Quote:
Originally Posted by kt88_2
For most ,no such thing retirement, cos the day the person die is retirement day, many sinkies to be Frank not able to retire
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not just sinkies
most people in the world wont be able to retire well.
But i see most of them is due to their own doing.
1st you have to manage your own finances well. It almost certainly come down to own financial management.
When buying a house, dont budget the monthly payments to max loan max years. They use the repayment period to 65. You should not expect yourself to pay for your house all the way to 65 and expect your income by then wont decline. Set your maximum repayment period to 20 yrs to be prudent without factoring in any increment of income, aim for a lower cost property unless it is purely for investment. reno is a waste of money. keep reno cost to a minimum, only change what is damaged or makes you disgusted.
person A: dual income total $8k a mth, buy $1m condo in ulu place + car. max loan amount like $800k? reno $100k reno loan?
person B: single income $15k a mth, buy 3 room hdb resale flat for $400k beside mrt station, just undergoing flat upgrading. Only loan $100k. Spent only $5k to change kitchen cabinets. Utilities fully covered by usave credits, conservancy fee pay for 1 mth every 3 mths. Cdc vouchers to buy whatever shit thats necessary. Property tax was free till 2 yrs ago. its not much, but all these do add up over the years.
When you no longer make an income in sg, look for a cheaper place to move to (outside sg). Sg is high income high cost place. It makes sense for everyone to come into sg as the income is way above the cost of basic living. Its a place to make money. But when you stop work and no longer making an income, its only wise to downsize your monthly upkeep and increase the quality of your life rather than trying to survive on a pathetic lifestyle in sg.
Car in sg..... doesnt make sense unless you are running your own business and need it to make money. The full car expense over 10 years, can easily be the sole difference between $500k richer or poorer after 10 years. You can see this amount can easily make the difference of whether someone can retire or not.