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SINGAPORE: “How much money is enough for you to quit your job immediately?” This was the question a working man posed to Singaporeans in an online forum on Wednesday (Mar 26), asking how much it would take for him and his wife to walk away from their jobs and spend their days chilling, travelling, or pursuing their passions. According to the writer, his wife earns an above-average wage, and the couple lives in a four-room HDB flat with no kids.
While many people work toward specific financial goals, the man’s question struck a deeper chord: How much is truly enough? And how do you know when you’ve reached it? He elaborated on his wondering, writing, “How much money is enough for you to quit your job right now and just do what you want to do? “ He used relaxation and world travel as examples. He added that he was open to the idea of returning to work eventually or taking on a part-time role to cover expenses.
“Basically, what is YOUR (minimum) number to (send in your resignation) letter tomorrow?” he asked fellow Singaporeans.
In an edit to his post, he revealed his own personal benchmark: S$1 million—the amount he would need to quit or transition to a part-time, less demanding role. However, he estimated he would need S$5 million to leave the workforce permanently, although he admitted, “…which seems unlikely in my opinion.”
As expected, Singaporeans in the comments section shared a wide range of monetary goals, with a handful pointing out that it really depends on one’s lifestyle. “For me, the figure is S$3.6 million with my husband,” one woman wrote. ‘We live a very simple lifestyle considering our earning level and want to leave the 9 to 5. It’s not that we hate our jobs; it’s more that we long for our freedom (not having to reply to emails, (being) 100% (switched) off, etc. We plan to migrate, and after a few years of traveling, I’d like to work at a supermarket and be a stock picker or perhaps a garden/park if there’s opening for me!”
“I think S$1.5 million will do it for me,” said another. “I’ve got a S$500k mortgage to clear, then the $1 million will be left in dividend stocks for income. Chill for life.”
Others shared more specific plans. “Probably S$600k to S$700k,” another man said, sharing that he and his wife, who is from Bali, have no children. ” (I) would clear my mortgage here, rent out my 4-room flat to whoever wants to live in Clementi for S$3.5k, and use that to build a house in Bali and retire. Don’t know if I can ever stop working, though, so if I ever end up not leaving Singapore, then I’d work a part-time job in a Cold Storage or something to pass (the) time.”
According to Experian, several key factors should be considered before quitting your job. While it is important to know your ins and outs and have an accurate picture of how much you spend in a month, it’s also crucial to know how you will pay your bills. Consider whether you will use up your savings and how long you can last on that. Although using your emergency fund may be tempting, it is also important to refrain from doing so if possible so that you have enough for unexpected and urgent expenses. You can also consider ways to reduce your expenses.
If you are seriously considering sending in your resignation, the next logical step is to assess how it will impact your income. You will have to consider whether you have another source of income. Ask yourself whether you have an alternative source of income or if you’ll be solely dependent on your savings. If you have a family, consider whether your spouse or partner also contributes financially. Finally, factor in how long you anticipate being without a regular income and whether you’re financially prepared for that period.
Featured image by Depositphotos/reewungjunerr (for illustration purposes only)
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