Lost Millenial in Singapore

[Bandoo]

Hi everyone, I'm a 26 year old from Singapore (aka the World's most expensive city), not married, have a bf. Currently, I've been quite "disengaged" at work, which is why I've been reading up on FIRE.

Below is my current financial situation (in Singapore Dollars):

Gross yearly income: $64K (inclusive of 1 month of guaranteed bonus and 3-4 months' variable bonus based on my performance and the economy)
Side Hustle: $100-200/month

Fixed Costs

• Annual tax: $670 (I get tax rebates as my mother is not working and I'm staying with my parents)
  CPF (similar to 401K): 20% of income (mandated by the Government. My employer matches 17% for my 20% contribution.)
  Mother's allowance: $300 per month (will be increasing to $400/month next year if I get a 5% pay raise this year.)
  University loan: $16K, with no interest (I'm currently paying the minimum of $100/month. However, the loan is up this year and I will do a lump sum payment.)
  Insurance: $995 per year (I can claim $700/year from my employer to offset my insurance.)
  Professional License: $250/year
  Phone bill: $67/month (already discounted by 30% as I am on the corporate plan. Waiting for my boss to approve my mobile claim which will reimburse $40/month)
  Public transport: $80/month (bare minimum for commuting to work)

Expenses

• Clothes: $100-$200 per month (trying to cut down on this as I have way too much clothes)
  Eating out: $120/month
  Gifts/weddings etc: Averages out to be ~ $70 per month (I give $150 for weddings which is the norm in Singapore.)
  Doctor/Medicine: $15/month after company's co-payment (My employer co-pays 85% of the doctor's bills and medicine)
  Exercise class: $24/month after Govt subsidy (for 4 classes per month. 30% subsidized by Govt's $100 incentive for exercising. I have almost exhausted this though.)
  Skincare: $164/month
  Travel: Averages out to be ~$583 per month (I like to take at least 2 mid-long distance trips to other countries per year. This is not inclusive of short trips to Malaysia/Indonesia throughout the year. Singapore's just too small! I don't want to cut down on my travelling, its my motivation for working)
  

My savings rate currently hovers about 60%.

Savings in bank: $97K
Investment in ETF: $5500

Would like some advice, please. I kinda feel like I am hoarding too much cash in the bank? What would be a good proportion to invest?

Also, currently quite disengaged at work - work is ok-ish, colleagues are ok but I am feeling bored and unmotivated. The plus point is that there's quite a few lull periods through the year when I am quite free at work and it has good benefits e.g. able to claim for many things and workplace gym. Wondering if I should change jobs or use my free time to start another side hustle.

Third issue that I quite need advice on - I may be purchasing a flat with my bf in future. He has a taste for expensive tech gadgets, saves approx 16% of income, thinks FIRE is for lazy people and has a car (a very normal car costs $100K in Singapore, not including parking, petrol, maintenance, insurance etc which are also expensive in Singapore). His savings is half of mine despite his pay being 40% higher.

Our combined salary exceeds the ceiling for subsidized public housing. As such we will have to purchase a flat from the private or resale market. A 1300sqf flat in a non-prime area costs $550K onwards and is only a leasehold (i.e. the flat will be returned to Government after the lease is up and you will get nothing. Usually flats on the resale market will have about 60-70 years left. I'm quite scared that I will outlive the flat). Freehold, private apartments tend to be smaller in size and cost $1-2 million. Both these figures look above the amount we can afford and will possibly push back my FIRE till I'm very old (which is not what I want...). Renting in Singapore will cost about the same as the mortgage so we might as well buy a flat. :(
This is also one of the main motivators for increasing my income/cutting spending...

Would appreciate any advice, please!

[GuitarStv]

You're spending an astounding amount on clothing, weddings, eating out, travel, and whatever 'skincare' is.

You should invest almost all of your saved money that's currently wasting away there in your bank account, keeping just the bare minimum to meet your bills.

It sounds like your version of 'buying' is actually just long term rent.  I don't see a point in taking out a mortgage on a place that you don't own at the end.

[ysette9]

I don’t have any comment on your spending, but your future with your boyfriend really concerns me. Do not get married or move in or buy property with someone who doesn’t share your values on money. This is fundamentally an expression of what is important to you in life. You want to retire early and travel and don’t place as much emphasis on material goods. He doesn’t care about early retirement and does care about material goods and consumerism. You have to bridge that gap before moving forward with anything else. I see your goals and dreams being severely compromised if you partner with this person.

There are lots of people on this forum who will attest that being partnered with someone who doesn’t share your money goals is very costly while marrying someone who does share your goals is a big accelerator to reaching FI.

[asosharp]

1) Cut down on your clothing expenses, skincare (what kind are you using anyway that costs so much?), travel less. The problem with Singapore is that although it is a flight hub, it's not really near anywhere except for Malaysia and Indonesia. Even then, I discovered that many Singaporeans use Ctrip or other websites that are more expensive.

2) Your savings rate seems fine, but if you cut down at least on the trips, clothes, and non-essential skincare (i.e. not medical must haves or general skincare) then you should be fine.

3) You are hoarding way too much in the bank considering the interest rate in Singapore is something ridiculous like 1.5%. That said, you probably need to save up for a flat (see point 6).

4) If you feel bored and unmotivated you may need to talk to your boss / actually step up so you can move higher up. If not, then your options are to change your job or focus on improving your side hustle. That's up to you.

5) Your boyfriend is going to let you down with his spending habits. First of all, you don't need a car in Singapore. Even if you have one, the fact is that it is expensive to get and maintain. Would I be right by saying he's quite kiasu? Regardless, ysette9 is right. Because you have different money mindsets, if you feel that FIRE is a key goal then he really will let you down and it will create a rift between you two. Sharing values is important in a relationship because if the key ones aren't shared it will not only be very difficult bu if you have children together they won't know what they're supposed to believe. That goes with anything - money mindset, how to treat people, etc.

6) There is a reason why leasehold is so much cheaper... it's because the resale value is also low .That said I know that freehold does cost a bomb.

I know you're still young, is there any reason why you want to buy with your boyfriend? Do you intend to get married and buy a property together in Singapore. IMO you have 2 choices:
A) Wait your turn for the HDB flat, single name only. Yes I know, you have to wait until you're 35. But if the guy doesn't share key values and goals maybe he's not the right man for you.
B) If you intend to be with him for the very long term and the money mindset and other values are not an issue then buy the leasehold. Aren't there any that are 99 years?
C) I know people talk about renting a place but there's also a reason why in Asia we don't move out until we really have to (usually cos we get married). With all the rules and regulations about renting in Singapore it can be off putting and it's very intrusive. So that's your call.

[Rimu05]

You are doing way better than me and we're the same age, but your expenses are almost the same as mine and I rent a place with a roommate which is my biggest expense.

I am not here to judge, my coffee habit is awful, but girl, how is it that your skin care is costing so much? Are you buying SkII monthly? That is ALOT to spend on your skin which I've learned at least for mine, it looks better with neglect. I have a four step routine that I am super lazy on so whenever someone asks me my routine. All I know is lots of water, lots of coffee and only cleansing when I shower or wear makeup.

[Fifo]

Hullo fellow Singaporean!

I'm in a similar stage of life as you (except that I'm Single,  and will probably have to wait till 35 to get my HDB!). Your work benefits are great,  honestly,  along with the guaranteed bonus.  Mind me asking what industry you work in?  (Government?)

1) Your savings rate at 60% is okay,  but it could also be higher by a whole lot more. Definitely try to cut down on clothes,  but your eating out expenses are great,  actually! Keep that up!

Your skincare expenses (facial?) - I can't judge,  seeing as I got suckered into a $600 package that I will not be renewing last year. But if you find you don't really have a need for it,  try to lower it.  It can fund 3 trips to BKK a year!

Totally get you about the traveling!  If you feel like its important to you,  then by all means go for it.  Just be aware that spending so much now might prolong your time to FIRE. 

2) That's an impressive amount of savings for someone your age! I definitely wouldn't be able to hit that target by your age.  But I agree, that's too much cash to be sitting in a bank account, even if you're using a Multiplier account/stepup account. I'd leave 6 months of an emergency fund in the bank and invest the rest in ETFs. If you're saving up for a down payment,  I'd put an amount of money every month aside for that,  and invest the rest of your savings monthly in an ETF.

3) Huh, it totally slipped past me that after 99 years,  you get nothing back. I always thought the government would at least pay you back the market value of the flat. One option,  of course,  is to buy a resale flat later on in life. Start off renting, while you look for a flat with a long enough lease remaining. Sorry I can't help much on this.

Good luck!

[ThaiSmile]

Hi Bandoo,

I worked in Singapore from 1998-2010 on local terms, becoming a PR fairly early on. Since 2010 I have been on overseas assignments and unlikely to return. You can check out my post how I am setting up for FIRE in Thailand. I think I can offer some views based on my experience living in Singapore and the benefits I had living there.

First and foremost, I have to be brutally honest that it is going to be MUCH harder for your generation. When I came to Singapore, a taxi from Tiong Bahru to Jurong was only S$10. And the private 1300sqf condo I was staying sold to a new landlord for S$670k, which now lists for S$1.8m. The Singapore government overcooked the property market in 2007 and things have never come back. So my view is that you are going to have to be a lot more disciplined and "kiasu" if you are going to get to FIRE. So here are some thoughts:

(1) Maximize CPF. I know that Singaporeans have some dark opinions on this, but it is one of the best "guaranteed interest" accounts you will have. And if you eventually use it for CPF Life Escalating Plan, you will see in the calculators like FIRECALC that the inflation protection greatly reduces the cost to FIRE.
(2) Bank accounts are giving you nothing. Although Singapore does not have low-cost fund options like Vanguard, you can see if you can access via ETFs, but watch the fees.
(3) Highly consider to invest to get a property and rent it out. Unfortunately Singapore property prices are severely inflated and the rent-to-buy ratio is super high (interestingly, although the condo that I lived in inflated by 3x the price to buy, the rent only increased from 4.5k/month to 6k/month. This is the trap for your generation in Singapore. If you are living at home, start saving even more by giving yourself a "notional rent" that you pay to your savings. If you can buy a place, rent it out for a few years while living at home and then move in if your life situation changes.
(4) Lastly, I can only say that living in Singapore is one of the biggest spend traps of anyplace that I have lived. There is huge social pressure to spend and "be looking successful" which is exactly what will keep you a slave till your dying days. Cars. Weddings. Taxis. Gadgets. Restaurants. Coffee shops. I can't say to you "go eat chicken rice instead of Tim Ho Wan" or "go by MRT instead of taxi" or "have a kopi-o instead of Starbucks". When I went to Singapore most of the spend traps didn't exist and my wife and I learned for the first time how to get along as locals. I know this is not fashionable and there is huge peer pressure with your generation. But looking back on my years in Singapore, besides the wonderful CPF that will be the backbone of my Thailand FIRE, I can only say that living simply was the skill and habit I learned most and take forward even today.

Hope this was helpful and good luck going forward. You can make it happen.
(4)

[Namren]

Hi everyone, I'm a 26 year old from Singapore (aka the World's most expensive city), not married, have a bf. Currently, I've been quite "disengaged" at work, which is why I've been reading up on FIRE.

Below is my current financial situation (in Singapore Dollars):

Gross yearly income: $64K (inclusive of 1 month of guaranteed bonus and 3-4 months' variable bonus based on my performance and the economy)
Side Hustle: $100-200/month

Fixed Costs

• Annual tax: $670 (I get tax rebates as my mother is not working and I'm staying with my parents)
  CPF (similar to 401K): 20% of income (mandated by the Government. My employer matches 17% for my 20% contribution.)
  Mother's allowance: $300 per month (will be increasing to $400/month next year if I get a 5% pay raise this year.)
  University loan: $16K, with no interest (I'm currently paying the minimum of $100/month. However, the loan is up this year and I will do a lump sum payment.)
  Insurance: $995 per year (I can claim $700/year from my employer to offset my insurance.)
  Professional License: $250/year
  Phone bill: $67/month (already discounted by 30% as I am on the corporate plan. Waiting for my boss to approve my mobile claim which will reimburse $40/month)
  Public transport: $80/month (bare minimum for commuting to work)

Expenses

• Clothes: $100-$200 per month (trying to cut down on this as I have way too much clothes)
  Eating out: $120/month
  Gifts/weddings etc: Averages out to be ~ $70 per month (I give $150 for weddings which is the norm in Singapore.)
  Doctor/Medicine: $15/month after company's co-payment (My employer co-pays 85% of the doctor's bills and medicine)
  Exercise class: $24/month after Govt subsidy (for 4 classes per month. 30% subsidized by Govt's $100 incentive for exercising. I have almost exhausted this though.)
  Skincare: $164/month
  Travel: Averages out to be ~$583 per month (I like to take at least 2 mid-long distance trips to other countries per year. This is not inclusive of short trips to Malaysia/Indonesia throughout the year. Singapore's just too small! I don't want to cut down on my travelling, its my motivation for working)
  

My savings rate currently hovers about 60%.

Savings in bank: $97K
Investment in ETF: $5500

Would like some advice, please. I kinda feel like I am hoarding too much cash in the bank? What would be a good proportion to invest?

Also, currently quite disengaged at work - work is ok-ish, colleagues are ok but I am feeling bored and unmotivated. The plus point is that there's quite a few lull periods through the year when I am quite free at work and it has good benefits e.g. able to claim for many things and workplace gym. Wondering if I should change jobs or use my free time to start another side hustle.

Third issue that I quite need advice on - I may be purchasing a flat with my bf in future. He has a taste for expensive tech gadgets, saves approx 16% of income, thinks FIRE is for lazy people and has a car (a very normal car costs $100K in Singapore, not including parking, petrol, maintenance, insurance etc which are also expensive in Singapore). His savings is half of mine despite his pay being 40% higher.

Our combined salary exceeds the ceiling for subsidized public housing. As such we will have to purchase a flat from the private or resale market. A 1300sqf flat in a non-prime area costs $550K onwards and is only a leasehold (i.e. the flat will be returned to Government after the lease is up and you will get nothing. Usually flats on the resale market will have about 60-70 years left. I'm quite scared that I will outlive the flat). Freehold, private apartments tend to be smaller in size and cost $1-2 million. Both these figures look above the amount we can afford and will possibly push back my FIRE till I'm very old (which is not what I want...). Renting in Singapore will cost about the same as the mortgage so we might as well buy a flat. :(
This is also one of the main motivators for increasing my income/cutting spending...

Would appreciate any advice, please!

The amount of insurance is too high in my opinion..
Do you have an idea about the cost of AXA car insurance in Singapore ? https://www.axa.com.sg/car-insurance

[expatartist]

Hi Bandoo, welcome to MMM! I've not got much insight for you since I live in Hong Kong not SG but there are a few cultural similarities between our two cities. Other posters' advice about waiting for the HDB under your name sounds like a great idea. By then you may be FI or downshifting to a lower salary, lots of options. Looks like a good savings rate and goals. Maybe research another side hustle if you feel you've got free time.

Re skincare, our hot and humid, polluted climates can be terrible for the skin. You might get some ideas from this site https://crunchybetty.com which is all about creating natural, affordable DIY alternative skin and body care treatments at home.

[Adventine]

Hello from Manila!

The other posters have already said most of what I was going to say. I am just posting to follow.

I am curious, what skincare are you using? Are you doing a multi-step routine? What about the skincare regime could sunscreen, a healthy diet and exercise address?