Is frugality the only way to retire early in Singapore?
August 7, 2026
How extreme will you live with frugality in order to retire early in Singapore?
After being retrenched at 35, a Singaporean retired and bought a 3-room flat in full. Despite a monthly passive income of $2,500 ($900 from rent and $1,600 from insurance payout), he only spends $150 a month. His financial freedom doesn’t come from wealth building but from frugality or extreme saving.
Below are my thoughts after watching the CNA video:
1. Buy the cheapest flat
I agree with him that one should “buy the cheapest flat you can afford and pay in full.” And “if you borrow money, a 30-year mortgage means you buy a flat and give it as a free gift to the bank.”
A home with a mortgage is an expense, not an asset. The property’s title is under the bank. If you fail to repay the installments, regardless of the outstanding loan amount, the bank can repossess your home.
But I have reservations about “buying the cheapest flat you can find in Singapore”. Many cheap homes are cheap for a reason. Instead of cheap, you should go for value-for-money and buy the right thing at the right time with the right price.
In 2007, he gave up buying a bigger place and settled for a 3-room flat. He paid $87,000 for a 35-year-old flat with 64 years... read more