facebookHere's How Much You Earn as Compared to Your Neighbours
231
shares

Advertisement

Here's How Much You Earn as Compared to Your Neighbours

profileXue Miao

I remember when I was younger, I went to a friend’s place for a Christmas gathering.

It took me a while to get there, having to weave through several lanes filled with glamorous-looking residences that looked like they came straight out of the Crazy Rich Asians set.

Source: Lions XII

Most of us have preconceived notions of individuals who stay in certain areas of Singapore.

Like when someone mentions that they stay close to this MRT station on the Downtown Line, my mind automatically slots them into the high-income bracket.

As someone who has been staying in a regular neighbourhood all my life, I was never curious about the wealth of my fellow neighbours.

Until I stumbled upon this set of data presented in the Census of Population 2020.

This report contains interesting statistics that break down the monthly household income of residents by different districts.

As if we don’t have enough competition in our lives, we can now compare how much our monthly salaries are, as compared to our neighbours (hooray!).

And without further ado, let’s take a look at this distribution and either rejoice and cry over our newfound knowledge.


TL;DR: Here’s Where Your Household Income Stands in Your Area of Residence

Household income is the sum of the gross income of all the members of a household.

We’ve previously seen the median household income, which stands at $7,744 in 2020.

Based on the distribution above:

  • Tanglin has the highest proportion of resident households with a monthly household income of $20,000 and above (50.1%)
  • This is followed closely by River Valley (46.8%) and Bukit Timah (45.4%)
  • Outram has the highest proportion of resident households with a monthly household income below $5,000 (56.9%), largely due to the high number of households with no employed persons (27.2%)
  • Bukit Merah and Kallang comes next (47.2%), followed by Ang Mo Kio (46.8%)

Monthly Household Income by Area of Residence

The districts are divided according to the URA Master Plan.

Let’s take a closer look at the different planning areas and their monthly household income distribution.

 

We note that the monthly household income from work deviates according to the number of members in a household as well.

For reference, the median Singaporean household income is $7,744, while the median household income per household member is $2,463.

Zooming out a little, here’s how the monthly household income varies across the whole of Singapore.


Median Monthly Household Income by Area of Residence

If you’re wondering what’s the ‘average’ monthly income for the people staying in your district…

Here’s where we’ll take a look at the median (i.e. 50% percentage) across all planning areas.

Note: the term ‘average’ is used very loosely here, it usually refers to the mean, but we will take a look at the median due to the skewed distribution across certain income groups.

Using the graphs above, here are the median incomes across different residential areas:

Area of ResidenceMedian Monthly Household Income
Ang Mo Kio$5,000 to $5,999
Bedok$7,000 to $7,999
Bishan$9,000 to $9,999
Bukit Batok$7,000 to $7,999
Bukit Merah$5,000 to $5,999
Bukit Panjang$7,000 to $7,999
Bukit Timah$15,000 to $17,499
Choa Chu Kang$8,000 to $8,999
Clementi$7,000 to $7,999
Downtown Core$15,000 to $17,499
Geylang$5,000 to $5,999
Hougang$7,000 to $7,999
Jurong East$6,000 to $6,999
Jurong West$7,000 to $7,999
Kallang$5,000 to $5,999
Marine Parade$8,000 to $8,999
Novena$9,000 to $9,999
Outram$3,000 to $3,999
Pasir Ris$10,000 to $10,999
Punggol$9,000 to $9,999
Queenstown$6,000 to $6,999
River Valley$17,500 to $19,999
Sembawang$8,000 to $8,999
Sengkang$9,000 to $9,999
Serangoon$9,000 to $9,999
Tampines$8,000 to $8,999
Tanglin$20,000 and above
Toa Payoh$5,000 to $5,999
Woodlands$7,000 to $7,999
Yishun$6,000 to $6,999
Others$10,000 to $10,999

What Does It Mean for You?

Having a household income that falls below the median doesn’t necessarily mean that you are poor.

On the other hand, having a high household income does not necessarily make you rich as well.

It is what you do with that money that determines your wealth.

In one of my favourite books, ‘The Psychology of Money‘ by Morgan Housel, the author mentioned this:

“Wealth is created by suppressing what you could buy today in order to have more stuff or more options in the future. No matter how much you earn, you will never build wealth unless you can put a lid on how much fun you can have with your money right now, today.”

That being said, one of the fastest ways to grow your wealth is to increase your earning power.

One of the methods to do so is to place emphasis on upskilling to stay relevant and employable.

This allows us to gain transferrable skillsets and future-proof our employability as well.

Only with an increased paycheck would we be able to further accelerate our savings rate.

Advertisement

profile
About Xue Miao
A millennial who is learning to adult. She doesn't believe in the rat race and hopes to live on a farm someday.
You can contribute your thoughts like Xue Miao here.

Still have more questions after reading the article? Fret not, ask our community here!

Stay updated with the latest finance tips!
Receive bite-sized finance on Telegram here.

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

Still have more questions after reading the article? Fret not, ask our community here!

Claim our exclusive report on China stocks!

reward

Investing in China Tech Stocks: What You Should Know

Valid till Aug 31