Will university debt cripple my 5yr goal of $100k?

Is saving $100k possible in just 5 years?? Well yes, even with Uni debt, but what’s important is what you do with it - for me, see my post on REIT dividends (trying to semi-retire by 35)!

Assumes $3,500/ month with job hopping in Year 3

Assumes $1,500/ month for simple living ($800 rent, $300 food, $200 entertainment)

Assumes Uni debt of $39,200 ($9,800/ year for NUS business).

Year 1:

Salary: $3,500 x 12 months = $42,000

Cost of living: $1,500 x 12 months = $18,000

Disposable Income: $42,000 - $18,000 = $24,000

University debt paid: $24.000

University debt left: $15,200

Year 2:

University debt increases by 5% (OCBC study loan prime rate) = $15,200 x 105% = $15,960

Disposable income: $24,000

University debt paid: $15,960

Savings: $24,000 - $15,960 = $8,049

Year 3-5:

One way to earn more is to job hop in year 2 or 3! You’ll earn 10-20% more on average, but let’s use 15% for now.

New salary: $3,500 x 115% = $4,025

Saving per month: $4,025 - $1,500 = $2,525

Savings per year: $2,525 x 12 = $30,300

Total savings: $30,300 x 3 years = $90,900

SAVINGS IN YEAR 5:

$90,900 + $8,049 = $98,949

That’s basically $100k already :)

If you want, you can scrimp by cutting the $100 entertainment budget to $50 = $3,000 more!

Things to note:

- you can obviously reach $100k faster if you earn more, spend less, live with parents

- you might need more time if you have a higher standard of living, or need to pay gratuity to your parents, or have unexpected life events

- does not include taxes and CPF

- don’t set yourself on FIRE too hard ;) that’s why there’s an entertainment budget! what’s life if you can’t be content and enjoy life?

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