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How to craft a rock-solid financial future in your 20s

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how-to-craft-a-rock-solid-financial-future-in-your-20s

When you’re in your 20s, you have newfound freedom, exciting opportunities, and endless possibilities but are you thinking of your financial future? It’s also the perfect time to start building a solid financial foundation that will set you up for success in the years to come.

Financial Planning in 20s

Here are some strategies to explore to help you build a strong financial foundation in your 20s:

Create a Budget and Stick to It 

Understand your income, expenses, and financial goals. Track your spending diligently and identify areas where you can cut back on unnecessary expenses.

  • Understand Your Financial Picture: Begin by categorizing your income sources. Is it just from your job or do side gigs contribute a chunk too?
  • Spend with Awareness: Utilize apps or manual logging to track your outgoings. The more detailed, the better; it can be eye-opening to see how those small purchases add up over time.
  • Slash the Excess: After a month of tracking, review your spending. Highlight areas of frivolity and consider ways to cut or reduce these.

Emergency Fund in your 20s

Set up an emergency fund that covers at least three to six months’ worth of living expenses. Having this safety net will provide peace of mind and protect you from going into debt when faced with unforeseen circumstances.

  • Why It’s Crucial: Think of this as your financial airbag. Unexpected job losses, medical emergencies, or urgent repairs won’t derail your financial train if you have this in place.
  • Kickstart with a Goal: Aim for a modest $1000 initially, then gradually expand to 3-6 months of expenses.

Invest Early

Take advantage of compound interest by starting to invest in your 20s. Even small contributions to retirement accounts or index funds can grow significantly over the years. The power of compounding will work in your favor, allowing you to build wealth with minimal effort.

  • Harness Compound Interest: Remember, time is an asset. The earlier you start, the more your money multiplies. A mere $100 invested monthly can burgeon into a substantial amount over decades.
  • Diversify: Explore a mix of high-risk, high-reward stocks, and stable assets like bonds or index funds. Consulting with a financial advisor can provide clarity.

Pay Off High-Interest Debt

If you have credit card balances, prioritize paying them off as quickly as possible. High-interest debt can become a financial burden, hindering your ability to save and invest.

  • Assess Your Debt: List all your liabilities. Credit card balances, student loans, personal loans – know what’s on your plate.
  • Tackle High-Interest First: While paying the minimum on all is essential, throw any extra towards high-interest debts. It’s like plugging the biggest hole in a sinking ship first.

Invest in Education and Skills

Continuously seek opportunities for personal and professional development. Acquire new skills, pursue higher education if it aligns with your career goals, and seek mentors who can guide you on your journey to success.

  • Never Stop Learning: The job market evolves, and so should you. Online courses, workshops, or even a new degree can render you more marketable.
  • Network Actively: Attend industry conferences, join related groups, and engage with potential mentors. They can provide insights that no course or book might offer.

Save for Major Life Goals

Whether you dream of homeownership, traveling the world, starting a business, or further education, start saving for these goals early on. Setting up separate savings accounts for each objective can help you track your progress and avoid dipping into funds allocated for other purposes.

  • Prioritize Your Dreams: List down life goals, both short-term (a grand vacation) and long-term (buying a house).
  • Automate Savings: For each goal, set up a dedicated savings account. Automate transfers to ensure consistency.

Protection

Obtain adequate insurance coverage, including health, life, and disability insurance, to safeguard yourself and your loved ones from potential financial hardships.

  • Review Regularly: As life changes, so do your insurance needs. Ensure you’re adequately covered for health, life, and disability.
  • Understand Policies: Know the terms, what’s covered, and what’s not. It prevents unpleasant surprises when you need to claim.

ACT Today on Your Financial Future

Delaying financial planning is akin to letting wealth slip through your fingers. Act today, no matter how small the step, and watch the transformative impact on your tomorrows.

Final Thoughts

Your 20s are a launching pad for the rest of your life. The financial habits you form now can shape your future. Start with a budget, save for emergencies, and think about investing. Tackle debts and don’t forget insurance. Your future self will be grateful for the solid foundation you build today. It’s all about smart choices now for a stable tomorrow. Start today.

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The photo above is from Pexels

The post How to craft a rock-solid financial future in your 20s appeared first on The Independent News.

Read also:

How to Start Planning For Retirement in Your 20s and 30s 

Here’s How to Invest Your CPF-OA, (and What You Can Invest it In) – Singapore News 

Secure Your Child’s Financial Future in Singapore: A Comprehensive Guide on Investment and Savings 

Is the problem high COE prices or that people are willing to pay for them? Netizen weighs in

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Photo: Freepik (for illustration purposes only).

SINGAPORE: On Thursday night (Aug 10) it was reported that prices of the Certificate of entitlement (COE) had risen yet further, reaching new records in the big car and Open categories.

But one Reddit user noted that “High COE prices isn’t the problem, the problem is that people are still willing to pay for it.”

u/fortprinciple acknowledged on r/Singapore that “COE prices are not set by the government but precisely by what people are willing to pay for it.”

However, he added that the fact that the rich, or those who take out big loans, are willing to pay such high prices for a car, points to a larger issue: that cars are perceived to still be the best mode of transportation.

And in Singapore, this mindset needs to change.

“As a land-scarce city, we should aspire for true car-lite urban infrastructure. That does not mean physically limiting the number of cars on the roads, but designing infrastructure and policies in such a way that people don’t want to drive,” he added.

“For a lot of trips in Singapore, driving is still faster and more convenient than public transit. Excluding the initial capital outlay of purchasing a car, it’s also not much more expensive, as Singapore has very cheap parking by international standards.

This leads to 2 problems: 1) people who can afford cars want to buy cars, 2) people who already own cars want to drive cars.

We need to design urban infrastructure to not accommodate and prioritize cars as much. That means dedicated cycling lanes, more bus lanes in residential areas, and more road diets for cars.”

And while he calls public transport in Singapore excellent, the country’s car infrastructure is even better.

“Public transit should not be something you take because you can’t afford a car, it should be something you want to take because it is overall a better experience,” he pointed out, adding that the world’s best cities for commuting don’t even have COEs, showing that designing cities where people don’t want to drive is possible.

He ended his post by writing: “Personally, I enjoy taking public transit in Singapore a lot – I don’t have to think about traffic, it frees up time for me to read, it’s inexpensive, it’s clean, and there are no crazies around unlike in some other cities. My only gripe is that buses are slow and regularly stuck in traffic, and I wish I could be zipping through bus lanes and bypassing all the cars on the roads.”

/TISG

Car, COE, road tax, insurance, petrol, maintenance — Singaporeans answer the question: “How expensive (owning) cars in Singapore?”

‘Did you regret your BTO choice after staying there due to the people?’ Former Yishun resident who now lives in the west calls it ‘ghetto’

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Photo: Freepik (for illustration purposes only).

SINGAPORE: A local Reddit user wanted to know if anyone has regretted their choice of BTO after living there for some time due to what goes on in the surroundings.

u/SALEGOOS wrote on r/askSingapore on Friday (Aug 11) that he had applied for a BTO in the west side of the country in 2015 since at that time, new developments were mostly in Punggol or Sengkang, areas that he did not favour so much.

And because the west side was being touted as the next CBD (central business district), he decided to move there.

Eight years on, while he likes the area, the people’s behaviour is something he’s having difficulty with.

He then listed a few of the problems he has encountered, such as very serious high rise littering, dog poo… everywhere, from staircase to shelter areas and even on grass, neighbors who are unruly or verbally abusive, sing karaoke till late at night, scream and fight, with police sometimes needing to be called in.

He added, “The latest case, some druggie caught by police and it was reported in the news. I’ll probably get downvoted and flamed to oblivion for this, but I told my wife immediately after reading the news. Are we staying in a ghetto?”

He now feels that he unknowingly “onboarded into problematic estate and it’s making feel really uncomfortable.”

Having lived in Yishun, he says that it is not even as crazy as where he lives now.

He plans to move eventually, and ended his post by writing, “I’m going to state something really nasty but I stand by it and some might agree with me, that estates that are generally more expensive serves as a poverty barrier and naturally you will observe less of such unruly things happening in such close proximity around where you’re staying.”

/TISG

Couple throws things on HDB neighbour’s air-con ledge cos they didn’t like her smoking; smoker then sues them $60,000 for trespassing & nuisance

 

Online user saves baby bird caught on nest material, netizens praise the kindhearted act

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Image: FB screengrab / Singapore Wildlife Sightings

SINGAPORE: After an online user shared how she rescued a baby bird, many online users took to the comments section to commend the kindness the woman showed the animal.

“I decided to post here to share the beauty of life,” an online user wrote in her post on the Singapore Wildlife Sightings Facebook page on Tuesday (Aug 8). The netizen shared the heartwarming story of how she rescued a baby bird after finding it caught on the edge of its nest.

Image: FB screengrab / Singapore Wildlife Sightings
“If I did not rescue this baby bird, it’d have died,” the netizen wrote. “It got its claw stuck to the plastic nesting material used by its parent. The parent was calling out frantically for several hours. I thought it was encouraging the fledging to fly from the nest. I saw it perched outside the nest.
When I checked one hour later, the fledging was in the same spot on the nest. I suspected it was stuck. I had one bird stuck the same way and died two years ago. That time I didn’t know birds can get stuck this way. So I took the nest in, freed the fledging and placed it amongst some plants. It was still there late evening. Its parent was nearby. The next day it disappeared.”
The online user then shared that the story had a happy ending, saying, “Two days later, I saw the fledging, alive–last photo. I hope you enjoyed my story.”
Image: FB screengrab / Singapore Wildlife Sightings
Image: FB screengrab / Singapore Wildlife Sightings
Image: FB screengrab / Singapore Wildlife Sightings
Image: FB screengrab / Singapore Wildlife Sightings
Image: FB screengrab / Singapore Wildlife Sightings

A handful of online users responded to the post with comments praising and thanking the netizen for her act of kindness. “Thank you for reading the emotion of parents of the baby, desperate parents do seek help from humans but not all people know what happen, and lose the chance to save a helpless creature,” one wrote. “Thank you for sharing your story, which definitely educate us in this aspect, you are blessed.”

Another wrote, “Thank you so much! Our trash is a death trap for the wild animals. They don’t know the difference between grass and nylon string.” /TISG

Elderly karung guni clutters corridor in Potong Pasir HDB but neighbour worries about fire hazards —who should give way?

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Photo: Pixabay/Kasman (for illustration purposes only)

SINGAPORE: When one resident is concerned over clutter in the corridor but another resident simply wants to keep supporting herself by collecting old items, who should have the final say?

There is an ongoing dispute among neighbours at Block 137 Potong Pasir Avenue 3. A resident from the block first told Shin Min Daily News about going to the storey above where he lives in order to investigate loud sounds that interrupt his sleep, which led to an even bigger problem.

Upon going to the upper floor, the man, a 57-year-old surnamed Ye, discovered corridors that were filled with discarded items, that an elderly woman who had been working as a karung guni, or scrap picker, had collected.

Mr Ye promptly reported the clutter to the authorities.

Photos from Shin Min Daily News show numerous piles of items, many of which were covered and stacked, and the floor area surrounding the piles appeared to be clean.

Reporters from the Chinese daily also said that stacks of items had no smell.

They also spoke to the karung guni, who said that her husband also works, and that she wants to keep on working.

The elderly woman, described to be in her 70s or 80s, rises at 4 o’clock every morning and comes home after midnight. She collects—and sells—cardboard for $7 per kilo, old clothes for ten cents per kilo, and even electronics.

Moreover, she says that her piles of discarded items are not detrimental to foot traffic.

A number of her neighbours appear to have gotten used to the clutter, and say they are unbothered, and that the woman is reasonably cooperative when asked to move some of the items.

“I don’t want to live off others. This is me having a backbone. I earn my own money. I eat with my own money,” Mothership quotes her as saying.

However, the problem may not just be with her neighbours, but the Singapore Civil Defence Force (SCDF) has guidelines as to what is allowed and disallowed in corridors, especially as some items could be fire hazards.

AsiaOne quotes the woman as saying that she will clear up the clutter before Chinese New Year in 2024.

/TISG

PE2023: Restore integrity of the presidency, let’s have a real fight this time

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pe2023

Today, Aug 13, as we inch closer to PE2023, is politically peculiar. Indeed, this week has Singaporeans on edge, anticipating a whirlwind of surprises in the lead-up to the elections.

After the rah-rah of the National Day Parade on Aug 9 during which we witnessed live the outgoing President Halimah Yacob almost nonchalantly and carelessly missing a step or two in her last parade appearance, the country is in a state of flux. 

Prime Minister Lee Hsien Loong will, as usual, deliver his State of the Union National Day Rally speech (on Aug 20). He has promised that he will talk about how the government will adjust its public housing schemes to make sure HDB flats are inclusive, accessible and affordable.  He will also spell out how older workers who have not built up enough Central Provident Fund savings for retirement could get some “extra help”.

What the PM will do this unfortunate year (for the PAP) is try and put up a business-as-usual face in the face of some troubling events. It would be a bit of a stretch to say even the so-called “settled” Ridout Road bungalow saga (no offense discovered) has been filed away and forgotten. Ridoutgate, wazzat? No, it has not been dismissed. For some, it has become, unfair though it may be for the two ministers involved (Law Minister K Shanmugam grew up in Bukit Ho Swee and Ghim Moh), an episode which emphasized the gargantuan gap in the lifestyles of today’s elite and the void deck population. The saga will haunt the ruling People’s Action Party and those associated with it, again unfairly. But that’s life.

So it may help the PAP’s cause if it does something about the F1, to make sure that ordinary Singaporeans are not inconvenienced, forgotten, or brushed aside the way that they had been every year the F1 was staged here to lure and entertain the rich and famous. The price is too high to pay. This is a country, NOT a playground.

The F1 may have other casualties, in terms of the temptations of the excessively fast and furious good life that come with it. The results of the Corrupt Practices Investigation Board investigations are eagerly awaited.

Generally, life is not normal on the political scene in Singapore come the ND Rally. A number of MPs on both sides of the political divide have resigned for improper behavior. One or two others have medical fitness issues which, in themselves, are not a major problem so long as fellow MPs or even retired MPs help out or so long as affected residents are not shortchanged. There are only two years left before the next General Election in 2025 anyway.

As we move towards GE2025, the Presidential Election is already upon us. 

And there are a couple of uncertainties together with a number of questions confronting some Singaporeans who may still not be entirely clear what the Presidential Election is all about – or what the elected President can or cannot do.

Will we really have four candidates? Will the Presidential Elections Committee approve all the applications?

Who are the spoilers and who are the splitters? 

Does it all matter?

Let this PE once again be a real contest, like in 2011. After the disgraceful 2017 farce, the integrity of the presidential election has to be restored.

There is little need for the PEC to over-agonize. Singapore wants a fight. Otherwise, the presidency will simply become a farce.

Tan Bah Bah, consulting editor of TheIndependent.Sg is a former senior leader writer with The Straits Times. He was also the managing editor of a magazine publishing company.

 

Read also:

PE2023: Will Tan Kin Lian be a Goliath slayer? – Singapore News

PE2023: In the race, Lim Hng Khiang? Or Khaw Boon Wan? – Singapore News 

PE2023: Get a real president this time, we have already wasted six years – Singapore News

PE2023: Have a real contest or simply make it an Endorsed Presidency – Singapore News

PE2023: Let there now be a good contest between Tharman and someone we know quite well too – Singapore News

Bronze for Singapore men’s at World Tchoukball Championships, fifth placing for women’s

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Photo credit: Tchoukball Association of Singapore

SINGAPORE — The Singapore men’s national team secured the bronze medal after a 67-57 victory over Switzerland in the recent World Tchoukball Championships held in Prague, Czech Republic. The women’s national team had to settle for fifth place as they suffered a surprising defeat by Hong Kong in the quarter-finals.

The president of the Tchoukball Association of Singapore, Delane Lim, has set a top-four target for both the men’s and women’s teams at the World Tchoukball Championships. This target is based on the teams’ performance in recent months. While acknowledging the men’s team’s medal win, Lim has pointed out that other countries are rapidly improving and challenging teams that had previously dominated the sport.

“Although we had hoped for two medals, the bronze by the men’s team is still a nice birthday present to Singapore. I want to pay tribute to the men’s team who showed resilience and courage, characteristics we want our national teams to have,” said Lim.

“The tournament has shown that the world order for the sport may be shifting slightly. The Europeans have improved so much that even traditional powerhouse Chinese Taipei was also affected. We will have to work hard to match these teams.”

Photo credit: Tchoukball Association of Singapore

Tchoukball powerhouse Chinese Taipei emerged as the champions in the men’s category, securing a narrow 58-57 victory over Italy. It was an all-European final in the women’s category as Switzerland clinched the gold medal with a 42-36 win against Italy.

The Singapore men’s national team, ranked third in the world, had an intense match against the second-ranked team, Italy, in the semi-finals. Despite their best efforts, Singapore lost the game by a single goal, 55-56, and unfortunately missed out on a spot in the final.

While Singapore men’s national team captain Ivan Ng said that the team could have approached the match against Italy with more confidence, self-belief was something the team had plenty of against Switzerland.

“The Italians played at a high standard and that puts the team under some pressure. But against Switzerland, we were more relaxed and that allowed us to better control the game. We went into the competition hoping for a top-four finish so I would say we did well to meet our target. But we also released in a narrow loss to Italy that we are not so far behind the top teams,” shared Ng.

“To reach that level, we need to train hard and build a strong core group of players for the next world championships. One thing we learned at the tournament is that we lack consistency. We get distracted by refereeing decisions that don’t go our way and allow that to affect us. With Europe showing their strength at this year’s tournament, we should also look to international exposure to gain experience playing in different environments,” explained the Singapore men’s national team captain.

For world number one ranked team Singapore women’s national team, they bounced back after their defeat to Hong Kong (38-39) in the quarter-finals. They secured victories over Malaysia (61-43) and Argentina (68-24) to cement the fifth position in the competition. /TISG

Netizen asks ‘those who dated hot guys and girls, how did you feel when they become obese?’

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Photo: Freepik (for illustration purposes only).

SINGAPORE: When a Reddit user asked how a person felt when their “hot” partner gained weight, a lively discussion followed about how to tell your partner they’re no longer as attractive in your eyes. Or not.

Addressing those whose “Partner who became obese,” u/oieric wrote on r/askSingapore, “For those who dated hot guys and girls, how did you feel when they become obese after getting married or being together for sometime?”

Now, for the record, there is a difference between gaining weight, being overweight and becoming obese, and the crux of the matter isn’t just about being “hot” but involves physical and mental health, self-esteem, and other issues.

Plus, weight gain is not uncommon as people get older, or, in some cases, get happier. Studies have shown that many happy couples actually tend to gain weight.

In other words, it’s not a cut-and-dried issue, a point that the commenters on the thread underlined.

A number of Reddit users said it was important to be supportive of your partner.

“My partner has gained a lot of weight in the past 1 year due to her new job. She has to OT on most days and has no time for self-care. All I did was to be supportive of her mental health, and give her more time to work on finding her next job.

Stress eating is a thing, and the last thing they want to hear from their partner is you fat liao leh,’” wrote one.

Another chimed in, “It would be better to have a difficult but honest conversation about losing your attraction due to your preferences of your partner. Your partner has a right to know/to leave/stay. As a supportive partner, if I were in this situation, I would want to encourage him/her to seek out help to figure out why weight gain has occurred. Especially if they were ‘hot/thin/physically attractive’ to begin with. It usually has to do with psychological or mental stress/events which lead to excessive eating as a coping mechanism.

Without identifying this root cause, no amount of verbal shaming/food restriction/forced exercise is effective in the long term.”

“When we acknowledged that without health, we can’t be anything,” a netizen who was able to motivate his partner, and vice versa, to obtaining better health shared.

One woman wrote, “In a way I’m lucky to have my partner become obese or very close to obese and have them figure out that they need to bounce back by themselves. I know life is hard out there and this doesn’t always happen. But I know I would’ve still stayed together with him if he stayed obese since that was my mentality before he started dieting and exercising.”

“It depends on how much appearance fits in the relationship,” wrote another.

However, one commenter acknowledged that it was an unpopular take but wrote, “Unpopular opinion, but i cannot and will never accept it if my partner becomes fat. I take the time to workout at the gym, i dont expect them to have the same level of commitment or dedication, but if all they do is eat and become a blob, this is smth i will never accept. I’ve seen on my ig, one guy who used to be skinny and now his chin has combined with his neck. Its disgusting. Same with all the others who simply let themselves go, with hugeass bellies and all.”

 

/TISG

‘I’m not overweight,’ SG woman says she was fat-shamed and laughed at by staff at Bugis shop

Bus watch: Netizen calls out elderly lady taking up an extra seat with her bags

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Image: FB screengrab / COMPLAINT SINGAPORE

SINGAPORE: An online user recently made a complaint public after seeing a bus passenger taking up an empty seat with bags. A handful of netizens took to the comments section of the post to call out the passenger for being inconsiderate.

“Today August 8, 2023 at 6.31pm in Bus 136, so inconsiderate of other passengers,” the post read, attaching a photo of a bus seat occupied by two bags.”

Netizens who caught wind of the post were quick to share their thoughts on the matter, many joining the post author in calling the actions “inconsiderate.”

Image: FB screengrab / COMPLAINT SINGAPORE

“There old generations are so inconsiderate,” said one.

Another shared, “Why huh…nowadays people are like that. I (see this almost) every day.”

Still, a third talked about how similar incidents take place in hawker centres. “Similar cases can also be seen in Hawker centre,” the netizen wrote, “Especially during lunch times when you can also notice quite of office workers reserve their seats by placing tissues on the tables.”

Image: FB screengrab / COMPLAINT SINGAPORE
Image: FB screengrab / COMPLAINT SINGAPORE
Image: FB screengrab / COMPLAINT SINGAPORE
Image: FB screengrab / COMPLAINT SINGAPORE
Image: FB screengrab / COMPLAINT SINGAPORE

“Clearly, they don’t want to let others to sit there,” said one, while another shared what he would do if he was on the same bus. “I (would) just ignore and ask her to remove her stuff,” he said.

This is not the first time Singaporeans have made bus passenger complaints public. Back in May, a Reddit user asked why MRT/bus passengers don’t put their bags on the floor to make things easier for other commuters.

Image: FB screengrab / COMPLAINT SINGAPORE
Image: FB screengrab / COMPLAINT SINGAPORE

There have also been many incidents of passengers propping their feet up on empty seats. for instance, one online user took to social media back in July to share a photo of two passengers who had their feet propped up on the empty seats in front of them. The post elicited many exasperated comments from Singaporeans who caught wind of the post. /TISG

Singaporeans say S$2K monthly salary is considered poor

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Photo: YouTube screengrab/Asian Boss

SINGAPORE: In a street interview of different Singaporeans concerning what would be considered poor in the country, many answered that it’s people whose salaries are around S$2000 or less.

In an Aug 11 (Friday) video on the Asian Boss channel on YouTube, host Elena went to one of the “less well-off” areas in the city to find out their views on poverty, income, government support, and what can be done to help those with less resources.

 

Elena talked to several men and one woman from diverse backgrounds, including an unemployed person, freelance driver, an architectural consultant, a financial advisor and a tattoo artist, who appears to be the lone foreigner among the interviewees.

They all agreed that there are many poor people in Singapore, with one older man actually saying that everyone he knows in Bukit Merah is poor.

Among the interviewees, it was the woman who seems to have the hardest situation, being unemployed and having some problems with her leg. She told Elena that she used to get acupuncture for it, but can no longer afford it.

Nevertheless, the woman added that she receives help and credits her MP for helping her get her flat, which she only pays S$26 for.

When Elena asked some of the interviewees how much their salary is, the freelance driver said he makes less than S$5000 monthly, and the financial advisor said his income is between S$4000 to 5000 monthly, adding that he barely survives on this amount.

She then proceeded to ask everyone what monthly income they would consider as poor in Singapore. While one said “less than S$1000, others said “between S$1800 to 2200,” “S$1500 to 2000,” and “below $2000.”

The median monthly salary in Singapore for 2022 is S$5,070. And while Singapore has no official poverty line, a general metric for assessing a low-income household would be an income of S$1,900 and below. In 2022, the bottom 10 per cent of Singapore households earned $2,314 monthly.

Interestingly, many of those interviewed in the Asian Boss video expressed satisfaction with the amount of help the government extends to those who are in need. The interviewees said that the government is doing enough to help people, which is something that they appreciate.

There was one interviewee though, who said that the different government programmes for obtaining assistance aren’t always easy to access.

The older man, whose face was blurred as he spoke on camera, noted that the thinking of many is ‘Oh if we start giving welfare, we will bankrupt the country.”

/TISG

Jamus Lim: “I find it crazy” that Singapore doesn’t have an official poverty line