120K in cash.

I grew up in XXXXX and my matrimonial home is also in XXXXX. We like the convenience to town and the amenities the area provides. 

However, respectively to frugality, even if we buy a new HDB 4-room flat in XXXXX, it will cost at least $500K. We felt guilty even at the thought of it.

Sell our flat in XXXXX and move to Punggol/Sengkang, maybe? That is when we will see a profit from the sale of our flat. 

However, our hearts could not bear to leave XXXXX.

Have you had such dilemma before?

AK's reply:

Hi A,

I stayed in XXXXX for many years of my life. In my mid 30s, 
I bought a condo in XXXXX, stayed there for almost 5 years. 

Price shot up. I loved the place but I sold it. I am a pragmatist.

Singapore is a small place. Nowhere is really too far especially with so many new MRT lines now and in the future.

Having more money earlier is a winning combination for the financially savvy. Money needs time to grow. 

The earlier we have more money, the better.

Best wishes,

I know this is an emotive topic and there will be people who will disagree with me. Feel free to disagree.

I believe that only the rich can afford to have romantic ideas about their possessions. The rest of us are better off being pragmatic and ensuring that possessions (or the lack of) afford us a better future.

Related post:
New money habits led to $100K in 18 months.


apex property investment said...

Excellent problem to have... money growing while you stay. Yes there is no need to be romantic, no need to hanker after being at XXXXX. AK, where is a good place to look for such growth?

temperament said...

Hi AK,
Ha! Ha!
People in our generation know what's is hunger, do we have a choice then?

temperament said...

And we remember we never ate at even a small restaurant until we made our 1st 100K from investment.
How's that for belt tightening?

AK71 said...

Hi Apex,

I am sure I was mostly lucky. :)

If you are interested in some of my thoughts on real estate investment, you could do a search of ASSI for the blog posts. ;p

AK71 said...

Hi temperament,

Well, to be honest, I don't think I was ever hungry but my family having experienced near bankruptcy really made me want to be financially secure ASAP. You could even say I was obsessed with the idea.

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