18 Nov 2024
SOURCE: The Straits Times
Pursuing a lifestyle with minimal debt has allowed private chef Kenneth Yong to focus on retirement savings and enjoying life’s simple pleasures. PHOTO: KENNETH YONG
In a cosy 360 sq ft kitchen in a Sengkang Housing Board (HDB) flat, private dining chef Kenneth Yong whips up servings of Sichuan-inspired food for up to 12 guests at a time.
The dishes are exquisitely plated, not different from what is typically expected at a high-end restaurant.
The rest of the four-bedroom flat, however, gives a hint of Mr Yong’s life philosophy – that true value lies in functionality and simplicity.
To keep their expenses low, Mr Yong and his wife Ms Laureen Goh do not own a car. They rarely eat out at expensive restaurants, and they buy only what they consider to be essentials. While some of their peers chose to purchase expensive private homes, the couple opted for a HDB flat that cost around $300,000 in what was a new estate six years ago.
At just 40, Mr Yong – better known as the Mixtape Chef – and Ms Goh, 38, live in a home that has been fully paid off.
“We made sure to purchase a home within our means. The goal was to shoulder as little debt as possible,” he says.
Free of the financial burden of home mortgage and car instalments, they can focus on saving for retirement, planning for their three-year-old daughter’s education and savouring the simple pleasures of life.
Among the few splurges the couple indulge in are experiences, particularly travel, which they enjoy. Mr Yong also finds inspiration for dishes during their travels, adding to his repertoire of recipes from time to time.
“Spending money where it matters is important to me. We may live a minimalist lifestyle, but trips together as a family, for example, bring us memories and experiences that are priceless,” he shares.
Mr Yong and his wife occasionally splurge on travel to experience new cultures, often inspiring his menus along the way. PHOTO: KENNETH YONG
Consistent saving habits
Mr Yong says he and his wife are avid savers who prioritise putting their idle cash into their Central Provident Fund (CPF) accounts because of the guaranteed, risk-free interest rates that can help them to grow their retirement savings.
Being a self-employed person and not having regular income, he decides how much to contribute voluntarily to his CPF accounts on an annual basis. This is on top of his mandatory contributions to his MediSave Account, as is required of self-employed individuals in Singapore.
“As a freelancer, my monthly income is not fixed. So, I generally try to spend as little as possible, and at the end of the year, I will portion out the excess money I have and put it into my CPF accounts to help them grow,” he says.
Ms Goh, who holds a full-time job as an analytics director, saves a fixed portion of her salary each month. During the Covid-19 pandemic, when her husband’s income dropped to nearly zero, she topped up Mr Yong’s CPF accounts to grow his retirement savings, while benefiting from the tax relief.
The couple have also transferred funds from their CPF Ordinary Accounts, which offers an interest rate of 2.5 per cent per annum, to their Special Accounts to benefit from the higher interest rate, which is currently 4.14 per cent per annum.
“Ideally, our bank and CPF account balances should be increasing every month. This is how we know that we are on the right track,” says Mr Yong.
As a freelance private chef, Mr Yong’s monthly income is dependent on the number of dinners he hosts. PHOTO: KENNETH YONG
Preparing for the unexpected
Mr Yong held a full-time job in the fast-moving consumer goods industry for eight years before setting up the Mixtape Chef in 2015. In preparation for the switch, he made sure he had enough savings to cover one to two years of expenses in case the business failed to take off.
The habit of being prepared for emergencies meant the family always had a financial buffer. Crisis hit the family when Ms Goh suffered a stroke in 2022. Fortunately, Ms Goh’s medical bills were taken care of by her employer’s insurance. She has since fully recovered, but the scare reminded the young family of the importance of having insurance coverage.
Says Mr Yong: “Having enough savings to tide over rainy days is important… because you never know what’s going to happen to you.”
The event also taught them to be grateful for life’s simple pleasures.
“Spending a day at the beach with our dog or enjoying a family meal – those are the little things that bring me the most happiness,” he adds.
Planning for retirement
Mr Yong splits his time between cooking for his family and preparing for his private dining sessions. Focused on pursuing a purposeful life, he sees himself running his private dining business well into his 50s and possibly diversifying into related areas such as content creation and recipe consulting.
The ideal retirement lifestyle, he says, would be “to do what you want and not what you don’t want… In some way, I think I’m living that life at the moment.”
To Mr Yong, quality time spent with the family is what brings him the most happiness. PHOTO: KENNETH YONG
He shares that his wife’s stroke has reminded him to be proactive in pursuing what he wants in life.
“Those part of the Fire – financial independence, retire early – movement seem to assume that health and life goes according to plan. But I’ve learnt that life can throw major curveballs at any time. It’s better to enjoy the present because it’s the only thing that truly matters,” says Mr Yong.
He adds that keeping debt to a minimum and having extra funds set aside for a rainy day help him maintain a state of financial calm. This is also the reason why he will not buy a second property even if his finances allow him to do so.
“Having no debt can free you to do what you truly want in life,” he says.
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Source: The Straits Times © SPH Media Limited. Permission required for re-production.
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