Living in Singapore: Income Requirements for a Family of Two

If you're considering a move to Singapore with your family, it's essential to understand the income requirements to maintain a comfortable lifestyle. This article delves into the expenses and earnings needed to sustain a family of two in Singapore, including housing, transportation, food, and entertainment expenses. We will also share personal accounts from locals and expatriates to provide a comprehensive view.

Understanding the Basics of Living in Singapore

Singapore is known for its high standard of living, efficient public transportation, and world-class healthcare system. However, the cost of living for a family can vary significantly based on your lifestyle choices, family needs, and personal preferences. This article aims to offer a realistic view of the financial demands.

Personal Accounts from Singaporeans and Expatriates

Local Perspective: Ms. Lim, 35, Married, Two Children

Ms. Lim is a Singaporean working as a marketing executive. She provides a detailed account of her monthly budget and earnings, offering insights into the realities of living in Singapore with a family of two.

"I earn around SGD 8,000 per month, which, after accounting for taxes, leaves me with about SGD 6,000 for monthly expenses. Housing costs take up about 40% of my budget, with rent for a modest apartment in the heart of the city being around SGD 2,400 a month. Groceries, childcare costs, and other necessities account for another 30%. Transportation is relatively cheap, with buses and trains being the preferred modes of travel, and my car is used primarily for weekend trips to the beach or visit to relatives. In terms of discretionary spending, I have a bit left for entertainment and occasional dining out, but it's generally kept to a minimum."

Expatriate Perspective: Mr. Johnson, 42, Engineer, Single

Mr. Johnson, an engineer from the United States, shares his experience of living in Singapore. He has been in the country for three years and offers a unique perspective on the cost of living and the financial aspects of daily living.

"My salary is SGD 9,500 per month, which usually leaves me with around SGD 7,000 for expenses. Housing is my primary expense, with a one-bedroom apartment in a residential area costing up to SGD 2,800. Groceries, utility bills, and medical expenses are my next biggest expenses. Transportation costs about SGD 500 a month, thanks to the MRT and bus system. I spend around SGD 400 a month on personal expenses, such as dining out, entertainment, and shopping for clothes. The only significant difference is that I don't have to worry about paying for childcare as I don't have children."

Factors Influencing Cost of Living

1. Housing Costs

The cost of housing is one of the primary factors affecting the cost of living in Singapore. Prices for rental accommodation can vary significantly based on location, size, and type of accommodation. For families, the cost of housing can easily account for 30-40% of total monthly expenses. Here are some average costs:

Apartment Rental: SGD 2,000 to 3,000 per month for a modest two-bedroom apartment in a less central location. Condominium or Serviced Apartment: SGD 3,500 to 5,000 per month for a similar-sized unit in a more central area. Public Housing (HDB): Availability and pricing for public housing may vary, but it is generally more affordable, with monthly costs starting from SGD 800 to SGD 1,200 for a two-bedroom unit.

2. Food and Groceries

The cost of food varies widely depending on your lifestyle and preferences. Here's an estimate of monthly expenses for a family of two:

Dining Out: SGD 1,000 to 1,500 per month for occasional dining out at mid-range to high-end restaurants. Supermarket Groceries: SGD 500 to 1,000 per month for basic groceries. Convenience Stores: SGD 200 to 300 per month for snacks, beverages, and other quick purchases.

3. Transportation

Transportation costs can be significantly reduced by using public transportation. Here are some estimates:

Public Transport: MRT and Bus: SGD 200 to 300 per month for a moderate usage of public transport. Personal Vehicle: SGD 1,000 to 1,500 per month for a car, including fuel, insurance, and repairs.

4. Medical and Health Expenses

Healthcare costs in Singapore can be high, especially for expatriates who may not have access to the same insurance benefits as local residents. Here's an estimate:

MEDISAVE and Insurance: SGD 500 to 1,000 per month for health insurances and MEDISAVE contributions. GP Appointments: SGD 50 to 150 per visit for general practitioners.

5. Entertainment and Leisure

Entertainment and leisure activities in Singapore can range from high to moderate expenses, depending on your preferences.

Theaters and Cinemas: SGD 40 to 100 per person, depending on the venue and time of booking. Beach Days and Outdoor Activities: SGD 100 to 200 per trip, including transportation and meals. Sports Facilities and Gyms: SGD 100 to 200 per month for access to sports facilities and gyms.

Conclusion

To get by comfortably in Singapore with a family of two, you would ideally need an annual household income of SGD 100,000 to SGD 150,000, or a monthly income of SGD 8,000 to SGD 12,500. This is just an estimate based on housing, food, transportation, and other standard expenses. However, costs can vary depending on specific circumstances. Personal spending habits, location preferences, and other factors can significantly influence the overall budget.

If you're planning to move to Singapore and need more detailed information, feel free to reach out to local financial advisors or real estate agents for comprehensive financial planning.