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How To Save Money in Singapore According to Your Age

how to save money in singapore
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Everyone has a different lifestyle and circumstances, meaning it might be hard to estimate how much you should be saving at a certain age. 

The Department of Statistics Singapore estimates a personal saving rate of 37.5% at the beginning of 2022. Since the personal savings rate changes every quarter, it would be better to look at a longer horizon to estimate Singapore’s actual personal savings rate. 

It has been estimated to be around 28.8% over the past 10 years. However, looking at the data provided, it might be unrealistic for most Singaporeans to save 28.8% of their monthly income.

In 2019 the average income of a Singapore household was S$12,386, and the average cost of living can range anywhere from S$1100 to S$4,400 depending on the number of people in a home. It is important to note that the amount you can save only depends on your circumstances and the amount you earn.

How Much Should I Save?

Here is a look at how much you are expected to have in savings according to the MOM. It is important to note that the savings stated below might be unrealistic for some people and only depend on your income and personal lifestyle. You can also use the table to have a clear financial goal on what you can also achieve.

Age Savings for the year (28.8% of take-home income) Savings Accumulated Savings for the year (50% of take-home income) Savings Accumulated

The 20s





The 30s





The 40s





The 50s





The 60s





If you have these much in your savings account, congratulations. You are on the right track to financial freedom. If not, this table will allow you to clarify what figures you should be working towards.

singapore savings bond

How to Save Money?

There is so much to do in Singapore, and you might find yourself splashing your earned cash everywhere and forgetting how to save. We have come up with super practical ways you can use to save your money. They include:

1. Adjust Your Lifestyle

If you want to save money, you have to consider making some lifestyle changes and spending habits. One of the best ways to save is to downsize your current lifestyle and reduce your monthly expenses. You can move to a cheaper house or plan for your big purchases such as our house and car in advance.

You will also need to keep track of your insurance premiums, debts, and credit card payments. Some simple lifestyle changes like taking a shorter shower to save on your electricity bill can go a long way in helping you save your hard-earned cash.

If your goal is to grow your wealth and maybe retire early, you must make the required adjustments to fit your lifestyle in the long run.

2. Budget and Save

“Do not save what is left after spending, but spend what is left after saving, “is a famous quote by Warren Buffet. You can utilize the 50/30/20 budgeting rule to help you decide how much you should save. This is a quick and easy technique to divide your earnings. You split our income into savings, necessities, and other expenditures. With this rule, half of your income will go to compulsory bills like transport, housing, medical bills, groceries, and insurance premiums.

The following 30% will go to miscellaneous spending, including restaurant meals, shopping, and holiday expenses. Some people will put 10% away for long-term investment, and the last 10% goes to your savings. Your savings is the money you are not meant to touch unless there is an emergency.

The 50/30/20 rule is a great technique to evaluate your spending and help you easily achieve your financial goals. It will also help you instill a habit of saving money in you. It is a simple technique that remains effective in helping both beginner and experienced savers.

3. Get A Side Hustle

Another way you can save money is by taking up a side hustle to complement your income. You can take advantage of many freelance gigs, especially on the internet, including tutoring and offering a service such as writing or graphic design.

You can easily earn more than S$500 online without having to put in a lot of effort. The extra income will also cushion your income immensely and help you save more and have more pocket money.

4. Borrow Wisely

One of the primary reasons most people do not have enough in their savings is that they use most of their income to pay off debt. You will need to develop a system that allows you to only borrow for huge expenses. This way, you do not spend all your coins in one place.

Planned borrowing will allow you not to be overwhelmed with the payment leaving you with enough money from your income to save.

5. Invest in Passive Income

Having a passive income allows your money to work for you. You can use your savings to create passive income rather than having it in your bank account.

You can use your savings to invest in REITs. They are highly liquid and offer great returns compared to the fixed savings account deposit interest you can get from a bank. Additionally, you can withdraw your money anytime if you have an emergency.

6. Plan on Your Saving Goals

Having saving goals and knowing what you are working towards is essential. You can put down your goals in writing to help keep you on track.

It is much easier to get motivated to save money if you understand what you are saving towards.

7. Have More Homemade Meals

Eating out can take a huge chunk of your income. If you live around the city, you will find that the fancy restaurants are pretty pricy, and if you have a habit of eating at the newest establishment, you will find it much harder to save money.

We are not suggesting that you completely stop yourself from enjoying life’s simple pleasures; you can have a specific amount dedicated to eating out. On other days you can cook at home as often as you can. Once you get used to it, you will notice that you will have more cash left in your account, meaning you will have more money to save.

8. Take Advantage of Promotions and Sales

There are various sales promotions, sales, and free stuff you can take advantage of in Singapore. Early bird promotions are among the most worthwhile promotions you can take advantage of. If you are planning to fly overseas, attend an event or make a seasonal purchase, you can buy it early and save money in the long run.

If you are planning to make a big purchase you do not need urgently, like a home appliance, you can wait for a sale. Malls are everywhere in Singapore, and they often offer sales. Most sales like Shopee’s 11.11 and the Great Singapore Sale offer the craziest sales on favorite consumer products.

There are international sales such as Cyber Monday and Black Friday that you can take advantage of and save money. There are also pop-up sales that happen from time to time by different brands that you can also take advantage of.

Best Savings Account Singapore

Where Should You Keep Your Savings?

It is not wise to keep large chunks of your savings in your account without earning any interest, especially with the high inflation rate. A savings account is like a piggy bank. Your money does not earn interest there. If you do not earn any interest on your savings, your money will lose value.

Deciding where to stash away your savings is not always easy. You will need to consider some critical factors, including the length of time and liquidity. The safety of your investment is also vital to where you will decide to place your savings.

Here are some viable options of where you can put your savings:

1. Interest Savings Accounts

A high-yield savings is an excellent option if you want to earn significant interest on your savings and still have easy access to your funds in an emergency. A traditional savings would typically make an interest of 0.01 APY, while a high interest savings accounts will often offer more than 1% APY.

Traditional savings accounts restrict when you can access your funds, while a high-yield account doesn’t. Some accounts also offer sign-up or interest rate bonuses, but you will find that you will need to maintain a huge deposit to earn a high-interest rate.

2. Money Market Account

Money market accounts are like savings accounts, only that they pay more interest. They may also offer a limited number of monthly debit card and check transactions. They provide easy access to your money and are a safe way to save your money if your institution is federally insured,

Money market accounts have a minimum deposit requirement. It is essential to ask about the fees you might incur, including penalties and monthly account fees.

3. Certificate of Deposit (CD)

A certificate of deposit differs from a savings account by locking up your money for a set term. This means you will be penalized if you withdraw your cash early. C.D.s protect savers from failing interest rates but can be disadvantageous when the interest rates are low.

The best way to grow your money in a CD account is to open several C.D.s and have them mature at different times. You will have more flexibility and less risk when you ladder your accounts.

When you have both long-term and short-term CD accounts, you get to take advantage of high interest rates without taking too much risk and take advantage of the high returns in the future.

4. Treasury Bills

Also knowns as T-bills, treasury bills are a great option if you need to deposit large amounts of cash that can’t be held in C.D.s, Savings accounts and money market accounts. T-bills are short-term debt obligations that take one year or less to mature. The longer the maturity time, the more interest you earn on your funds.

T-bills have high liquidity and are easy to buy and sell. Additionally, they are safe, offer no risk on the principal, and are sold on the secondary market like an investment bank, broker, or auction on the TreasuryDirect site.

5. Checking Account

A credit union or insured bank checking account is a great place to stash your savings. However, it is not the place to get value for your money. They are highly liquid and come with check-writing privileges, debit cards, and ATM access. Additionally, you can withdraw at any time, and there is no risk to your principal.

Some checking accounts offer decent yields, but they are not common. Their fees are nominal or waived if you maintain a minimum balance, use your debit card several times, or set up a direct deposit.

6. Short Term Bonds

If you are planning to stash away your savings for at least five years, you can consider putting your money away as an investment rather than savings. Investments often generate higher returns than savings, but they come at a risk. You can lose some or all of your money.

Short-term bonds are similar to t-bills but do not protect the principal. You can also find that you did not gain any interest when you withdrew your money or lost some of your principal.

7. Stocks, Gold, and Real Estate

If you have a higher risk tolerance, you can put your money in stocks, real estate, and, in some cases, gold. Stocks offer high returns, but you will need to deal with the inevitable fluctuations in the market.

If you are unsure where to start with stocks, you can start by investing in Exchange Traded Funds, a collection of stocks from companies from different industries. They are often less risky than other investment options.

If you want to invest in a long-term investment, you can consider buying a home or commercial property and renting it. Gold is another investment option, especially with the current inflation rate. Some investors think it is one of the safest places to put your money, while others are skeptical about it. Nonetheless, the decision on where to put your money is all yours.

P.S. If you are unsure where you can put your extra money, you can seek the services of a financial advisor. They will help you, especially with a complex topic like estate planning.

Do your due diligence before settling for a financial advisor. Ensure that they are an expert in their field and a good fit for your situation. Please make sure they are real fiduciary acting in your best interest.

If you have a solid financial plan, you will easily decide which saving strategies work best.


While we all realize the importance of money and how it can improve our lives, you should never forget that money is not the only indicator of success. You might look at the table and see how much you should have saved. You can use that as fuel to achieve financial freedom, but you should never forget to always be proud of yourself for your hard work and the far you have come.

Key Takeaways

  • Use the 50/30/20 rule while saving money
  • Downsize your lifestyle to increase your savings
  • You can take a side hustle to cushion your savings
  • You can earn a passive income with your savings, like investing in REITs.

If you are looking for a loan to fund your goals, Loan Advisor got your back! Contact us now, and we will respond promptly with different quotes from top money lenders in Singapore that match your needs.

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