2 in 3 Singaporeans save no more than 20% of monthly salary

[hyom]

A person with a Million-$ salary would have gotten used to a Million-$ lifestyle, after 10-20 years. Even if they "downgrade" their lifestyle upon retirement, they'd likely still need $200k/yr. If they'd been saving only $100k/yr (10%), 20 years of savings can only last them aro' 10 years if they don't know how to invest.

It is natural for people to upgrade their lifestyle to reward themselves for upgrading their income. However, I think a person has a better chance at happiness and financial freedom if he takes special care not to upgrade his lifestyle too much as his income goes up. This is the advantage of keeping to a simple lifestyle. The best things in life can be very cheap or even free. Free-of-charge Google search has educated me more than my expensive Bachelor's degree. Youtube can provide entertainment free of charge which can be just as good as the paid services like Singtel MioTV and Starhub CableTV. Closer to home, this free forum provides valuable investment advice and may be just as good as the expensive trading/investing courses out there. It is more cost-effective to get guidance from people who have it in their DNA to share their knowledge free-of-charge. There are plenty of such people on this forum. Some teach you how to fish like d.o.g and many others, some even give you their fish like dydx who shares his stock picks. (Personally, I do not think it is healthy to eat other people's fishes. If an investor wants to be successful, he has to learn to choose his own fish.)

Keeping to a simple lifestyle means a person need not downgrade his lifestyle drastically when he loses his job. His standard of living does not drop even when his source of income disappears. Meanwhile, he will have strong savings built during the period of prosperity to tide out the bad times without neglecting his family financial obligations like cutting children's expenses, parents' allowance. There is nothing more depressing when a person fails his loved ones.

Being able to be contented at low cost means a better chance at happiness because it is easier and cheaper to stay happy.

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