Sorry for the clickbait-y title but what I’m about to say is actually quite true for almost anyone in Singapore with a half-decent job and of at least lower-middle to a middle-class family background.

And to show you that’s entirely possible, I present exhibit A- (although most Singaporeans in the financial blogging community probably already know) Mr. 15-hour-work-week (15HWW).

Mr 15HWW recently wrote a post, summarising his 7 years (so far) in investing and it shows you exactly how (link here) most middle-class people around the world actually accumulate a decent amount of money.

If you read his post, you’ll realise that for two people in their mid-30s (counting both Mr and Mrs 15HWW they pooled their resources together), they have accumulated a six-figure portfolio that is probably the envy of even some Singaporeans who should be retired or are near-retirement. The sum doesn’t include their CPF or their home*.

For many younger people about to enter, or just in, the workforce, a six-figure sum is something that seems out of reach but many people have been there and done that. More importantly, Mr 15HWW’s post reveals that it doesn’t take a genius to do it.

His returns in the market were only about 6% p.a., something that you could easily replicate if you blindly invested in an index-tracking ETF such as the STI ETF or the SPDR’s S&P 500 ETF.

The bulk of the increase in their wealth came from an amazingly high rate of savings. I really take my hat off to Mr and Mrs 15HWW because my own savings rate is nowhere near theirs. If it was, my portfolio would probably be 25% larger than it is now.

Most people think investing is complicated or they try to aim for the stars but very often, a simple investing plan of (a) saving a lot of money, (b) investing it and (c) letting it compound will lead to wealth that most people can only dream of.

So why do most people fail to get there?

Well, that’s another story for another time.


*You will be surprised at how many people are counting on their CPF to retire and how the government is encouraging a reverse mortgage on your HDB flat**.

**Ok, technically it’s a lease buyback scheme which means the HDB pays you to stay in the flat that you’ve already fulled paid up for. And I can see the merit in the argument that you might as well monetise an asset that you can’t take with you to the grave. Also, since HDB flats are on 99-year leases, handing it down to beneficiaries when you pass away means that the asset may not be worth much when it’s passed on.