household income

[Blobbi]

skunk:

Our perception of what the median income is, is coloured by our job, peers, education, neighbours and even our own parents.


I worked in a welfare organisation, so it seemed to me many are poor.

If i talk to a banker, he/she will say that so many are rich.

We simply have to trust the statistics, or else there is no basis for any sort of meaningful discussion.

So true.

[skunk]

kaitlynangelica:

So whats considered a decent amount of liquid cash savings for a couple in their mid to late 30's with 2 kids and a car?


Is $150 K considered decent?

LOL even the way u phrase the question reeks of your financial background lol

Someone with a very \"unsteady\" lifestyle will need more, someone with a very stable lifestyle will need less. I think $50K is generally enough.

$150K means they have not optimised the returns from their money. Money is meant to be spent, not sit in the bank

[skunk]

lovekidsverymuch:

I think its a lot :!:

she's implying she has $150K....and she asked this question to seek reaffirmation that she has been saving enough hehe

kiddin :lol:

[Blobbi]

kaitlynangelica:

So whats considered a decent amount of liquid cash savings for a couple in their mid to late 30's with 2 kids and a car?


Is $150 K considered decent?

Thinking out loud, several ways to look at this.
1. Liquid cash as a percentage of overall wealth. In Singapore, a lot of our wealth is tied up in our homes cos of high ownership levels. Have to figure out what the average cos of a home is. Again, we may have to stratify - public housing versus private housing. So ok, let's look at the average HDB flat dweller - what's the cost of the average flat? I'm thinking $500k? Say net of loans, the flat has a paid up value of $300k. With say another $100k in stocks, the $150k is about 27% of total wealth. I guess that is decent; conservative even.

2. Liquid cash as a percentage of future needs. Calculating on that basis, and with an annual expenditure (say $7k every month (including mortgage, car loan), plus holidays, say $10k per year) averaging $94k a year, $150k liquid cash will mean that the family can last 1.6yrs if parents are out of work. Can adjust what suits the risk appetite.

The short answer seems to be $150k is quite a decent amount. :lol:

[LOLMum]

definitely a good sum for the couple and is good that one is able to put aside some $ monthly.

[skunk]

For me and my wife, we do not save alot. We only have enough savings to tide us 6 months, should we both be out of job.


We do not believe in excessive cash savings. Excessive cash savings will give a person the false illusion that he/she is self-sufficient, \"independent\" lol and gradually, this person will become very arrogant. We believe God provides and we live our life to this belief. Our duty is to spend the money in meaningful ways, not let it grow mushrooms in the bank hehe

[jedamum]

lovekidsverymuch:

kaitlynangelica:

So whats considered a decent amount of liquid cash savings for a couple in their mid to late 30's with 2 kids and a car?


Is $150 K considered decent?

I think its a lot :!:

this is not easy to achieve for those who got first timer hands on a HDB. after 5yrs, they can easily net 100k cash. but that is of course assuming that they cash out on their HDB and stay with their parents.

[kaitlynangelica]

Hi,


Am not implying that I have that amount. In fact, quite far from it. Also, remember I don’t have two kids but only one. But that seems to be a ballpark figure after asking around here and there.

For those ppl that I have seen in the course of my work, their liquid cash savings actually far exceeds that amount and I am thinking, my gosh, when can I get there?

I don’t agree with Skunk that money is not to be saved. In fact I think being frugal is a virtue. The day will come when we are no longer employable, and if we don’t want to depend on our kids, then we have to rely on our savings. In fact, that sum of money will deplete very fast ( maybe in 3 years ) time if one no longer has a source of income.

Just sharing my views…

[kaitlynangelica]

skunk:

For me and my wife, we do not save alot. We only have enough savings to tide us 6 months, should we both be out of job.


We do not believe in excessive cash savings. Excessive cash savings will give a person the false illusion that he/she is self-sufficient, \"independent\" lol and gradually, this person will become very arrogant. We believe God provides and we live our life to this belief. Our duty is to spend the money in meaningful ways, not let it grow mushrooms in the bank hehe

Skunk,

I don't agree with this. Why should more savings lead a perspon to become arrogant? yes god provides but I think we should also be good stewards and save up for a rainy day.

[corneyAmber]

kaitlynangelica:

skunk:

For me and my wife, we do not save alot. We only have enough savings to tide us 6 months, should we both be out of job.


We do not believe in excessive cash savings. Excessive cash savings will give a person the false illusion that he/she is self-sufficient, \"independent\" lol and gradually, this person will become very arrogant. We believe God provides and we live our life to this belief. Our duty is to spend the money in meaningful ways, not let it grow mushrooms in the bank hehe

Skunk,

I don't agree with this. Why should more savings lead a perspon to become arrogant? yes god provides but I think we should also be good stewards and save up for a rainy day.

Yeah I agree it has to start with savings.. If there is no savings, how do you even start to roll? :lol: Don't mislead la, skunk, you are probably shrewd with your financial management, so to do what you are doing is possible for you only.