Married with kids still can be rich?

There has been quite a number of discussion on the question whether is it possible to be rich in Singapore if you're married? Many people say that housing prices in Singapore is very high, a wedding is very costly and the cost of living in Singapore is constantly rising.

So is it possible to be rich and retire a millionaire even when you're married with let's say 2 kids?

In 2007/08, the Singapore department of statistics conducted a household expenditure survey to gauge on the average expenses per household.

Here are some of the results:

Average monthly expenses

A household living in a 4 room hdb: $3057/mth
A household with 4 members: $4217/mth

I took 4 room HDB and household with 4 members because this is where most people are. Married with a 4 room flat and 2 kids.

Of course this data is taken from 2007/08 which is some time ago. The department of statistics is doing another round of survey this year and is still ongoing currently. I expect the average monthly expenses to go up.

Most of the household expenses are spent on paying the housing loan. For a couple who bought a 350k BTO 4 room flat, the loan that they take up would be 315k after paying the 10% down payment. If they take a 30 year loan with HDB at the current interest rates, the monthly repayment is $1262.

If both the husband and wife earn a combined income of $6000, after deducting the expenses of $3057 (for household living in 4 room HDB), they will be left with around $2943. This adds up to an annual savings of $35316.

Is this savings a lot and can the couple accumulate a million dollars. I do not think the couple in the above scenario will be able to. This means a family income of $6000 is just enough to live by. The practical aspects of starting a family begins with prudent financial planning. If not, many people will be stuck in the rat race and live day to day till their old age. Already older Singaporeans are finding it hard to retire and most still have to work. With rising cost of living and higher inflation rate, the need for investment becomes even more important. Savings alone will not bring us anywhere in times like this when interest rates in banks are minimal. We need to know how to maximize the value of our savings.

It is possible to be rich even if you're married with kids. There are people who have done it. We should learn from people who have been through that journey.