Case Study 1 - How Poly Lecturer became Millionaire

This is a story of how a salaried person (and his wife) managed to accumulate a million dollars in cash over just 10 years.

And he did it without playing Toto or 4D, and neither did he dabble in stocks and property.

He started his working life in the private sector. During the Asian financial crisis, he switched to teaching. That was when he started accumulating the million dollars.

As a junior lecturer, he was making close to $5k a month (polytechnics especially like mid-career entrants with a few years' experience and generally match their last drawn pay). With the 13th month bonus and a couple months of performance bonus, this came to about $70k+ in annual pay.

He also taught part-time in SIM. This gave him an additional $10k to $20k every year, depending on how many classes he took.

Over the years, he was promoted twice in salary grade. And his total annual income crossed the $100k mark.

He's now in his forties. In the past 10 years, his income averaged about $100k a year, from both full-time and part-time work.

So, in 10 years, he collected $1 million. In cash.

Now, you ask, what about expenses? Doesn't he pay bills?

Well, his wife is also working, though not making as much. As a manager in a statutory board, she's making $50k+ per annum (averaged over the 10 years). This is more than enough to cover their total spending: utility bills, entertainment, classes for kids, car loan, allowance for parents, medical expenses, insurance premiums, taxes,* and once-a-year overseas vacation. And they pay their housing loan with CPF money.

Had he invested in a condo before the recent property boom, he would have even more money.

He has a million dollars (with help from his wife). How much cash do you have?

See other case studies.

http://www.salary.sg/2007/case-study...e-millionaire/

Don't need to pay tax? CPF?

The $100K he got is after deducting CPF and taxes? Does it include bonuses?

Chris, it's before CPF and taxes. Bonuses are included.

Hi guys,
can I make a summary for this case study?

Q: How to make 1 mil in 10 years?
A: You just need to make 100k per year. 100k x 10 = 1 mil already.

Q: Don't have to spend ah?
A: His wife salary will pay for all the expenses.

Alamak... so 100k x 10 = 1 mil already.

the formula is so simple, yet so many working professionals aren't able to save enough to be called a millionaire. but what they have are nice clothes, fast cars, good food and nice photos of their travels.
i guess its a matter of choice.

Indeed if this lecturer can be so prudent and hardwork...why cannot for the rest of us for example if we fall into the high income bracket.

In fact, it is very easily achievable I will say if one's spouse can be as understanding as the case study example.

David, indeed. But one doesn't have to ask the wife to pay for all expenses. It's just one way to structure the household finances.
As long as the couple earn a combined income of $150k and save $100k every year, they'll be a millionaire (as a couple) in 10 years.

Millionaire as a couple is not difficult. Millionaire as an individual is.

Still not hard.... if you or the lecturer can save $50k/year for 20 years.