Are You Saving Enough?
In a chart showing savings per capita, Singapore ranks 7 with around $13K saved while, United States ranks 28 with just $5.5K saved for the year 2005.
The highest is Qatar, with around $36.7K saved while the lowest recorded is negative $643 by Bosnia and Herzegovina.
You can see the figures in a table form from the website about gross domestic savings per capita. Interestingly, this compares quite favorably with the 1921 figure of $13.58 per person in the world. If you discount the dis-savings from countries who people spend more than they earn.
The reason for the post is that a fellow blogger from Singapore who post about financial matters recently posted that he has managed to saving a very respectable figure of S$50,000 for the year of 2009. That is around US$34K.
No matter which part of the planet you are from, you probably wished that you had saved just a bit more right? So, reading blog posts like the above makes me want to try to save just a bit more for the year of 2010.
Bar a jump in salary, or money coming in from unexpected quarters, it will mean a bit more discipline to curb unnecessary spending. Like that $42 lunch my wife and me had on Saturday at a Japanese restaurant.
Guess I can’t buy any more expensive camera equipment for 2010. Instead of negative statements like that, maybe a more targeted one with actual figures will do better.
So my wife and mine early resolution will be to save $1500 each month making it S$18,000 for 2010.
What is your savings target next year?
Sources:
1. New York Times article dated 1921 on “World Capita Savings is $13.58”
2. Nationmaster.com post about “Gross Domestic Savings Per Capita by Country”
3. La Papillion article about “My 50k Challenge”
December 1, 2009 at 10:46 AM
Hi Lemizeraq,
Thanks for this post and nice numbers which you provided. I think Singaporeans in general are savers, though I cannot say for sure about the new Generation Y. For me and you being in Generation X, I think we know the value of saving for a rainy day and living below our means.
Currently, me and wife manage to save S$3,000 a month. I hope to increase this to S$3,500 per month for 2010, barring unforseen circumstances. This would mean about S$42,000 per annum.
Cheers,
Musicwhiz
December 1, 2009 at 6:14 PM
I would consider monthly RSPs as a form of savings too, would you agree? And endowment plans also.
W
December 1, 2009 at 10:07 PM
Hi Musicwhiz,
Welcome back again :) That is a good sum of money that you are putting to your retirement kitty. Means that you will attain financial freedom sooner too. Looking to ways of increasing sum earned or generate more savings. Maybe can be an article in itself, to look at ways to generate some passive income.
Regards,
Lemizeraq
December 1, 2009 at 10:10 PM
Hi Anonymous,
Yep, I would regard RSP as savings too. Endowment, I am not too sure as they are likely not to be easily taken out, and it could be confused with the term insurance portion. So I am not sure how much exactly you can put it as savings. I rather leave that out. But that is up to the individual. I rather not consider that and save more as a result. Target saved should be something a bit challenging (not too much).
Thank you for visiting!
Regards,
Lemizeraq
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