What is Living Frugally About?
When you think about living frugally, most people will associate it with being poor, and not being able to enjoy living an ordinary life. Most people even feel that only those that have low income or living in poverty will need to exercise living frugally.
This is absolutely not true. Living frugally can be practiced by people of all income levels. And it helps to improve an individual’s or their family’s life by keeping their monthly expenses low, and getting all loans and debts out of the way faster.
Living frugally lets you have more funds at the end of the day, and gives you better opportunities for investments.
Some Great Investment Examples to Know
In Singapore, owning real estate is generally one of the better ways to invest, due to the ever-high demand of properties, and shortage of space and land. If you are looking to buy your first property in Singapore, you may want to consider executive condominiums (also known as ECs) as your first property. It is one of the best class of real estate to invest in Singapore, but it is always in short supply. In 2019, there is only 1 EC launch in Singapore, Sumang Walk EC. Other great places to invest in are in developing towns and areas around the city fringe.
How to Live Frugally
What everyone wants to know is how to accomplish a lifestyle that makes you able to live frugally, without having any compromise on daily comfort.
Most folks tend to buy bigger cars, houses and more luxury items as their income goes up. This only puts them in more debt and liabilities, which in turn, makes them not being able to grow their savings despite having more income.
It is not necessary to buy the most expensive car or holiday that you can afford. To have the discipline, resourcefulness and knowledge to buy the right size goods that you need, helps you to see a big difference when you are trying to build up your savings.
The key is to learn to be comfortable and happy with what you have, and upgrade things that will only bring true value and meaning to your life. A bigger and more spacious car might be a good choice when you have new family members coming in, but in that same scenario, a sports car will not only put you in bigger debt, but possibly take time away from your family.
Once you learn how to be happy with what you have, you will start to have lesser urges of spending money just because you have it.
Engage a Financial Planner / Advisor
A final tip I would like to give is to engage a financial planner / advisor. These are the people that are working on financial planning day in and out. Naturally, they tend to have much more knowledge than the rest of us. They help you to make more savvy decisions and eliminate poor judgement choices.
You are able to move on with your life and do things that are more important, while letting your financial planner / advisor settle all these issues for you. Read more about the importance of financial planning in this article.