How Much Is Enough? 5 Singaporeans Share How Much They Save Using their Paycheck

 How Much Is Enough? 5 Singaporeans Share How Much They Save Using their Paycheck

Clearly, there is no specific amount to how much you ought to save each month – the treatment depends on your financial targets.

But here's one rule of thumb that you ought to stick to: at least 20% of your income should go towards your savings. More is okay, but anything less is not advisable.

Meanwhile, a maximum of 50% should be dedicated towards necessities such as food and transportation; as the remaining 30% is going towards funding your 'wants' for example entertainment and shopping.

If you're a new comer to budgeting, this 50-30-20 guideline can easily assist you to work out how much cash you need to save.

But what percentage of us actually follow this financial rule? We ask 5 Singaporean workers just how much they sometimes save in a month.

#1 Neo Beng Kiong, 26, Marine Engineer

How much do you save in a month, and just what are your spending habits like?

Neo Ben Kiong: Like a marine engineer, I actually work onboard vessels for 8 months and spend the rest of the 4 months on land. As I spend the majority of time onboard, I don't genuinely have the opportunity to spend my money so saving becomes quite simple. I would save around 80% of my salary when I'm working onboard, and the rest goes towards my study loan, insurance coverage, family allowance, and savings.

But when I'm on leave (4 months on land), I personally don't draw any salary so I really should budget my expenses. At most, I'll splurge on a short holiday with my wife, but I see it as money well-spent as the trip counts as a way to compensate for losing quality time together.

So when have you begin saving, and do you think you're saving enough?

Neo Ben Kiong: I started saving during National Service, after i drew my first 'salary'. $500 a month wasn't a lot, and so i started saving small and gradually increased this amount when I going on my career.

Right now, I'm saving up for the renovation in my upcoming BTO. The house will not be ready in another two years' time, but we've already exercised your budget and also have decided that we'll design the interior by ourselves therefore we can save further. Afterall, anything saved is really a penny earned!

#2 Nor Akmal, 30, Police Officer

How much do you save inside a month, and just what are the spending habits like?

Nor Akmal: I only save about $300 a month right now. It isn't very substantial, but it's because I already have a solid amount of savings, worth 3 months of my salary, parked aside as my emergency cash.

Right now, my biggest monthly expense is my car. I spend slightly over $1,000 onto it each month, so that burns a significant huge hole in my pocket.

So when have you begin saving, and will you be saving enough?

Nor Akmal: I started seriously saving after i was 21. I had no financial goal in your mind at that time, however i know that I wanted to be financially capable so I can get wed and comfortably purchase a house when it's time.

I bought my first house at 26, and I'm now looking at upgrading to some bigger house because I have two kids now. Beyond the house itself, I also need to spare money for renovation and furnishing too so I definitely have to increase my savings to a minimum of $500 per month.

#3 Anmol Vaswani, 25, Video Editor

How much would you save in a month, and just what are your spending habits like?

Anmol Vaswani: I save up 40% of my pay. I don't typically spend a great deal every day – I mainly invest in food and films. However when I actually do splurge, it's to fund my travels!

So when did you start saving, and will you be saving enough?

Anmol Vaswani: I've been diligently saving in my piggy bank since I was a kid, but I only started saving seriously at 22 after i started working.

I love traveling and intend to travel twice a year – one short and long-haul trip. I'd probably need about $6,000 a year to finance this though! Aside from this, I'm also taking a look at trying to get a BTO by the coming year, so I definitely have to save up more. Hopefully 1 / 2 of my salary should suffice!

#4 Wilson Wong, 44, Marketing Consultant/Writer

How much do you save in a month, and what are the spending habits like?

Wilson Wong: I currently focus on a freelance basis, and I save roughly 20% based on my income intake. I also don't spend a lot. My expenses mostly revolve around paying bills, food and transportation.

So when did you begin saving, and will you be saving enough?

Wilson Wong: I started saving when I was serving National Service. The pay was really small in those days, but I still forced myself to set aside savings for rainy days. When I started working at 22, my savings started to grew and that i started buying insurance policies to cover my future needs.

I also hope to be financially independent – clear my debts, without having to worry about daily expenses. I'm living hand-to-mouth now, so more income is definitely better. I also hope that the profit my CPF account can comfortably see me through my retirement years.

#5 Faten Athirah, 23, Inflight Services Associate

How much do you save in a month, and what are your spending habits like?

Faten Athirah: I used to save the bare minimum of 20%, but as I was planning my wedding, I needed to literally double up and increase my savings to 40%.

I also used to impulsively look for clothes, and spend a lot on Grab rides and dining out. But now, I've managed to get a point to cut down on unnecessary expenses and save as and when I can.

So when have you start saving, and do you think you're saving enough?

Faten Athirah: I started saving proper at age 21, when I landed my the first.

But I acquired retrenched this past year since the company closed down. Losing my job in the middle of preparing my wedding was definitely unsettling when i had to foot my wedding expenses. Thankfully, I'd my savings to back me up but it quickly depleted during my 2.5 months of unemployment.

Now, the majority of my wedding expenses already are paid for so I'm focusing on saving in my upcoming honeymoon and a house instead. With one of these big-ticket expenses, I'm hoping to increase my savings to 60% of my pay.

Financial Well-Being Isn't Concerning the Size Your Paycheck

It's a typical misconception that the income level and material possessions define your wealth. But wealth isn't based on just how much you get – it comes down to how you grow and save your valuable money to satisfy your changing life needs.

The add up to cover financial needs is exclusive to every person so there is no clear-cut number, though a secure gauge would be to save 20% of the monthly income, as mentioned earlier.

If you're a high-earner, it would be wise to keep your expenses low and save a much larger number of your earnings.

On another end from the spectrum, if saving 20% of the salary seems implausible, start smaller instead. Saving something is preferable to nothing!

At no more the day, your personal saving rates are the largest element in helping you to build financial security. The point is to just start saving – no matter how small – and in internet marketing so the momentum does not get broken.

By no more the year, you could surprise yourself with how much you're able to save!

Looking For income?

If you're a Singaporean who's searching for a job but is not able to find one, Workforce Singapore might help connect you a to job you are searching for. To get going, you may make an appointment with Workforce Singapore here. Someone from the organisation provides you with a call to set up to meet up, and to link you up with the best companies and schemes that you're suitable for.

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