Whats your net worth

Originally Posted by Wiseman1

Hahaha, you are being really naive, this is Singapore, a land of ever rising prices, do you really think you can save up to 50% of your incomes???

If you drive and own private property, there is no way you can save 50% of your income. And people expect you to drive nice cars and upgrade houses all the time in this silly land

Again, those folks here, they say their cars and houses are fully paid up before they turn 40 and yet still have 0.5 million to 1 million in cash balances, bloody bull-shitters......dont include parents' monies...this is substandard

You make 200k a year, you can't save 100k?

Many people making 80k a year can save 40k.

It's a lifestyle choice. 100k expenditure is a lifestyle that's already beyond majority of Singaporeans.

Originally Posted by Unregistered

You make 200k a year, you can't save 100k?

Many people making 80k a year can save 40k.

It's a lifestyle choice. 100k expenditure is a lifestyle that's already beyond majority of Singaporeans.

I can absolutely vouch for what the thread previous poster has said as I'm in almost the exact situation, with very similar savings. Your example above, while I do not doubt, is simplistic.

Key differences between a $80k salary and a $200k salary are:
- higher taxes
- higher parental maintenance obligations
- lack of govt incentives/subsidies
- lifestyle differences

You have only assumed that lifestyle differences is the only difference, which is simplistic. Let's take your $80k saving $40k example.

Let's say the person earning $200k had the exact same spending. He will also incur about $15k more taxes and about $24k more in parental allowances (I pay about $3k plus in total to parents and parent in law and I assume the $80k family pays $1k plus). So without accounting for lifestyle differences, the $200k person is already spending $81k while the $80k person spends $40k. Add in private housing (or resale hdb as I'm above salary limit for new hdb), small car etc and u can see how expenses quickly add up.

Originally Posted by Unregistered

I can absolutely vouch for what the thread previous poster has said as I'm in almost the exact situation, with very similar savings. Your example above, while I do not doubt, is simplistic.

Key differences between a $80k salary and a $200k salary are:
- higher taxes
- higher parental maintenance obligations
- lack of govt incentives/subsidies
- lifestyle differences

You have only assumed that lifestyle differences is the only difference, which is simplistic. Let's take your $80k saving $40k example.

Let's say the person earning $200k had the exact same spending. He will also incur about $15k more taxes and about $24k more in parental allowances (I pay about $3k plus in total to parents and parent in law and I assume the $80k family pays $1k plus). So without accounting for lifestyle differences, the $200k person is already spending $81k while the $80k person spends $40k. Add in private housing (or resale hdb as I'm above salary limit for new hdb), small car etc and u can see how expenses quickly add up.

Then don't earn so much.

Imagine a minister telling us he's suffering due to his high pay.

Originally Posted by Unregistered

Then don't earn so much.

Imagine a minister telling us he's suffering due to his high pay.

There's a reading comprehension gap here.

The poster above is obviously not saying its better to earn $80k than $200k.

What's being said is that saying that someone earns $80k can spend only $40k is effectively equivalent to someone earning $200k and spending $80k.

Its a different perspective, but I can definitely see how that can be.

Originally Posted by Scholar

There's a reading comprehension gap here.

The poster above is obviously not saying its better to earn $80k than $200k.

What's being said is that saying that someone earns $80k can spend only $40k is effectively equivalent to someone earning $200k and spending $80k.

Its a different perspective, but I can definitely see how that can be.

And the 200k guy will still have 120k to save. So what is the issue?

Originally Posted by Unregistered

And the 200k guy will still have 120k to save. So what is the issue?

Thanks Scholar. Good summary.

The issue is that the example provided ($80k saves $40k, so why can't $200k save $100k, implying "gosh you must have no self control in respect of lifestyle spending") is flawed, misleading, and simplistic.

The examples cited (tax and parental obligations) are just obvious example. Lets go into lifestyle differences:-

- Small car ($1,500 to $2,000 per month, including road tax, insurance, petrol and parking)
- House ($3.9 to 4.4k per month for 80% mortgage on $1mn property for 20y assuming 1.5 to 3% interest rates, which is about $2.9 to 3.4k per month more than the $80k guy staying in a HDB flat from the govt where I assume monthly payments are $1k)

Hence, you are talking about $4.4k to 5.4k per month more ($53 to 65k), just on very basic lifestyle choices (not BMW or city condos).

I am not saying "woe is me, look at my expenses" here, but all I am saying is, if you want to have an intelligent discourse, please engage on the same level. No point throwing out random numbers.

Originally Posted by Unregistered

Thanks Scholar. Good summary.

The issue is that the example provided ($80k saves $40k, so why can't $200k save $100k, implying "gosh you must have no self control in respect of lifestyle spending") is flawed, misleading, and simplistic.

The examples cited (tax and parental obligations) are just obvious example. Lets go into lifestyle differences:-

- Small car ($1,500 to $2,000 per month, including road tax, insurance, petrol and parking)
- House ($3.9 to 4.4k per month for 80% mortgage on $1mn property for 20y assuming 1.5 to 3% interest rates, which is about $2.9 to 3.4k per month more than the $80k guy staying in a HDB flat from the govt where I assume monthly payments are $1k)

Hence, you are talking about $4.4k to 5.4k per month more ($53 to 65k), just on very basic lifestyle choices (not BMW or city condos).

I am not saying "woe is me, look at my expenses" here, but all I am saying is, if you want to have an intelligent discourse, please engage on the same level. No point throwing out random numbers.

I think your main point is that lifestyle costs grow non-linearly.

My counter is that: even so, you are still better off with an upgraded lifestyle, and a likely higher level of saving (comparing in absolute terms).

Simple example: 80k guy saves 40k and lives a HDB lifestyle, while 200k guy leads a condo lifestyle spending 120k (3x that of poorer guy) and still saves 80k (double the poorer guy).

My main point is you're already much better off, so don't be petty and pay your taxes.

[Wiseman1]

You guys are all going out of point. We are not discussing how a guy earning 200k annually should spend his money.

Basically, the bottom line it is not possible to still have $500k - $1m savings if you are earning only $200k a year, not even touching age 40 and have paid up your housing loans. Alot of the folks here are talking up their weath for whatsoever silly reasons but you are misleading and demoralising the younger folks with lower incomes.

And please do not inlcude inherited houses or cash from parents when sharing your net worth.....this is substandard

My good friend Nat saves $1m every 3 months. He doesnt spend a cent. Everything is provided for.

Originally Posted by Unregistered

Stocktake 1 mth later
Age: 30
Property: Condo (1M value now. Outstanding loan 455k)
Cash: 90k
Stocks: 5k (sold almost all, convert to cash)
CPF: 40k (OA & SA)
Income: 5.1k monthly

Stocktake 2 mths later
Age: 30
Property: Condo (1M value now, Outstanding loan 451k)
Cash: 94k
Stocks: 5k
CPF: 41k (OA & SA)
Income: 5.2k monthly
Still no car, no kids, and rather frugal in lifestyle.

Looking back, it was a mistake to sell my shares. But I am still bearish on the economy.
In a few months time, will have 100k in cash. Should I buy a car, invest in overseas property, buy some high dividend stocks, or wait for a better opportunity?

What would u do with 100k?