Wednesday, January 25, 2012

How Much of Salary to Save

Based on a recent online survey, it was found that 2 out of 3 Singapore workers were saving no more than 20 per cent of their monthly salary. How much salary do I save?

I figured that I am currently saving about 30% of my monthly salary.  This goes into savings plans, bank deposits or stock investments.  This is probably possible for me because I have kept my "wants" to the bare minimal.  Apart from the occasional dining at restaurants, I probably do not spend much on anything else.  No gadgets, clothes or whatever.  So most of my expenditure is really going into my needs and paying for the bare essentials.

Based on my rough calculations, I also figure that I am possibly able to save as much as 50% of my salary if I really want to.  But that will really mean cutting back on many of the "luxury" items that I can afford.  Saving comes really easy to me as I am pretty much of a saver rather than a spender.  I do not see the need to have or own the latest toys and gizmos.  Being frugal is perhaps part of me =)  And that is perhaps why I have written posts like:
  1. What am I saving for?
  2. Saving Money on Coffee
  3. How Much to Save
  4. Saving for My Child's Education
As many people have always advised, it really is not about how much you save.  The most important thing is to get into the habit of saving.  Try to build up an emergency fund and also set up a disciplined savings plan for retirement.  Thereafter, it should get quite easy as you discover more and more ways to save money.  Like they say, the first step is always the hardest.


  1. 20% of their salary! In the UK and US most people save no more than 5% of their salary, if not less. In fact, during the housing boom, people used credit cards and saved a negative amount of their salary! There must certainly be certain cultural differences that explain this discrepancy. And if you are saving 30%, you are a hero. Quite fascinating post to read.

  2. On your 30% savings, is it inclusive of cpf savings? Cheers

  3. I am a typical saver with no wants for fancy food or latest gadgets except for an iphone. The only high expense is probably my son who is taking private diploma from my single income. Saving 20~30% of monthly salary is not a problem though. I guess being thrifty is a blessing.

  4. 30% exclusive of CPF savings. Of course it varies from month to month.


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