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Monday, June 27, 2016

How Much Money Can I Save In Singapore?

Singapore is a country in SouthEast Asia, it is also known as the Garden City or the Lion city. It is a global financial centre, its population has a good mix of multiple cultures. With the evolution of IT Industry Singapore has become a very popular destination for IT professionals because it offers multiple lucrative employment job opportunities. In this post we will evaluate how much monetary sense does it make for Indian professionals to take a job in Singapore. The information provided in this post is generic and may not be very accurate but still very fair to provide a very good view of close to reality.



For the sake of calculations let us assume the conversion from Singapore Dollar to Indian Rupee as 1 Singapore dollar(SGD) equals 50 Indian Rupees(INR).

Example:

Now let us assume that a professional earns SGD 8,000 per month as income. So annual income will be approx. SGD 96,000.

Now let us look at some of the expenses:

1. Tax approx. 5% to 7%, for the sake of this example let us assume SGD 5190 tax per year(approx. SGD 432 per month). This is calculated using the below tax calculator for residents.

Tax for residents: Excel Tax Calculator for Resident Individuals
Tax for non residents: Excel Tax Calculator for Non Resident Individuals

2. House rent approx SGD 2500-3000 per month, that is SGD 30,000-36,000 per year based on the location you prefer for accommodation

3. Monthly utilities around SGD 150 to SGD 200 based on the type of housing and utilities.

4. Internet Expenses SGD 50 per month approx, that is, yearly SGD 600.

5. Miscellenous personal expenses: SGD 100 per month, that is yearly SGD 1200.

6. Grocery for two people: SGD 400 per month, that is yearly SGD 4800.

7. Transportation: Approx SGD 200 per month, that is SGD 2400 per year.

8. Entertainment Expenses for two people, approx SGD 500 per month based on what you chose, that is, yearly SGD 6000.

So if we add all of these expenses then the total monthly expense comes out to be somewhere around SGD 4332 to SGD 4882 per month, rounding it off to SGD 4300 to SGD 4900 per month, that is, yearly SGD 51600 to SGD 58800.

Hence, savings per month will be:
SGD 8000(income) minus SGD 4300 or SGD 4900(expense) = SGD 3700 to SGD 3100

Converting to Indian Rupees = Rs 1,85,000 to 1, 55,000 per month.

Yearly, Rs 2,220,000 to Rs 1,860,000.

Note: The figures in above example are indicative and may change from time to time and differ from person to person based on life style, income and expenses. According to Mercer 2016 Cost of Living Rankings, Singapore is ranked at #4. Before you arrive to study or work it makes sense to do some research on the cost of living. Intent of this post is not to motivate or demotivate any person from making any decision. It is just meant to provide a high level understanding.
Hope this helps.

Note: Assumption is that you have no school going children. In case you have school going children you may add additional expense of SGD 1000 to SGD 1800 per month based on the class and international school selected.

You may also want to read a similar post How Much Would An IT Professional Save In USA

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