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The Rich Have Frugal Habits

I am not rich but I hope I will be some day in the future, I have come across this article “Take Note of These 5 Frugal Habits of the Rich” and  I realise that I have been praticing these habits too. OK, maybe some day I can be one of the “Rich” too :p

Drive a modest car

Your car should only serve the purpose of getting you safely and comfortably from point A to point B–nothing more.

Honda CityA few years ago i used to drive a Honda city. It is a second hand car and I only can afford a second car at that time. It is the first and probably the last car I will ever own.

The monthly cost of the car comes up to about $1000 with every costing averaged out. I only take home $2000+ at that time and as you can see, half of my pay goes to that car. I could not save much during that period of time.

After reading Adam Khoo’s Secrets of Self-Made Millionaires, I decide to sell off my car when it reaches the breakeven point, as I come to understand that it is not generating any money for me (only drive to work and back home and parking is so expensive in town) and instead it is sucking away my cash.

I choose to take public transport but had a hard time adjusting back to public transport as my workplace is so dammn far, but now my transport cost is just $100+ per month! Think about the money saved!

Buy a modest house

Buy a modest and comfortable home and use the money you save to build your savings and retirement fund

My HouseHousing in Singapore is so expensive now. I have intended to buy a resale flat but the cash upfront is too high for me and my wife to handle ($30k-$40k COV + $50k-$60k renovation). We are not willing to be cash “bankrupt” after getting a resale flat, so we opt for a BTO flat which cost about $250k which can be paid with our CPF.

Even though there is a 3 years waiting time, at least we do not need to worry about money. We can also take this 3 years to save up for the renovation loan and go for holidays. My flat is about to be ready and I am excited!

I see some of my peers buying house that cost more than $500k, most probably they need to fork out quite a bit cash to cover the monthly mortgage loan. To me, it is quite a risk as both the husband and wife cannot afford not to work. My friends, lets work hard!

Don’t carry wads of possible

Try to avoid traveling with a wallet packed with cash.

I do not like to carry much cash with me when I am out. There is always an urge to spend it away.

I love debit/credit cards, and they are your friends as long as you do not abuse them. Buy what you need and spend less on what you want.

Don’t pay full price

A great way to keep more of your money is by not paying full price on anything.

A great way to build wealth is to have a frugal mindset and use the money you save on consumer goods to build your investments and savings accounts.

As much as possible, I try not to pay using cash as it means paying the full retail price. I love to use StandChart XtraSaver Debit Card on small purchases as it gives me 2% rebate and StandChart Manhattan Credit Card for big ticket items for up to 5% rebate.

I like to buy Coupons at Deal.com.sg to save money on dinners and holidays and also shop online at Qoo10.sg.

The main point is not to pay full retail price. You can save quite a lot by doing that.

Have an action mentality

Truly rich people are those who take their income and turn it into wealth by investing wisely, saving, and living frugally.

Just do it! Learn to earn more money, learn to spend less money, learn to invest your money, learn to save more money, learn to live fully!

Money don’t drop from the sky! You have to go get it!

Upgrade yourself and make yourself more useful to the world. Eat well, Live well, Love well.

HEY! IT’S POSSIBLE!

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