How much do you earn a month...

[Throttle]

car is 25% of annual income.

car related expenses is 2.1% of monthly income.

 

hmmm let me calculate my car related expenses per mth

 

1. petrol

2. Parking

3. ERP

4. Servicing/Misc

 

yup ok, less than 5% of monthly.....phew..

[Sky99]

but if you are earning 5k per mth.

 

annual only 60k

 

no need buy car loh

 

25% = 15k

 

can buy bike nia

[Throttle]

hahaha, base on cantopop's formula, singapore traffic will really be super smooth, no need for COE, ERP, road tax, probably parking will also become free

 

Cantopop, you driving what car? SL350?

 

dont make all the money leh, leave some for us to make.

[cantopop]

hahaha, base on cantopop's formula, singapore traffic will really be super smooth, no need for COE, ERP, road tax, probably parking will also become free

 

Cantopop, you driving what car? SL350?

 

dont make all the money leh, leave some for us to make.

 

I'm not rich:angel: Just enough for new Japanese 4WD bought at 25% of my annual income.

[Throttle]

I'm not rich:angel: Just enough for new Japanese 4WD bought at 25% of my annual income.

 

Not rich but at least you are down to earth, some people who earn your level of income already buy GTR.

[doubl3mint]

i'm for the 25% idea too. if i'm not making enough friggin dough, why would i want to add on to my liabilities?

 

20k a month, hmm, long way to go. HAHA

[Pplater]

i'm not surprised people spend 50% to 75% their annual income on a car. Think about it.

[doubl3mint]

i have, and i could never understand it. maybe i have a different concept when it comes to money.

 

anyone read The Richest Man In Babylon?

[Throttle]

Just remember a car is not an asset.

It is an expense that you will simply lose as time passes

Decide on how much you can and are willing to lose.

[cantopop]

Not rich but at least you are down to earth, some people who earn your level of income already buy GTR.

 

GTR??? Definitely over my budget.

TMore than double price for my prado.

 

Need to inherit another 500 acres of palm oil planation for that.

[nhyone]

The 25% of annual income seems like a rule of thumb for another country, where cars are much more affordable.

 

I believe the rule of thumb for Singapore is that the running costs should be at most 25% of monthly income?

[cantopop]

The 25% of annual income seems like a rule of thumb for another country, where cars are much more affordable.

 

I believe the rule of thumb for Singapore is that the running costs should be at most 25% of monthly income?

 

So if car cost more than 25% of annual income then you are paying too much tax to government.

[Throttle]

So if car cost more than 25% of annual income then you are paying too much tax to government.

 

if one is earning enough to buy a car with 25% of annual income by cash, he is already paying too much income taxes to govt ..

 

Unless one is like hawker type, undeclared income....beware.

[CMYRS]

In the world, Spore has one of the lowest personal income tax rates.

 

If I remember correctly from an EY report, 20% for the top bracket of an annual income inexcess of $200,000 p.a.

 

But then again, after auditing many people earning many times than this, its shocking what they have in cash.

 

Barely enough for downpayment of a $50,000 car.

[cantopop]

if one is earning enough to buy a car with 25% of annual income by cash, he is already paying too much income taxes to govt ..

 

Unless one is like hawker type, undeclared income....beware.

 

Not really. SG tax is low compared to other country. Security & stability are excellent for tax paid.

 

Undeclared income is seeking trouble. Never underestimate taxman's capabilities. Esp. in SG Inc.

[cantopop]

In the world, Spore has one of the lowest personal income tax rates.

 

If I remember correctly from an EY report, 20% for the top bracket of an annual income inexcess of $200,000 p.a.

 

But then again, after auditing many people earning many times than this, its shocking what they have in cash.

 

Barely enough for downpayment of a $50,000 car.

 

Earning power of many times $200k p.a very very unlikely cannot afford d/p for 50k car.

Tax for income $200k is $22.3k CASH.

[Throttle]

Earning power of many times $200k p.a very very unlikely cannot afford d/p for 50k car.

Tax for income $200k is $22.3k CASH.

 

Agreed , if earning power of many times $200k , comfirm can downpay $50k easily

[CMYRS]

Earning power of many times $200k p.a very very unlikely cannot afford d/p for 50k car.

Tax for income $200k is $22.3k CASH.

 

yes, very, very very unlikely.

 

but suprisingly, after looking into the bank balances of some ppl with incomes in the top 10% of Sporeans, it is shocking!!

 

and the majority are expats.

 

for eg one of them recently asked for cash advancement to downpay for his camry. he's been in the co. for 12yrs, starting pay then was about US$600,000 per annum. now pay package has grown slightly with profit sharing and added director fees......but he didnt have enough cash........shocking........rare.....but it happens...........

 

high pay doesnt always translate into more loose change in the pocket

[Throttle]

No cash becos they are invested elsewhere.

They have more than 1 bank acct.

Money hide elsewhere perhaps

[Yatz86]

hm, sometimes more pay = more spending..doesnt necassirily mean more spare cash..

[CMYRS]

more pay sometimes also translates into great committments, greater wants, needs....

 

these ppl are also usually asset rich, boats, houses, helicopters.......

 

 

i mean, how many ppl do u know making 15k a mth owning only a 1.6L weekend car and a 4 bedroom hdb flat and no other assets or liabilities and 90% of the mthly income right into a fixed deposit account right?

[cantopop]

more pay sometimes also translates into great committments, greater wants, needs....

 

these ppl are also usually asset rich, boats, houses, helicopters.......

 

 

i mean, how many ppl do u know making 15k a mth owning only a 1.6L weekend car and a 4 bedroom hdb flat and no other assets or liabilities and 90% of the mthly income right into a fixed deposit account right?

 

To achieve 70% savings, it is ideal for $15k salary to own 1.6L car & 4 room flat.

 

The magic of compound ROI will multiply your fortune many folds.

[Throttle]

To achieve 70% savings, it is ideal for $15k salary to own 1.6L car & 4 room flat.

 

The magic of compound ROI will multiply your fortune many folds.

 

I would still prefer 50% savings/investment.

It's more balanced for my lifestyle.

 

 

to each his own, just dont bite more than one can chew.

[CMYRS]

To achieve 70% savings, it is ideal for $15k salary to own 1.6L car & 4 room flat.

 

The magic of compound ROI will multiply your fortune many folds.

 

 

70% is an excellant percentage to achieve.

if this can be maintained or increased over 30-40yrs, one should be fairly comfortable for retirement at 70.

 

best not to drop the 70% into any investments that can be affected by major wars, currency losses, recession and global financial markets.

keeping it fairly liquid. cash is king.

[xiaowang]

Guys guys, if one is able to save 4-5k per month for a tenor of 20 yrs, one will be able to retire comfortably anywhere in the world on a humble scale. Remember to use part of this savings to purchase a life insurance which will be exceed your returns, compared to saving a/c interest. The rest of your money, do remember to pamper yourself.