Thursday, July 18, 2013

Married with kids still can be rich?

There has been quite a number of discussion on the question whether is it possible to be rich in Singapore if you're married? Many people say that housing prices in Singapore is very high, a wedding is very costly and the cost of living in Singapore is constantly rising.

So is it possible to be rich and retire a millionaire even when you're married with let's say 2 kids?

In 2007/08, the Singapore department of statistics conducted a household expenditure survey to gauge on the average expenses per household.

Here are some of the results:

Average monthly expenses

A household living in a 4 room hdb: $3057/mth
A household with 4 members: $4217/mth

I took 4 room HDB and household with 4 members because this is where most people are. Married with a 4 room flat and 2 kids.

Of course this data is taken from 2007/08 which is some time ago. The department of statistics is doing another round of survey this year and is still ongoing currently. I expect the average monthly expenses to go up.

Most of the household expenses are spent on paying the housing loan. For a couple who bought a 350k BTO 4 room flat, the loan that they take up would be 315k after paying the 10% down payment. If they take a 30 year loan with HDB at the current interest rates, the monthly repayment is $1262.

If both the husband and wife earn a combined income of $6000, after deducting the expenses of $3057 (for household living in 4 room HDB), they will be left with around $2943. This adds up to an annual savings of $35316.

Is this savings a lot and can the couple accumulate a million dollars. I do not think the couple in the above scenario will be able to. This means a family income of $6000 is just enough to live by. The practical aspects of starting a family begins with prudent financial planning. If not, many people will be stuck in the rat race and live day to day till their old age. Already older Singaporeans are finding it hard to retire and most still have to work. With rising cost of living and higher inflation rate, the need for investment becomes even more important. Savings alone will not bring us anywhere in times like this when interest rates in banks are minimal. We need to know how to maximize the value of our savings.

It is possible to be rich even if you're married with kids. There are people who have done it. We should learn from people who have been through that journey.


  1. Why do you think that with kids, it will be harder to become rich? It is through that with kids, expense will be more. But then again, even if you are single, you cannot be rich through saving. Ultimately, you must learn the trick to create more sources of incomes. Check out my blog, SG Web Reviews on how to be rich in Singapore.

    SG Web Reviews (

    1. Hi Greatsage,

      I believe that we can be rich even if you are married with kids. There's a chinese saying that says 成家立业, which means start a family then establish your career.

      It is just that many people do not know how to do it and have even gotten into financial troubles causing harm to their own family.

      Great that you have a blog to teach others how to create more sources of income. I'm a firm believer of multiple sources of income. We should not depend on one source of income to live by.

  2. Up to us to make it happen and more people will believe it is possible.


    Firstly, get married

    Secondly, have two or more kids

    Lastly, become financial independence before Singapore's official retirement age currently at 65 but subjected to re-employment at 62.

    Many have done it.

    We have to watch what they do and not they say!

    Talk is cheap!

    1. Hi createwealth8888,

      Yes, we shall make it happen and more people will believe it is possible. You're one of them who has already made it happened right?

      I'll need to learn from you :)