From Getting A Degree To Renovating A House, Here’s How Much It Costs To Achieve These Milestones

Everyone has aspirations – it could be as simple as studying overseas, to living in a swanky penthouse.
Regardless of what your dreams are, they all have one thing in common: they cost money. With the high cost of living in Singapore, the price tags of these life milestones are also set to increase.
Here’s when financial planning comes into play. It involves defining our goals and priorities, allowing us to understand how much each goal costs so we can better budget and manage our cash flow.
With that, we deep-dived into how much each major milestone of a typical Singaporean costs so that you can have an idea of how much money you will need and start your financial planning early.
Since young, we have been instilled with the ritual of studying hard, doing well in exams, getting a degree and scoring a well-paid job. It almost sounds formulaic but this has been the norm for many Singaporeans.
While having a degree doesn’t necessarily mean job stability, it can help pave the way for a comfortable life.
With Singapore’s strong focus on sophisticated skill sets to drive the economy, a degree may simply serve as an added protection against competition in an increasingly globalised world.
In fact, according to data from SingStat, Singapore residents aged 25 years and above with a university education consists of 23.7 per cent of the entire local population in 2010, and that figure has increased to 31.6 per cent in 2018.
If you are thinking of getting a degree, the estimated course fees at the local universities (both public and private institutions) range between S$24,600 and S$39,600 for Singaporeans if we look at the latest numbers from the 2020 intake.
These are estimations based on three-year general courses, and exclude the more expensive courses like medicine, dentistry and music.
If you are thinking of studying overseas however, the tuition fees are generally more costly and you will also have to consider accommodation and other living expenses.
At this point, you may want to consider getting an Education Loan at a low interest rate of 4.5 per cent and with flexible repayment options, whether you would like to study at a local private institution or overseas institution.
How much you would need to get a degree: At least S$25,000
Instead of being a salaried employee, there are some Singaporeans who yearn to start their own business and be their own boss.
The basics of starting a business is to first identify a consumer pain point before coming up with a product or service that helps to resolve it and meet their needs.
Let’s say you are planning to set up an IT software startup. You may need to hire a developer to create the software, a salesperson to sell your software, and a part-time accountant for the company’s finances for a start. Depending on their work experience, salaries may work up to between S$132,000 and S$195,000 a year, using the EDB calculator.
In the first year of operation, you may be looking at renting a co-working space or hot desk (as we ease back to the ‘new normal’ of work) since the company size will be small. With the same calculator, office space costs alone will come up to between S$14,400 and S$25,200.
There are also services that are typically required when setting up a company in Singapore such as incorporation and company secretarial services, which cost from S$1,000 to S$2,000.
The total first-year expenses would come up to between S$167,100 and S$252,000. Of course, you can choose to do away with some of these costs such as opting for remote working to save on office costs, or undertake some of the paperwork yourself to reduce expenses.
This calculator from the Economic Development Board (EDB) is a helpful tool that lets you have a rough idea of what you need to consider before setting up your company.
How much you would need to start a business: Up to S$252,000
A wedding in Singapore typically costs somewhere between S$30,000 and S$50,000, though extravagant weddings can cost significantly more (i.e. more than S$100,000).
The biggest components are the wedding banquet, bridal package and honeymoon. There are also other costs to…