How a regular 9-to-5 employee earns passive income for financial independence
10 Things I Do Not Spend Money On (That Save Me Thousands Every Year)
When I started my journey to financial independence at the end of 2015, I knew one thing:
I didn’t have a money-making machine yet.
But I did have something even more important – the ability to stop money from leaking out of my pocket.
The truth is, building wealth isn’t only about earning more.
It’s also about keeping more of what you earn. Every ringgit or dollar saved is a seed you can plant into an income-producing asset, whether that’s a stock, REIT, or index fund.
Over the years, I’ve learned that my spending habits are just as important as my investing strategy.
Here are 10 things I do not spend money on – choices that save me thousands every year and help me keep my dividend portfolio growing.
1. Private Cars
I don’t own a car in Singapore, it’s one of the fastest ways to burn cash here.
Instead, I take my trusty BMW: Bus, MRT, Walk.
It’s cheaper, healthier, and I don’t have to worry about COE prices giving me a heart attack.
The thousands I save every year? Straight into my dividend portfolio.
2. Latest Tech Gadgets
I’m not the guy lining up overnight for the newest phone.
I use my devices until they genuinely need replacing, and when I do buy, I choose quality, function over hype. If a device meets my needs and will last, that’s good enough – even if it’s not the “it” model of the year.
3. Daily Takeaway Drinks
I’m not a coffee drinker, but I’ve noticed how easy it is for people to spend $5–$6 a day on bubble tea, smoothies, or fancy drinks.
I stick to plain water most of the time (free at home, cheap outside).
It’s better for my health and my wallet and the savings can easily buy me a few more shares of my favourite dividend stock each year.
4. Extended Warranties
Retailers love selling “peace of mind” in the form of extended warranties.
But in my experience, most quality products don’t break within the extended warranty period and if they do, the repair often costs less than the warranty itself.
I’d rather self-insure and invest the difference.
5. Expensive Gym Memberships
Fitness is important, but I don’t need to pay $100 a month for it.
Walking, cycling, bodyweight exercises, and community sports are free or cheap.
As a bonus, exercising outdoors helps me clear my head and think about my next stock buy.
6. Designer Clothes and Accessories
I’m not trying to impress anyone with logos.
I buy comfortable, durable clothes that serve their purpose and often on sale.
It’s amazing how much you can save when you don’t shop to “keep up” with others.
7. Impulse Buys
Impulse buying is the silent killer of budgets.
I’ve trained myself to use a 48-hour rule for non-essential purchases: if I still want it after two days, I’ll consider it.
Most of the time, the urge disappears, and my money stays in my account.
8. Paid Entertainment I Rarely Use
I’m not against having fun but I don’t spend on entertainment I rarely use, like pricey concerts, theme park passes, or clubbing nights.
I prefer simple, low-cost ways to enjoy life: walks, free community events, or just spending time with family.
It saves money and keeps my lifestyle simple.
9. Unused Subscriptions
Subscriptions are sneaky because they quietly drain money month after month.
I review my recurring charges twice a year and cancel anything I’m not using regularly.
It’s like giving myself a small raise every time I do it.
10. Status Purchases
A “status purchase” is buying something purely to show others you can afford it – luxury watches, top-tier golf clubs, or flashy cars.
I’ve learned that financial independence feels way better than impressing strangers for 10 seconds.
The Bigger Picture
You might read this list and think, “That sounds like a lot of sacrifice.”
But here’s the truth: I don’t feel deprived.
On the contrary, cutting unnecessary spending has freed me from money stress and given me the resources to buy assets that make me money while I sleep.
Here’s the math:
If these choices save me, say, $1,000 a month, that’s $12,000 a year.
Invested at a modest 5% dividend yield, that’s $600 a year in passive income, for life.
And if reinvested, the compounding just snowballs.
Why This Matters for Financial Independence
When I started my journey in 2015, my dividend income was zero.
By being intentional with my spending and consistent with my investing, I’ve grown it to USD 36,000 a year by 2024, under 9 years.
That income covers my family’s essential expenses and it’s the reason I’m now the Boss of My Time.
Every dollar I didn’t spend on a “want” became a building block for the life I have now.
And the beauty is, anyone can start doing the same no matter your income level.
Final thought:
You don’t need to live like a monk to achieve financial independence.
You just need to spend intentionally, cut what doesn’t add real value to your life, and channel those savings into assets that pay you back.
Remember – your future self will thank you every time you choose dividends over designer.
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