In part 2 of our correspondence, I see a millionaire next door in the making:
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Hi Ak,
Oh no my flat ceiling is leaking again, got to go patch it up...
Hi C,
Your friend has to understand that his home is a consumption item. I do not know if he has given some thought to planning for his golden years but being in debt till age 50 due to consumption items is likely to set him back.
However, your friend could monetise his condo after staying in it for a minimum of 10 years. The chances of a nice capital gain is actually very good. ECs are usually priced 20% to 25% lower than surrounding private condominiums unlike new launches of private condominiums. So, they provide a margin of safety.
To be fair, your friend could have some plans up his sleeves and he could do very well in his career in future. We wish him the best, of course.
Your lifestyle is simple and it is good to keep it that way. We should remember that how much money we save is more important than how much money we make. I believe you are a millionaire next door in the making. ;)
Best wishes,
AK
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We can be a millionaire next door too if we choose to be a PAW.
What is a PAW?
See related post number 1 below.
Related posts:
1. The Millionaire Next Door.
2. The head of a typical HDB flat household speaks.