SINGAPORE: Attending a friend’s graduation ceremony gave a 27-year-old man a moment to reflect on his own journey since graduating three years ago. Inspired by this milestone, he decided to share a piece of advice with today’s fresh graduates:
“Don’t let lifestyle creep get to you when you start working.”
In his post on r/singaporefi, he urged fresh graduates to embrace a frugal lifestyle and focus on saving for the first few years of their careers. By resisting the temptation to immediately upgrade their lifestyle, they can avoid the pitfalls of unnecessary spending and the pressure to keep up with expensive trends.
“You won’t feel like you’re missing anything if you’ve never allowed the initial lifestyle creep to happen,” he said.
He then shared his personal journey to motivate others to follow a similar path. When he began his first real job two months after graduating during the COVID pandemic, he was burdened with nearly S$40,000 in student debt.
Determined not to let his desires and lifestyle inflate beyond his means, he restricted his expenditures to essentials such as food, transportation, basic clothing, and his phone bill, adhering to a budget of $500 or less.
This approach enabled him to pay off his student loans within the first year and helped him avoid impulsive purchases he would later regret. After clearing his debt, he saved by depositing everything into a high-yield savings account, specifically the OCBC 360.
“I’ve since hit the 100k ceiling for OCBC 360 and managed to sock away another 100k in the Fullerton SGD cash fund – the interest alone is now enough to cover all my monthly expenses and more.
The earlier you save, the earlier your savings compound… I can now spend on luxury extras I really want, without even digging into my salary – like bringing my parents overseas for holidays and the occasional splurge on a meal in a restaurant,” he shared.
“Life is short; don’t waste your youth trying to save every last dollar.”
Although numerous individuals praised the man for promptly clearing his student debts and breaking free from financial constraints through frugal living, some pointed out that not every fresh grad can emulate his approach as they have responsibilities to fulfil to their families.
A handful even suggested that solely individuals with certain privileges, such as those residing with their parents without the burden of rent or bills, can realistically sustain themselves on a $500 monthly budget.
One netizen said, “A budget of $500 per month isn’t possible just by being frugal. You also have to be lucky and privileged enough not to pay rent/house bills, or give your parents any sort of monthly allowance.”
A few people also disagreed with the man’s approach, explaining that the primary goal of working hard and advancing up the corporate ladder is to progressively improve one’s lifestyle.
They argued that as individuals progress in their careers, part of the reward should be the opportunity to enjoy a better quality of life, including the ability to indulge in hobbies or luxuries previously unattainable.
One netizen commented, “No point dying with millions in the bank and going through life on a $500 budget. Treat yourself better if you can afford it. What’s the point of living with nothing to enjoy?”
Another added, “Life is short, don’t waste your youth trying to save every last dollar. If spending that bit more money can bring you that much more happiness, just do it. After all, the point of earning money is to give yourself and your family a good life.”
Featured image by Depositphotos