This 30-year-old saves $3,000 a month so she can buy a home
In this month’s Money Diaries column, PR manager Jennifer discusses the sacrifices involved to save up for her first property.
I remember learning in school how it was important to save money. My parents would say the same, but the need for it only sank in when I started thinking about buying my first property a few years ago. On the cusp of turning 30, I started thinking about the mainstream milestones that I had yet to achieve.
Owning a property was it for me. More recently, rental prices have been on the rise – spiking 30-50 per cent – which has given me further motivation to get my own place quickly.
I didn’t really have a specific property in mind, but thought that a resale HDB flat would be the most realistic. After speaking with friends, I gathered that you’d need to spend nearly $80K-$100K on renovation work – which was another factor to keep in mind.
I started reading local websites and blogs, did the math, and realised how far off I was.
Spending $30 on brunch suddenly didn’t seem so fun anymore. I still want to enjoy life and hang out with friends, but I’ve become a more conscious spender these days. I used to travel three to five times a year, but now, I only plan to if I have the extra cash, or if it’s to spend quality time with family.
My goals are to simultaneously save (or make) more to afford my first property, and to build an emergency fund.
I once heard of someone who stood up to a toxic manager, and it was rumoured that she could do so because this she had passive income (through renting out her own property) to fall back on. I thought it was a smart move. I don’t believe in being a slave to your job, and yet it’s difficult to disassociate when it’s work that pays the bills, and puts food on the table.
I wish I were earning more, but I think I am doing my best with my chosen career path. What helps: having honest discussions with friends about lifestyle expectations, and industry peers willing to share what career progression and increments can look like.
I spend money on public transport and food (because I eat out a lot) every day. When it comes to beauty and fashion, I usually only buy things that I really need – a far cry from my 20s, when I didn’t think twice about spending money.
I give myself more leeway when it comes to things within the realm of health and wellness, such as my gym memberships and groceries. I know that if I really wanted to save money, I could cancel my gym membership and just go running outside, or follow videos on Youtube for free. But it’s more motivating for me to go to the gym – whether alone or with friends – and that makes the $300 I pay monthly worth it.
Every time I spend on something, I update my Seedly account, which allows me to keep track of all my expenses. This way, I more or less know how much I can afford to spend on daily necessities like grocery shopping and food. Usually, this determines if I’m going to buy oat milk or cow’s milk; bananas or strawberries.
To say that I loved shopping in my early 20s would be an understatement. I used to buy clothes from high street brands every month, as well as shoes and bags from luxury brands, telling myself it was “the adult thing to do”, only to realise that I don’t wear the pieces very often at all.
Most of my friends have greater spending power than me, for reasons that vary from making
“What helps: having honest discussions with friends about lifestyle expectations, and industry peers willing to share what career progression and increments can look like.”
“To cut down, I am learning to recommend where and what to eat, and to voice out if I don’t want to drink.”
more money than I do, having partners who do, or because they are still living at home with their parents.
Hanging out with them makes spending habits more difficult to control. There have been occasions when we’d order food to share, and I’d end up paying over $70 for what I had expected to be a casual meal. Sometimes, they’d check out a new cocktail bar, and the cost of drinks can really add up. To cut down, I am learning to recommend where and what to eat, and to voice out if I don’t want to drink.
I am candid with friends about my financial goals, which also helps them see where I’m coming from. I want to keep my friendships going, but I also need to take care of myself. I’d rather skip a fine-dining restaurant dinner, knowing that the money I save can go towards a month’s worth of groceries instead.
In my 20s, my peers began to talk about investing, but because I was not making very much, I didn’t pay much attention to it. Now, I’m trying to dip my toes into it. I chose Stashaway purely out of convenience, and because a few financially savvy friends recommended it. I set a fixed amount to invest at a fixed interval ($200 a month), regardless of market conditions. The idea is to dollar-cost-average.
It can feel stressful telling myself my investments need to “work”, but I’m taking these as experimental funds. I’d rather start now when I can afford to test the waters with $200 a month. It is also reassuring to know that I can withdraw my money at any time. I also invest in US equities.