I Wish I Wish
I feel it's truly fessible for a couple.
Let's put it this way.
Save $3000 a month for 10 years.
If you start as early as 25 of age,
the couple will have $360K at the age of 35.
To be even better, save the bonus as well.
Say if the bonus is $10K per annum after factoring in $ for holidays and other miscelleous,
the figure will roll to $460K after 10 years.
All these is on the assumption salary is kept constant,
and no major events in life such as having a child.
If the salary increases during the 10 years to the extend having a child puts no constraint on the couple, why not.
Back to topic.
$460K. That's about half a million isn't it.
Continue saving $3K a month and with good investments for the next 5 years, the figure can go up to a million.
So for the next 25 years till 65 (current retirement age in Singapore), you can choose to continue working, take on part time jobs or help out in non-profit social organization.
You may want to set up a business, continue investing, or for those low risk takers, put the money in some fixed deposit schemes with better returns (1% of $1million is $10K).
And I'm not even considering those savings in the CPF accounts.
Once you have gained financial freedom, you can do the things you want.
When I draw out the plan, saving $3K a month is already a safe figure. Some couples can afford to save more.
Take on average the monthly combined salary of a couple to be $8K.
CPF contribution: $1,600 (medical insurance is paid using medisave)
House loan: using CPF
Car expenses: $1.3K for a decent 1,600cc Japanese or Korean car
Telecom: $100
Insurance: $100
Parents: $600 (depending on family needs and culture)
Balance: $1,300
That gives $750 each to spend on food and leisure which is a reasonable sum.
Given my current lifestyle, $750 is more than enough.
I can even save $100 to $200 more a month for special occasions like parents' birthday, festive seasons, birthday treats and taxes.
Bonus per annum: $15,000 to $20,000
Don't forget to put aside $10,000 for savings.
The rest of it can be spent on things like vacation, household and medical.
It is possible for an early retirement with discipline and a good sense of financial management.
Start early. It's never too late.
I Wish Upon a Star on Monday, January 20, 2014
Read an article on early retirement.
I feel it's truly fessible for a couple.
Let's put it this way.
Save $3000 a month for 10 years.
If you start as early as 25 of age,
the couple will have $360K at the age of 35.
To be even better, save the bonus as well.
Say if the bonus is $10K per annum after factoring in $ for holidays and other miscelleous,
the figure will roll to $460K after 10 years.
All these is on the assumption salary is kept constant,
and no major events in life such as having a child.
If the salary increases during the 10 years to the extend having a child puts no constraint on the couple, why not.
Back to topic.
$460K. That's about half a million isn't it.
Continue saving $3K a month and with good investments for the next 5 years, the figure can go up to a million.
So for the next 25 years till 65 (current retirement age in Singapore), you can choose to continue working, take on part time jobs or help out in non-profit social organization.
You may want to set up a business, continue investing, or for those low risk takers, put the money in some fixed deposit schemes with better returns (1% of $1million is $10K).
And I'm not even considering those savings in the CPF accounts.
Once you have gained financial freedom, you can do the things you want.
When I draw out the plan, saving $3K a month is already a safe figure. Some couples can afford to save more.
Take on average the monthly combined salary of a couple to be $8K.
CPF contribution: $1,600 (medical insurance is paid using medisave)
House loan: using CPF
Car expenses: $1.3K for a decent 1,600cc Japanese or Korean car
Telecom: $100
Insurance: $100
Parents: $600 (depending on family needs and culture)
Balance: $1,300
That gives $750 each to spend on food and leisure which is a reasonable sum.
Given my current lifestyle, $750 is more than enough.
I can even save $100 to $200 more a month for special occasions like parents' birthday, festive seasons, birthday treats and taxes.
Bonus per annum: $15,000 to $20,000
Don't forget to put aside $10,000 for savings.
The rest of it can be spent on things like vacation, household and medical.
It is possible for an early retirement with discipline and a good sense of financial management.
Start early. It's never too late.
I Wish Upon a Star on Monday, January 20, 2014