SINGAPORE: Determined to change his life, a 31-year-old Singaporean man has set out to break free from his bad financial habits and start anew.
Sharing his story on r/singaporefi, he explained that he currently has a negative net worth, with his credit card debt exceeding the cash in his bank. However, he remains optimistic and plans to kick-start his savings once his paycheck arrives.
“Starting small with a S$500 cash saving regardless of following month’s CC,” he said. “If I can pick myself up, I’m targeting S$1k a month in savings, which is about 30% of my take-home pay.”
In addition to his savings goals, he is also making significant lifestyle changes to curb his spending.
One of the key changes he’s adopting is quitting the popular lottery game 4D Toto and reducing unnecessary expenses, like choosing cheaper local coffee, “kopi o siew dai,” which costs only S$1, over expensive café options.
Keen to learn from other Singaporeans’ financial journeys to stay motivated, he asked, “How much do you earn, and how much do you save?”
“I save 50% minimally; some months, I save more”
In response, many Singaporean Redditors said they saved more than half of their take-home pay. One Redditor stated, “I save 50% minimally, some months I save more since my salary has grown and I’m trying to resist lifestyle creep.”
Another commented, “80% savings. No more, no less.” However, not all experiences were as optimistic.
Some Redditors mentioned that their savings had taken a hit due to the increasing cost of living. One individual even revealed that they only save around 20% of their income.
Regardless of how much some of them save, they urged him not to feel pressured or compare his progress with theirs since everyone’s expenses and financial obligations differ.
On a supportive note, one Redditor even praised the man for aiming to save S$1,000 per month when he still has a debt to pay.
He also left financial advice, saying he should build an emergency fund of 6 months’ worth of expenses and DCA his savings into a low-cost broad market index fund.
Another Redditor suggested a different savings strategy for the man. He recommended allocating 20-35% of his salary into ETFs based on indexes like VOO or QQQ, which historically have yielded 6-10% returns.
He added, “Reinvest any dividend payouts from that and hope your bet on the US economy pays off in 30-35 years.”
In similar news, a 31-year-old Singaporean also shared his inspiring journey from poverty to financial stability last year on social media, emphasising the importance of long-term financial planning.
As he stated, “Building wealth is a marathon, not a sprint.”
Read more: S’porean shares his inspiring journey from poverty to financial stability