I am sure you have heard of the phrase "Living Within Your Means" countless number of times. Every time you are in the throes of a financial crisis, the above phrase will undoubtedly be the most popular advice thrown at you. It has been said that if you "live within your means", you will not encounter any financial problems along the way. Frankly, I think the phrase is utterly and seriously misleading. If you continue to "live within your means" be rest assured, you are heading for a disaster, a catastrophe.
If you really want to have a comfortable life after retirement, then "living within your means" is insufficient. "Living within your means" will only sustain you temporarily without having any surplus for the future. You have to go way below, may be 40% less than what you can really afford. May be the following examples will help to illustrate my theory.
If you can just afford a Mercedes, then go for a Honda Accord or anything else in that category.
If you can just afford a Honda Accord, then go for a Perdana.
If you can just afford a Perdana, then go for a Wira.
If you can just afford a Wira, then go for a Kancil.
If you can just afford a Kancil, then you have to consider a Modenas.
If you can just afford a Modenas, then you have no other choices but to opt for public transpotation.
Believe me, if you follow the above rules, you are on your way to a comfortable and financially rewarding future. Of course the rules must apply to everything, both material and sevices. If you can afford a 5-star hotel, go to a 3-star. If you can barely afford a private doctor, go to a government clinic.
The choice is yours. If you feel that it is too humiliating to stoop so low, then go ahead, go "live within your means". You'll be doomed. I am not trying to be sarcastic or cynical. My intentions are sincere and honest. Remember, it is never too late to start. Good Luck.