Is SGD 8,500 Per Month Enough to Live Comfortably in Singapore With a Family?
Is SGD 8,500 Per Month Enough to Live Comfortably in Singapore With a Family?: A Complete Guide
There are many reasons why Singapore is known for having excellent infrastructure, good transport facilities, top-notch education, and plenty of jobs. Nevertheless, Singapore is one of the most expensive countries to live in Asia. In case of a family that requires good housing and education for their children, living in Singapore might become rather pricey. If a person earns around SGD 8,500 per month and lives with his/her spouse and a child who attends school, he/she can afford a comfortable life provided that one considers how much money goes on rent, tuition fees, medical bills, and overall spending.
Understanding the Cost of Living in Singapore for a Family of Three
The cost of living in Singapore depends greatly on the location and the kind of life one leads. The cost of living will be lower for families that rent small apartments, cook their food at home, and travel by public transport as opposed to those who choose costly condominiums, their own cars, and international schools. Good transport services are also beneficial in case someone wants to travel for work, family affairs, or during vacations. For instance, people who understand how to make use of services like a Glasgow Taxi know the value of having good transport while traveling in a different city.
1. Housing Costs: Your Biggest Monthly Expense
The biggest part of your income will probably be spent on accommodation. In Singapore, there are many types of housing like HDB flats, private apartments, and condominiums. It all depends on what suits you better in terms of money, the number of people in your family, where you work, and how you want to live.
For example, renting a house that is not located in the most expensive center can cost from SGD 2,500 to SGD 4,000 per month depending on the area, the size of the property, and market conditions. Private apartments and condominiums, especially big ones, can cost even more.
So if your salary is SGD 8,500, then spending SGD 3,000 on rent, you will have SGD 5,500 left for other necessities.
2. School Fees: Public School or International School?
Education also plays a key role in drawing up a family budget in Singapore. The cost of schooling will depend on your country of origin or residency status and also on the type of school and the level of education you want to pursue.
Local schools will be cheaper compared to international schools, but you need to verify whether your child is eligible and what fees apply. International schools will usually charge much higher fees in addition to other costs such as registration, uniform, educational material, transportation, and extra-curricular activities.
It is important to ascertain the costs of education before taking the job or moving. If your company offers education allowance, this will go a long way in improving your financial standing.
3. Food and Grocery Expenses for Three People
Food expenses will depend on the fact that your family usually cooks at home, dines in the hawker centers, or loves to go to restaurants and use online deliveries. Singapore has a wide variety of options for its citizens to choose from, which means that people can spend differently depending on their income.
The monthly budget for three members of a family can be about SGD 800 to 1,400 in terms of purchasing food and eating it. Food imported from other countries, expensive supermarkets, and going to restaurants frequently can raise this sum.
It is better to plan your meals weekly, compare prices in different supermarkets, and cook your lunches at home to save money.
4. Transport, Utilities, and Household Bills
The Singapore public transport system makes it feasible for many families to commute without having to own a personal vehicle.
The total cost incurred for transport will depend on the frequency with which both parents use public transport as well as if you need transport to school for your child and if there is a need to hire taxis or any other private transport means.
A reasonable estimate of the total cost for transport for a family using public transport could range between SGD 200 to SGD 400 every month.
The total cost incurred for utilities, mobile phone plan, and home internet may be estimated at SGD 200 to SGD 350 every month. The cost incurred to own a personal vehicle can be extremely high due to vehicle cost, insurance, parking, road charge, and other fees related to it.
5. Healthcare, Insurance, and Family Transportation
Costs associated with healthcare should be included within your budget instead of being considered as unexpected. You should be aware of your entitlement to subsidies for public healthcare, health insurance, and other benefits due to your status as resident and employed individual. For families relocating to Singapore, you should ensure that your health insurance covers your spouse and child.
Also, costs such as regular visits to the dentist, costs associated with medicine and regular visits to doctor’s office as well as specialists in case of partial or no coverage from your insurance should be taken into consideration.
While a Glasgow Chauffeur Hire service can give an example of comfortable and arranged mode of transportation for special occasions in case of need, in Singapore, the cost-efficient way is to rely on public transportation for regular trips and use private transport only when necessary.
6. Example Monthly Budget for a Family Earning SGD 8,500
The following illustrative budget shows how a family might allocate its income while renting modest accommodation and keeping discretionary spending under control.
These amounts represent planning estimates and not necessarily market prices. The cost of education is especially significant; real amounts may turn out to be less for some families and significantly more for students studying in international schools. In addition, this budget does not include significant one-time relocation expenses, emergencies and other potential costs, including air tickets or local household expenses.
If your actual expenses stay at about this level, you can save around SGD 2,270 per month additionally. But with a more expensive housing or school, this amount might be much less.
Also read: What Are Affordable Places to Live Near London for a Family
7. Can You Save Money on SGD 8,500 Per Month?
It would be possible for you to make savings if SGD 8,500 is either the gross salary or actual take-home pay since taxes, CPF deduction, insurance premium, among other factors would affect how much can be spent. This depends on the status of your residency and employment.
If SGD 8,500 is the take-home pay, then it would be easier compared to when it is the gross salary. Saving up for the future such as putting together an emergency fund, making money for education, and saving for retirement would be among the top priorities.
One should try and budget in a manner that makes savings a part of the budget and not whatever one manages to save at the end of the month. Periodically checking on expenditures will help one to realize when they start increasing.
8. Practical Ways to Live Comfortably in Singapore
One need not be rich to have a comfortable living. Families can secure their finances by selecting a proper neighbourhood, assessing different schools, taking public transport, and making household budgets.
Some tips that can help:
Assess different neighbourhoods for a good property to rent before committing yourself to any deal.
Know the requirements for admission and annual fees for the selected school.
Utilize public transport where feasible for daily commute.
Cook your food, but also try some cheap eating places in the locality.
Check the medical insurance scheme and benefits of employment before moving.
Set up an emergency fund for unforeseen expenses.
Set a realistic saving goal and track your expenses.
Such seemingly little steps may prove very useful in the long run, particularly with the upbringing of a kid in mind.
Conclusion: Is SGD 8,500 Enough for a Family of Three?
Certainly, SGD 8,500 per month can be sufficient for a family of three people to have a comfortable life in Singapore, but this does not necessarily make it a generous salary. Your financial life will be easier if you manage to find affordable housing, pick a suitable school for children, do not incur any car costs, and keep a budget tight.
In case your family needs an expensive condominium and a school abroad without any help from the employer, SGD 8,500 will probably seem very limiting. Otherwise, a simple rented apartment, affordable schooling, and wise spending could allow you to save some money and spend time together with the family.
To make a conclusion, it is better to calculate your net salary first and get the current figures on rentals and tuition fees.
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