Good Monday everyone!
Yes you read it right. The magic “million”! Now it sounds far-fetched, but let me tell you that it might actually be closer than you think.
Before I even learned how to invest, I first dabbled in the world of personal finance in Singapore (I still do it today btw). I remember falling down the rabbit hole of blogs, forums, and late-night scrolling through MoneyMind on HWZ.
And one topic kept popping up again and again: 1M65.
In case you’re new to it, 1M65 is a movement that shows how everyday Singaporeans can retire with S$1 million or more by age 65, mainly by leveraging CPF. It’s a great idea, and it definitely opened my eyes when I first read about it.
If you are thinking “Bjorn cannot lah.. $1M is too much!”
I’m here to burst that self limiting belief of yours.
And no ah, the solution is not buying Toto every week please.
Here’s What I Mean..
Imagine this: you save $800 a month (~$10K/year), invest it in something boring like the S&P 500, and just.. leave it alone.
Over 20 years, at the index’s historical 14% average annual return, this small, consistent habit compounds into a million dollars.
Now just imagine if you can save even more per month. You’re gonna be a millionaire even faster.
This is the magic people underestimate - savings that turn into investments, compounding quietly in the background while life goes on.
So the next question is this: how do you save enough to make this work?
The answer is simple, but not easy: living below your means.
The Unglam Life
Living below your means is simple - Spend wayyyyyy (emphasis here) lesser than you earn. And there’s many ways we can apply this in our daily life.
First off - food. This is where a lot of us overspend without realising.
Back when I started my first job in an engineering firm, lunch was simple: $3 canteen meals. One meat, one veggie. The most if I wanted to treat myself, I'd add one more meat. Not glamorous, but enough.
So if you always like to order fish for cai fan, maybe can cut back a bit lah. It’s honestly getting more expensive everyday too haha.
Same goes for every Singaporean’s indulgence.. Bubble tea or Starbucks. If this is your daily habit.. Uh oh.
Imagine $6/day.. that’s ~$200/month man. Plus you get fatter faster. Once in a while can already lah.
Next, transport. If you are taking Grab for every trip, that’s not convenience, that’s madness. Save those rides for when you’re running late for important events or at most, once in a while if you had a long day! Or.. just wake up earlier sometimes.
I’m definitely not immune to spending more on certain days, but what has saved me countless times on living below my means is asking myself this question before any purchase: “Do I really need it?”
There are even more layers to this like career growth, housing plans etc.. But this should give you a good baseline approach.
Lifestyle Inflation
But here’s the tricky bit: as you earn more, your spending will creep up too. It’s called lifestyle inflation. Happens to the best of us - it’s unavoidable.
Things like upgrading to the new iPhone every year, eating at restaurants more frequently than hawkers, Grabbing everywhere you go..
Again, ask yourself.. do you really need to?
You’ve got to keep it in check here. If you let your expenses sprint ahead of your income, you’ll feel “richer” but stay stuck in the same place. Manage lifestyle inflation by keeping your savings rate healthy. That way, you can enjoy the nicer things without sabotaging your future self.
Save, But Don’t Suffer
Of course, living below your means doesn’t mean living like a monk. If you save too aggressively, life becomes miserable.. then what’s the point?
Some spending is definitely worth every cent. Fitness, health, kids’ education - these are investments in yourself and the people you love. They give you energy and peace of mind.
Travelling too. But travel smart: budget flights, cheaper stays, miles hacking (topic for another day), even cooking your own meals sometimes.
Because five years later, you won’t remember whether that trip cost $1,500 or $3,000. But you will remember the sunrise on that mountain or the laughter with your friends.
Small Things, Big Results
Living below your means isn’t about deprivation. It’s about balance. Small, boring choices that adds up.
And when you funnel those savings into investments, they quietly multiply in the background, giving future-you freedom and options. And the earlier you start, the better.
So here’s the ethos: no matter how much you earn, always live below your means. Because that’s what turns “eventually rich” into “comfortably wealthy”.
Till the next post, ciao!
Patience builds wealth,Bjorn