Asked by Anonymous
Asked on 05 Jun 2019
25 years old out of university. 5 years to hit 30 years old. Each year need to save 20K. Each month need to save 1,667. If your salary is 3,000. After CPF bring home 2,400. You monthly expense need to keep to 733 dollars. I recall my Uni days I spend around 200 dollars a month including 100 for transport. After work probably still less than 400. Quite easy if you are frugal and single.
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07 Jun 2019
I'm 20 turning 21 later this year, going University this August. and my net worth is 80k (incl bonds stocks p2p saving accounts etc)
all these are savings of scholarships (edusave, moe, jc), ns earnings, and earnings from teaching music for the past 2 years. on top of that, I give my parents a monthly allowance (though I'm thinking if I should continue when uni starts).
hopefully I could reach 100k by the end of the year by continue teaching and saving the uni scholarship allowance awarded to me:)
yes, everyone mentions to invest.. well I do that too and going for agms and getting dividends and all is kinda cool. but I feel the true way to grow your net worth is by working hard and earning your income. it's a struggle but it'll be worth it
also unlike my peers, I don't splurge on fashionable branded goods.. though I don't dress fashionably and wear the same kind of clothes daily I guess it's 先苦后甜 or suffer now enjoy later:)
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08 Jun 2019
08 Jun 2019
It is achievable, but take lots of hardwork and discipline. I have personally achieved $100k savings (CPF not included) by age 28 (last year). I saved up most of my income, spend only on what i need, and do some side businesses all these while. Took me about 6 - 7 years in total after graduation to achieve the above, all loan paid as well. Have resigned since last year to focus full-time on my business, and started on some investment as well.
Just be discipline enough to save and send only on what you need once you start working, and i believe most people can do it too! :)
Top Contributor (Jun)
Yes. This helps to formulate a plan to save 100k by 30, if you have 3 to 5 years with aggresive lifestyle adjustment:
Eg. Let's say you already have 10k savings, even dab in the lowest risk safest guaranteed investment into SSB at 2% p.a, monthly just need to save $1,410.99 in 5 years to hit savings of 100k.
To save 1.4k a month i wouldn't even think its too hard to achieve. Let's say one earns 3.5k, it is still very achievable without much strugglng.
So, take actions now! :)
Top Contributor (Jun)
Yes possible. I started late but 30 to hit is still possible. Of course, require sacrifice unless you earn alot.
I think $100k is achievable at age 30, provided you have prior savings and no other commitments like girlfriend, BTO, car etc.
Edit: I am excited to achieve $20k at age of 19.
Yes it is. I have done it at age 25, but this was with alot of prudence from an early age, investments and working long hours.
Yes, it would be realistic. There are also local finance bloggers too that showed you that they have accumulated $100k before 30s.
1) Have you thought about what is your intention behind your goal? What are you saving up for? It's easy to lose motivation if you don't have a clear intention.
2) People are different. 3 main ways: A) People have different timelines--some start working at 16, some at 23; some have children at 25, some at 30+; so I'm not sure about pegging your goal to an age. It is only realistic if you have enough time to do it.
B) People also have different salaries--just look at all those salary comparison sites/articles. Assuming you spend $500 per mth, you will save more if your salary is 3.5k than if it is 2k. It is only realistic if your earnings and spendings allow for it.
C) People also have different lifestyles. Do you cook at home? Do you drive? Do you have a gym membership? It is only realistic if you can continue to maintain your comfortable lifestyle, or make small changes that you can accept. No point suddenly cutting your gym membership if you think your most enjoyable time daily is working out with friends at the gym.
Your goal is only realistic if it makes sense to you!
To be honest, it really depends on your lifestyle. Even though i am willing to go all the way to scrimp and save to hit the 100k, sometimes your partner may not have the same discipline/mindset as you.
For my wife, her family upbringing is where they focus on instant gratification.
In the end, me and my wife focus on somewhere in the middle - we do have fun like travel overseas (living in the moment) but also save up prudently by not spending on lavish dining and branded goods.
1) Your savings from young from ang baos, parents, part time work, ns allowances etc
2) your income and savings rate
eg, 1 year save 20k, 1 month save 1667
5 yrs can hit 100k at 30 if start at age 25
Change the mindset, although i used to like 10030 (Sounds like a bus stop).
Proportion based might be more appropriate as someone with 100k, but might finish the sum in say 10x duration, whereas other might be thrifty can go up to say 50x duration, yes it could be that much. A very quick and dirty way from my perspective for age 30, is to have at least 3 years of "reasonable" expenses. This includes basic lifestyle of having meals in hawker and some in restaurant, 2 holidays a year (1 near and 1 further), can go watch movie, etc...
Yes, i will just throw a quick and dirty number for you, 3 years of "reasonable" expenses from your lifestyle. ***That excludes from the usual emergency funding.
Of course there will be like many more answers or planning, but we cant helped it by kick-starting with quick and dirty answers :P
To the guy making a million, 100k is just pocket change. hint: “Forbes 30 under 30”
To be more realistic, it should be more of a X no. of annual salary, rather than a fixed figure of $100k. This also depends on your commitment, e.g. Do you have to support any loved ones? Do they have health complications, e.g. Cancer, Kidney failure, Diabetes, Depression, Down Syndrome, Bipolar, Suicidal, etc?
Or financial complications, e.g. Debts to be repaid, or you are the sole breadwinner?
Another thing to note is that if it is out of your control, you do not beat yourself up for missing the target.
Perfect example is what happened this year. Especially during these times when the POTUS starts slapping countries with tarrifs, the investment landscape is volatile. You are 30 this year, and have $100k worth of investments (stocks, properties, wines, etc etc) before the trade war. Now, it may drop to say, 80k. Your net worth drops by 20%. Does that mean you did not meet your goal? You meet for the first 4 months, then from May 19 onwards, suddenly you don‘t meet your goal. Doesn’t sound right, does it?
$100k by the age of 30 (excluding CPF) is realistic but it depends on several factors:
how much does one earn a month?
how is one's monthly expenditure / lifestyle like?
what commitment does one has?
does one have the discipline to alter unfavorable aspects of one's life in order to achieve the $100k goal?
Generally, if your starting pay from graduation is ~3 grands / month, you don't splurge on luxurious items nor foodfare (e.g. Starbucks/boba every day), has decent discipline to save at least $400 a month, one should be able to hit that goal without extreme difficulty. Of course, the more you can earn (+save), the faster you can achieve that goal.