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Comfortable Salary in Singapore: How Much Do You REALLY Need?

Summary

Quick Abstract

Ever wondered what Singaporeans consider a comfortable salary? We hit the streets to ask people about their income aspirations, what it takes to live comfortably in Singapore, and how long it takes to reach their financial goals. We also explored perspectives on Singaporean spending habits and offered crucial financial advice for younger generations.

Quick Takeaways:

  • Comfortable salary expectations vary widely, from $2,000 for basic living to $8,000+ for families.

  • Many aim for $5,000 - $7,000, but it depends on lifestyle and family needs.

  • Some believe Singaporeans have higher salary expectations due to the high cost of living.

  • Investing wisely and starting early are key financial advice points. Index funds (ETFs) are considered relatively safe.

  • Saving consistently and building an emergency fund are crucial habits to cultivate.

  • Many encourage learning about investing early, even if their younger selves wouldn't listen!

Salary Expectations and Financial Advice in Singapore

This article summarizes interviews conducted with people in Singapore about their salary expectations, financial habits, and advice for younger generations. The interviews explore the income needed for a comfortable life in Singapore, retirement planning, and perspectives on spending habits.

Income for Comfortable Living

Several interviewees were asked how much money they needed to earn to live comfortably in Singapore.

  • A social media manager estimated $5,000 to $6,000 per month.

  • Another individual suggested at least $2,000 to get by, with $3,000 for a more comfortable lifestyle.

  • For a family with two children, one person estimated a need of at least $8,000.

  • Another individual suggested $4,000 for a single person, potentially $9,000 to $10,000 with children and a helper.

  • One interviewee was happy with their current salary, estimating a comfortable range of $6,000 to $7,000.

  • Another family estimated $6,000 for basic living expenses, excluding a car.

Retirement Planning

The interviews also touched on retirement planning and the amount of money needed to stop working.

  • One person estimated needing $1.5 million to retire comfortably based on predicted expenses.

  • Another suggested needing "a few million" to retire comfortably and pursue desired activities.

  • One interviewee stated that half a million is enough

  • One person plans never to stop working, believing it's essential to stay active.

Singaporean Spending Habits and Expectations

The interviewees shared their thoughts on whether Singaporeans have higher salary expectations and different spending habits compared to other countries.

  • Some believe Singaporeans expect higher salaries due to the high cost of living and benchmarking against published median salaries.

  • One interviewee noted that some new graduates have very high salary expectations.

  • Others pointed out that housing costs are a significant factor influencing salary expectations.

  • Some felt Singaporeans spend more on clothes and dining out compared to people in Vietnam, the Philippines, and China.

  • However, others disagreed, stating that the wealthy in their circles tend to save and hide their wealth.

Financial Advice for Younger Generations

The interviewees offered financial advice to their younger selves. Key recommendations included:

  • Invest Wisely: Avoid FOMO and carefully select investments, considering index funds.

  • Start Early: Begin investing early and learn about different investment strategies.

  • Save Consistently: Develop the habit of saving and maintain an emergency fund.

  • Budgeting: Stick to a budget and avoid overspending.

  • Focus on Relationships: Balance work and personal life, spending time with family.

  • Learn to Invest: Don't just save, invest early.

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