August 5, 2021

3 thoughts on “Singapore Has “x” number of Millionaires? Where Do You Stand With Your Wealth?

  1. Hi,

    I'm in my late 30s and inclusive of CPF, I've above USD 1m in net worth. I was lucky to progress well in my career and gotten stable returns from investments and my business (sleeping partner, took a loan and invested with my close friend when I was in my early 20s and has proven to be the best investment I've to date). Within my group of friends I'd say it's split 50-50, but almost all have above USD 400k net worth.

    5.5% may seem low but within the age group band of 35-45 years old, I'm guessing it's at least 15%. I think USD 1m net worth below 40 is quite attainable but requires discipline and some luck. But is that a lot? I think it's a good buffer and can provide a relatively ok lifestyle for a single person based on USD 30k-50k spend per annum. For a family of 3, probably need USD $1.5m liquid asset excluding primary property used for lodging.

    Net worth is just a number and there is much more important things beyond that. These days, I tend to be less concerned on that but it's probably because I've set aside a good buffer. Looking to achieve FIRE in 3 years time which gives me the option and flexibility to re-think as current job has a lot of responsibilities and stress – manpower management, deliverables, complex issues, based overseas etc.

    Comparison is fine but most people will be sucked into 'why are you so lucky and I still have to suck it up' mindset which is a vicious toxic cycle.

    If you have achieved USD $1m net worth, that's good and please help the less fortunate in whatever capacity you can. But if you haven't, it's not the end of the world and life goes on. In fact, it's the people who have less who seemed to be happier and more relaxed and wondering why the richer counterparts are always worried! Haha

    1. Hi NA,

      Glad to hear your last part of the comments in helping the less fortunate in whatever capacity we can. I agree with you and it is really honourable. And yes…wealth don’t necessary translates to joy and happiness.

      Congrats for you and your friend being above the average net worth of SG.

      For the age band of 35-45 yo of 15%, I am not so sure. This is because this is the age where, household expenses are hefty and the profits from properties are definitely not as lucrative as those who are above 50, who purchased their flats at much lower price.

      Personally, I would have think that those 55-65 are probably the wealthier lot statically because of the higher accumulated CPF, cheaper housings during their time and lower cost of living during their time. This group is probably the more frugal lot.

      Also, there is a catch of thinking that most of our friends have higher net worth, but this probably need to divide by 2 pax, because I reckon that most in Singapore have joint wealth in their properties and are still in significantly debt compared to the value of the house. Anyway, this is just my opinion.

      Meantime, thanks for dropping by with your valuable comments and have a great weekend.

  2. Hi Rolf,

    Wealth comparison is fine for young people who have financial targets to see where they stand. Competition is a strong motivator.

    After a person has enough $$ for financial freedom, wealth comparison is irrelevant. In fact, it causes more heart ache than satisfaction because no matter how rich, someone else will be richer. Haha. For people who are lucky to be in the position to have way more than enough for himself and his family, it may be a good idea to be less penny pinching and spend more to boost the income of other people who provide a decent service/product but charge a little above average.

    Wealth is a good numerical measure for financial success but it has its flaws as a measure of success. I think how one attains wealth matters more than how much wealth one has attained. There are high paid but incompetent CEOs. There are high paid snake-oil salesmen. Then there are people like me who made some money in mainly zero-sum financial games. Any financial success achieved is enviable but better to keep a low profile and not glorify wealth attained in this manner.

    What I would like to see more are role models who create wealth for themselves and at the same time, create value to others in the process. Raising 4 kids, being a successful corporate leader who create good jobs and useful products/services is a better measure of success than pure networth alone. I see you have good chance in achieving that. Stay healthy!

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