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30 Sep 2021

How do you get rich in Singapore?

Getting rich in Singapore | VI
(c) Sadie Xiao

“The number of millionaires in Singapore could go up to more than 60% by 2025.” Reading this headline would most probably get your hopes up.

Becoming rich is a desire most people, if not all, hold. For sure, you want to get rich, too. If not, why would you be reading this?

This article will let you in on some insights about becoming a millionaire in Singapore. Or if millions don’t excite you, let’s just put it as tips on getting rich in Singapore.

Is money the root of all evil?

But first, let’s touch on this popular saying we’ve probably heard a hundred times already: Money is the root of all evil.

Let’s establish some important facts: the want to become wealthy is not an evil desire. Having financial abundance can open up many pathways in your life. Most importantly, having financial freedom gives you a choice on how you wish to spend your time.

With wealth, you can opt to spend more time doing what you love. It will allow you to spend more time with people you love, such as your family and friends. Hence, the desire to get rich is not just about money, but also about achieving freedom with your time and, ultimately, about your happiness.

Likewise, being rich would allow you to help more people. You’ll have more money to share with the poor and the unfortunate. Think about this: How can you help the needy when you don’t even have enough to live by?

Still, having more money is not a license to do evil deeds. Desiring to get rich also doesn’t automatically mean wanting to do evil. But the intention and the way you choose to earn money and become rich might be the differentiating factor. And we hope you know the difference!

Becoming a millionaire in Singapore

Living in one of the world’s most expensive cities has turned our lives into a vicious cycle of making and spending money every single day. Although Singapore has a 5.5 percent millionaire density in 2020 (and projected to grow higher by 2025), the truth is, most of the millionaires are not cash-millionaires, but by assets, of which their primary living shelter accounts for a huge portion of their net worth.   

Why is this important information? It’s because for most people, despite having high personal net worth, their primary living shelter cannot be monetised unless they are willing to sacrifice privacy in renting it out, or if they have multiple properties they can move to after selling their first home.  

Getting rich in Singapore is, therefore, no easy task. Even if you can save 5,000 SGD every single month (which most people can’t!), it will still take you close to two decades of hard work to amass a million dollars – all this without taking into account the effects of inflation. 

While the battle for getting rich in Singapore seems an uphill task, why do we still see so many wealthy people driving around in luxury cars and staying in uptown apartments? Well, there are five general ways of getting rich in Singapore.

1. You are born rich.

Some of the rich people around are rich simply because, well, they are born into rich families. Okay, this bit of information doesn’t really help you out, so let’s move on.

2. You strike the lottery.

This group of people almost share the same category as the first group. They are rich because they are lucky. Also, we do not recommend spending all of your money on gambling and lottery tickets.

3. You have a high-income job.

This group earns huge amounts of money every month from their jobs – which is ideal, but let’s face it, not everyone falls into this category.

But don’t give up hope yet. There are still two ways that anybody can learn about and do to belong in Singapore’s millionaire count.

The twin engines to becoming rich in Singapore

While the first three ways might not apply to you, there are two other means for you to build wealth and achieve financial freedom. Termed the twin engines to success, entrepreneurship and investment can just be the keys you can unlock to getting rich.

Let us tell you why.

Engine 1: Having a scalable and successful business

Successful entrepreneurs are wealthy because their businesses provide a way to scale up their income. A business in its rawest form is a profit-generating system that you can grow and multiply as well as increase your cash inflow every month.

Engine 2: Compounding and multiplying your savings through successful investing

Welcome to the lucrative world of investing that anyone can get access to and get started. Investing is extremely powerful because it grows your money based on multiples. These multiples are compounded to produce massive results. In comparison with a job that gives you fixed income, investing can multiply the money that you saved.

Did you know that a small sum of $1000 invested in Starbucks in 2011 would now be worth ~$7500? The profit is more than 500%! 

So why aren’t there many people investing? Many people know its importance, but only a small group of people have the skillset to find good investments to multiply their money. Most people don’t know how to and are afraid of risks.

See also: Guide to Becoming a Confident Investor in Singapore (2021)

The key is to learn and be good at it. When you have proper knowledge, you become more confident and you reduce the risks.

Getting rich in Singapore is possible. You only need to know how to do it, well, legally and properly.

Join us for a free investing masterclass where we teach you the basics of stock investing and how you can compound your wealth starting today.


Disclaimer

No income guarantee or promises of any type are being made in this article. Know that your results will vary due to circumstances that are outside of our control. The author and the company do not warrant, guarantee, or make any representations about the use or results of the use of the products, programmes, services, and resources mentioned in this article. The reader, thus, agrees that the author and the company are not responsible for the success or failure of readers’ investment and business decisions relating to any information provided herewith.