Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
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| Source: Bloomberg. |
Reader says:
"I would like to share a personal experience.
"My wife and I have relatively high paying jobs - and we work like dogs for it.
"But unlike our friends who make about the same amount and stay in condos and semi-d, we are the only couple staying in HDB 5-room.
"We find it very comfortable already. Altho I often have to answer younger colleagues (I work in a very big organisation, very hierachical) why I still stay in HDB.
"But one outcome of such a choice is that my housing consumption is very low, compared to my friends who consume the terrace or semi-d.
"AND that allows me to invest! Albeit haphazardly. Even then, that helped me to create a passive income that is way bigger than that of my friends who consumed a lot of their salaries via terraces and semi-d.
"Imagine if I have been more financially-literate and had read AK's blog earlier. My passive income would have been stronger.
"So, some points I want to make :
"1. don't consume so much via housing choice regardless whether it is invstment or consumption, live below your means,
"2. be financially-literate,
"3. don't bother to keep up with Jones'
"4. be comfortable to ignore people who wonder why you so kiam-siap and stay in HDB,
"Do an honest day's job by paying full attention to your organisation's business do make it a point to mind your own business and your own financial literacy and passive income portfolio building."
Looking for a spacious home in Singapore.
AK says:
I know many people believe in buying the largest home and, sometimes, the most luxurious home they can afford.
Embedded somewhere in the belief is that our homes are investments.
Of course, regular readers know my money mantra by now when it comes to our homes.
What we want to remember is that we could see home prices rising over the years but unless we are willing to monetise our home in some way, in Singapore with property prices the way they are, we could become a member of the asset rich and cash poor club.
Our home might be worth twice as much as when we bought it years ago but unless we are willing to sell it, we don't see the capital gain.
We don't see the money.
For those of us who invest in stocks, if we find an investment that holds assets which do not generate cash flow but instead drains cash every month, what would be a good reason to plonk some money down?
There are many rich people in Singapore.
There are also many people who stay in private properties and who drive luxury cars to look rich.
When the tide goes down, we will know who was swimming naked.
Now, who said that?
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Worried about upgrading your home?
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