The Day Your Monthly Income Crosses $6,000

the-day-your-income-crosses-6k

Congratulation!

You are now ‘officially’ above Singapore median income level.

From today onwards, you should be financially savvy enough and does not require any subsidy or assistance from the government.

Financial Independence

Still remember those days, where a $100 pay increment will give you an additional $37 increase in CPF contribution amount (20% from yourself and 17% from your employer). However, from today onwards, your total CPF contribution will be capped at $2220 (37% X $6000).

From today onwards, with the ordinary wage ceiling, any salary increment you get is what it is, there will not be an additional 37% into your CPF.

By now you should be wise enough to manage your own finances without mandatory savings plan (a.k.a CPF) for the portion above $6,000.

You are on your own, do spend wisely.

Forget about HDB BTO

As we all know the income ceiling for HDB BTO is $12,000 and assuming your spouse is working as well with similar experience, your combined income should be very close or over the ceiling already.

Fret not, it is not that bad. You still have executive condominium which has an income ceiling of $14,000. Hurry up, before you miss the chance again.

On the other hand, if you are a single planning to apply BTO under the Singles schemes, you are too late.

You have been disqualified due to your income being more than $6,000. You are now left with HDB resale flats in the open market.

Forget about HDB loan

If you are a single buying a resale HDB, you are no longer eligible for HDB loan. You have no other choice but to get a bank loan instead.

In short, get your flat early before your income crosses $6,000!