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The $93,000 Challenge

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By Rena

 Does $93,000 sound familiar to you? 

This post is all about $93,000, and if you find this number very familiar, you might have remembered that the basic retirement sum (BRS) for 2021 is $93,000. Nonetheless, apart from this similarity in sum, this post has nothing to do with CPF, BRS and whatsoever.

Instead, I'm talking more about a challenge that I 've set for myself. 

I'm trying to find out how long can $93,000 last (for me). So if I only had $93,000 and my mind (to conjure out ways to stretch, maximize, grow ,etc the amount of money), how long can it last.

Rules of the challenge

To make this experiment easier to track, I have topped up one of my bank account to $93,000. This is also the account that is responsible for paying most of my bills (school fees, credit card, etc.), but a separate account where my salary is credited. No, input from my salary is not counted.

I could put this $93,000 into stocks/ bonds, and it will still be counted, but  I'll track it in another spreadsheet. When this account runs dry, the challenge ends.  Also, if I still have some money in stocks/ bonds, I could liquidate them to finance my expenditure, but if I don't then the challenge ends as well.

 I've made this challenge in this way because I want to account for expenditure to be part of the game as well. 


How long will $93,000 last

Based on my current expenditure, $93,000 will last me for 2 years max. This include my kids' childcare fees (my youngest is paying his own fees from his baby bonus, and one- for- one CDA top- ups by the government, many thanks to the generosity of the Singapore government. BabyBonus and CDA $ for $ matching for third child and beyond is really generous), my parents' allowances, insurance and just other normal expenditure (food, transport, entertainment, grocery, bills, etc.). 

My target is at least 4 years, better still, indefinitely. I've an ultimate target, which you've got to read till the end to find out. 

Why this $93,000 experiment

I want to get out of the corporate job.

Yes, I do have a new job, that pays better than my previous one, but I'm at the time of my life where I don't want to trade time for money. I know a lot of my colleagues who are in their 60s want to continue working, and the reason they gave was having nothing much to do at home. Isn't it ironical that when you are suppose to retire, circumstances have changed and you prefer to work.

I have so much things to do NOW beyond work, and I want the luxury of time. And, what's stopping me from pursuing this luxury of time?

Money.

Money.

Money.

But is it I have no money? Not for now. But it's the fear of spending future money now that's stopping me from doing so. I don't have cash inflow from other means that can support my life now. My investments are doing not well at all. 

In terms of career wise, I am earnings are okay. And if I stay in my job, and find a new one, I could get a 10- 20% increment again. This is versus if I leave my job, and restart years later when I don't need so much time, I'm not sure the price I can command. 

This $93,000 challenge is actually not a cut- all - expense challenge. If I want to check how long I will take to spend $93,000 I know how long it is from past expenditure. 

This $93,000 is to challenge myself to stretch the $93,000 as long as I can. No only through careful spending, but more through growing it (As passively as I can). It's only through this that I can live the life that I want. 

Why Do I need the luxury of time?

I want to live a life that I enjoy. I don't need many things, but I need a lot and a lot of time.  

I want the luxury of  going out on a weekday afternoon to avoid all crowd to shop/ window shop anytime I like, or a trip to the library with my kids, or simply letting my kids sleep in when the weather is just too cold to walk to school and best for snuggling in the warmth of the blanket and bed.  Or it could be baking or some art- and - craft activities, and even just watching some drama. 

I want to spend my time on hobbies and things I like. 

Time is too precious to be spent fulfilling others' goals rather than your own. But money is often an essential ingredient to get to those goals. 


What do I hope for in this experiment?

This is actually an experiment, but I made this experiment so that I'll give myself courage to do something. My ultimate goal is to  have enough money to live with. So if by middle of this year (June 2021), if I still have $90,000 from this $93,000, I'll quit my job. This is the ultimate goal of the challenge. 







 




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