Jun 21, 2016

Cory Diary : What Expenses to cut ?

Expenses have been talked about for some time among bloggers. We know saving is important. Ability to grow our income is even better. Taking care of our owns family cannot be forsaken. Neither can we do away with insurance.

What if I have multiple or huge loans and I got retrenched and I do not want it to be a life style changing event ? Here i will go about it. Total up my lifestyle expenses, work out the cash flow and finally filtered out the options.


Monthly Expenses
Parent Allowances : 600 ( at minimum )
Hospitalization Insurance : 100 ( Saving/Life $250 )
Housing Loan : $1000 Interest ( $4000 Principal ) (arbitrary)
Utilities/Telco Bills : $200
Clothing : 200
Transport : 220 (Multiple of wife/kid will roughly be a car expense )
Food : 620
Cable TV : 50
Newspaper : 30 ( Prefer to read from paper. To me is quality of life )
Hobby : 50 ( Personal Interests )
Sports : 70 ( Exercise and Meeting with Friends )
Groceries : 180

Annual Expenses
Home Decoration and Appliances : 2000 (arbitrary)
Computer and Home Equipment : 1400 (arbitrary)
Travel : 2000 (arbitrary)
Medical : 500 ( Clinic )
Special Meals : $1200

This works out to  S$3912 monthly expenses after tax to support.


Monthly Cash Flow is important because some of our investments takes a longer term return path such as housing loan and "Saving" Insurance which requires monthly payments.

-3912 Expenses
-4250 Housing loan and Insurance
+2100 CPF Deduction to support home loan assuming i have a sizeable sum of cash inside.
+2600 Dividends ( Based on my current Passive Income )

I will need income of minimum $3462 monthly to support the above if I am retrenched. Luckily my dividends and CPF buffered the problem. Can you imagine without ?

What are my other big ticket options.

  1. Find a job/ Part time that can fulfilled the gap at minimum. ie. Potential.
  2. Married a hardworking wife ie. hmmm do i have to wait till retrenched ? Married up shiok right. Not an option since this negate the problem itself even though it is an option if you have options to choose a life partner. LOL
  3. Increase my investment to double my dividends. ie Possible. Required large saving. I should work on it asap.
  4. Get a cheaper home. ie. Down grade lah. Sian man. Move it lower. "Desperate" option. Can last some time.
  5. Divest investment property. ie. Maybe can consider based on market condition. To sell at right time maybe important.
  6. Borrow from Relatives and Friends ie. Not small sum ... Matter of principle not to tap them unless i have gone through desperate measures ie. Cut expenses ... and still not enough
  7. Retrenchment Benefits. ie. Choose companies that values employee. This may mean going to Civil Service and MNC first in my early career. ie. if 1 year service equate to 1 month severance. 15 years is 15 months of salary. This can buffer many years of cash flow.


Why am I not cutting down on expenses ? Back to the top. I want to maintain my lifestyle.
Need to anticipate to avoid this decision altogether in later life because is painful after a life time of work. So it comes to Saving and getting a job options. But I can't get another job if I am still with one now. That's left with me the only Option that is Saving. Obvious enough. :(

These narrowed to a few things I could focus on.

Saving => Increase Dividends
Extravagance must be avoided in my early years. Fewer travel. No car. Take bus. Fewer restaurants. No expensive celebrations. No smoking and drinking. No gambling. No expensive clothing. Don't buy unproductive things that will be kept in the store room.

Cash Flow => Increase Dividends
No wonder there is advise not to pay up our housing loan. Is the cheapest loan we can get to bump up dividends to support it. Cash is King only when we can use it.

CPF => Buffer home payments when needed. Meantime getting good interests and additional insurances.

Retrenchment Benefits => Good benefits is important. Choose your company wisely. And use the benefits to support your dividend income when possible. The last thing we want is to spend on holiday trip unless you have enough.

What others ? Tell me leh.



  1. Good piece.

    I'm on the side that chooses to increase income rather than cut expenses. Of course, I shall not spend on unnecessary expenses as well but at some point I'd like to enjoy life more.

    1. Good choice indeed. We all have only one life here. At least one that i can remember with. :)

  2. I will zoom to reduce any unnecessary expenses like entertainment. I will try to increase my passive income.

  3. retrenchment is not 1 yr 1 month....

    1. For all intent and purpose, is to join company that give good severance pay.
      thanks for the correction !

  4. Monthly Expenses:
    "clothing" $200
    That is too much!Cut!

    Annual Expenses:
    "special meals" $1,200

    Thats $100 per month..perhaps 50% cut

    " home appliances..."
    Can be cut to zero

    And above all, get a job fast!

  5. If this article about reducing expenses i will reduce computer and home appliances some. 😅