In October 2021, a study was done by National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU) which found that in a family of family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living. You can read more about the article here.
I did a short study on my own household to see whether my family is spending above or below this $6426. My family is quite different from this case study. We have one more person, and the kids' demographics (currently all preschoolers) are different. Also, there are a few differing categories that we have. But I still feel it is a way to see how we fare against this "basic standard of living".
We are definitely not living any luxurious life, but the expenditure is way, way, way above this basic standard of living.
Our Monthly Expenses in detail
Here's a breakdown of our expenses:
How Luxurious is my life then?
But, apart from that, my feel my life is plain standard.
I live in a HDB flat. A typical 4 room flat of 93 square metres- not luxurious.
I eat mostly at home, with occasional hawker food. And restaurants are once in a blue moon - during celebration. I've eaten enough restaurant food while travelling for work and don't have great desire for them.
Every other stuff that I spend on are quite ordinary.
My partner and I don't fancy any type of entertainment, except for reading books on Libby and watching Youtube videos, Disney+, and occasional snacks such as eating potato chips while reading or watching. We do go cycling on and off on our cheap bicycle (about $80 each bought from taobao).
Comparing against benchmark is a good exercise. At least I know I'm spending way too much. Note to myself to optimize my spending.
Oh my gosh, why am I spending way above standard amount when I'm living a standard life.
Dont worry about your spending above average.
ReplyDeleteYou are a good son and your wife a good daughter.
Cos if you less the parents allowance , plus your home loan ( which can be as an financial investment) then you are very close to average expenditure . Also you have 3 kids so you can are living moderately.
Financial ability must be used as a means to an end. It must not be the end itself.
Balancing this act is the where your role as an CEO plays the most vital role.
Hi Simple Steps,
DeleteThanks!
I like your quote "Financial ability must be used as a means to an end. It must not be the end itself."