3 financial rules for expats in Singapore to live by
Wherever you’re going, expats will want to hang onto some key financial rules, and Singapore is no different. This means you’ll need to make the right financial decisions to suit your relocation.
Our friends at Pacific Prime CXA are going to provide us with three tips on budgeting in Singapore.
Why Financial Planning Matters
Singapore is one of the most expensive countries for expats. Your expenses are likely to involve housing, transportation, and tuition fees for your children. It’s also worth noting that cars are rare and expensive, so you have alternatives such as the MRT (Mass Rapid Transit) system, buses, and taxis to choose from.
Financial Rules for Expats
Rule #1: Do Your Research Before You Go
Before you leave, make sure to do your research on possible expenses in the country, including comparing equivalents between your local currency and Singaporean Dollars (SGD) first.
Rule #2: Be Realistic About What You Can Afford
The next rule to keep in mind is you have to be realistic about what you can and can’t afford. Buying and renting a property as well as owning a car in Singapore can be overwhelmingly expensive. To make your money stretch as far as possible, look at the most affordable areas to live and their proximity to public transportation.
Rule #3: Know Your Taxes
Singapore requires income tax payment while lacking capital gains tax and inheritance tax. Residents are required to pay 0-22% income tax (for SGD $320,000+), 15-22% tax for non-residents, and 17% corporate tax rates.
Begin Planning
You can start by planning what you’d like to save up for, such as enrolling your kids in school, houses or personal vehicles, or retirement. The point is to define your savings goals and how long it’ll take to reach that goal. Don’t forget to also set aside an emergency fund in case of illnesses, injuries, or job loss.
Conclusion
By doing research on expenses and tax responsibilities, and being realistic about what you can afford, you can make efficient financial plans while living in Singapore.
What Pacific Prime CXA Can Offer to Expats
Pacific Prime CXA, offers various insurance plans for both expats and locals. If you have any questions, please don’t hesitate to get in touch with them for impartial advice and plan comparisons.