“I wasn’t a financial genius. I was a man who woke up to a 5:37 AM alarm for 32 years, focused on the job, and paid the bills. But I discovered that the CPF system rewards the worker who simply stays the course.”
The ‘Aha!’ Moment of an Ordinary Worker
For over three decades, I lived a very simple life in Singapore. I endured the 80-minute commute, did my work, and managed my household. Like many of you, I didn’t have a grand investment strategy. I was just ‘working and working.’ In fact, for years, I would see the paper statement in my mailbox, take a quick glance at the numbers, and throw it away. I didn’t realize that while I was busy working for money, my money was busy working for me.
Then came the wake-up call. When I finally logged into the CPF Mobile app, I was shocked to see $623,286.72 in my Ordinary Account (OA). How did an ordinary worker like me end up with over half a million dollars in a single account? The answer wasn’t luck—it was a ‘Sit and Forget’ system that I finally decided to pay attention to.
1. The ‘Sit and Forget’ Wealth Builder
As an engineer, I appreciate systems that don’t require manual intervention. Most people fail at investing because they ‘itch’ to touch their money. The CPF system is the ultimate Psychological Fortress because it forces you to be disciplined. You cannot ‘panic sell’ your OA during a market crash.
By simply being a consistent worker, I allowed the 2.5% interest to compound quietly. To some, 2.5% sounds small. But on a balance of over $600,000, that 2.5% generates over $15,000 a year in ‘Ghost Salary.’ That is more than $1,200 a month for doing absolutely nothing. This realized income is what gives me peace of mind—it’s the liquidity that backs up my retirement payouts.
2. Breaking the $100,000 Barrier
In the beginning, it felt like the needle wasn’t moving. For the first 10 years, my HDB mortgage was eating up most of my contributions. This is where most people give up and start complaining. But there is a “tipping point.” Once you cross the first $100,000, the interest starts to do more work than your actual salary contributions. Today, this “engine” is fully built and runs untouched.
3. Why I Valued Interest Over the “Joneses”
In my 40s, I felt the pressure to upgrade to a condo or buy a luxury car. It is easy to feel ‘poor’ when you are an ordinary worker. But I realized that a car is a depreciating asset that causes stress, while my CPF is a guaranteed appreciating asset that removes stress. I chose to keep my lifestyle modest, allowing my CPF to grow. Today, the ‘slave worker’ has earned his freedom.
4. Why the 2.5% Rate is the Working Man’s Best Friend
Younger people often mock the 2.5% OA rate. They want 100% in Crypto or risky stocks. But as someone who has lived through 32 years of market ups and downs, I know that Risk is the enemy of Retirement. My $623,000 is safe. Whether there is a global pandemic or a crash, that interest is guaranteed. I am not trying to be the richest man in the cemetery; I am trying to be the most relaxed man in the park.
Conclusion: Your Journey Starts Today
I am just an ordinary person who followed a simple plan. Start today by looking at your housing expenses. Can you leave more in your OA? Can you ignore the pressure to upgrade? The habit you start today will be the “salary” you receive in your 60s. Be safe, and save well.
Next Step in the Blueprint:
Protecting your OA is only half the battle. Read how I used a $187k Housing Refund to stop the interest “leak” and secure this balance.
