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Old 25-03-2017, 09:50 AM
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Singapore’s high quality public housing is the best in the developed world. Because of the BTO HDB flat system, a young married couple can easily afford a BTO HDB flat.

A new 4 room BTO HDB flat in Punggol costs only about $200k (after grants). This is very cheap relative to income.

Let’s say a young married couple earns a household income of $4,000 per month (each of them earns $2,000 per month). Their annual income is $48k. So, the ratio of price to household income is only 4.16. The couple can easily pay their mortgage by using their CPF. As their salary rises over time (with work experience, higher productivity, skills upgrading and promotions), the easier it is for them to pay their mortgage.

So, if you live a simple life - living in a HDB flat, take public transport and don’t waste money on unnecessary things - you can live a comfortable life. You can then save up for your retirement and possibly an early retirement. You also need to save lots of cash in case you lose your job. In today’s uncertain economic environment, your job is never guaranteed. You can lose your job.

During your early retirement, you can take better care of your health, take up new hobbies and volunteer at charitable organisations to help the poor and needy. You can also travel the world.

Your HDB flat is your most valuable asset. You should be grateful that you can own a home. There are millions and billions of people in the world who are poor and homeless or living in slums. You are very lucky indeed. Don’t take your good fortune for granted. Be grateful. Feed the poor and needy. Volunteer at charities. Make a positive difference to the lives of the less fortunate. Don’t waste your money on gambling, smoking, drinking, partying, buying expensive cars, etc. Use your money to feed the poor and needy instead.
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