When I stopped work, I did not get monthly salary and bonuses. I rely on my retirement funds and investment returns to pay for my expenses. I definitely cannot spend freely knowing that my retirement funds can run out. Therefore, I watched my expenses and cash outflow very carefully.
Between 2012 and 2015, my spending budget was cut by 30%. The way I did it was to eradicate or to reduce some expenses. Below are some ways.
- I resigned from some professional bodies. I gave up memberships to Chartered Institute of Management Accountants (UK), CPA Australia, and Singapore Computer Society. I only retain one professional body, ie Institute of Singapore Chartered Accountants.
- I have stopped attending CPA Dinner talks held every month. This costs $810 a year.
- I gave up membership to club houses. One club house was Temasek Club.
- I only watch movies on weekdays to take advantage of senior citizens concession rates (age 55 and above). Ticket price is $4.50 (for GV theatres) Even for that, I hardly go to movies. Nowadays, my family borrows DVDs from public libraries and watches them at home.
- I change my Singtel mobile plan to a Silver Plan. This plan is for those aged 55 and above. The monthly subscription is reduced by 20% from normal plan. In my case, I opted for Combo 2 with 2GB local data. This plan is sufficient for my daily usage. It costs me about $40 per month.
- I do not spend much on clothing, just enough to keep me looking presentable. I do not buy office wears now.
I still own a car bought in 2009 at about $53,000 (inclusive of COE) during the Global Financial Crisis. Car expenses are a huge outlay. It takes up about 13% of my total expenses. This car has another 3 years to go. I plan to stop owning a car and take public transport in three years time.
What is worrying me?
My concern is keeping medical costs down as I get older. I spent on medical checkups, dental care, and eye health. These are at private patient rates because I am not entitled for CHAS or PGP. For major hospitalisation, I bought medical insurance and living assurance policies to help cover some of these costs. These insurance premiums cost money.
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