Be careful about saying others as fools as you make the the biggest fool. I think what the poster is trying to say is that of the guy already has no mortgage and car loan, then his expenses no longer include mortgage and car loan payments. His $140k pa combined will cover his other expenses like food, utilities, etc which amounts to less than $140k pa. Whereas of a couple whose income is $250k pa but spends a lot on car and mortgage payments and other luxuries, they mat spend more that $250k pa. If they have $2m mortgage and $200k car loans, this couple will spend tons of money servicing their huge debt. If they lose their job, then they will be forced to sell their condo whereas the guy who paid off his mortgage can still live in his condo.
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Originally Posted by Unregistered
The below poster is a real fool. People like them usually sit in a corner and suck their thumbs and occasionally come out and make foolish remarks. See how he asked you to compare with people who earned $250k pa and are saddled with debts? Why don't he ask you to compare your yearly savings with these people, and their net worth. People who are astute know how to make their money work for them. Housing loans have the lowest interest rates around, and smart people deliberately do not pay up their loans because they can make more more by investing their money than to pay up their housing loans.
But bottom line is, to live within one's means. The survey by salary.sg showed that people who stay in condo do typically earned over $16k pm and that was based 2011 dollars. Many earned more. So don't blindly follow the Lims and Tans. It is better to live within one's means.
At 50/52, you don't much time horizon to grow your savings.
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