There’s been a very active discussion in the FH Telegram Group – on how much do you need to earn to survive in Singapore.
For some, $100,000 per annum for a family of 2 living prudently is “fair”.
Others were mind blown by that figure and thought that $2,000 a month is enough.
While others though $2,000 per month is “really nothing”.
Given there’s nothing that we Singaporeans like more than complaining about the cost of living – I figured let’s take a closer look at this topic.
The comment that started it all – $100,000 a year for a family of 4?
Now here’s the comment that sparked the whole discussion.
It was in response to this BBC Video on “How to quit work and retire in your 30s”
Here’s the comment – unedited, and in its full glory:
“[Need to save] 25x ur annual spending in investment. Assuming annual spending 100k pa for a family with 2 kids living prudently. Fair? That’s 2.5m into investments. How many avg Singaporean have that by 30s to invest?”
To break it down a bit.
The BBC video says that once you save up 25x your annual spending in investments, you can consider retiring.
The reader assumed a cost of living of $100,000 per year for a family with 2 kids.
Working backwards – if you have $2.5 million in investments, and the portfolio returns 4% a year.
That’s $100,000 a year in investment returns a year – exactly what you need for living expenses.
And therefore enough to retire.
How much do you need a year to survive in Singapore? Is $100,000 a year too much?
As is the case with social media.
This sparked some outrage.
Here’s one gem for laughs:
“Wah
