1 in 35 Singaporeans is a millionaire. That’s according to a report by WealthInsight. In this post, I’ll be working out a hypothetical and hopefully, realistic example of a roadmap which a typical Singaporean can take to attain millionaire status. Let’s call this individual “Ben”.

Phase 1 (Year 1 – 3)

Ben is a typical graduate. In 2015, the average graduate’s starting salary is $2,740. In this 1st phase, Ben feels the excitement of earning his first pay cheque. His expenses are still relatively low, as he stays with his parents and travels via public transport (buses and trains). He gives his parents a monthly allowance. Ben is also wise and thrifty, and tries to save the bulk of his earnings. Entertainment expenses are also relatively low. He may switch jobs quite a bit during this phase. Ben is also an astute investor. He is able to achieve a pretty respectable ROI of 10% annually. Assuming a bonus of 2 months (13th month + 1 month performance bonus), Ben’s income in the 1st year would be $38,360. Now assuming an annual increment of 5%, his total income in the 3rd year would be $44,406. Taking the average, his average annual income within this 1st phase is about $41,400.

Annual income: $41,400

CPF: -$ 8,280

Food: -$150 x 12

Transport: -$120 x 12

Entertainment: -$100 x 12

Clothing: – $100 x 12

Parents: -$400 x 12

**Annual Savings: $22,680**

**Year 1 – $22,680**

**Year 2 – $47,628**

**Year 3 – $75,071**

Phase 2 (Year 4-8)

Ben has done relatively well in his career. He has moved up the corporate ladder, and gotten a promotion after his 3rd year in the workforce. He has now settled into a permanent position in his company that he likes, and he is less likely to switch jobs at this stage. His current basic salary is now $4,500. Again, assuming a 2 month bonus, his annual income is now $63,000. Assuming a 5% annual increment, his average annual income during this 2nd phase is $71,700. His expenses have risen substantially. During this phase, he’s considering getting a car, and would be getting married too. With marriage, he’ll be applying for, and getting his HDB flat. Most of his housing expenses would be covered by his CPF, but he’s setting aside a tiny sum for the renovations and furniture. His partner would also be helping out with the expenses so he only needs to pay for half of it.

Annual income: $71,700

CPF: -$ 14,340

Food: -$200 x 12

Transport (car): -$600 x 12

Entertainment: -$300 x 12

Clothing: – $200 x 12

Parents: -$450 x 12

**Annual Savings: $36,360**

**Year 4 – $118,938**

**Year 5 – $167,192**

**Year 6 – $220,271**

**Year 7 – $258,658 (-$20,000 for housing)**

**Year 8 – $309,784 (-$10,000 for wedding)**

Phase 3 (Year 9-13)

Ben has continued progressing in his career. His responsibilities have risen, and with that, his basic salary has increased. Ben now earns $7,000 a month. Again, assuming a 5% annual increment, and 2 month bonuses, his average income throughout this 3rd phase would be $111,538. His expenses has risen further, largely because he welcomed a new addition to his family. Household expenses would include the daily necessities as well as utilities

Annual income: $111,538

CPF: -$ 22,308

Food: -$400 x 12

Transport (car): -$600 x 12

Entertainment: -$300 x 12

Clothing: – $250 x 12

Parents: -$450 x 12

Household: -$500 x 12

**Annual Savings: $59,230**

**Year 9 – $399,993**

**Year 10 – $499,222**

**Year 11 – $608,374**

**Year 12 – $728,441**

**Year 13 – $860,515**

Phase 4 (Year 14-18)

Ben is now in a managerial position in his company. He has welcomed yet another addition to his family and so his household and other related expenses has risen. Fortunately, his wife is working as well and that helps to defray most of the expenses. His salary is now $9,000 a month. His average income during this phase would be $143,406

Annual income: $143,406

CPF: -$ 28,681

Food: -$550 x 12

Transport (car): -$800 x 12

Entertainment: -$350 x 12

Clothing: – $300 x 12

Parents: -$450 x 12

Household: -$700 x 12

**Annual Savings: $76,925**

**Year 14 – $1,023,492**

**Year 15 – $1,202,766**

**Year 16 – $1,399,968**

**Year 17 – $1,616,890**

**Year 18 – $1,855,504**

Following this plan, Ben is supposed to reach millionaire status sometime in phase 4. Of course, there are other expenses (holidays, housing upgrade etc) that have not been included that may derail this plan but from this plan, he’ll hit millionaire status in the 1st year of phase 4, so there’s quite a bit of leeway. Also, the “millionaire status” in this case is strictly based on the liquid assets. In reality, he’ll likely grow his net worth substantially via housing assets as well.

Is this a realistic blueprint to reach millionaire status? What do you think?

if he can swing with the market he might even reach million status earlier. main idea is save and invest (and work hard).

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