Today Singaporean remain steadfast in chasing after the famous cliché 5Cs. Their condominium or landed properties, brand new continental cars, country clubs membership, credit cards and cash are their top priorities. I remained skeptical about these 5Cs. Why?
Chasing after them will only cause me to spend years of my life paying a big chunk of my income to someone else. Please see this real life example, which I saw in Sunday times, that an ex-banker in her thirties bought a house in east coast for $1.2 Million dollars. If there is not enough, she spent another $200,000 to renovate the house. A piano easily cost $15,000 in the living room. Wow, that is certainly a lot to spend just for one C. Assuming that her spouse and herself has $400,000 in cash and CPF combined, that is still a loan of $1Million for the two of them. Each of them will be paying at least $1,500 per month for 30 years.
I shook my head at this kind of hefty commitment. How about country club membership as an asset? Just ask the Raffles Town club, Singapore Swimming club members who were embroiled in numerous lawsuits and ask them if this is an asset. Most of them are paying for something which they hardly utilize except on weekends. This is something I rather avoid. If I must enjoy a luxury car like BMW, I would rather rent than buy. This will ensure my commitment is minimum and I get to enjoy the luxury car for a while.
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