Saving $100K by 30 Years Old - Is It Even Possible?
 
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Saving $100K by 30 Years Old - Is It Even Possible?

Ming Feng
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Singaporean’s Milestone: Having $100K In Savings

Saving $100K by 30 years old is impossible! Not when my take-home salary is miserable and having to think thrice when asking to add noodles for my minced meat noodle (Bak Chor Mee).

“Having a six-figure saving in your bank account is a Singapore dream, but to achieve it before the age of 30 is a unicorn.” – Le random Singaporean

Is it possible?

I guess, sometimes the hardest part of the journey is believing you’re worth the trip (I might have Googled for quotes on self-doubt, but this is so true).


TL;DR: A Singaporean Guideline To Saving $100,000 In Savings (Not Including CPF)

Truth is, it is actually very possible.

Saving $100K by 30 years old in Singapore

Assuming:

  • You started your work-life with $0 savings, at age 25.
  • Your salary is $2,900 per month. Your take-home salary is $2,320.
  • Your salary increases by only 4% every year. With inflation, you only managed to save an average of 2.6% from that increment.
  • Your Annual Wage Supplement (AWS) is the basic 13th Month Bonus.
  • Your bank account sucks at 0% interest rate.
  • You do not invest at all.

But well, you read Seedly and save 50% of your take-home salary.

AgeMonthly SalaryMonthly Take Home Salary
(After CPF)
Savings Per Month
(Taking into account inflation)
Savings Per YearAnnual Bonus
Total Savings For That Year
25$2,900$2,320$1,160$13,920$2,320$16,240
26$3,016$2,412.80$1,190.16$14,281.92$2,412.80$16,693
27$3,136.64$2,509.31$1,221.10$14,653.20$2,509.31$17,162.51
28$3,262.11$2,609.69$1,252.85$15,034.20$2,609.69$17,643.89
29$3,392.59$2,714.07$1,285.43$15,425.16$2,714.07$18,139.23
30$3,528.29$2,822.63$1,318.85$15,826.21$2,822.63$18,648.48

Total savings? $104,527.11.

Congrats

The first step to reaching $100K savings is believing, the next is actually doing something about it.

How can one aim to retire a millionaire when he cannot even aim to save $100K by 30?


Factors Affecting Your $100K Savings Journey

We can first work on the math before we dive deeper into some of the actionable.

There are a few factors which will affect your savings rate the moment you enter the workforce.

Education Level Before Entering the Workforce

Education level determines the age at which you start working. Polytechnic graduates kick off their working life earlier than Universities graduates who will spend more years on education.

The Need To Serve National Service

Your gender affects the timeline of your life stage. In Singapore, where a 2-Year National Service is mandatory, it delays the process of most male Singaporeans entering the workforce.

How Much Did You Managed To Save Before You Start Working?

The amount of savings you have when you enter the workforce is a headstart to the $100K savings game. No doubt, there are some Singaporeans privileged enough to attain that $100,000 in savings at a very young age.

Balling

During my time, we call these people, “Baller”. If you are not a born “Baller”, do read on. Nothing should stop you from being one in future.


Tips To Save $100K Before 30

Being in your 20s has lots of benefits. Other than being able to turn up for work, despite partying 4 times a week, you have little commitment.

Here are some tips to help you save more before 30:

  • Save half of your salary. It is definitely possible!
  • Be on the best savings account to maximise interest rate returns.
  • Invest!
  • Find yourself secondary income with a freelance or event-based job.
  • Be on money-saving platforms for your purchases, be it online shopping or food.
  • Save on your utility bill by getting onto the best SIM-Only plan or choosing the best electricity retailer.
  • Save money with meal prep.

Is Saving $100K Possible For Every Type Of Singaporean?

We are looking at $100,000 in your bank account. Whatever is in your CPF Account is not counted!

We will be kicking off with 4 different scenarios that cater to the majority of Singaporean’s demographic.

male graduate

Singaporean Male, University Graduate

Most male Singaporeans who completed their National Service (NS) liability graduate from University at the age of 24 or 25, depending on the length of the course which he applied to.

For a better calculation, we are going to state some really difficult assumptions here:

  • Graduated from University at the age of 25.
  • Your first job brings you $2,900 per month, lower than the median salary. After CPF contribution, you take home $2,320.
  • You spend half of your salary on your necessity and lead a simple life.
  • Salary increases by a constant 4% every year. After inflation, you save 2.6% more each year. We call this real salary increment.
  • Your job gives you a 13th Month bonus payment, also known as Annual Wage Supplement (AWS).
  • Your Bank account sucks, and it brings you 0% interest.
  • You decide not to invest in anything.

Here’s how you can save $100,000 by 30:

AgeMonthly SalaryMonthly Take Home Salary
(After CPF)
Savings Per Month
(Taking into account inflation)
Savings Per YearAnnual Bonus
Total Savings For That Year
25$2,900$2,320$1,160$13,920$2,320$16,240
26$3,016$2,412.80$1,190.16$14,281.92$2,412.80$16,693
27$3,136.64$2,509.31$1,221.10$14,653.20$2,509.31$17,162.51
28$3,262.11$2,609.69$1,252.85$15,034.20$2,609.69$17,643.89
29$3,392.59$2,714.07$1,285.43$15,425.16$2,714.07$18,139.23
30$3,528.29$2,822.63$1,318.85$15,826.21$2,822.63$18,648.48

You will still save a total of $104,527.11.

female graduate

Singaporean Female, University Graduate

Most female Singaporeans graduate from University around the age of 23, depending on the length of the course which she applied to.

For a better calculation, we are going to state some really difficult assumptions here:

  • Graduated from University at the age of 23.
  • Your first job brings you $2,900 per month, lower than the median salary. After CPF contribution, you take home $2,320.
  • You spend half of your salary on your necessity and lead a simple life.
  • Salary increases by a constant 4% every year. After inflation, you save 2.6% more each year. We call this real salary increment.
  • Your job gives you a 13th Month bonus payment, also known as Annual Wage Supplement (AWS).
  • Your Bank account sucks, and it brings you 0% interest.
  • You decide not to invest in anything.

Here’s how much you can save by 30:

AgeMonthly SalaryMonthly Take Home Salary
(After CPF)
Savings Per Month
(Taking into account inflation)
Savings Per YearAnnual Bonus
Total Savings For That Year
23$2,900$2,320$1,160$13,920$2,320$16,240
24$3,016$2,412.80$1,190.16$14,281.92$2,412.80$16,693
25$3,136.64$2,509.31$1,221.10$14,653.20$2,509.31$17,162.51
26$3,262.11$2,609.69$1,252.85$15,034.20$2,609.69$17,643.89
27$3,392.59$2,714.07$1,285.43$15,425.16$2,714.07$18,139.23
28$3,528.29$2,822.63$1,318.85$15,826.21$2,822.63$18,648.48
29$3,669.42$2,935.54$1,353.14$16,237.68$2,935.54$19,173.22
30$3,816.20$3,052.96$1,388.32$16,659.86$3,052.96$19,712.82

You will still save a total of $143,413.15

polytechnic man

Singaporean Male, Polytechnic Graduate

Most male Singaporeans who graduated from Polytechnic completed their National Service (NS) liability around the age of 21.

For a better calculation, we are going to state some really difficult assumptions here:

  • Enters the workforce at the age of 22.
  • Post-NS Graduate’s first job brings you $2,500 per month. After CPF contribution, you take home $2,000.
  • You spend half of your salary on your necessity and lead a simple life.
  • Salary increases by a constant 4% every year. After inflation, you save 2.6% more each year. We call this real salary increment.
  • Your job gives you a 13th Month bonus payment, also known as Annual Wage Supplement (AWS).
  • Your Bank account sucks, and it brings you 0% interest.
  • Again, you decide not to invest in anything.

Here’s how you much you save by 30:

AgeMonthly SalaryMonthly Take Home Salary
(After CPF)
Savings Per Month
(Taking into account inflation)
Savings Per YearAnnual BonusTotal Savings For That Year
22$2,500$2,000$1,000$12,000$2,000$14,000
23$2,600$2,080$1,026$12,312$2,080$14,392
24$2,704$2,163.20$1,052.68$12,632.16$2,163.20$15,795.36
25$2,812.16$2,249.60$1,080.05$12,960.60$2,249.60$15,210.20
26$2,924.65$2,339.72$1,108.13$13,297.56$2,339.72$15,637.28
27$3,041.63$2,433.30$1,136.94$13,643.28$2,433.30$16,076.58
28$3,163.30$2,530.64$1,166.50$13,998$2,530.64$16,528.64
29$3,289.83$2,631.86$1,196.83$14,361.96$2,631.86$16,993.82
30$3,421.42$2,737.14$1,227.94$14,735.28$2,737.14$17,472.42

You will save a total of $142,106.30

polytechnic female

Singaporean female, Polytechnic Graduate

Most female Singaporeans graduated from Polytechnic around the age of 19.

For a better calculation, we are going to state some really difficult assumptions here:

  • Enters the workforce at the age of 20.
  • Fresh Polytechnic Graduate’s first job brings you $2,270 per month. After CPF contribution, you take home $1,816.
  • You spend half of your salary on your necessity and lead a simple life.
  • Salary increases by a constant 4% every year. After inflation, you save 2.6% more each year. We call this real salary increment.
  • Your job gives you a 13th Month bonus payment, also known as Annual Wage Supplement (AWS).
  • Your Bank account sucks, and it brings you 0% interest.
  • Again, you decide not to invest in anything.

Here’s how you much you save by 30:

AgeMonthly SalaryMonthly Take Home Salary
(After CPF)
Savings Per Month
(Taking into account inflation)
Savings Per YearAnnual BonusTotal Savings For That Year
20$2,270.00$1,816.00$908.00$10,896.00$1,816.00$12,712.00
21$2,360.80$1,888.64$931.61$11,179.30$1,888.64$13,067.94
22$2,455.23$1,964.19$955.83$11,469.96$1,964.19$13,434.14
23$2,553.44$2,042.75$980.68$11,768.18$2,042.75$13,810.93
24$2,655.58$2,124.46$1,006.18$12,074.15$2,124.46$14,198.61
25$2,761.80$2,209.44$1,032.34$12,388.08$2,209.44$14,597.52
26$2,872.27$2,297.82$1,059.18$12,710.17$2,297.82$15,007.99
27$2,987.17$2,389.73$1,086.72$13,040.63$2,389.73$15,430.36
28$3,106.65$2,485.32$1,114.97$13,379.69$2,485.32$15,865.01
29$3,230.92$2,584.73$1,143.96$13,727.56$2,584.73$16,312.29
30$3,360.15$2,688.12$1,173.71$14,084.48$2,688.12$16,772.60

You will save a total of $161,209.39

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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