Frugality fails to build wealth? Saver avoids dining out for 7 years to save $1.15m, but inflation bites

A Hong Kong resident recently shared on social media that he saved HK$1.15 million over seven years by keeping his monthly living expenses below HK$9,000 and cutting out unnecessary expenses such as dining out, travel, new clothes, taxis and even store-bought coffee.

The poster, who earns HK$28,000 a month, calculated that inflation had eroded the purchasing power of his savings by nearly 20 percent over the period. He said the interest earned from leaving the money in a bank account was negligible.

He said his quality of life had suffered for seven years, and he had merely kept pace with inflation rather than building wealth.

He noted that acquaintances who used loans, invested, or leveraged their capital had accumulated significantly more assets, prompting him to question: “Does being frugal really make you wealthy?”

The post drew mixed responses. Some users offered encouragement, saying that saving HK$1 million provided a foundation for future investments and that without saving, he would have nothing. Some also praised him, saying that “Saving a million in seven years is already a huge achievement.”

Other social media users said the poster's mistake was not frugality but failing to invest. They said frugality is necessary for building wealth but not sufficient on its own. However, some users warned against using leverage, saying that speculative gains made outside one's expertise are often quickly lost.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓