How much are you earning per annum?

Jonathon Kwok wrote an interesting article in today's Sunday Times on why it was hard for the older generation to break the habits of being thrifty even though they can afford to live in a little more luxury, and on the other hand why the younger generation do not think twice about splurging when they should be saving up for their future.

I found the article accurate for me. 10 years ago, when my wife and I were 45, we told ourselves we would buy a Merc or BMW if we could save $150k for that year to reward ourselves. We achieved that savings target but decided maybe let's see if it was repeatable. To cut a long story short, it has been 10 years since, our savings have averaged $200k pa, we hit $300k pa saving the last 2 years. And we are still driving jap cars. So when we see people driving Merc and other conti cars, our first impression was that these people must be earning a lot! But as I gather from the many postings here, they aren't really earning that much, but just that they are more willing to splurge.

I am not saying the young are all reckless with their money. It just that these days the young earn a lot more early in their careers and thus are more willing to spend. They are also buying condos at an age when we were happily living in our HDB.

Originally Posted by Unregistered

Single woman, 47, working a Senior manager in large US MNC, earns $200k pa
Paid up condo worth $2mil, paid up Beemer520
Looking forward to my retirement in 8 years time.

Youngsters nowadays are more capable than you. Many youngsters nowadays earn $500k pa per person easily, so their family income is $1m pa, so buying a Merc or BMW is actual no big deal.

Originally Posted by Unregistered

Jonathon Kwok wrote an interesting article in today's Sunday Times on why it was hard for the older generation to break the habits of being thrifty even though they can afford to live in a little more luxury, and on the other hand why the younger generation do not think twice about splurging when they should be saving up for their future.

I found the article accurate for me. 10 years ago, when my wife and I were 45, we told ourselves we would buy a Merc or BMW if we could save $150k for that year to reward ourselves. We achieved that savings target but decided maybe let's see if it was repeatable. To cut a long story short, it has been 10 years since, our savings have averaged $200k pa, we hit $300k pa saving the last 2 years. And we are still driving jap cars. So when we see people driving Merc and other conti cars, our first impression was that these people must be earning a lot! But as I gather from the many postings here, they aren't really earning that much, but just that they are more willing to splurge.

I am not saying the young are all reckless with their money. It just that these days the young earn a lot more early in their careers and thus are more willing to spend. They are also buying condos at an age when we were happily living in our HDB.

When money comes easily people are willing to spend more, most people don't really break down their cash flow to analyze their dependencies when splurging. Only when they lose those dependencies then they start to panic.

That said some people need the recognition among-st their peers whilst others have no need for that, in Singapore society the need to be recognized runs quite high so a number of young people do over leverage themselves to buy a nice car. I know a guy a Porsche but stays at his parents HDB.

I was brought up in a thrifty environment so although I could go out and buy a nice new car for myself I hesitate just because I feel the money can multiplied if put in the right areas.

Don't worry about the others we're not in a envy game here, just be concerned about clearing your cash flow dependents.

Originally Posted by Unregistered

Jonathon Kwok wrote an interesting article in today's Sunday Times on why it was hard for the older generation to break the habits of being thrifty even though they can afford to live in a little more luxury, and on the other hand why the younger generation do not think twice about splurging when they should be saving up for their future.

I found the article accurate for me. 10 years ago, when my wife and I were 45, we told ourselves we would buy a Merc or BMW if we could save $150k for that year to reward ourselves. We achieved that savings target but decided maybe let's see if it was repeatable. To cut a long story short, it has been 10 years since, our savings have averaged $200k pa, we hit $300k pa saving the last 2 years. And we are still driving jap cars. So when we see people driving Merc and other conti cars, our first impression was that these people must be earning a lot! But as I gather from the many postings here, they aren't really earning that much, but just that they are more willing to splurge.

I am not saying the young are all reckless with their money. It just that these days the young earn a lot more early in their careers and thus are more willing to spend. They are also buying condos at an age when we were happily living in our HDB.

Old couple in our mid 50s. Our children are grown up and they are financially independent.
We stay in our HDB flat which we bought many years ago. We plan to retire next year. Our stocks portfolio now gives us a passive income of $40k pa. This is more than enough. As a couple, we only need $30k pa because we are debt free, no car, no maid, don't gamble, don't smoke, don't drink. Our children gives us $1k pm or $12k pa in total, so our income is $52k pa while our we spend $30k pa. We save $22k pa. When we reach 65, we will get our CPF Life payout of $1000 pm. This means another savings of $24k pa.

Originally Posted by Unregistered

Married couple, 48, 49, with two teenage kids.
Lower middle class family.
Annual income, $152k pa. Annual savings, $35k pa.
Home is a condo, worth $1.2m, paid up.
Transport is a Korean car, paid up.
Cash/CPF/ stocks, $400k.
Total net worth, $1.6m.

We like the advice of someone here who gave us the
idea of selling our condo and buying a HDB studio flat
when we retire. We then can travel the world to live
in different cities every few years. This is exciting.

I heard you only need $1000 per month to retire
well in Chiang Mai.

I think you are def not lower middle class. You have a fully paid home and car and net worth >$1m. You are upper middle class.

54/55, $190k pa.
Condominium unit in a prime district, worth $1.8m, paid up.
German car, paid up.
Cash/CPF, $700k.
Total net worth, $2.5m.

Planning to retire next year. Will sell condo and buy a 5 year old 4 room HDB flat costing $400k (near MRT station) in OCR. Will sell car too. Will invest about $2m cash in high dividend yield stocks, getting $100k pa dividends. When we reach 65, we will get an extra $28k pa from our CPF Life retirement account.

Originally Posted by Unregistered

Married couple, 48, 49, with two teenage kids.
Lower middle class family.
Annual income, $152k pa. Annual savings, $35k pa.
Home is a condo, worth $1.2m, paid up.
Transport is a Korean car, paid up.
Cash/CPF/ stocks, $400k.
Total net worth, $1.6m.

We like the advice of someone here who gave us the
idea of selling our condo and buying a HDB studio flat
when we retire. We then can travel the world to live
in different cities every few years. This is exciting.

I heard you only need $1000 per month to retire
well in Chiang Mai.

The median family income in Spore is $7,870 (source: ://.singstat.gov.sg/Publications/publications_and_papers/household_income_and_expenditure/pp-s20.pdf)

Hence, with your $12.2K/mth salary, you are doing very well as compared to the general population in Spore. Thus, you belong to the upper middle income group in Spore, NOT lower middle income.

Then again, congratulations on being debt-free! My advice to you is NOT to sell your condo. For I believe it will serve as a good source of passive rental income for your retirement. Yes, there are many people thinking of retiring in Chiang Mai for S$1k/mth. Speaking from experience, I grew up in Thailand due to dad seconded there for work. Without the ability to converse in Thai, it will be very difficult to live/retire; would strongly encourage you to start learning Thai (basic conversation skills will suffice). Additionally, plenty of people does not consider their health upon retirement. Do bear in mind the increase in frequency to hospitals/ clinics for check-ups etc. (of course I wish you to be in the pink of health). Trust me, all other hospitals in Thailand, except the bumrungrad hospital in Bangkok (I have been admitted there and other hospitals) staff can understand/speak English.

Originally Posted by Unregistered

54/55, $190k pa.
Condominium unit in a prime district, worth $1.8m, paid up.
German car, paid up.
Cash/CPF, $700k.
Total net worth, $2.5m.

Planning to retire next year. Will sell condo and buy a 5 year old 4 room HDB flat costing $400k (near MRT station) in OCR. Will sell car too. Will invest about $2m cash in high dividend yield stocks, getting $100k pa dividends. When we reach 65, we will get an extra $28k pa from our CPF Life retirement account.

Congrats! Care to share if 1) you have any kids? 2) what sort of high dividend yield stocks you looking at?

25 yrs old

Trader (not prop. trader)

$68k pa (basic, not including bonuses)

53 single income. 340k pa, net worth 3.2M. Condo 2m, jap car all paid up. Plan to retire at 58.