Financial freedom for average Singaporeans?

From time to time, I get emails from readers who wonder if average Singaporeans could ever become financially free. 

Of course, I will remind them that AK was once upon a time a pretty average Singaporean too.

If we are from a humble background and if we have a humble lifestyle, I believe that these are strengths and not weaknesses.






I remember when I was a teenager about to join the armed forces, some wondered if I was going to make it because there were stuff I didn't like eating. 

Then, when they remembered that the stuff which I didn't like to eat were crabs, prawns, abalone, lobsters and a whole list of atas (i.e. Malay for high class) foodstuff, they knew I was going to be OK. 

I didn't have atas taste buds.







When I shared my liking for green tea, I was asked to try roasted green tea, Hojicha. Today, I was given some Hojicha as a gift when I met a friend for lunch and later visited a supermarket. 

Drinking Hojicha will transport me to a higher plane of existence (figuratively, of course), apparently. Zen? I like.

Well, I tried it just now and it tastes like Chinese tea to me but it costs a whole lot more. 

$7 or so for a box of 20 tea bags.

I think I will stick to my cheap cheap Japanese green tea. $5 or so for 50 tea bags.

Atas food and drink are wasted on AK. Seriously. The fault is mine and not the food and drinks'.

What is this leading to?





Some might not agree with me but I am just sharing my own experience here.

If we don't have expensive tastes, it is easier to achieve financial freedom, all else remaining equal.

There is no doubt in my mind ever that average Singaporeans can be financially free too. 

If you are not financially free yet, you should not doubt that you can one day be financially free too.

It just depends on what you do.

Related post:
Average income workers can be rich.

Use CPF account as a savings account. (Prefers money close by and is CPF the answer?)

This blog is the continuation of an earlier blog:
Our parents and their CPF plans.

Reader:
Thanks for your well structured reply! It answered most of my questions :)

The reason I am concerned is because my mum keeps cash in the house instead of making it work for her.. And often she gets "tempted" by agents/bankers who sell her savings plans (10 - 15years) with "guaranteed" returns!!!

I managed to stop 1 transaction last week during the free look period but she has another savings plan that is fully paid in the next month and will pay out every year for 10 years (I will just see it as damage is done)...

Hence I thought to further explore the use of her CPF account if she wants to earn more interest over the years.

She likes the feeling of 100% liquidity (which explains keeping of money at home) and she finds it a hassle to even withdraw it at the ATM.. will need to think of an arrangement such that it will benefit her pocket in the long run.







AK:
Yup, it is as I suspected. Your mom likes the feeling of having money close at hand. Haha. So do I, to be honest, if you remember my blog on keeping some convenience cash at home.

Yes, from my habits, you can tell that AK has joint the ranks of the old folks too. Cham. How like that? Die lah.

Convenience is a good thing but there is a price to pay for convenience. Convenience has a price? Yes. I blogged about this too.

Your mom is lucky to have you look out for her, especially when it comes to guarding her against unscrupulous sales people but worse than those would be the PONZI schemes.





Try talking to her about using her CPF account as a high interest savings account. She can do voluntary contributions up to the annual contribution limit ($37,740). 

Please check that her CPF-MA has hit BHS first ($52,000) or else most of her contribution, at her age of 60, will go to her CPF-MA and will be locked up.

Of course, I feel that it is a good thing to hit the BHS because the CPF-MA pays 4% per annum and the interest of more than $2,000 a year will pay for many things but it is her money and it should be her choice.



Related posts:
1. Convenience money.
2. The price of convenience.
3. Unpleasant experience at a bank.
4. PONZI schemes.
5. CPF as a high interest savings account.