Quote:
Originally Posted by Unregistered
Hey guys, I have been wanting to ask a question and hope to get some advice whether I'm overly frugal.
I make about 400k per year and I'm 32 years old.
I used to have a car for about 2 years but find it a hassle to maintain and with the growing oil prices, I decided to scrap the car. I feel a lot more free ever since getting rid of my car.
I work from home pretty much since covid.
I stay with my parents in a hdb and don't really have a desire to own a house. And yes, I don't have a house.
Am I too frugal with my money? I spend about 100k a year and save about 300k a year. I mainly spend on food and maybe buy some gadgets here and there.
The reason I'm asking is because I know of people who earn lesser than I do, but they will buy a private property, buy branded bags and expensive cars. In which I have no desire of. My only desire is to work. I feel a little strange because I hardly meet folks earning at my range or more being so frugal. |
If you are not lying, then you should look into what you are spending on.
If you invest most of your salary into broadly diversified index funds, you should be able to retire in just a few years even if you have nothing at all right now.
A portfolio that gives 4% average dividends annually or appreciates at 10% (and you drawing out 4% annually) should last you forever if you put your money to work.
If you are earning 400k per year and all you do is put in the bank then you are not very financially savvy, considering Singapore's inflation rate is already at about 2%.
Not buying a house is not bad idea. You are freeing up cash to make other more profitable investments than buying a place that you will stay in (so can't rent out to make money), have to maintain and cannot be sold unless you plan to stay elsewhere. However, if you are putting off buying a house just to feel good about the amount of cash lying around in the bank doing nothing then that's not a good idea.