The longer I track our income and expenses, the more I start to realise that the most effective way of building wealth at our age is to increase income. Reason being the limits to how much we can reduce expenses by are greater than how much we can increase income by.
Increase Income > Reduce Expenses
At this stage, our savings rate is 40% i.e. monthly cash savings of S$4,800. To achieve a 10% reduction in expenses to boost the savings rate to 50% i.e. monthly cash savings of S$6,000, we will have to restructure our spending and lifestyle. This is a painful process and I don't see that happening unless there is a "trigger event" i.e. something drastic happens to force us to reduce our expenses.
By the way, a common suggestion is to cut morning coffees, work lunches, drinks and dinners. Based on our experience in the banking and accounting industries, this is not a ......