Frugal lifestyle pays dividends

THE year 2017 wasn't a bountiful year for me, nor was it a year that I had to incur a deficit. Thankfully, it has never been my lifestyle to indulge in extravagance. Embracing a simple life enables me to resist all kinds of temptations that may compromise my discipline to keep myself healthy through proper diet and regular exercise, though I had passed my 60th year not too long ago.

A kopitiam acquaintance, John (not his real name), had overcome many failures in his business ventures before he succeeded and retired a few years ago. He can afford vacations and delicious food but has to restrain himself due to chronic ailments.

Not many people are as lucky as John, who can afford quality healthcare.

A relative, who is in his mid-fifties, had bypass surgery at a subsidised cost of RM40,000 recently. As he had used his retirement savings to pay for his son's college costs and other urgent expenses last year, the surgery cost has affected his retirement plans.

I understand how important it is to build one's career as quickly as possible. Leading a hectic and stressful life, one shouldn't overlook the importance of health. Be wise and cautious with your daily meal intake, especially if you eat out often, so as not to allow any chronic disease to find its way into your body. Healthy meals alone are insufficient. Your body needs daily exercise to maintain an effective metabolism that helps you keep fit and healthy.

Undeniably, health is more important than wealth. However, if one aims to achieve a stable life so that you can retire happily, you can't overlook the importance of saving regularly without any delay. Adopting a frugal lifestyle is the right direction to go. At the end of the day, it is not how much you earn that matters, it is how much you save that counts.

Assuming you are able to save an extra RM1,000 a month in your retirement fund that earns you a 6% yearly return by leading a frugal life, within 31 years you would be able to save an extra accumulated sum of one million ringgit. I hope this will motivate you to save more for your twilight years.
May 2018 bring us good health and prosperity!

Patrick Teh