living car free

The dilemma every 30 year old person faces


If you’re in your 30s, that concept might sound fairly foreign to you.
But could you still live for all the amazing moments in life and still retire without too much worries in the world?
Let’s find out.

Still planning on having a car to get around after you've retired?
Would you be eating out more often than not?
You’ll still need to pay for telco and utilities.
You can’t not shop can you? A pretty frock or a new shirt now and then to treat yourself?
Perhaps you have a domestic helper now. Could you do without one after you retire?
And then there are costs for personal grooming and the all-important annual holiday. Why wouldn’t you want to see the world now that you have all the time in the world?

travel the world

If the above sounds like something to look forward to, here’s the sobering truth. In Singapore, maintaining a lifestyle that you might have gotten used to in our high cost society will cost a pretty penny.

Now, that you’ve sat up and placed your coffee down (gently), let’s figure out how to get there.

Start. Somewhere.

Baby steps are better than no steps at all. But if you’re taking small steps towards securing your retirement, then you need to spend a bit more care to get the most out of your efforts.

financial planning Singapore

Speak with a financially savvy friend or advisor to get an idea of the savings and investment vehicles available out there. This being 2016, EVERYTHING is on the internet, and it takes just a few clicks to get an idea of which might be the tools you should look into. For a retirement nestegg, you want something conservative. So mutual funds and fixed deposits yes, FX trading probably no.

A nip here, a tuck there.

take one step at a time

If you’ve long decided that an austere lifestyle isn’t for you, don’t worry, you aren’t alone. Planning for your future doesn’t mean limiting yourself to instant noodles while watching free-to-air television. Pick the low hanging fruits of fancy coffee, single serving snacks and perhaps even non-happy hour beer and you’ll soon have a little pile that you can actually start to squirrel away. Oh, put that sum away into another account or start an insurance plan. Like a novice botanist eagle-eyed on a seedling trying to break through the soil, you want to watch as your little retirement fund starts to take root and grow.

Little costs add to big bills.

A designer coffee brew isn’t just $5. If you’re getting your caffeine fix 5 days out of 7, that’s $25 a week, $100 a month, or $1,200 a year, or a nice relaxing holiday around the region. A beer to wind down a hard day at work? That’s $25 a night (don’t kid yourself about having just one), or $50 per week (hey, you had 2 killer meetings alright), $200 a month or $2,400 a year. That’s a nice holiday AND some shopping!

Now picture this.

reward yourself for accomplishing goals

If you’re in your 30s, we KNOW that your attention span veers towards instant gratification. To keep from emptying your fund on that sick pair of limited edition sneakers, you’re gonna need to distract yourself. Set milestones and reward yourself. Hit one of them? Great job, reward yourself with a (suitably priced) gift. Soon, Pavlovian conditioning is going to kick in and you will actually be getting a high on achieving each milestone! Good job buddy!

What’s the takeaway from all of this?

Yes, there are some lifestyle changes to be made. Does that mean forgoing all luxuries? No, they do not have to be that drastic. You’ll still have friends and you’ll still have fun!

change for the better lifestyle

But the difference will be that you’re taking steps to secure your retirement.
Now, that’s something to cheer about isn’t it?

Ready to lay the groundwork for a solid retirement?

Find out more about your options here