Money

My guide to money.

Stage 1: Prepared (Prepared for hospitalisation and illnesses), but required to continue working

This is what I am aiming for right now. Amount required: $201,885

Stage 2: Financial freedom (0 debt), and no longer required to continue working

Work in progress

Stage 3: Enough (Enough for life), and able to spend every cent earned

Work in progress

How much is enough:  (in chronological order)

Assumption: I will be holding a full time salaried position until I am 65.

• Self (Insurance: term, CI, accident, employment)

Illness, death and accidents: $50,000

This includes the medical cost should I be Ill, the hospitalisation cost should I require minor surgery and money for my family to take care of themselves if I were to pass away.

I allocated only $50,000 because the bulk of the costs will be borne by my insurance plans and also Medisave. I have a $400,000 coverage for death and permanent disability with critical illness rider. I have a $100,000 coverage for accidents and also contribute monthly to my Medisave account via CPF. I also have a hospitalisation plan if I require long term hospitalisation.

Employment: $0

This includes living allowance for myself should I be retrenched. I have set this amount to $0 because I plan to drive full time uber/grab while looking for a full-time job. In this way, I will not have to set aside money and be idle in the meantime.

Education: $24,000

This is the outstanding amount of debt I have for my university education.

Need to save: $74,000

• Marriage (photoshoot, banquet, ring, honeymoon)

Proposal ring: $5,000

Wedding ring: $500

Pre-wedding photoshoot: $5,000

Banquet: $18,000

Actual day: $3,500

Honeymoon: NA

These items are pretty self-explanatory and will be required soon, so I will need to save up cash for them.

Need to save: $32,000

• Home (downpayment, subsidies, monthly instalment, renovation, furnitures, appliances)

Cost of home: $248,000

This is the cost of the BTO flat that my wife and I have applied for in Nov 2014, and we are expecting to move in by beginning 2018.

Move-in costs: $25,885

This includes the renovation and furnishing costs that we will need to spend after the completion of the flat in order to move in. Below, I have drawn up a pretty detailed table for budgeting the various costs.

Need to save: $25,885

We will need to spend these money soon, so I will need to set aside this amount in cash.

• Children (Delivery, growing up, education)

First trimester: $1,000 (Private)

Second and third trimester: $2,500 (Private)

Delivery: $13,000 (Private)

Source: http://dollarsandsense.sg/much-cost-deliver-baby-singapore/

These costs can be halved by going to a public hospital, but let us take the private hospital costs for budgeting purposes. Can use Medisave, baby bonus.

Baby: $35,000

Toddler: $40,000

Primary and Secondary: $50,000

Source: http://dollarsandsense.sg/the-cost-of-raising-a-child-in-singapore-explained-for-the-average-singaporean/

JC: $10,000

University: $76,000

Need to save: $227,500

• Parents (illnesses)

My parents are not depending on me for a living. In fact, my father is still working as a salaried employee. However, I am still allocating 20% of my income for my parents as a form of allowance. 80% of this amount goes into a bond fund under their respective accounts and 20% goes into getting daily necessities or groceries for our family.

They also have their own insurances (term and hospitalisation) and have Medisave account, so I do not have much to worry in that aspect. I would say putting aside $50,000 for each parent would be sufficient. Furthermore, my siblings will also share the responsibility of taking care of my parents

Need to save: $50,000

• In-laws (illnesses)

My in-laws definitely need some financial help if they were to be ill. In fact, I’m not sure if they have insurances and Medisave to pay the medical bills. The bulk of the responsibility will lie on my wife, but I will also set aside an amount to help things out if required.

Need to save: $20,000

• Retirement (allowances)

The basic assumption is that I work until 65 and then live until 90 years old, with $2,500 monthly allowance.

Need to save: $1,156,591