Can your Increment beat Inflation? - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Can your Increment beat Inflation?

Reply
 
Thread Tools
  #1 (permalink)  
Old 06-04-2008, 02:16 AM
Salary.sg
Guest
 
Posts: n/a
Default Can your Increment beat Inflation?

Channelnewsasia.com previously reported that "Singapore's annual inflation rate hit a 25-year high of 6.6 percent in January (2008)..." and that was according to official data from Department of Statistics (DOS).

I checked the recently released DOS figures for February 2008. The inflation rate was 6.5%. Contributing the most to the still very high figure are housing (8.8%), transport & communication (7.6%) and food (6.7%).

The price of rice is also set to rise. And rise fast, perhaps. Maybe that's why the government has repeatedly assured us that there is enough stock for all. "3 months at least," I heard a Minister of State say on TV.

The message is: we should not hoard rice, to avoid artificially inflating the price.

But the repeated assurances seem to make some people buy more rice!

ST reported that "Checks at supermarkets yesterday (i.e. April 3) showed that many people were not yet heeding the advice to stay calm and were buying more than usual." Also, check out these comments at StraitsTimes.com.

I then looked at the earnings growth reported in the Labour Market Report from MOM. Nominal earnings grew by 6.2% in 2007. After adjusting for inflation, the real earnings growth was 4.0%.

I'm not exactly sure how the adjustment works. But I hope it means that even with the highest inflation in years, we're generally still making enough to get by...

Was your salary increment sufficient to overcome inflation?

http://www.salary.sg/2008/can-your-i...eat-inflation/

Reply With Quote
  #2 (permalink)  
Old 07-04-2008, 12:16 AM
wait and wait---
Guest
 
Posts: n/a
Default 1315

Good work admin!

So since property and stocks rose at good double digit figures and inflation and salary increment

Reply With Quote
  #3 (permalink)  
Old 07-04-2008, 05:50 PM
wait and wait---
Guest
 
Posts: n/a
Default 1319

Dear admin,

Somehow the figures from MOM doesn't seems to be in line with real world situations. I don't doubt the accuracy though, but it may be just too vague.

I remember in the early 1990s that a MOE school teacher with a degree from NTU/NUS earns a starting pay of about $2500 to $3000. Today after > 15 years later, it is STILL about same salary.

I think $3000 a month cannot survive.

Reply With Quote
  #4 (permalink)  
Old 07-04-2008, 08:50 PM
Howcome---
Guest
 
Posts: n/a
Default 1322

If you're talking about survival, one can survive on a lot less. Did you read about a family who earns less than 1k recently? And they can still save 100 per month! Just today in the news was a family that live on a few hundreds monthly too.

I don't think the family will be able to save anymore though, thanks to the current increase in prices...

It's not only teachers too, it's the same for IT people just starting. 3k is about the norm, sometimes even less. Surely can survive but can't buy so many things anymore lah.
Reply With Quote
  #5 (permalink)  
Old 08-04-2008, 10:34 PM
wait and wait---
Guest
 
Posts: n/a
Default 1332

Yes, I think many people can survive with a $3k/mth pay. In fact those without much education or talent, $3k/mth is alot of money.

What I mean in my post is a person who spend 1/3 of his/her life studying non stop until graduated from NTU/NUS and earn only $3k a month is pathetic.
Reply With Quote
  #6 (permalink)  
Old 08-04-2008, 11:29 PM
wait and wait---
Guest
 
Posts: n/a
Default 1333

By the way, assuming this person earns $2.5k to $3k a month and wife is a housewife, they are considered "low income earner" and is eligible for additional CPF housing grant of $15k when buying resale HDB.

Which means the government categorize a person earning $2.5k to $3k a month as "Needy and need government assistance".

15 years ago earn $3k ok, today is considered "poor and needy".
Reply With Quote

  #7 (permalink)  
Old 18-04-2008, 04:35 PM
Vincent---
Guest
 
Posts: n/a
Default 1420

[Nominal earnings grew by 6.2% in 2007. After adjusting for inflation, the real earnings growth was 4.0%.]

my understanding is; adjusted = inflation x real

not

real = nominal x inflation

please correct me if i were wrong.
Reply With Quote
  #8 (permalink)  
Old 23-04-2008, 11:01 PM
Vincent (I am newbie)---
Guest
 
Posts: n/a
Default 1474

no matter what formula i used, still cannot get the above real earning growth of 4% leh, please advise what formula to use? i tried (1+nominal)=(1+real)x(1+inflation)
Reply With Quote
  #9 (permalink)  
Old 24-04-2008, 03:30 PM
admin---
Guest
 
Posts: n/a
Default 1481

Vincent, I took the 4% figure from the MOM Report. Does anyone know how they got the figure?
Reply With Quote
  #10 (permalink)  
Old 24-04-2008, 03:37 PM
Vincent (I am newbie)---
Guest
 
Posts: n/a
Default 1482

with inflation at 6.6% and nominal earnings at 6.2%, how can real growth still at so high of 4%? these days we really need to counter check the official data... *angry*
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How Not To Beat Inflation Salary.sg Investments and Net Worth 9 10-08-2011 01:09 AM
Salary Increment to be 5.2% Salary.sg Income and Jobs 0 25-09-2007 12:55 PM

» 30 Recent Threads
Comp Science Frsh Grad Salary ( 1 2 3... Last Page)
209 Replies, 7,769 Views
ST Electronics ( 1 2 3... Last Page)
1,306 Replies, 319,148 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
454 Replies, 145,665 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
3,943 Replies, 1,401,010 Views
Dsta ( 1 2 3... Last Page)
881 Replies, 602,923 Views
Career as Teacher ( 1 2 3... Last Page)
3,017 Replies, 1,889,820 Views
Job Application with MOE... ( 1 2 3... Last Page)
270 Replies, 241,600 Views
Lawyer Salary ( 1 2 3... Last Page)
10,002 Replies, 3,339,280 Views
How much do you earn and save? ( 1 2 3... Last Page)
199 Replies, 41,206 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,853 Replies, 1,239,506 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,693 Replies, 1,055,392 Views
Compare civil service salary ( 1 2 3... Last Page)
11,161 Replies, 6,216,567 Views
UOB Management Associate Program ( 1 2 3... Last Page)
355 Replies, 204,798 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
1,108 Replies, 866,687 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,562 Replies, 2,115,724 Views
How long does uob get back to you...
8 Replies, 1,383 Views
Mortgage Specialist Role.
3 Replies, 1,859 Views
GovTech career grade ( 1 2 3... Last Page)
173 Replies, 183,764 Views
High Finance Thread ( 1 2 3... Last Page)
155 Replies, 36,752 Views
Singtel Management Associate... ( 1 2 3... Last Page)
180 Replies, 104,507 Views
Starting pay for fresh uni grad... ( 1 2 3... Last Page)
67 Replies, 5,975 Views
Lonza Biotechnologist
0 Replies, 68 Views
MOH Graduate Studies Scholarship ( 1 2)
15 Replies, 16,152 Views
Third Class Honours/Second Lower... ( 1 2 3)
29 Replies, 27,392 Views
SEA Limited
6 Replies, 1,559 Views
Audit DGS
0 Replies, 76 Views
Starting new employment while...
6 Replies, 320 Views
Big4 Tax Career Prospect
4 Replies, 2,320 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 12:05 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2