49yo grad couple with $1.5m net worth feeling "poor".

[hindsight]

Primary residence (non performing asset) cannot be considered as net worth even fully paid up.
That's why some people stretch their loan to maximum tenure to leverage even if they can fully pay up.

Technically to up your net worth you must rent out condo for passive income.
Rent a luxury condo in JB to leverage gains plus lifestyle maintain status quo minus the stupid long queues at immigration!
Staying in Johor Bahru is a form of leveraging.

Car is also a depreciative asset so every year net worth become less but offset by income if any.

To boost net worth must be like bro hwarzoner.
Zero hard assets but cash rich.

CPF wise can see but cannot touch until 55.
If CPF also considered as net worth many Singaporeans are multi millionaires.

I estimate in 5 years time bro hwarzoner could see his first million but subject to stock gains or losses.

Primary residence (sans the outstanding mortgage, if any) is definitely an asset, but its not a liquid or investable asset, and unlike other assets the only way to monetize it requires the owner to take a hit in his standard of living. Of course this is not to say that a person who owns a paid up 2rm flat + 500k cash is richer than a person who owns a paid up semi-d but has no cash.

Many people choose to extend the loan tenure (increase leverage) when real interest rates are negative i.e inflation > interest rates, and they have been negative for several years because Singapore does not have an independent monetary policy, people who are overextended are going to be caught with their pants down should economic conditions between the US and SG diverge significantly.

 

[focus1974]

no need to be so anal about definition of networth..
it is mostly to serve the needs of the banks....

example... a private bank wants you to invest .. so he will consider only your investible networth (what you can invest).. A primary residence of $8mil is not considered unless you tell them to use that as collateral and give you a 50% equity loan to invest.

Your total networth should include all your assets and deduct all liabilities.
Your liquid networth should be those you can convert readily to cash and that means your primary residence might not be suitable for inclusion.

So it's subjective and depends on what you want to do .

 

[Perisher]

Ya, there are too many ways to define networth.
As long as the study/reports state clearly the criteria used, it's just a chosen set of data to fit into their ideal networth.
Otherwise, it would be some random numbers.

As for whether one would feel rich or poor, unless one is at the extreme end of rich/poor, it's mostly the perspective relative to others at their level.

 

[doody_]

Rich or poor depends on how you spend your money. Live simply, 5k/month is a lot to you. Need to have 3 meals at restaurant, only minister salary will satisfy you....

 

[StragenKreuss]

That's why I live a frugal and super minimalist lifestyle daily while spending decently when traveling around the world twice a year. I still get to invest over $1.5k a month and I've been doing so for 6 years.

 

[frenchbriefs]

haiz why am i so poor,100k in my bank/stock portfolio i can hardly imagine.


but i being poor,have only my dreams,
i spread my dreams beneath your feet.
tread softly because you tread on my dreams.

greed,hatred,rage,jealousy,envy.
what is life without emotions and desires?
it is just a vestige of a word for a feeling you never felt,
everything that makes us human gone.
whatever the price it cost,i pay it gladly.

 

[doody_]

That's why I live a frugal and super minimalist lifestyle daily while spending decently when traveling around the world twice a year. I still get to invest over $1.5k a month and I've been doing so for 6 years.

It is about being contented with what you have, that will keep you happy. If you are happy living a frugal and minimalistic lifestyle, fantastic. I know that's not the life for me, so have to work a bit more for now

 

[vofzxy]

That's why I live a frugal and super minimalist lifestyle daily while spending decently when traveling around the world twice a year. I still get to invest over $1.5k a month and I've been doing so for 6 years.

I need to be more like you.... Totally

Sent from LGE LG-H815 using GAGT

 

[Squaredot]

mostly are savings from salary (pay increment, bonuses and overtime works), nothing special, some gain from share bought many years ago and dividends gain.

minimally money put in mmf and some high interest deposits.

the rest are cpf.., no car and no house.

what is mmf?

 

[Squaredot]

That's why I live a frugal and super minimalist lifestyle daily while spending decently when traveling around the world twice a year. I still get to invest over $1.5k a month and I've been doing so for 6 years.

A self-disciplined person. Good.

 

[djchris]

what is mmf?

money market funds

 

[StragenKreuss]

A self-disciplined person. Good.

My reasoning is very simple. I'm born poor, so I'm used to living with a lot less. Even though I have pay increments, my basic lifestyle didn't change. I'd rather use the extra money to spend on things I can never experience in SG, so I travel. It's so ingrained into me, I don't even have to do budgeting every month. I view "richness" as having lived a full, fruitful and enjoyable experiential life. Not one of material possessions and overt show of wealth.

 

[Perisher]

My reasoning is very simple. I'm born poor, so I'm used to living with a lot less. Even though I have pay increments, my basic lifestyle didn't change. I'd rather use the extra money to spend on things I can never experience in SG, so I travel. It's so ingrained into me, I don't even have to do budgeting every month. I view "richness" as having lived a full, fruitful and enjoyable experiential life. Not one of material possessions and overt show of wealth.

yah, after a year of noting down where every single dollar of my $$ went, I realise it's futile. I know roughly where my $$ is spend and it doesn't deviate too much from month to month unless I made big ticket purchases like laptop, hp etc...

It becomes a habit and I don't note down my spending anymore.

 

[spiritGate]

yah, after a year of noting down where every single dollar of my $$ went, I realise it's futile. I know roughly where my $$ is spend and it doesn't deviate too much from month to month unless I made big ticket purchases like laptop, hp etc...

It becomes a habit and I don't note down my spending anymore.

I just started to note down my spending hahaha

Sent from sent from gagt using GAGT

 

[Perisher]

I just started to note down my spending hahaha

Sent from sent from gagt using GAGT

Good habit... But ironically I think people who does it with discipline doesn't really need it.

 

[spiritGate]

Good habit... But ironically I think people who does it with discipline doesn't really need it.

Yea i need to re-adjust my spending tats why need.

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[OngHuatHuat]

I used to note down everything I spend for 5-6 years straight. Recently become lazier coz no more motivation to do that.
Now spending more time earn more money.

Yea i need to re-adjust my spending tats why need.

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[spiritGate]

I used to note down everything I spend for 5-6 years straight. Recently become lazier coz no more motivation to do that.
Now spending more time earn more money.

I think i will stop tracking a few months later. For now i dun have much capital to generate more money

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[starfish.starfish]

I think as long as you have an adaptable mindset, change can be done. I have done
Hdb --> condo --> hdb again
public transport --> car --> public transport again
Stayed in central --> suburb --> central again

Never had any problems adapting. Find it strange when ppl say once u own a car, hard to get back to public transport or once u stayed in private housing, cannot stay hdb anymore. Lol.

Also control of expense is easier than increase income. Because one is internal so it's within your control while the other depends on external factors, so more difficult.

Bottom line, never too far gone to change as long as you want it hard enough. Else it's just talk nia.

 

[Stallone]

Rich or poor depends on how you spend your money. Live simply, 5k/month is a lot to you. Need to have 3 meals at restaurant, only minister salary will satisfy you....

Not many people cook nowadays, n in the next 30yrs, hawkers will probably be gone too

We'll end up like EU, only cafeterias n restaurants