Cost of Living in Singapore
Singapore ranks top in the world for many things. #1 most competitive country. Top again for digital readiness. And just shy of first place in terms of the ease of doing business. Not surprisingly, the cost of living in Singapore is the highest in the world too.
Of course, the cost of living in Singapore depends a great deal on what you choose to own and what you consider as necessities, and the quality of life you want to enjoy.
But how expensive is it to live in Singapore?
At the bare minimum, if you 1) rent a room in an HDB flat, 2) eat only at hawker centres, 3) take public transport, 4) replace clothing only when you need to, 5) stay away from all forms of entertainment or recreation 6) maintain a basic phone bill with internet access and 7) only visit polyclinics, it could easily cost you less than $2,000 per month.
Is it a reasonable number? Some say yes. For others, this is ridiculous.
To help the young working adults and new PRs live within their means in this little red dot, we did a monthly income breakdown and some tips on how to stretch your budget in Singapore.
Essential Needs - 50% of Income
Basic financial literacy is integral to achieving long-term financial happiness in Singapore. We all know the theory - spend less than you earn, live within your means.
But the reality of living in a country with a high cost of living is much harder to put into practice.
With a tighter budget to manage, there’s less margin for error. So, it’s crucial to plan rather than react to the unexpected. Without proper planning, everything might seem like a necessary cost.
That’s not to say living with a general rule of thumb like "just save more, spend less" won’t work,
You just need a more specific and actionable guide.
The 50-30-20 rule might help.
The rule advocates splitting your income into three distinct categories:
- 50% to be spent on essential needs
- 20% should go to discretionary spending
- 30% of your income to savings, investments and emergency expenses
Essential needs include housing loans or rental, water, electricity and gas bills, groceries, transport, life insurance premiums, home and car insurance premiums, phone bills and anything else you need to continue your regular life.
If you were to cut back on costs in this category, you might have to re-examine some of your spending habits.
In general, opt for cheaper alternatives where possible, without compromising too much on quality.
Housing and Utility Costs
The bulk of your monthly expenses usually goes to paying these bills. Take note that monthly housing liabilities also depend on your usage and type of accommodation.
The average cost of utilities per month: $200 - $800
- Water - Bathing and sanitary needs, cooking & drinking, washing
- Electricity - Fan, air-conditioner, lights, washing machine, refrigerator, television, other electrical appliances
- Gas - Cooking, heater (if applicable)
Cost-saving tips:
1. Switch to energy-saving appliances
2. Compare prices across the different electricity providers
3. Utilize rewards, discounts and cashback when you pay your monthly expenses with certain credit cards
4. Use the air-conditioner and dryer only when necessary
Housing costs for a 4-room HDB flat per month: $550 - $1,200
- Home insurance - Basic home insurance, fire insurance, enhanced insurance.
- Property tax - 10-16% depending on the annual value of property
- Maintenance & upkeep of home - Repair or replacement, servicing
- Mortgage-reducing insurance - Home protection scheme in the event of death, terminal illness or total permanent disability
- Service & conservancy charges - Pest control, cleaning & upgrading
*Note: This excludes monthly repayment of your home loan. You can extrapolate the costs for private condominiums and landed property
Transportation Costs
Again, Singapore lands a place on the world map with its first-class public transport system, collecting 1st and 2nd places the past few years.
On average, a typical family using public transport daily in Singapore spends about 4.8% of their disposable income on fares.
Public transport options:
- MRT/LRT
- Bus
The average single trip fare for a bus or MRT is about $1.60. Multiply that to-and-fro, plus weekend travels of about $10, that brings monthly public transport costs to $150.
Other options:
- Standard Taxi
|
Basic Fare |
Charge |
|---|---|
|
Flag-Down (inclusive of 1st km or less) |
$3.00 - $3.40 |
|
Every 400m thereafter or less up to 10km |
$0.22 |
|
Every 350m thereafter or less up to 10km |
$0.22 |
|
Every 45sec of waiting or less |
$0.22 |
|
Electronic Road Pricing (ERP) charges |
50% of the metered fare |
|
Midnight surcharge |
25% of the metered fare |
|
Peak hour surcharge |
25% of the metered fare |
|
City area surcharge |
$3.00 |
- Private Hire Taxis
If we take the average journey to be $15 for workdays and $22 for weekends, that’s close to $1,000 per month. So if you’re trying to cut back on your spending, you might want to leave home earlier and catch the bus for a fraction of the cost.
Cost-saving tips:
- Purchase a monthly concession pass (click here to see the rates) if you take more than four public transport rides per week
- Take $0.50 off your MRT fares during pre-peak hours.
- Get discounted fares with a cashback credit card (Citi SMRT Visa Card, DBS Live Fresh card)
- If you can spare the cash yet want to stay within budget, compare the fares of private hire taxis vs regular taxis.
Food and Groceries
Food is relatively affordable in Singapore. However, just like anywhere else, food expenses depend on how extravagant you are.
Eating In
If you choose to cook simple meats and vegetables at home, your monthly food costs should come up to about $200 per person.
For couples eating out, you can expect the cost to be at least five times that (or even more, depending on their dining choices).
Eating Out
One of the unique features about living in Singapore is the vast array of dishes and cuisines available to us in hawker centres and food courts.
If you don’t mind the occasional crowds and queues, an average meal in a hawker centre can cost as little as $3 and about $5-6 in food courts.
And with just an added dollar or two, you can get a drink to go along. If not, walk around a little, and you’ll easily spot a fast food joint such as McDonald’s, where meals are priced at around $7.
Meanwhile, in a mid-range restaurant, you can expect a bill of $20-$30 for one main dish, and that’s not including the 7% Goods and Services Tax (GST).
So for the budget-conscious person wondering how to survive in Singapore, here's a suggestion:
- Eat breakfast and dinner at home.
- Have lunch at food courts or hawker centres
- Keep weekend restaurant visits to once or twice a month.
If that's doable, a decent $1,000 will suffice for you and your spouse.
Cost-saving tips:
- Eat at hawker centres and/or food courts instead of cafes and restaurants.
- Cook food at home whenever possible
- Buy from neighbourhood markets instead of supermarkets.
Miscellaneous
Miscellaneous, but necessary costs:
- Mobile phone subscription - $35-$100
- Internet subscription - $35- $45
- Personal grooming
Cost-saving tips:
- Opt for a SIM-only mobile plan
- Choose free news apps like CNA for updates.
Savings, Investments and Emergencies - 30% of your income
Other than income, investments and personal saving rates can play a role in building financial security.
If saving 30 per cent of your income seems impossible at the moment, there's no need to get frustrated or overly worried.
Saving something is better than nothing.
But if you want a shot at being secure through retirement and have some extra cash to enjoy life amidst the high cost of living in Singapore, the numbers suggest that 30 per cent is the amount you’ll want to reach or exceed.
Investments
In this day and age, you can get a date, order a meal or hire a limo all with the swipe of a smartphone screen.
Investing is no different. For many, the term “investing” conjures up images of men in suits. But it’s not all that complicated.
With a robo-advisor or savings account, you can start getting your money to work while you play.
For those with a higher risk appetite, you can register for a stock trading or forex trading app. All while learning valuable investing tips at the same time. And for those with a lower risk appetite, something like purchasing REITs and ETFs could be something to consider.
Of course, if it were that easy to make money, everyone would be millionaires.
But the point is with so many options available, investing has gotten much more manageable, and if financial independence is something you’re striving for, investing is the way to go.
Savings and Emergency Funds
Life will throw you curveballs, and they’ll come at you out of nowhere and hit you when you least expect it.
If you expect the unexpected, and plan ahead, you’ll always be prepared for whatever happens and be ready to respond to the situation. So, what situations should you expect? And which budget should you dip into? Savings account? Emergency fund? Both?
Savings
This is where you set your income aside for specific goals such as a down payment for a new home, car, computers, appliances, child care expenses and school fees. These are planned expenses that tend to be higher ticket items.
Having a “savings bucket” prevents you from spending money you don’t have and incurring unnecessary credit card debt.
Emergency funds
Usually consists of unplanned expenses. Anything sudden and unexpected, put that in this fund.
- Critical illness
- Loss of job
- Disability
- Accidents
- Hospitalisation
- Repairs and Replacements
- Unexpected bills
How much are your average monthly expenses? Multiply that for 3-6 months. That’s how much you need in your emergency funds bucket in case the perfect storm hits you.
Healthcare Costs
Ordinary healthcare services are relatively affordable in Singapore. A visit to the polyclinic would cost anywhere between $20-$30 per person, including medication—half the price for children and senior citizens, and about double the price for Permanent Residents.
For routine checkups, it costs about $100-$200 per month.
Hospitalisation costs
Hospitalisation charges vary depending on the type of ward you stay in. Below are the rates for a government hospital.
|
Type of Ward & Description |
Estimated Rate (Applicable to Singaporeans only) |
|---|---|
|
Class C
|
From $35 per day |
|
Class B2
|
From $79 per day |
|
Class B1
|
From $251.45 per day |
|
Class A
|
From $466.52 per day |
Discretionary Spending - 20% of Income
Discretionary spending is money allocated to the nice-to-haves. Expenditures in this category cannot be classified as "essential", but they do improve your quality of life.
It includes going out to the movies, catching plays, nights at the bar, dining out, going on holidays and other recreational activities.
To control this portion of your budget more effectively, you have to differentiate between 'wants' and 'needs clearly'.
Sometimes, we might unknowingly convince ourselves that something is essential, just to justify our spending. But it takes some conscious and honest thinking to realise we might not actually need it.
Travel
Singapore is one of the most well-connected cities in the world – an aviation hub, even. One budget flight away from a relaxing getaway like Thailand? Just a single boat ride from Indonesia?
While $300 can get you there, bear in mind that you’ll also be spending on accommodation, food, activities, shopping, transport within the country and other often-overlooked costs. So, indulge in moderation!
Shopping
How often have you looked in your wardrobe, only to realise you don’t wear three-quarters of the clothes in there?
Shopping is not a problem. Not sticking to your budget (or not having one at all), is. Here’s a tip that might help…
After deciding a fixed amount you can spend, carry that in physical notes.
With cashless payment, it’s too easy to tap a card and end up overpaying.
When you use cash, spending more than you intended requires going to a bank or ATM to get more money and then going back to the store to complete the purchase.
For most people, this tedious process will cause them to reconsider whether their budgets can handle the strain.
To determine if something is worth the buy, hold it off for about 2 weeks. This is a long enough time to evaluate if it was just an impulse buy or not. And when purchasing items, ensure it’s of high quality so you can maximise its use.
Cost-saving tips:
- Use a credit card to earn cashback or miles to help you save an extra 3-5%, especially when dining.
- Make a habit of tracking every expense with a finance app.
- Travel during off-peak seasons
Gym Memberships
Gym memberships can range anywhere from $50 for community club gyms to $350 for those with lots of facilities and classes.
Unless you know you’re going to commit to keeping fit, sign up at a cheaper gym first. Or if you live in a condominium, why not make use of the facilities?
After all, you’re already paying for it. Once you get into the habit or if a specific activity piques your interest (and it fits your budget), you can upgrade to a more expensive gym.
Cost-saving tips:
- Some companies have corporate rates with gyms, with discounts of up to 30%
- Apply for free trials in different gyms to try them out first. Free trials range from 1-day passes to 2-week passes.
Dining Out
After a week of saving, maybe you want to venture beyond the hawker centres and food courts. But you're also not keen on splurging your hard-earned money so quickly in the world's most expensive country.
Well, there's casual dining.
Every shopping centre has it. Most of them have decent ambience, decent food and good service. Great for the budget-conscious Singaporean looking for a worthy treat.
Cost-saving tips:
- Look out for good deals on food discount apps.
- Take advantage of dining deals or credit card deals.
Final Note
The cost of living in Singapore is more manageable for those who know how to manage their finances well. Considering the median household income in Singapore is $8,000, this is how a couple’s expenses would look like per month:
