This is a rough gauge of my current monthly expenditure. I will be including the housing installments even though they are paid by CPF as I hope that my passive income will be able to pay off the housing installments (if any) at the age of 40.
My current monthly expenditure in (S$)
1. Housing installments = 1096.00 (wife is sharing the burden)
2. Car Monthly Installment = 518.00
3. AIA Investment Link Plan = 350.00
4. Asia Life Policy = 154.20
5. Aviva Insurance = 51.72
6. Conservancy Fees = 49.00
7. Telephone & Internet = 33.96
8. Cable TV= 25.68
9. Mobile Phone Bills= 30.89
10. Electric, Water, Gas= 100.00 (estimated)
11. Car Insurance = 110.00
12. Parking= 150.00
13. Road Tax= 60.00
14. Petrol= 300.00
15. Food= 300.00
16. Tithes, Parents = 600.00
Total = $3929.45 !!!!!!!!!!!!!!!!!
How on earth did my family accumulate so much monthly expenditure? And this is being optimistic.. there are months in which I spend much more on food, entertainement, miscellaneous stuff, etc....
Okay, maybe its because I included the housing installment which is actually covered by CPF now.
How can I decrease my monthly expenditure to S$2800 and below?
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I don't think your expenses is particularly high. It's fairly typical, probably even on the low side.
ReplyDeleteFirst, I don't think it's fair to count the housing installment, so that's $1,096 off.
Second, your insurance premiums ($555.92) have a investment component, so you can't count all of that as expenses.
Third, do you need a car? Your total car expenses is $1,138. If you take public transport, it would be $300 at most.
So, in the end your expenses could be lowered by $1,096 + $555.92 * 0.6 + $1,138 - $300 = $2,267.55.
In other words, your expenses is just $1,661.90!
If you are the investing type..
ReplyDeletethen maybe you should go and see whether it is better to BUY TERM INSURANCE and Invest the rest...
Your whole life and ILP is taking up money that could be invested yourself.
Thanks for the comments. But I am SOOOoo reliant on my car =(
ReplyDeleteIt is a liability (financially) but it gives me the convenience. Selling my car and taking public transport would really be the wisest financial decision but it is so difficult to do that after the amount of money I have paid for the car (downpayment, installments, insurance, road tax).
While it does not make financial sense, I "think" i can afford this "small" luxury item. Albeit with less income to spend or invest in other things.
Yes. I have currently some term insurance. The ILP and life policy is just a backup plan to be safe. In other words, if all else fails (my investments in stock market, etc), at least I still have this 2 policies to fall back on for my retirement needs.
Hello, IMHO, you should not reduce. I feel that your expenses is already quite low. Enjoy your lifestyle. Instead of reducing, why not try to earn more?
ReplyDeleteEg. Giving tuition or doing some small biz. Upgrade your job.
Thanks nhyone,
ReplyDeleteI am indeed trying to increase my passive income sources
I think you missed couple of things:
ReplyDeletea. Income Tax
b. Holiday outside Singapore
c. Medical, unless it is fully covered by your employer
Also, you should take into account only the interest protion of your mortgage payment. The Principal is getting accounted into home equity, building an asset base for you.
so far, can you maintain positive cash flow every month? It's not easy to offset near $4000 per month. If I can, I will like to quit my job as well.
ReplyDeletebtw, thanks for your comment on my blog (http://jealv.blogspot.com/). To support each other, I clicked your ads.
Dont drive.
ReplyDelete