It is actually quite possible for any ordinary person earning a very average salary to become a MILLIONAIRE and retire early - the secret is "save more spend less, and earn higher return on your capital"!
Just give a very simple example:
Gross Median household income from work of employed residents (excluding non-employed and retiree) in Singapore is S$7,870 per month in 2013.
Note that this figure for Household income from work includes employer Central Provident Fund (CPF) contributions.
Let's just assume that household expenditure is $5,594 per month.
That means the median household can save $2,276 per month or about 29% of the income per month.
Let's assume the household maintain this savings for 30 years, and they are able to obtain 5% return per year.
At the end of 30 years, they would have: $1.894m for the couple or almost $1M for 1 person!
So, you can see that it is actually quite easy to become a MILLIONAIRE in Singapore!
But then, the next question pops up: Is $1M enough for a person to retire for 30 years (assuming the person retire at 62 years old and live till 82 years old)?
Well, Let me try to start some number crunching based on the available statistics and inflation figures............
No comments:
Post a Comment