How a 3-room flat helped this Singaporean to retire at 35 and stop fearing retrenchment

Colin Lau, a Singaporean, achieved early retirement at 35 not through wealth accumulation, but through a radical approach to financial security after losing his teaching job. Instead of taking on a mortgage, Lau used his savings to purchase a three-room flat outright for S$87,000. He views long-term mortgages as a burden, likening it to gifting a flat to the bank over 30 years. This decision allowed him to eliminate housing debt and minimize his living costs. Lau further optimized his finances by renting out a spare room in his flat, effectively recovering the property's cost. His monthly expenses are now below S$150, a lifestyle that has drawn considerable attention and sparked online debate. The segment featuring Lau on CNA's Money Mind has garnered millions of views across platforms like YouTube and TikTok, prompting discussions on the balance between saving for the future and enjoying the present. While some commenters question the extreme nature of his frugality, others defend his choices, emphasizing personal happiness and the financial precarity many Singaporeans face with long-term mortgages.

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If you borrow money from the bank, the 30-year mortgage would mean that you buy a flat for yourself, and you buy a flat and give it as a free gift to the bank.