SINGAPORE: A man turned to Reddit on Thursday (May 22) to ask Singaporeans whether financial independence and early retirement, also known as FIRE, is realistically achievable without drawing a monthly income of S$10,000.
In his post on the r/singaporefi forum, the man explained that he had recently been exploring FIRE-related content and was feeling increasingly discouraged. He observed that many of the examples and advice came from the U.S., where home prices tend to be lower and average incomes are significantly higher compared to Singapore.
“Most examples are from the U.S., where housing is cheap and salaries are high. In Singapore, if you’re earning S$4k to S$6k/month and living reasonably (not super frugal), is FIRE still realistic?” he wrote and added, “Would love to hear from locals who are doing it on an average salary. What worked for you—CPF (Central Provident Fund) hacks? Dividend investing? Side hustles?”
“It depends on how much you spend relative to your income.”
Contrary to what the man believed, many users said that it is, in fact, possible to pursue FIRE in Singapore without earning a five-figure monthly salary. However, they stressed that it requires strategic planning, financial discipline, and a long-term mindset.
One user commented, “It is absolutely possible. Live simply, keep expenses low, have no lifestyle inflation, don’t have kids, find a partner so two can live as cheaply as one, and you can get cheaper housing. Completely doable on a median (~S$5k/ month) wage. People do not realise that the most important determinant for FIRE is savings rate, not income or investment return rate.”
Another wrote, “It depends on how much you spend relative to your income. Put it this way. Assuming a 7% long-term investment return and a 4% safe drawdown rate, If you can save 50% of your salary (and assuming you are happy with that 50% as your lifestyle expense, then assuming you maintain the same income/expenses), you will achieve FIRE in ~17 years.”
Still, others weren’t convinced that this was doable. Some said that while the math may work out on paper, the reality of living in Singapore, one of the most expensive cities in the world, makes the pursuit of FIRE on a median income far more challenging.
One user remarked, “Even S$10,000 per month is also hard to FIRE la pls.”
Another added, “S$10,000 is not even enough… FIRE isn’t really supposed to be for people earning below median household income anyways… It’s about optimising your decent to high salary to help you retire early.”
In related news, one Singaporean man who finally achieved FIRE—financial independence, retire early—at the age of 48 took to social media to ask netizens how to make the most of his free time.
“What should I pursue in life after I leave my current job? I don’t want to rot at home. I think I have at least 10 years of economic life. Should I take up another job to keep myself occupied? A lower pay isn’t an issue,” he said.
Featured image by freepik (for illustration purposes only)