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Author: Credit Bureau Singapore
Globally, research has shown that millennials do not believe that they will ever be able to afford assets such as a car or a house within their lifetime. This belief has thus resulted in a millennial-only behaviour – affordable luxuries.
An affordable luxury is a product that a millennial can afford, which allows a taste of the lifestyle that is out of reach for them. Examples of this would be gourmet coffee, or expensive scented candles. This sort of lifestyle is understandable. However, we also believe that money spent on these luxuries could be better put into saving for the future.
Let us illustrate:
Starbucks VS Kopitiam Coffee
A Grande-sized coffee black at Starbucks would set you back at$3.70. The same drink from the Kopitiam would be $1.20. That’s a saving of $2.50. If you are getting a drink every day, that would be $75 saved in a month!
An Upscale Gym VS ActiveSG
A single entry pass to any upscale gym could cost anywhere from $8 – $20. Comparatively, a visit to the government-funded ActiveSG gym is only $2.50 per entry. What’s even more impressive is that if you sign up for an ActiveSG account with your SingPass ID, you would get $100 credit.
Assuming you visit the gym once a week, this means that you’d save anywhere from $22 to $70 within a month.
Eating Out VS Packing Lunch
If you’re working in the Central Business District, lunch could cost you anywhere from $3 to $30. On the other hand, packing lunch could cost as low as $2! This would mean that you can save anywhere from $5 to $28 in a week.
Paying for Entertainment VS Going for Free Events
Despite being a tourist destination, Singapore actually has many activities that you can take part in for free! Instead of spending $13.50 on a weekend watching a movie, you could easily choose to attend a free event, such as free movies at Palawan Green, to free live performances at the Esplanade or even some galleries that are free all year round at Singapore museums.
Taking Grab VS Taking Public Transport
Assuming an average Grab trip costs $15 and you are constantly taking it to and from your destination on a daily basis, you would be spending a minimum of $210 every week. In a month, you would be spending approximately $900. On the other hand, public transport would only cost you $120 a month on concession. This means that you’d be saving $690 a month!
Putting It All Together
Choosing to splurge can sometimes seem like a minimal thing. Choosing a cup of Starbucks over the Kopitiam Uncle’s coffee may not seem like a huge difference at first. However, when we put it all together, you could save up at least $824.50 a month, and that’s easily $9894 in a year!
The small things do add up. An additional $9894 a year could be put to your retirement, paying off debts or even saving up for a big holiday with friends or family. When you think about it like that, it definitely makes splurging seem like the lesser option.
So, start picking the cheaper alternative. It will all add up to something big!
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