In this article, I’ll be zeroing in on the things that I found relevant and important to middle class Singaporeans. Singaporeans who are making a decent monthly salary and are don’t always receive much benefits and support from the government.
Last night, I spent 2 hours catching up on the Singapore Budget 2019, making notes of the opportunities and insights that were mentioned by Mr Heng Swee Keat during his speech.
Let’s get the goodies that the government is dishing out this year that middle income Singaporeans will and will not be getting.
This year, only Singaporeans aged 21 and above, who earned an income of up to S$28,000 in 2017, are eligible for the GST Voucher payout.
If their home’s annual value at the end of 2018 was S$13,000 or below, they will receive S$300. If their home’s annual value at the end of 2018 was more than S$13,000 but no more than S$21,000, they will receive S$150.
Personally, I have no issue with this because the payout is not a lot of money in the first place. With or without this payout will not make a difference to my financial lifestyle.
In fact, I consider myself lucky to be in a situation where I don’t need this payout. So let’s not get salty about this okay? 🙂
This is a small win for middle income Singaporeans because we actually qualify for this. But let’s put this into perspective.
For someone who has a taxable income of $50,000 after relief and deductions, the income tax payable will be reduced from $1,250 to $1,050. Assuming the income tax is paid interest-free through GIRO for 12 months, the tax paid each month would be reduced from $104.16 to $87.50 ($16.66 difference).
If your taxable income works out to be more than $50,000, this rebate of $200 can become quite insignificant.
Now let’s look at things that I believe many financial bloggers will not be writing about Singapore Budget 2019.
In case you haven’t noticed, Mr Heng has given us a lot of clues about where the economy is heading in the next few years and how the government intends to shape our country to adapt to the changing global landscape.
Under the S$4.5 billion Industry Transformation Programme, the Future Economy Council (FEC) that is currently led by our Finance Minister, Mr Heng Swee Keat has developed 23 Industry Transformation Maps (ITMs) to address issues within each industry and deepen partnerships between Government, firms, industries, trade associations and chambers.
Based on the industry that you are in, you can examine your industry’s ITM to have a general understanding of what businesses will need to do in the next few years.
As an employee, you can anticipate what your company (or other future employers) will need and start picking up specific skillsets to stay relevant in the job market. This will also increase your chances of getting promoted too!
For business owners, the ITMs help to identify future business needs. By pivoting your business capabilities and expertise around these business needs will increase your chances of thriving in the tough business landscape.
For some middle income Singaporeans, the jobs that they hold may risk becoming irrelevant in the near future as businesses are moving towards what Mr Heng calls manpower-lean solutions.
While we are not getting more SkillsFuture credits, what was highlighted in the budget speech are the addition of new Professional Conversion Program (PCP) in new growth areas – blockchain, embedded software and prefabrication.
Today, there are more than 100 PCPs in 30 sectors that we can tap on to learn new skills for mid-career changes and prepare ourselves for the jobs of tomorrow.
For middle class Singaporeans, I feel that Singapore Budget 2019 has focused on helping businesses and industries thrive in the competitive global economy and providing Singaporeans with ample opportunities with pivot themselves to stay relevant.
I challenged myself with a No Spend Week Challenge early in the year to push myself a little harder to see what happens if I try to not buy anything for a week. You can read about the rules and exceptions I’ve set for myself for this challenge.
Here’s how the challenge went.
Sunday: I woke up early as usual and made breakfast. I made a large burrito using some salami and cheese that I found in the fridge and topped off with scrambled eggs. Easy peasy! I spent the rest of the morning watching shows on Netflix while sipping some Pu’er tea. Lunch was instant noodles with frozen dumplings that I found in the freezer. I spent the rest of the afternoon strolling along Bishan Park. The weather was nice and breezy. I then returned home for dinner. First day completed with ease!
Monday: The first work day of the week went by faster than I expected. I skipped breakfast as I’m trying to fast intermittently in the early part of the day and have lunch as my first meal of the day. I found a can of cream of mushroom in the pantry that’s been around for a long time and decided to cook that for lunch. I added chopped up bits of winter salami that I bought in Budapest during last year’s vacation and the combination worked like a charm. I also toasted some garlic bread to go with the soup as well. When you have a fixed schedule like work, time goes by really quickly before it’s time to go home. The only change I made today is that instead of going to the shopping mall after work, I headed home straight away to avoid being tempted to spend money.
Tuesday: Day 3 had a different challenge on its own. I found that we have way too many frozen dumplings (my mum seemed to love buying them) so I decided to make them for lunch. I purchased a bottle of Lao Gan Ma chilli because we ran out (so that didn’t break any rules) and made a very basic version of Sichuan Spicy Wonton in Red Oil (红油抄手) for lunch. I also brought along the last 2 char siew pau (I don’t think they would last very long in the fridge so best to eat them) just in case the dumplings don’t fill me up. The real challenge was a meeting with a headhunter at Starbucks to discuss about some of the roles that she wanted to recruit me for. I decided not to order drinks since it was a No Spend Week and the headhunter did not order any drinks as well. Maybe it was because the queue was long and it would be awkward for her to have a drink while the candidate wasn’t having one. This might just be one thing I would consider making an exception for in future challenges.
Wednesday: Today was a tough one. I wanted to get back on my morning bike rides so I hopped on my bike and went cycling with my usual crew at 5 am in the morning. We did about 40 km and that made me crave for food. I resisted buying drinks at the rest stop and I was glad the water I had with me was just enough to last the ride. Back home, I found a packet of frozen prata in the freezer (who knew right?) so I made one for breakfast, together with a hard boiled egg. I prepared my work lunch last night since I was going cycling in the morning. Essentially just some dried noodles with a spicy chill sauce (using Lao Gan Ma chilli sauce with vinegar and soy sauce) coupled with a few meatballs. They worked really well for a packed lunch. I even made some Vietnamese quick pickled carrots as a side dish. Yummy!
Thursday: I screwed up! The day went well with a simple egg and spam burrito for lunch as I was planning to attend a lunch event. That didn’t happen due to a morning meeting that went longer than expected. What I forgot was that I had agreed to a meeting in the evening and won’t be home for dinner. So that means I had to break rule #1 which was no eating out. To keep the expense low, I decided to eat at a hawker center. Bummer!
Friday: Thank god it’s Friday! This was probably the easiest No Spend day by far. I didn’t even have to cook anything for lunch as there were leftover fried rice and braised pork belly from last night’s dinner. I decided to do some grocery shopping for this weekend and bought a roasted spring chicken and a packet of mozzarella cheese. A roasted spring chicken is always my favourite grocery purchase because I can usually creatively transform one into 4-5 meals.
Saturday: Last day and although it was a weekend, I had no plans so I stayed at home and relax. I toasted some garlic bread for breakfast while making early preparations for lunch. I placed the roasted chicken bones from the roasted spring chicken I bought last night in the slow cooker with cold water to make chicken broth. After a few hours in the pot, I added some vegetables into the broth to add more flavour. Once ready, I paired it with roasted chicken wings and a packet of udon. The day was spent catching up on China tv series while sipping Pu’er tea.
I’ve learnt that it takes effort to truly excel in this challenge. In order to spend nothing on buying water, I had to remind myself to pack a bottle of water in my bag so that I could stay hydrated outdoors.
The ability to be creative with food ingredients and condiments plays a part as well because I had to be able to come up with 2-3 different dishes using similar ingredients so that I don’t get sick of eating the same thing over and over again. However, I don’t feel it’s important to be a good cook because there are tons of recipes and cooking instructional videos online to follow.
Starting the challenge on Sunday made the challenge easier to follow through for beginners as opposed to starting the challenge on Monday and having the weekend together towards the end.
It really depends on the objectives.
If the goal of the challenge is to save money, I don’t think I’d really save much since I’ve always been rather frugal with discretionary expenses.
But if the goal is to “eat down the pantry” and reduce the amount of food and ingredients in the pantry, I would deem the challenge worthy because it helps to reduce redundant foodstuff and wastage.
What do you think would be the biggest challenge for you if you were to challenge yourself with a No Spend Week Challenge?
Please leave your thoughts in the comments section below
I first heard about no-spend challenge from an episode of the Stacking Benjamins podcast where Joe, OG, and the gang interviewed Jen Smith from Modern Frugality about how implementing No Spend Challenge helped her to compensate for budget flubs.
When I googled about “No Spend Challenge”, I found that there were many other bloggers who did the challenge for different reasons.
For some, a No Spend Challenge could help to reset their budgets after overspending on a vacation, or to get back on track from spending on an unexpected expense. A No Spend Challenge can also be a great way to kickstart your savings or debt repayment on things like outstanding credit card debts with the money saved from the challenge.
I decided to challenge myself with a No Spend Week Challenge to reduce this month’s expenses as I purchased a nice tea set that wasn’t budgeted for.
Since it’s a challenge, it makes sense to set some guidelines and parameters to follow.
Bulk of my expenses come from food expenditure. I intend to challenge myself to prepare lunchbox meals to bring to work for lunch instead of eating outside. I usually skip or have a light breakfast at home and dDinner is usually taken care by my family at home so there’s no eating out/take-away expenses incurred.
It kind of defeats the purpose if I go down to supermarket and shop up a storm just to fulfil the first rule. So the second rule is try and prepare my breakfast and work lunch for the week using whatever is available in the kitchen.
No taxi and Grab rides for this week. I usually take the train to get around so this rule is probably the easiest for me to accomplish.
Needless to say, this No Spend Challenge means no spending on ‘wants’. That means no unnecessary shopping for this week. Other than window shopping, of course.
The last rule that I’m setting is to only find free activities for entertainment. I’ll probably have to crack my head a little but I’m sure I can find things to do.
For this challenge, I only have one exception that will qualify for spending money this week.
The only exception I’m giving myself permission to spend money is only for essential things that I need, like washing detergent, shaving cream, etc. and food ingredients that can help me cook existing ingredients that’s already in the pantry, such as carrots to go with spare rib soup.
Do you think I will succeed in this? Check out my next post as I write about my No Spend Week Challenge.