3 Big Money Mistakes Singaporean In Their 30's

[Picnic06-Biante15]

Worth spending 10 minutes reading it.....

 

 

 

Yahoo news: 3 Big Money Mistakes Singaporeans in Their 30s are Making

 

When you’re in your twenties, if you aren’t lucky enough to have a trust fund or a business to inherit, chances are you’re either scrambling to find a job or to find yourself. But you should have everything figured out by the time you’re 30… right?

I’m not sure if it’s something in the water, but it seems like lots of the 30-somethings around me still haven’t quite gotten their act together. In fact, despite earning a lot more than they were in their 20s, it seems like more and more 30-somethings are getting mired in debt. I have a sneaking suspicion the following money mistakes have something to do with it. Let’s find out.

Spending too much on their weddings

Speak with a typical Singaporean 30-something in a relationship and there’s an 80% chance they’ll start talking about marriage and complaining about the high cost of wedding banquets. In fact, it’s become standard practice in Singapore to spend an average of $50,000 on a wedding, with many going up to $90,000.

Truth be told, many of the grooms-to-be I’ve spoken to haven’t even been that keen on splashing out on a lavish wedding, gloomily stating that it’s their fiancees who want a dream wedding and they have no choice but to go along with it.

Shane, a 30-year-old bank analyst, is going to tie the knot next year. “While I would prefer to have a smaller, more inexpensive wedding, my fiancee has a very large family and wants to have a hotel wedding banquet, so I’m bracing myself for the cost,” he says.

Falling deeper into consumer debt instead of digging themselves out of it

In countries where young people move out of their parents’ homes during university or at least once they get their first jobs, the 20s are a time of being broke and paying off student loans, while in their 30s most start enjoying greater financial stability.

In Singapore, however, for many people the opposite is true, as they continue to live under their parents’ roofs until well into their 20s. It is only when they start working, which can be as late as the mid to late 20s for those who have advanced degrees or males who do national service, that they are suddenly forced to bear the financial responsibility of supporting aged parents or purchasing property.

That, and the persistent lifestyle inflation that dogs the young and upwardly mobile, has resulted in high levels of consumer debt amongst 30-somethings.

Penelope, a 34-year-old HR executive, has recently run into cash flow issues. She goes on overseas vacations twice a year during the school holidays together with her husband and three kids to locations such as London and LA. Each time, the family spends close to $10,000. While she was mostly credit card-debt free in her 20s, she now has a credit card balance which she rolls over each month.

“My family has grown, but my husband and I continue to be the only ones bringing in money. As a result, our spending has increased quite a bit.” she says.

It’s not just those with kids who face credit card debt. Albert, a 31-year-old bank executive, carries about $10,000 worth of credit card debt, which is more than 2 months’ worth of salary. He survives by paying only the minimum sum each month. Most of his debt was chalked up while spending on food, drinks and entertainment.

In fact, a recent report showed that one in five credit card holders in Singapore now pays only the minimum sum each month. And a fast-growing segment of the population with revolving debt consists of women aged 30 and above. Orchard Road might have something to do with it….

Overcommitting to houses and cars

In your 20s, most of your peers are still living at home and taking the MRT. But once you hit the big 3-oh, you look around and realise that more and more of your friends are buying property and driving cars.

This sudden shift has led to many 30-somethings committing to property and car purchases that are really a bit more than they can afford.

Many of the 30-somethings I’ve spoken to who’ve recently started paying for their own properties have admitted that their finances are tight and leave no room for error or accident. While the TDSR framework aims to stop people from overstretching themselves, it fails to consider their day-to-day expenses, which can amount to quite a bit.

In addition to paying her home loan installments, Belinda, a 30-year-old bank executive, also gives her parents $1,000 a month, spends about $1,000 a month on her car and has personal expenses of about $2,000 a month. She depleted most of her savings to make the downpayment on her new condo unit and is now treading dangerous waters.

“Basically, I can’t afford to stop working for many years to come,” she says. “I’m not really worried about losing my job as things are going well at work, but then again anything is possible.”

(Names have been changed to protect the identity of respondents.)

 

 

Link: https://sg.finance.yahoo.com/news/3-big-money-mistakes-singaporeans-160000290.html

 

 

[Little_prince]

wah. belinda earn so much ah? 30yr old nia

 

1k for parents.

1k for car.

2k for personal expense.

since she can afford to pay the downpayment for house. so can assume she saves quite a bit in her short career. (2k/mth)?

 

so she take home abt 6k. salary about 7k at 30yr old. not bad at all.

 

sg50 huat ah!

more good years ahead!

Worth spending 10 minutes reading it.....

 

 

 

Yahoo news: 3 Big Money Mistakes Singaporeans in Their 30s are Making

 

When you’re in your twenties, if you aren’t lucky enough to have a trust fund or a business to inherit, chances are you’re either scrambling to find a job or to find yourself. But you should have everything figured out by the time you’re 30… right?

I’m not sure if it’s something in the water, but it seems like lots of the 30-somethings around me still haven’t quite gotten their act together. In fact, despite earning a lot more than they were in their 20s, it seems like more and more 30-somethings are getting mired in debt. I have a sneaking suspicion the following money mistakes have something to do with it. Let’s find out.

Spending too much on their weddings

Speak with a typical Singaporean 30-something in a relationship and there’s an 80% chance they’ll start talking about marriage and complaining about the high cost of wedding banquets. In fact, it’s become standard practice in Singapore to spend an average of $50,000 on a wedding, with many going up to $90,000.

Truth be told, many of the grooms-to-be I’ve spoken to haven’t even been that keen on splashing out on a lavish wedding, gloomily stating that it’s their fiancees who want a dream wedding and they have no choice but to go along with it.

Shane, a 30-year-old bank analyst, is going to tie the knot next year. “While I would prefer to have a smaller, more inexpensive wedding, my fiancee has a very large family and wants to have a hotel wedding banquet, so I’m bracing myself for the cost,” he says.

Falling deeper into consumer debt instead of digging themselves out of it

In countries where young people move out of their parents’ homes during university or at least once they get their first jobs, the 20s are a time of being broke and paying off student loans, while in their 30s most start enjoying greater financial stability.

In Singapore, however, for many people the opposite is true, as they continue to live under their parents’ roofs until well into their 20s. It is only when they start working, which can be as late as the mid to late 20s for those who have advanced degrees or males who do national service, that they are suddenly forced to bear the financial responsibility of supporting aged parents or purchasing property.

That, and the persistent lifestyle inflation that dogs the young and upwardly mobile, has resulted in high levels of consumer debt amongst 30-somethings.

Penelope, a 34-year-old HR executive, has recently run into cash flow issues. She goes on overseas vacations twice a year during the school holidays together with her husband and three kids to locations such as London and LA. Each time, the family spends close to $10,000. While she was mostly credit card-debt free in her 20s, she now has a credit card balance which she rolls over each month.

“My family has grown, but my husband and I continue to be the only ones bringing in money. As a result, our spending has increased quite a bit.” she says.

It’s not just those with kids who face credit card debt. Albert, a 31-year-old bank executive, carries about $10,000 worth of credit card debt, which is more than 2 months’ worth of salary. He survives by paying only the minimum sum each month. Most of his debt was chalked up while spending on food, drinks and entertainment.

In fact, a recent report showed that one in five credit card holders in Singapore now pays only the minimum sum each month. And a fast-growing segment of the population with revolving debt consists of women aged 30 and above. Orchard Road might have something to do with it….

Overcommitting to houses and cars

In your 20s, most of your peers are still living at home and taking the MRT. But once you hit the big 3-oh, you look around and realise that more and more of your friends are buying property and driving cars.

This sudden shift has led to many 30-somethings committing to property and car purchases that are really a bit more than they can afford.

Many of the 30-somethings I’ve spoken to who’ve recently started paying for their own properties have admitted that their finances are tight and leave no room for error or accident. While the TDSR framework aims to stop people from overstretching themselves, it fails to consider their day-to-day expenses, which can amount to quite a bit.

In addition to paying her home loan installments, Belinda, a 30-year-old bank executive, also gives her parents $1,000 a month, spends about $1,000 a month on her car and has personal expenses of about $2,000 a month. She depleted most of her savings to make the downpayment on her new condo unit and is now treading dangerous waters.

“Basically, I can’t afford to stop working for many years to come,” she says. “I’m not really worried about losing my job as things are going well at work, but then again anything is possible.”

(Names have been changed to protect the identity of respondents.)

 

 

Link: https://sg.finance.yahoo.com/news/3-big-money-mistakes-singaporeans-160000290.html

 

 

 

[Wt_know]

simi bank analyst with the atitude to "brace myself" and not manage the situation

 

Shane, a 30-year-old bank analyst, is going to tie the knot next year. “While I would prefer to have a smaller, more inexpensive wedding, my fiancee has a very large family and wants to have a hotel wedding banquet, so I’m bracing myself for the cost,” he says.

 

[Picnic06-Biante15]

wah. belinda earn so much ah? 30yr old nia

 

1k for parents.

1k for car.

2k for personal expense.

since she can afford to pay the downpayment for house. so can assume she saves quite a bit in her short career. (2k/mth)?

 

so she take home abt 6k. salary about 7k at 30yr old. not bad at all.

 

sg50 huat ah!

more good years ahead!

 

 

She can work part time you know ...

 

If guys, can look for @Porker but chances are slim, he only goes for @yeshe & TB4......

 

Edited April 14, 2015 by Picnic06

[Stratovarius]

wah. belinda earn so much ah? 30yr old nia

 

1k for parents.

1k for car.

2k for personal expense.

since she can afford to pay the downpayment for house. so can assume she saves quite a bit in her short career. (2k/mth)?

 

so she take home abt 6k. salary about 7k at 30yr old. not bad at all.

 

sg50 huat ah!

more good years ahead!

 

Our female counterparts starts work around 23~24. That is around 6 to 7 years of career life. Not really short. But seriously, 2k expenses per month on what? She should cut down on those and put into savings.

[Wt_know]

30 years old buy condo liao

bank bonus is no 12 months no talk?

[Ake109]

I tend to view the details of these type of 'articles' with great suspicion. Not that in general they are totally off the mark but the very bad journalism involved.

 

The only fact quoted in the entire article is this line ' a recent report showed that one in five credit card holders in Singapore now pays only the minimum sum each month.' with a link to another report.

 

Everything else is XXX** spends/saves/earns YYY.

 

**name changed to protect identity.

 

I can easily churn out tens of salacious articles in this mold daily if anyone wants to hire me.

 

Jenny a undergrad reading law in NUS works as a prostitute to select overseas clients to finance her luxury bag purchases.*

 

Bobby spends at least $5000 per week on KTVs and lounge hostesses.*

 

Abigail visits clubs 4 times a week. 'Wear a tight short skirt and men queue buy you free drinks' she giggles.*

 

*Names changed to protect identity.

 

Please. Too many of these articles already.

Edited April 14, 2015 by Ake109

[Sabian]

 

She can work part time you know ...

 

If guys, can look for @Porker but chances are slim, he only goes for @yeshe, @soya & @turboflat4......

 

 

Corrected.

[Myxilplix]

simi bank analyst with the atitude to "brace myself" and not manage the situation

 

 

Bopian, his balls are in her palm. Brace like hell also no use, in the end will cry.

[Yeobt]

at that time of my wedding during the mid 90s, i only spent $200+ per table.

i made $5k from the ang pao collected for 30 tables and my guests had a memorable dinner too.

[Joseph22]

at that time of my wedding during the mid 90s, i only spent $200+ per table.

i made $5k from the ang pao collected for 30 tables and my guests had a memorable dinner too.

That time restaurant still charge u cheaply. Now the way restaurant price wedding table money. It's make going to hotel for wedding like a no brainier.

[Picnic06-Biante15]

Unless one hold a degree in education and with a monthly income above $5k.....

 

No way one at the age of 30+ owns a nice car & condo for 85% of the peoples in that age group.

 

The remainder 10% maybe either running his family business or doing business themselves.

 

Normal working class under a boss can at least attain it whilst at 40+ cos after taking into consideration of 2 yrs NS and 4 yrs study and he started working at the age of 26yrs.

 

The other 5% belong to a group with helping hands from super rich father ...

[Yeobt]

a fren of mine who is a U grad, drives a taxi and is making $3k/ mth.

i know, some said taxi driver can make $7k/ mth.

[Joseph22]

Unless one hold a degree in education and with a monthly income above $5k.....

 

No way one at the age of 30+ owns a nice car & condo for 85% of the peoples in that age group.

 

The remainder 10% maybe either running his family business or doing business themselves.

 

Normal working class under a boss can at least attain it whilst at 40+ cos after taking into consideration of 2 yrs NS and 4 yrs study and he started working at the age of 26yrs.

 

The other 5% belong to a group with helping hands from super rich father ...

You will be surprise.. I know plenty of ppl at age 30 pay already 5k Liao.

[Wt_know]

by 35 if you don't make $1M ... forget it ...

ah Ma says one ... lol

[L_club23]

wah. belinda earn so much ah? 30yr old nia

 

1k for parents.

1k for car.

2k for personal expense.

since she can afford to pay the downpayment for house. so can assume she saves quite a bit in her short career. (2k/mth)?

 

so she take home abt 6k. salary about 7k at 30yr old. not bad at all.

 

sg50 huat ah!

more good years ahead!

 

 

Not in engineering can liow...

[Joseph22]

 

Not in engineering can liow...

Engineering can also Lah..

 

Just depend on which industries.

[L_club23]

Engineering can also Lah..

 

Just depend on which industries.

 

Not manufacturing lor...