Community project by and for the folks in r/singaporefi

Financial Independence Flowchart - Singapore Edition

Most Recent Modification: 2021-11-02
Original Version 1.0 Created: 2021-11-02

Inspired by a similar chart made for r/financialindependence for American audience, the question was first
raised by u/dry_marsupial in r/singaporefi whether we have something like it for Singapore. It seems there
isn’t one - so we decided to create one - powered by the community.

Similarly, the intention of this flowchart is to give a general guideline or “best practice” suggestion on how to
approach your personal finance in Singapore. The chart is meant to be read in its entirety before any major
decisions are made so that you have the full picture. It is not meant to be a rigid commandment or
hard-and-fast-rule. Remember, personal finance is personal, everybody’s life and situations are unique. What
works for others may not work for you. So take this as what it is, a guide, full of good suggestions.

Feel free to message me via Reddit or add comments here directly if you have suggestions.

Section 0 : Basic Needs, Bare Essentials, and Budgeting

Pay Rent / Mortgage Pay Income-Generating Make at least minimum Create a budget
Buy Food & Groceries Pay Essentials
Expenses Healthcare Costs payment for all debts and loans
Make sure you can keep a roof Based on previous steps, track
Ensure you can afford food to Pay for water, gas, electricity,
over your head. Winning at life Costs that allow you to Health insurance, medical bills, Debt can compound quickly if your income and expenses
sustain yourself so you can toiletries, etc. Allows you to
and career gets much harder if generate income: transport, and healthcare expenses. not paid on time. Pay at least each month. Know how much
work and make more money. maintain personal hygiene.
this isn’t paid for. equipment, internet, phone, etc. minimum to prevent late fees. you spend and can save.

Stable Income
Section 1 : Emergency Fund, Reduce Non-Essential Expenses, Debt Reduction
Save 3-6 months emergency
fund in high interest account.
Pay off Moderate Interest Debt
(anything 4% or more) by
prioritizing highest interest debt
first.
Unstable Income
Save 6-12 months emergency
fund in high interest account.
“Marie Kondo” your expenses Reduce Non-Essential Regular
Small Emergency Fund
Expenses (i.e. Cable,
Pay off High Interest Debt
Track all expenses to know Subscriptions, Internet, Mobile)
Stable (anything 6% or more) by
where money is going and cut
Work to save at least 1 month
Income? prioritizing highest interest debt worth of expenses in a
back on non-essential Reduce cost as much as you
first. high-interest savings account to
expenses that does not truly can to save funds. Then ensure
give yourself a safety net.
“Spark Joy” for you. to pay monthly bills in full.

Section 2 : Ensure Adequate Insurance Coverage (Health, Death, TPD, Accident, Income Protection)

Section 3 : Optimize your CPF Savings (Singaporean & PR)

High Income Tax (>7%)

High Income
Max out your CPF SA/RA Tax? (>7%)
contribution for tax deduction.

Section 4: Grow your wealth Investing Cash and Tax Optimization via CPF & SRS

Low Income Tax (<7%) Low Income Tax (<7%)

Stable
Determine how much you will Income? Determine how much you will
set aside to invest each month. set aside to invest each month.

Section 5: Reaching FIRE and Withdrawing Funds