Tag: income divide

  • A Look Inside The Most Expensive City In The World!

    A Look Inside The Most Expensive City In The World!

    Singapore was just named the world’s most expensive city by the Economist Intelligence Unit (EIU).

    The cosmopolitan city-state is one of the most densely populated areas in the world, but it’s also one of the wealthiest, with about 105,000 millionaires living there — and that means that it has prices to match.

    The EIU reported that Singapore is the most expensive place in the world to buy clothes, but the upscale malls of Orchard Road are still bustling as shoppers vie for designer goods.

    And there are deals to be had: Singapore is world-famous for its inexpensive street food. And driving may cost a fortune, there’s no need to own a car since the city has one of the most efficient and cleanest metro systems in the world. There are also dozens of free parks to wander in — Singapore is called the “garden city” for a reason, after all.

    Downtown Singapore’s skyline is dominated by massive modern towers.

    The Marina Bay Sands isn’t necessarily the top hotel in the city, but it’s now become one of the most recognizable landmarks of the Singapore skyline.

    It’s most famous for its rooftop pool, which overlooks the city from the 57th floor.

    But the more traditional Raffles Hotel is probably the real most iconic hotel in the city. It’s where the city’s signature drink — the Singapore Sling — was invented, and it still embodies Singapore’s old colonial-era elegance.

    The symbol of the city is oddly a Merlion — half lion, half fish — a mythical creature that was created by the city to generate tourism.

    Much of Singapore is comprised of reclaimed land. The island was so tiny that it has nowhere to expand but up and out. Gardens by the Bay is a 250-acre park that’s built on reclaimed land.

    The whole park is sustainable. Its artificial “super trees” power everything from the Flower Dome to the Cloud Forest.

    Every year, the Formula One Grand Prix race is held in the city. Bystanders don’t just get a view of the race. They also get a great view of the skyline.

    Even though the city is filled with massive towers, it’s easy to find peaceful respites. Singapore is called “the garden city,” after all.

    The Singapore Botanic Garden, which is open to the public for free, is incredible. Singaporeans often come here to picnic and relax on the weekends.

    There are also tons of walking and jogging paths all over the city — assuming it’s not too hot to work out.

    Shopping seems to be the national pastime in Singapore, judging by the sheer amount of shopping malls, most of which are filled with designer shops. Meanwhile, the EIU reported that Singapore is the most expensive place in the world to buy clothes, with “the malls of Orchard Road offering a price premium that is over 50% higher than New York.”

    Source: EIU

    Most of the shopping centers around Orchard Road, and ION Orchard is perhaps the nicest shopping mall.

    Because the city is so densely populated, traffic can be bad. Driving is also incredibly expensive. But Singapore makes up for it with one of the most efficient and cleanest metro systems in the world.

    But Singapore isn’t all modern. Traditional Chinese culture still reigns in the bustling Chinatown.

    And Indian culture is alive and well in Little India.

    The food — perhaps Singapore’s strongest suit — reflects the cultural mix of the city, which is mostly comprised of Chinese, Indian, and Malay people. All of these cultures and cuisines come together at Hawker Centres, which are essentially government-regulated food courts.

    At these Hawker Centres, you can try iconic Singaporean dishes, like the famous Chicken Rice.

    Chili crab is another famous (and delicious) Singaporean dish.

    Many people travel to Singapore just for the food — and we don’t blame them.

    Of course there are fine dining restaurants here too, like Jaan Restaurant at Swissotel the Stamford.

    There are lots of swanky restaurants along the river at Clark Quay. It’s the place to be at night.

    Boat Quay is another hotspot for nightlife. This area is also popular with expats.

    Dempsey Hill, which was once the base of the British military, is another popular area with expats. Today it’s home to cool shops, bars, art galleries, and restaurants, all of which are located in the former British army barracks.

    Meanwhile, the hipsters hang out in Tiong Bahru, a neighborhood with cool coffee shops, bars, and vintage shops.

    Singapore’s Changi Airport is regularly named “the best in the world,” and the international transit hub’s amenities include a butterfly garden, rooftop pool, movie theaters, hotels, spas, and showers, and even a four-story slide.

    Source: www.businessinsider.sg
  • Surviving in Singapore:  The Question of Money

    Surviving in Singapore: The Question of Money

    Every household has different needs and a unique financial benchmark for a comfortable living; however, we can all agree that there are certain bare necessities that none of us can survive without. And survival is the name of the game today as we set out to explore what an ordinary hard-working Singaporean needs to earn to ensure his financial security in this new age uber-expensive capitalist utopia.

    Various surveys have revealed that the average salary in Singapore falls in between the $4200-$4500 range. Unfortunately, this is an insufficient criterion to reflect the true financial status of its entire citizenship, because a country’s real economic comeuppance is encapsulated by how financially empowered its lowest earning workers are.

    While highly skilled and well-educated professionals can make a comfortable living netting between $4400-$6400 per month, Singapore’s blue-collar class still stands on shaky financial ground for most of their lives earning somewhere between $800-$2100 per month. So there we have it, the lowest of the lows in the wage spectrum – an unnerving and extremely meager $800 per month!

    Now we are truly ready to commence our journey into the underbelly of Singapore, implement the finest financial acumen and examine whether $800 a month is enough to survive our daily expenses and secure our long-term future.

    Considering the current costs of living in Singapore, let us assume the following breakdown of expenditure made by the low-income worker earning $800 a month with zero savings apart from CPF contributions:

    • Housing Rental – $225
    • CPF – $100
    • Food – $300
    • Energy bills – $100
    • Transport – $75

    Now you may exercise a plethora of nifty frugal living tips like shopping for groceries using Fair Price, opting for a shared HDB flat, availing the best credit card schemes, using the public bus transport, buying cheap Big Macs, etc., but the fact of the matter is that you can only do so much to cut down your daily expenses.

    It has been widely demonstrated that blue-collar workers suffer a progressive decrease in income as they age, which means that not only is the prospect of a comfortable retirement a statistical impossibility, but their struggle for daily sustenance will be an even more uphill battle in the future.

    One of the major bones of contention for financial security for low-wage workers in Singapore is the ludicrous pre-requisite of having at least $148,000 in their CPF before they can access it. This means that nearly 16% of the Singaporean workforce that earns a monthly wage below $1000 will never be able to reach the mandatory CPF Minimum Sum milestone.

    According to various research studies on the cost of living in Singapore, it has been proven that a single working class citizen kicking off his career in his early 20s must earn around $2000-$2500 to enjoy a sustainable frugal lifestyle without putting an axe in their financial future.

    Assuming a yearly salary increase of 4% and accounting for inflation, here is what an estimate monthly expenditure breakdown should look like for an average single Singaporean working professional who makes $2500 per month:

    • CPF – $500
    • Insurance – $500
    • Energy bills – $300
    • Transport – $100
    • Food – $300
    • Miscellaneous – $300
    • Savings – $500

    On the other hand, married Singapore workers who are planning to start a family must earn at least $7000 as collective income per month to family of 4 to enjoy a similar minimal, penny-wise lifestyle.

    Unfortunately, since almost 40% of Singaporeans make less than $2000 per month and only 35% earn equal to or more than $3,500 per month, this means that only a third of the Singaporean workforce can enjoy a financially stable lifestyle throughout their life.

    Low-income workers with a paltry monthly income below $1900 are entitled to qualify for the government-sponsored Worker Income Supplement scheme. However, even if you are over 60 and make $1000 per month to qualify for the highest possible yearly WIS payout of $3500, you will still only be able to net approximately $117 per month as $2100 will automatically be credited to your CPF account first.

    In conclusion, we have deducted that the only way for Singaporean individuals to survive the exorbitant costs of this city and keep their financial boats floating is to make at least $2000 per month if they are single and $3500 if they are ready to have children.

     

    Source: www.imoney.sg