How to Save Money in Singapore: A Simple Plan to Save $10K, $20K or More
Saving money sounds simple until you actually try to do it.
Your salary comes in. CPF is deducted. Bills need to be paid. You buy groceries, take a few Grabs, eat out with friends, pay for subscriptions, and suddenly another month is gone.
For me, the solution is not to stop spending on everything I enjoy. It is to have a simple system that tells me how much I want to save, where my money is going, and what I can realistically change.
Quick Takeaways
- Turn a large savings goal into a smaller monthly or weekly target.
- Review recurring bills before spending too much effort saving a few dollars here and there.
- You do not need to remove every luxury from your life, but spending should be intentional.
- There is a limit to how much you can cut, so increasing your income matters too.
- The best savings plan is useless if you never start.
Disclaimer: I am not your financial adviser or lawyer, information found on our website is just our opinions, and should be used for entertainment purposes only. You should always ask your financial adviser or lawyer for any financial or law-related advice. By accessing this website you’ve agree on our T&C.
Savings Calculator
How Much Do You Need to Save Each Month?
One of the easiest ways to make a savings goal feel more achievable is to break it into smaller numbers.
Saying:
“I want to save $10,000.”
sounds like a big goal.
But $10,000 over 12 months works out to around $833 per month.
Here are a few examples:
| Savings Goal | Per Month | Per Week | Approx. Per Day |
|---|---|---|---|
| $5,000/year | $417 | $96 | $14 |
| $10,000/year | $833 | $192 | $27 |
| $20,000/year | $1,667 | $385 | $55 |
| $30,000/year | $2,500 | $577 | $82 |
| $50,000/year | $4,167 | $962 | $137 |
The table is not saying that everyone should save $10,000 or $20,000 a year.
Someone earning $3,000 a month has a very different situation from someone earning $10,000. You may also have children, ageing parents, a mortgage or other financial responsibilities.
The purpose is simply to turn a vague goal into a number you can plan around.
If I want to save $10,000 this year, I now know I need to find roughly $833 every month.
That gives me something concrete to work with.
My Simple 5-Step System for Saving More Money
Over the years, I have found that most ways of saving money can be grouped into five simple areas.
1. Break It Down
This is always where I would start.
Don’t just say:
“I need to save $10,000.”
Break the target into something smaller.
If your goal is $10,000 in one year: $10,000 ÷ 12 months = about $833 per month
You can break it down even further: $833 ÷ 4 weeks = roughly $208 per week
Once you have that number, ask yourself:
Where can I find this money?
- Maybe part of it comes from reducing expenses.
- Maybe part comes from your salary.
- Maybe part comes from a bonus or side income.
The important thing is that you now have a target you can work towards.
This same approach works for almost any financial goal.
If you want to save $5,000 for a holiday, $30,000 for renovation or build a six-month emergency fund, work backwards from the final number.
2. Save on Monthly Bills
After breaking down my target, I would look at recurring expenses.
Why?
Because saving $100 once is useful. But saving $100 every month can save you $1,200 over a year.
Recurring savings continue helping you without requiring another decision every single day.
Some areas worth reviewing include:
| Monthly Expense | What I Would Check |
|---|---|
| Mobile plan | Am I paying for more data or features than I use? |
| Broadband | Are there cheaper plans available? |
| Insurance | Do I understand what I am paying for and is there unnecessary overlap? |
| Subscriptions | Am I still paying for services I rarely use? |
| Transport | How much am I spending on Grab or taxis? |
| Food delivery | Has convenience quietly become a large monthly expense? |
| Utilities | Are there easy ways to reduce unnecessary usage? |
You don’t necessarily need to cancel everything.
Sometimes just switching plans is enough.
For example, if you reduce:
- Mobile bill by $20
- Subscriptions by $30
- Food delivery by $80
- Transport by $70
That is already $200 per month.
Over one year, that becomes $2,400.
This is why I prefer looking at bigger recurring expenses before worrying about every small purchase.
3. Reduce Luxury Spending
Next, I would look at discretionary spending. This means things that are nice to have but not essential.
Examples could include:
- Restaurants
- Cafes
- Holidays
- Shopping
- New gadgets
- Entertainment
- Premium memberships
- Grab when public transport is available
But I don’t think the goal should be to remove every enjoyable thing from your life.
If having coffee with friends makes you happy, I don’t see why you must completely remove it just because you want to save money.
Instead, I would ask:
Am I spending this money because I genuinely value it, or because it has become a habit?
There is a big difference.
Maybe you love travelling and would happily spend $3,000 on a holiday.
That’s fine.
But perhaps you don’t care much about having the newest phone every year.
Then that may be an easier place to cut.
I prefer to keep the things that genuinely matter to me and reduce spending on things that don’t.
You can also give yourself a simple luxury budget.
For example:
“I can spend $300 this month however I want. Once it is gone, I stop.”
This lets you enjoy your money without completely losing control of your savings goal.
4. Increase Income
Eventually, you reach a point where cutting expenses becomes difficult.
- You still need somewhere to live.
- You need food.
- You need transport.
- You need insurance.
- And there is only so much you can reduce.
That is why I think increasing income is an important part of saving more money.
There are many possible ways to do this:
- Ask for a salary review
- Improve your skills
- Move into a better-paying role
- Change jobs
- Freelance
- Take on part-time work
- Sell a service
- Build a small business
- Sell things you no longer need
You don’t need to do all of these.
Even an additional $200 or $300 each month can make a noticeable difference.
For example, if your goal is $10,000 a year and you can save:
- $300 from your normal salary
- $250 by reducing expenses
- $300 from additional income
You are already at $850 per month.
That works out to $10,200 over a year.
There is also one important thing to watch when your income increases:
Lifestyle inflation.
This happens when your spending rises whenever your income rises.
You get a $500 pay raise, so you upgrade your lifestyle by $500.
Your income has gone up, but your savings haven’t changed.
When my income increases, I like the idea of allowing myself to enjoy part of it while also increasing the amount I save.
5. Act Now
This may sound obvious, but it is probably the most important step.
- You can read hundreds of articles about saving money.
- You can compare savings accounts.
- You can build spreadsheets.
- You can calculate exactly how much you need.
- But none of that matters if you don’t actually start.
And you don’t need to make ten changes today.
Start with one.
For example:
- Transfer your first $100 into savings.
- Cancel one subscription.
- Review your mobile plan.
- Set up an automatic transfer after payday.
- Track your expenses for one month.
- Sell something you no longer use.
- Put your next pay raise partly towards savings.
Small actions create momentum.
Once you make one improvement, finding the next one becomes much easier.
I would rather save $100 this month and improve from there than spend six months trying to create the perfect savings plan.
How to Save $10,000 in a Year
Let’s put the five steps together.
If your target is $10,000 in one year, you need approximately: $833 per month
The mistake is thinking the entire $833 must come from one painful sacrifice.
It doesn’t.
Here is one hypothetical example:
| Change | Monthly Amount |
|---|---|
| Automatic saving from salary | $350 |
| Lower recurring bills | $100 |
| Reduce discretionary spending | $150 |
| Additional income | $250 |
| Total | $850 |
That works out to $10,200 per year.
Your numbers could look completely different.
Maybe you can save $600 directly from your salary but don’t have time for a side income.
Someone else may only be able to save $200 from their salary but can earn another $400 through freelance work.
There is no single correct formula.
The important part is getting your different sources of savings to add up to your target.
Pay Yourself First
One simple habit can make the whole system easier: save before you spend.
Instead of doing this:
Salary → Spend → Save whatever is left
Try this:
Salary → Save → Spend what is left
You can automate this by transferring money into another account shortly after payday.
MoneySense suggests aiming to save at least 20% of your monthly take-home pay, or more if you can.
I see this as a guideline rather than a fixed rule.
If 20% is unrealistic for you right now, start lower.
Maybe it is 5%.
Then 10%.
Then slowly increase it as your income grows or expenses fall.
Consistency matters more than chasing someone else’s savings percentage.
What Should You Save For First?
Saving money is easier when the money has a purpose.
Rather than simply building a larger bank balance, I like to know what the money is meant for.
Build an Emergency Fund
One of the first goals I would consider is an emergency fund.
This is money set aside for unexpected situations such as:
- Losing your job
- Medical expenses
- Urgent home repairs
- Replacing an essential appliance
- Unexpected family needs
Singapore’s Basic Financial Planning Guide recommends keeping around three to six months of expenses as an emergency fund.
If your monthly essential expenses are $3,000, for example, that could mean aiming for around:
- 3 months: $9,000
- 6 months: $18,000
Someone with irregular income may prefer an even larger buffer.
The emergency fund isn’t there to earn the highest possible return.
Its main purpose is to be there when you need it.
Deal With High-Interest Debt
If you have high-interest debt, such as unpaid credit card balances, this also deserves attention.
Paying a very high interest rate while keeping large amounts of cash earning a much lower return may not make much sense.
MoneySense recommends prioritising debts with the highest interest rates first.
I would still want some emergency cash available, but expensive debt should not be ignored.
Save for Short-Term Goals
You may also be saving towards specific goals such as:
- A wedding
- Renovation
- Holiday
- Education
- Home down payment
- Starting a business
Separating these goals can be useful.
Instead of having one general savings account, you know exactly what each pot of money is for.
Invest for Long-Term Goals
After building a stronger financial foundation, longer-term money can eventually be invested.
For me, this is where saving and investing connect.
Saving gives me the capital.
Investing gives that capital the opportunity to grow or produce income over time.
But investments can rise and fall, so I generally wouldn’t invest money that I know I will need very soon.
Where Should You Keep Your Savings?
Different savings have different jobs.
I would think about where to keep the money based mainly on when I expect to need it.
| Purpose | What Matters Most |
|---|---|
| Daily expenses | Easy access |
| Emergency fund | Safety and liquidity |
| Short-term goals | Protecting the money |
| Long-term goals | Potential growth |
For emergency money, accessibility matters.
The Basic Financial Planning Guide mentions savings accounts and Singapore Savings Bonds as possible places for emergency funds.
The important thing is not to chase a slightly higher return at the cost of making the money difficult to access when an emergency happens.
How Much of Your Salary Should You Save?
There is no perfect savings percentage.
MoneySense suggests aiming for at least 20% of take-home pay, or more if possible.
But your actual savings rate depends on your situation.
- Someone living with their parents may be able to save much more.
- Someone supporting children and elderly parents may have less room.
- Someone paying off high-interest debt may temporarily direct more cash towards debt repayment.
So I wouldn’t compare myself too closely with someone online who says they save 50% or 70% of their salary.
Instead, I would ask:
Am I saving more consistently than I used to?
If you currently save nothing, getting to 5% is progress. Then perhaps 10%. Then 15%.
Your savings rate can grow together with your income.
How to Save Money When Your Income Is Low
Saving becomes much harder when most of your income already goes towards necessities.
In that situation, constantly hearing advice like “stop buying coffee” can be frustrating.
If your budget is already tight, I would focus on a few things.
- Know your essential expenses: Understand the minimum amount you realistically need each month.
- Start with a smaller savings goal: You don’t need to save $10,000 immediately. Your first target could be $500 or $1,000.
- Review recurring costs: Even one or two monthly savings can help.
- Avoid expensive debt where possible: High interest can make it much harder to build savings.
- Look for ways to increase income: When there isn’t much left to cut, income becomes increasingly important.
If $10,000 a year is unrealistic today, that’s okay.
Maybe your first milestone is:
$1,000 → one month of expenses → three months of expenses → $10,000
You can build towards the bigger number gradually.
Common Mistakes That Make Saving Money Harder
Saving itself is quite simple.
The difficult part is doing it consistently.
Here are a few common mistakes I would watch for:
- Saving only whatever is left at the end of the month
- Setting a savings target that is unrealistic
- Cutting every enjoyable expense at once
- Ignoring large recurring bills
- Increasing spending every time income rises
- Carrying expensive debt without a repayment plan
- Investing money you may need soon
- Waiting for the “perfect time” to start
- Giving up after one bad month
You don’t have to hit your target perfectly every month.
If you planned to save $800 but only managed $600, you still saved $600.
Look at what happened, make adjustments and continue.
What I Would Do If I Were Starting Again
If I were starting from zero again, I would keep things very simple.
I would first choose a savings target and break it into a monthly number.
Then I would review my recurring bills and unnecessary spending.
After that, I would look at how I could gradually increase my income.
Most importantly, I would start immediately rather than waiting until everything was perfect.
My approach would look something like this:
Break It Down → Save on Monthly Bills → Reduce Luxury Spending → Increase Income → Act Now
Once I have built an emergency fund and money for my short-term needs, I can then start thinking about investing money I do not expect to need for a long time.
Saving creates the foundation.
Investing comes after that.
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Antony C. is a Singaporean dividend investor focused on building passive income through REITs, ETFs, and Dividend Stocks. With 15+ years of experience investing in Singapore, Hong Kong, and China markets, he founded IncomeBuddies.com to share practical wealth-building strategies tested in his own portfolio since 2008. His expertise has been featured in Yahoo Finance, Nasdaq, and NFAA, and he’s the published book author of "Start Small, Dream Big".