SINGAPORE: A man who consistently spent only S$500 monthly for six years has recently taken to social media to share a valuable financial lesson he learned and applied to his life.
“Don’t let your lifestyle inflate when you just begin working, and you may be surprised at how much you can save and how much more interest you will get by the end of your career,” the man wrote on r/singaporefi on Friday (March 15).
The man said that when he was a student, he lived on a budget of S$500 a month using his savings from NS. He found this budget to be more than enough for a full social life.
Even after graduating in 2021 and finding a job near his university, he shared that he still maintained the same lifestyle. He continued to eat the same food, take the same bus, and meet up with his friends who were still in school.
“I was able to save the vast majority of my paycheck and pay off my student loan within the first year. Once that was done, the balance of my OCBC 360 account started to accumulate, and I started taking some risk by playing with the wheel using IBKR.
My OCBC 360 account hit 100k last summer, and I realized that the 4% interest alone was enough to meet two-thirds of my monthly expenses,” the man shared.
Despite earning more, he chose not to inflate his lifestyle and lived frugally. He also mentioned that the only luxury he indulged in was taking two-holiday trips abroad with his parents.
He then wrote at the end of his post, “I’m not saying this is for everyone, but in my view, living a minimal lifestyle for a few years after starting work is a great way to get the interest compounding started – after all, the earlier you save, the more time there is to compound the interest.”
“I agree with not succumbing to lifestyle inflation, but the key here is balance too”
A few Singaporeans in the comments section pointed out to the man that while saving aggressively is a commendable way to build wealth, it’s also important to learn how to enjoy spending the money that one earns.
One individual said, “I agree with not succumbing to lifestyle inflation, but the key here is balance too. No point going full frugal to the point that you’re not enjoying your prime years. You’ll never be in your 20s again, time/youthfulness cannot be bought with money.”
Others also said that the man was living a “privileged life” because his expenses were limited to his basic needs. They emphasized that, unlike him, they had additional financial responsibilities such as paying electricity bills, groceries, and other miscellaneous expenses.
They contradicted his advice and said that responsibilities, rather than lifestyle choices, often influence how much money is saved.
One individual added, “Things are getting expensive. You are probably not paying for a lot of daily household expenses hence your monthly expenses are on the lower side and you are on point in the aspect of living like a student when you do not need to pay for other things besides your own, which is fortunate for you.”
Another chimed in and commented, “Nice in theory but you are living a privileged life. My father expected me to take over family expenses as soon as I started work, as well as giving him a handout. Which, in turn, was very privileged because I know of plenty who were working as a student just to keep themselves and family alive.”
In related news, a woman in her mid-to-late twenties recently turned to social media to express her confusion over feeling financially insecure despite accumulating significant wealth for her age.
“I am always pushing myself to save aggressively, which I find to be quite unhealthy mentally (e.g., starving myself to eat only 1 meal a day, not getting a new bag or shoes even when they are broken, rarely going on vacations or spending on food or Grab etc.), even though most of my colleagues / peers with the same or lower income level are splurging on such experiences,” the woman wrote on an online forum.
Read more: Woman says she still “eats only 1 meal per day” despite starving and accumulating significant wealth