HousingPublic HousingPrivate HousingFood and GroceriesHawker CentersSupermarketsOrganic and Specialty FoodsAlcohol and TobaccoTransportationPublic TransportationEz-link CardTaxisPrivate CarsOther Modes of TransportationUtilitiesElectricityWaterGasEntertainmentMoviesConcertsNightlifeTheme ParksSportsOther ActivitiesInsuranceLife InsuranceHealth InsuranceMotor InsuranceHome InsuranceConclusion
Singapore is one of the most expensive cities in the world, it is important to manage your finances effectively to ensure that you can make the most of your money. And so budgeting is an essential part of financial planning, especially for someone living in Singapore.
It is difficult to define a "normal" budget for someone living in Singapore as it depends on many factors, such as the person's income, expenses, lifestyle, and financial goals. However, according to a 2020 survey by the Ministry of Manpower, the median monthly income for full-time employed residents in Singapore was SGD 4,534. In this blog, we will discuss what a budget is and how you can create one for yourself to manage your finances.
Housing
Housing is a significant expense for people living in Singapore, and it is important to understand the housing market and options available depending on the type of housing, location, and whether you are renting or paying a mortgage. Rent or mortgage payment in Singapore can be seen in between SGD 1,500 - SGD 4,000 depending on location and type of housing.
The variety options available includes public and private housing, both of which come with their own benefits and drawbacks.
Public Housing
The majority of housing in Singapore is provided by the government through the Housing and Development Board (HDB). These flats are subsidized and available for purchase or rent by Singapore citizens and permanent residents. The prices of HDB flats depend on their location, size, and amenities. As of 2021, the median resale price for a four-room HDB flat was about SGD 490,000.
Private Housing
Private housing in Singapore includes condominiums, apartments, and landed properties. These properties are not subsidized and are typically more expensive than HDB flats. The prices of private properties depend on their location, size, and amenities. As of 2021, the median resale price for a non-landed private property was about SGD 1.58 million.
Despite the government's efforts to keep housing affordable, housing in Singapore is still relatively expensive compared to other countries. The high cost of housing is due to factors such as limited land supply, high demand, and the country's status as a global financial hub.
Food and Groceries
Singapore is also known for its vibrant food scene, with a wide variety of local and international cuisine available at hawker centers, restaurants, and cafes across the city.
Depending on your eating habits, whether you cook at home or eat out, and how much you spend on groceries your monthly budget should be planned. Eating out in Singapore may cost around SGD 300 - 500, including occasional meals with friends and family whereas bringing groceries will also cost between SGD 300 - 500, depending on the individual preferences and dietary restrictions.
Here are some more facts on food and groceries expenses in Singapore:
Hawker Centers
Hawker centers are open-air food courts where you can find a variety of cheap and tasty dishes. A typical meal at a hawker center can cost between SGD 3 to SGD 7.
Supermarkets
The cost of groceries can vary depending on the location and type of supermarket, but on average, you can expect to spend around SGD 200 to SGD 300 per month on groceries.
Organic and Specialty Foods
If you prefer organic or specialty foods, be prepared to pay a premium. Organic produce and products are more expensive in Singapore compared to conventional ones. However, there are several online stores and specialty shops that offer a variety of organic and health foods.
Alcohol and Tobacco
The Singapore government imposes high taxes on alcohol and tobacco products to discourage consumption. As a result, the cost of beer, wine, and cigarettes is significantly higher compared to other countries.
Transportation
Singapore has a great public transportation system, which makes it easy and affordable to get around the city as it would cost SGD 150 - 200 monthly. If you prefer to drive, keep in mind that car ownership in Singapore can be quite expensive due to high taxes and fees, the expenses can be in between SGD 300 - 800, including fuel, insurance, and maintenance.
Here are some facts about transportation in Singapore:
Public Transportation
Singapore's public transportation system is efficient, reliable, and affordable. It consists of buses, trains, and taxis. The Mass Rapid Transit (MRT) is a popular mode of transportation, and it covers most of the island. The fare for a single trip on the MRT or bus ranges from SGD 0.92 to SGD 2.18, depending on the distance traveled and the time of day.
Ez-link Card
The Ez-link card is a contactless smart card that can be used to pay for public transportation and other services, such as parking and shopping. The card can be purchased at MRT stations and convenience stores. The Ez-link card costs SGD 5, which includes a non-refundable SGD 3 card cost and a SGD 2 travel value. It can be topped up with cash or credit/debit cards at MRT stations, convenience stores, and other locations. The minimum top-up value is SGD 10, and the maximum value is SGD 500.
Taxis
Taxis are widely available in Singapore, and they are metered. The flag-down rate for taxis is SGD 3.20, and the fare increases depending on the distance traveled and the time of day. There are also additional surcharges for airport pickups, phone bookings, and peak hours.
Private Cars
Owning a car in Singapore can be expensive due to high taxes and fees. The Certificate of Entitlement (COE) is a system that regulates the number of vehicles on the road, and it requires car owners to bid for a COE before they can register their vehicles. The cost of a COE can range from SGD 25,000 to SGD 60,000, depending on the type of vehicle and the current demand.
Other Modes of Transportation
Other modes of transportation in Singapore include bicycles, e-scooters, and motorcycles. Cycling is becoming increasingly popular, and there are several cycling paths and rental services available. E-scooters are subject to regulations, and they can only be used on designated paths and at low speeds. Motorcycles are a common mode of transportation among locals, but they can also be expensive due to taxes and fees.
Utilities
The cost of utilities can also vary depending on the size of your apartment and your personal usage. On average, expect to spend about SGD 150-250 per month on electricity, water, gas, and internet. Additionally Internet and Cable TV will cost in between SGD 50 - SGD 100 per month.
Electricity
Electricity in Singapore is supplied by SP Group, which is the sole provider of electricity in the country. The electricity tariff is regulated by the Energy Market Authority (EMA) and is reviewed every quarter. As of 2023, the electricity tariff ranges from 19.15 to 22.43 cents per kWh, depending on the amount of electricity consumed.
Water
Water in Singapore is supplied by PUB, the national water agency. The water tariff is also regulated by the EMA and is reviewed every quarter. As of 2023, the water tariff is SGD 1.62 per cubic meter for the first 40 cubic meters, and SGD 2.74 per cubic meter for consumption above 40 cubic meters.
Gas
Gas in Singapore is supplied by City Gas and PowerGas. The gas tariff is not regulated, and it is determined by the individual gas retailers. The gas tariff can vary depending on the type of gas used, the amount of gas consumed, and the market price of gas.
Entertainment
Singapore is a diverse and cosmopolitan city, with a rich cultural scene that offers a range of entertainment options for locals and visitors alike. Singapore has plenty of options for entertainment, from movies and concerts to sporting events and nightlife.
You can expect a reasonable monthly budget for entertainment expenses in Singapore to be around SGD 416 to SGD 830, depending on your preferences and frequency of activities.
Movies
A movie ticket in Singapore can cost anywhere from SGD 8 to SGD 15, depending on the cinema, time of day, and movie format. If you watch two movies a month, your budget for movies would be around SGD 16 to SGD 30.
Concerts
The cost of concert tickets in Singapore can vary widely depending on the artist, venue, and seating. A mid-range concert ticket can cost around SGD 70 to SGD 100. If you attend one concert per month, your budget for concerts would be around SGD 70 to SGD 100.
Nightlife
Singapore is known for its vibrant nightlife scene, and there are many bars, clubs, and lounges to choose from. A night out at a mid-range bar or club can cost around SGD 50 to SGD 100, depending on the drinks and food you order. If you go out once a week, your budget for nightlife would be around SGD 200 to SGD 400 per month.
Theme Parks
Singapore has several popular theme parks, including Universal Studios, Adventure Cove, and the Singapore Zoo. A one-day ticket to Universal Studios can cost around SGD 80 to SGD 90, while a one-day ticket to Adventure Cove can cost around SGD 30 to SGD 40. If you visit one theme park per month, your budget for theme parks would be around SGD 30 to SGD 90.
Sports
Singapore has many sports facilities, including gyms, swimming pools, and tennis courts. The cost of a gym membership can vary widely depending on the gym, location, and services offered. A mid-range gym membership can cost around SGD 80 to SGD 120 per month. If you participate in one sport per month, your budget for sports would be around SGD 80 to SGD 120.
Other Activities
There are many other activities to enjoy in Singapore, such as museums, art galleries, and festivals. The cost of these activities can vary widely depending on the location and admission fees. If you attend one activity per month, your budget for other activities would be around SGD 20 to SGD 50.
Insurance
The cost of insurance in Singapore can vary widely depending on a number of factors, such as the type and level of coverage, the age and health of the insured, the level of risk associated with the activity or asset being insured, and the insurer you choose. There are more than 160 insurance companies operating in Singapore, including both local and international providers. The Singapore government offers various incentives and subsidies to encourage individuals to purchase insurance coverage, including tax deductions for certain types of policies and subsidies for low-income households.
However, the most common types of insurance in Singapore are life insurance, health insurance, and motor insurance.
Life Insurance
The cost of life insurance can vary depending on the age, health, and coverage amount of the insured. For a healthy individual in their 30s, a basic term life insurance policy with a coverage amount of SGD 500,000 can cost around SGD 40-60 per month.
Health Insurance
Health Insurance: The cost of health insurance can depend on the type of plan you choose, the level of coverage, and your age and health. For a healthy individual in their 30s, a basic health insurance plan with coverage for hospitalization and outpatient care can cost around SGD 100-200 per month.
Motor Insurance
The cost of motor insurance can depend on the make and model of your vehicle, your driving history, and the level of coverage you choose. For a safe driver with a standard sedan, a basic motor insurance policy with third-party coverage can cost around SGD 50-100 per month.
Home Insurance
The cost of home insurance can depend on the size and value of your property, the location, and the level of coverage you choose. For a basic home insurance policy with coverage for fire and theft, a homeowner may expect to pay around SGD 20-40 per month.
These are estimated budget ranges, the actual cost of insurance will depend on your individual circumstances and the insurer you choose. It's a good idea to shop around and compare prices and features from different insurers to find the best deal. Also, keep in mind that while insurance can be an important part of financial planning, it's only one aspect of a comprehensive financial plan that should also include saving and investing for the future.
Conclusion
By concluding the above budget is just an estimate and can be adjusted based in your individual circumstances. For example, if you earn a higher income, you may want to allocate more funds to savings, investments, or other expenses. On the other hand, if you have a lower income, you may need to cut back on some expenses to live within your means. It's important to track your spending and adjust your budget accordingly to ensure that you are managing your finances effectively.
Overall, a normal monthly budget for someone living in Singapore can range from SGD 2,500 - 4,000 or more, depending on your lifestyle and personal preferences. By keeping track of your expenses and sticking to a budget, you can enjoy everything that Singapore has to offer without breaking the bank.
