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...
Posts
All Comments
 |
| 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?
Related post:
Worried about upgrading your home?
Reader says...
I started following your blog about 6 months ago.
I will like to seek your advice on my financial aspiration.
I did purchased some stock during my early work year and most of them are below IPO price.
My paper lost is around 16k and my investment sum is around 35k.
Due to this experience, we are very scare to do any stock purchase.
However, we try our very best to save up as much as we could since we have not much idea on investment.
We have around 200k in a FD account and two 60k BOC smartsaver account.
As we are both employee, we wish to be obtain financial independence by having a backup income.
But we were divided on how to start the cycle.
My wife prefer purchasing another property for rent while i prefer your way which is to invest in REIT as i believe with our current cash reserve we are unable to get any good property.
In your opinion, which is a better way?
(This is not the full email.)
AK says...
Alamak. I don't give advice.
I anyhow talk to myself in my blog lah.
You eavesdrop at your own risk. ;p
You have to decide for yourself what works for you and what gives you peace of mind. ;)
Reader says...
Thank for your reply.
Let say if you are in my position, what will you do?
I will be eavesdropping.
Thank you.
AK says...
I would do what gives me peace of mind.
What gives me peace of mind would be different from what gives you peace of mind.
I don't have a wife but my friends who do tell me "happy wife, happy life". ;)
Sometimes, it is too dangerous to be a kaypoh and AK knows it.
"Honey, who told you something like this?
"Tell me. I kill him!"
You better believe it.
Related post:
Buy that second residential property!
Reader:
I remembered you mentioned that our home is consumable. Not a asset.
AK:
Our home, if fully paid, is an asset. It is just not an income generating asset. ;)
Reader:
I'm contemplating job change after many years in same company so upgrading also a bit worried.
AK:
It would be very nice to do something you love.
Reader:
Just like you now.. be farmer at home and watch Anime😄
AK:
Alamak!
How a 30-something couple got rich and retired by not joining home ownership 'cult'. (See related post at the end of this blog.)
If we upgrade our home, we should not downgrade our mental health.
If we have good reason to worry about upgrading our home, don't upgrade.
Most of us are not super rich but even for the super rich, peace of mind is priceless.
Bloggy Award
