gimz63251073 0 Report post Posted March 17, 2011 Read the online article today, basic facts: Young couple: - Man, 26 yr old, SG citizen - Female, 24yr old, awaiting PR, graduate, not working. Take home pay income = $6.3k. Aim: Saving $800 per month for downpayment/COV for a HDB. From the article, Man spents $1.4k per month on car and allocates just $800 per month for saving for downpayment for housing. Savings per year = $9.6k. A normal HDB flat would command around 20k COV and 20k renovation (minimum). So he will take roughly 4 years to save the $40k required (not adjusted for inflation and pay increments). If he takes a renovation loan, he can get his house in 2years. Would like to ask, how common is this situation? People spending on luxury items like car before getting a house? Though i see some around me having this "problem", its not very common in my circle. Also, i wonder the purpose of the article, to illustrate that some complaints are not the fault of rising HDB prices? Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 17, 2011 (edited) This is basically a "lifestyle choice" question. "This" cause leads to "this" effect. Youngsters nowaday want to taste "sweet" first, enjoy life first, go oversea "holidays" many times yearly. Married no kids but keep pets. When no cash to buy property, then cry father & cry mother lor. Keep buying on credit and broke lor. Read the online article today, basic facts: Young couple: - Man, 26 yr old, SG citizen - Female, 24yr old, awaiting PR, graduate, not working. Take home pay income = $6.3k. Aim: Saving $800 per month for downpayment/COV for a HDB. From the article, Man spents $1.4k per month on car and allocates just $800 per month for saving for downpayment for housing. Savings per year = $9.6k. A normal HDB flat would command around 20k COV and 20k renovation (minimum). So he will take roughly 4 years to save the $40k required (not adjusted for inflation and pay increments). If he takes a renovation loan, he can get his house in 2years. Would like to ask, how common is this situation? People spending on luxury items like car before getting a house? Though i see some around me having this "problem", its not very common in my circle. Also, i wonder the purpose of the article, to illustrate that some complaints are not the fault of rising HDB prices? Edited March 17, 2011 by bepgof Share this post Link to post Share on other sites
eiffel76 1 Report post Posted March 17, 2011 the guy is earning 7.8k at 26yrs old...tats very good wat. Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted March 17, 2011 the guy is earning 7.8k at 26yrs old...tats very good wat. no la, should be $6.3k plus $900 (cpf contribution is capped at 20% of $4,500). Share this post Link to post Share on other sites
eiffel76 1 Report post Posted March 17, 2011 no la, should be $6.3k plus $900 (cpf contribution is capped at 20% of $4,500). oh ya tats rite. Share this post Link to post Share on other sites
marshmallow 0 Report post Posted March 17, 2011 Read the online article today, basic facts: Young couple: - Man, 26 yr old, SG citizen - Female, 24yr old, awaiting PR, graduate, not working. Take home pay income = $6.3k. Aim: Saving $800 per month for downpayment/COV for a HDB. From the article, Man spents $1.4k per month on car and allocates just $800 per month for saving for downpayment for housing. Savings per year = $9.6k. A normal HDB flat would command around 20k COV and 20k renovation (minimum). So he will take roughly 4 years to save the $40k required (not adjusted for inflation and pay increments). If he takes a renovation loan, he can get his house in 2years. Would like to ask, how common is this situation? People spending on luxury items like car before getting a house? Though i see some around me having this "problem", its not very common in my circle. Also, i wonder the purpose of the article, to illustrate that some complaints are not the fault of rising HDB prices? bro, this is very common among my frens and colleagues. they don't even earn $6.3k monthly and they definitely save less than $800. when i asked: don't you think you guys should save more instead of spending on cars, branded stuff, holidays at least 2x per year? where are you going to get $$ for house and wedding? they just stared at me blankly and said: but i really want to go holiday leh. these are pple with university degrees, at late 20s, not so young liao. one of them is already 28 yrs old, and doesn't even have 10k cash in bank account. i think the report is trying to send a message to those already earning a comfortable monthly income, but still everyday complaining about flats very expensive, income ceiling should raise etc etc. if the guy is earning $6.3k at 26 yrs old, this is VERY GOOD... i can't even smell that figure in near future, but i could save 40k in 4 yrs with a monthly salary 40% of his. it's a matter of priority - saving first or enjoying life first. Share this post Link to post Share on other sites
yumiko 0 Report post Posted March 17, 2011 Married no kids but keep pets. this is funny and it is so true... Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted March 18, 2011 Thanks guys for your opinions... i guess our choice of lifestyle has alot to do with how we are brought up and how we were taught to deal with money. People in their late 20s or early 30s, lived in better conditions than their parents with more access to toys and money. The instant gratification of getting a salary in thousands upon graduation is often tempting. Couple that with easy credit card access, we have created a cateogry of people who earn and spend (but not save). i wonder if such an attitude towards money takes an automatic shift when one ages and becomes a parent? I.e., feel the need to save for kid's education, save for rainy days, etc... hence, the progression comes about naturally. on a side note: the 9pm show on channel 8 illustrates another extreme, where Chen Han Wei is extremely stingy. He can buy a heart shaped cake for a guy friend simply becos its the cheapest in the shop! LOL... Share this post Link to post Share on other sites
marshmallow 0 Report post Posted March 18, 2011 Thanks guys for your opinions... i guess our choice of lifestyle has alot to do with how we are brought up and how we were taught to deal with money. People in their late 20s or early 30s, lived in better conditions than their parents with more access to toys and money. The instant gratification of getting a salary in thousands upon graduation is often tempting. Couple that with easy credit card access, we have created a cateogry of people who earn and spend (but not save). i wonder if such an attitude towards money takes an automatic shift when one ages and becomes a parent? I.e., feel the need to save for kid's education, save for rainy days, etc... hence, the progression comes about naturally. on a side note: the 9pm show on channel 8 illustrates another extreme, where Chen Han Wei is extremely stingy. He can buy a heart shaped cake for a guy friend simply becos its the cheapest in the shop! LOL... i fall into the category you mentioned (late 20s to early 30s) but have the habit of saving and planning for purchases since primary school. i guess it's a lot to do with family upbringing~ i guess attitude towards money may change as one's life progresses, but i've seen many who don't have any changes in money-spending habit after having kids. hahahahaha never watch 9pm Channel 8 show for long time liao~ this sounds funny hahahaha Share this post Link to post Share on other sites
eiffel76 1 Report post Posted March 18, 2011 Thanks guys for your opinions... i guess our choice of lifestyle has alot to do with how we are brought up and how we were taught to deal with money. People in their late 20s or early 30s, lived in better conditions than their parents with more access to toys and money. The instant gratification of getting a salary in thousands upon graduation is often tempting. Couple that with easy credit card access, we have created a cateogry of people who earn and spend (but not save). i wonder if such an attitude towards money takes an automatic shift when one ages and becomes a parent? I.e., feel the need to save for kid's education, save for rainy days, etc... hence, the progression comes about naturally. on a side note: the 9pm show on channel 8 illustrates another extreme, where Chen Han Wei is extremely stingy. He can buy a heart shaped cake for a guy friend simply becos its the cheapest in the shop! LOL... i would say yes. im 35 this yr and prob been thru those period. like when jus graduated, my pay was 2-2.7k for first 4 yrs of working life, one hardly has savings, considering study loans, weekend parties, car exp, savings was the last thing on my mind since its stil a long working life ahead. but tat all changed when buying house, getting married etc. Share this post Link to post Share on other sites
bepgof 20 Report post Posted March 18, 2011 (edited) NS done at 21, after 3-4 yr u = 25-26. I wouldn't pay a one-yr working experience hon deg holder $6.3K/month, yet to consider relevant emplyer cpf contribution. After P. holidays, sat, sun, anual leave, left abt 230 working days. 6,300x12/230 = $330 per day! A 26yr old can help bring in more than $330 a day for the company? I guess only stat & gov bodies can. Edited March 18, 2011 by bepgof Share this post Link to post Share on other sites
marshmallow 0 Report post Posted March 18, 2011 NS done at 21, after 3-4 yr u = 25-26. I wouldn't pay a one-yr working experience hon deg holder $6.3K/month, yet to consider relevant emplyer cpf contribution. After P. holidays, sat, sun, anual leave, left abt 230 working days. 6,300x12/230 = $330 per day! A 26yr old can help bring in more than $330 a day for the company? I guess only stat & gov bodies can. my hubby is civil servant and i have lots of frens that are civil servants or working in stat boards. i can ensure you that they don't earn this much at 26 yrs old (well, not even at 30++ yrs old ). but those in finance, banking, accounting... this is possible. my frens (a couple) income already burst the $8k ceiling at 24/25 yrs old... the gal worked for 2+ yrs and the guy just graduated Share this post Link to post Share on other sites
muffin 2 Report post Posted March 19, 2011 I mean this is true, beside inflation itself, we also have lifestyle inflation, the more u earn the more u spent, nowsaday people tend to like instant gratification and don like to plan for the retirement or rainy days, some will even say, enjoy now because the world is ending next year, I personally feel that this is excuse. Fate is on our hand and we should be the master, instead of slave Share this post Link to post Share on other sites
kalimantan 6 Report post Posted March 19, 2011 For myself : i guess i met the right people in my late 20s - a financial advisor that taught me how to save and invest for the future. Each individual has its own preferences for their own lifestyle. As for pay package, there will be always be inequality, thus compare the "why" is useless. Probably job-hopping is the way to go. Share this post Link to post Share on other sites
