After much heated discussion over middle class families reporting that they are still broke with an income of HK$70,000/month, another middle class family came forward and reported how they manage to support their family of four on an income of HK$90,000 a month, of which nearly half goes into savings. They even manage to go on vacation four times a year, spending HK$20,000 on each vacation, and said that they feel like they have more than enough to spend on food and clothes.
36-year-old Matthew is a stay-at-home father. According to him, the key is to spend money on assets that rise in value rather than paying off debt. Since 2005, Matthew relied on working and investing to save HK$600,000 for a down payment on a home. As property prices increase, he renovated and sold the home and at one time, he had three properties worth HK$30 million. After his two sons were born, he became a stay-at-home father. The family does not hire a domestic helper and Matthew has a passive income of HK$15,000 from his investments while his wife brings in HK$35,000 a month from a full time job. Another HK$40,000 comes from rental revenues, making the family’s total income HK$90,000/month.
A look at the numbers: the family spends HK$12,300 on their mortgage, HK$5,000 on supporting their parents, HK$5,200 on their kids’ school fees, about HK$10,000 on food and utilities. They even budgeted HK$2,000/month for personal growth classes and sock away HK$6,700 a month for vacations. This adds up to about HK$45,500 of expenses a month, leaving them HK$44,500 to save and invest.
If you are still dreaming of getting rich with a lucrative business deal or winning the lottery, forget it — this proves that slow and steady wins the race!
Source: Sky Post
Photo: Mitch Altman, Flickr
