Ask Yourself: Am I Saving Less Than Most Singaporeans?

You might be shocked when you see where you stand among others. Here's a small little peek into some helpful statistics to see what you're doing right with your finances, and how you can do even better.

How much do Singaporeans generally save?

Personal savings rate had risen from about 35% in the first quarter of 2020 to a record high of 51% in in the second quarter, amidst the COVID-19 pandemic based on Singapore Statistics.

However, it is also important to note that the statistics here represents the average savings rate for a Singaporean, and it should be adjusted at different life stages based on your current needs and financial commitments.

How much of my salary should I save?

A simple starting guide would be the 50/30/20 rule where you allocate 50% of your take-home income to essentials like food, housing, and transport; 30% towards lifestyle activities; and the remaining 20% towards savings.

Tip: Instead of putting all your savings into a regular savings account, you can consider getting investment-linked policies which provide insurance coverage while generating potential returns.

So... what should I do with my savings?

Out of your savings, a portion can go towards your retirement funding and another portion to your emergency fund that is meant for “rainy day” needs (e.g. sudden accidents).

The amount allocated to your retirement fund depends on your retirement goals, while it is recommended that you have at least 6 months’ worth of income in your emergency fund.

Am I saving enough?

It really depends on what you’re saving for. Once you’ve identified what you’re saving for, it’s important to set a target with a specific timeframe and of course, minimise debt so you don’t just keep cancelling yourself out.

Ready to get started?

Arrange a chat with me and get started today!