Grad in 2021, started my job early this year for $100k p.a. Started with almost $0 in the bank. Aim to only spend $1.5-2k every month. Can someone give me some tips of how I can reach >1M in 10 years?

Edit: I wanted to add that I'm completely new to investing and have basic insurance that I have to pay around 1.2k every year (one whole life and one health insurance with quite extensive coverage). Up till now, I have invested 1.6k in Syfe and SGD700 in CDC, but there isn't any positive uplift in these investments.

It's almost impossible for me to purchase any stocks (due to the nature of my job and all the compliance issues) but ETFs would be possible. Would it be good for me to start in Crypto? Some of my peers say it's a good start by staking in HODLNAUT or CDC.

Additionally, I'm looking to purchase a BTO with my significant other, but we haven't got one. My initial thoughts are that it'll be more cost effective for us to purchase a bto/resale before investing on other real estate, but given the construction plus MOP of 10 to 15 years, there's the opportunity cost of us not utilizing our money to the maximum. Our combined salary (including CPF) would be around 12-13k every month. Will it be recommended for us to purchase a condo instead? And will I reach 1M if I plan to have children in about 5 to 6 years...?

Any help from the veterans here would be much appreciated!

Discussion (15)

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Daniel Kok

11 May 2022

Technically if u are taking home 80k per year and spending only 24k, you are essentially saving 56k. 10 years alone will bring u to 560k (considering u do not have any increment which is highly unlikely).

you can park this funds safely into S&P500 (now is an extremely good time to buy considering its similar to someone who purchased at March 2021's price) and you should accumulate to 1m in 10 years.

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Today268!

10 May 2022

I assume u r still young. Start saving more early n stay below ur means. Invest urself more get more educated finance, retirement, passive income related stuff. Invest wisely in index funds n stay vested for 20 yrs. It took 20 yrs to hv million via invest in S&P 500 index funds. Hv role model like Warren Buffett.

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Edited 03 May 2022

Congrats! That's a strong starting salary for fresh grad.

$1M net worth seems very feasible/doable for 10 years.

Oversimplified math with rounded-up estimates below:

+ $1M income of 10 years (excl. tax, annual increment/bonus)
- $100K tax of 10 years (benchmark: Tax is $7,950 for annual salary up to $120K)
- $240K expenses of 10 years (excl. inflation, benchmark: $1.5K-$2K/month)
+ $240K employer contribution of CPF for 10 years (est $2K/month)
+ $80K bonus of 10 years (conservative assumption of 8% bonus. In my personal experience, median range is 15-20%)

Gap to $1M net worth goal is $20K, excl. inflation + annual pay increments/promotion.

TL;DR $1M in 10 years is definetely do-able assuming you would maintain the same lifestyle AND/OR chase for promotion/pay increments :).

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Michel Chang Gwee

01 May 2022

This is how i make my million when i was young. i bought a private property at an auction for half price during the asia financial crisis /property crash .

The previous owner was young bought the property having just got a job with high salary taking advice from experts that property price can only go up and yield will cover the mortgage.

Of cos the opposite happens and I become a millionaire , But it is possible only for fools to buy at the high and sell to me at the low.

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