# Truly Simple Maths To Retire Early In Singapore (Or Anywhere Else In The World)

Retiring is a case of maths, especially in the case of early retirement.

Let's run the numbers, and work backwards, shall we?

Ok, first of all, how much do you need to retire? Basically, how much is your annual expenses? You will need to compute all the expenses that you spend for the year, and ensure that your passive/dividend income is the same or higher than that particular amount.

Let's take an average of \$2000 per month, so that'd mean in one year, that'd be \$24000.

Assuming your return on investment is 4%, hence you will need to stockpile \$600k (\$24k / 0.04%).

## \$600,000?

So here you'd either be shocked or pleasantly surprised.

Let's dive down a little deeper, on how you can slowly reach this amount (I'm not talking about buying Toto or 4D or gambling - that never works because the favor is always on the house, not you).

1. Either you invest \$1k per month (\$12k per year) x 28 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass \$623,595.44. With that, you'd be able to get \$24943.81 per annum based on 4% ROI

2. Or you invest \$1.5k per month (\$18k per year) x 22 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass \$641,121.99. With that, you'd be able to get \$25644.88 per annum based on 4% ROI

3. Or you invest \$2k per month (\$24k per year) x 18 years in a dividend stock portfolio with 4% return, with reinvested interest to maximize compound interest, and you'd amass \$640,109.51. With that, you'd be able to get \$25604.38 per annum based on 4% ROI

## Is this hard?

Depends on how much you make and how much you save/spend.

An average individual in Singapore makes an average of SGD 3,770 per month, and after deducting 20% to CPF (unless you're a foreigner and not subject to CPF deductions), you may take home about \$3016. To make it easier, let's round down to \$3000 per month, plus 1-2 months of bonus (be it \$3000 or \$6000) (Note: some people make much more, or get much more for bonus, but for simplicity's sake, we use these numbers ok)

Assuming you can set aside \$1000 per month, that'd be \$12k per year; and the entire bonus 6k, that'd mean you can save-to-invest \$18k per annum. Based on scenario #2 above, you'd be able to retire within 22 years.

We hadn't factored in yearly increments of course, and making a very conservative number of flat salary (which is untrue/unreal; most have growth between 1-5++% per annum, which in turn also compounds).

I'm not saying saving \$1000 out of \$3000 is easy: for many, it can be/is very hard, as oftentimes we have many expenses; but with a little bit of smart cost savings eg planning

• packed meals which are both healthier and much cheaper than eating out

• budgeted outings/eating out (including the daily \$3-5 coffee that can happen 1-3x per day)

• curbing back on expenses that are non-meaningful ie buying to impress someone/thoughtlessly

And that's just creating the basic savings approach to invest into dividend stocks.

You see, there's only so much you can save. You cannot ever save more than you make, so on one hand, it's very good to be able to streamline expenses to save more to invest; but you will accelerate your earning potential by starting an online business that is low cost to start, one you can build from the comfort of your home (and in your spare time), not another blasted MLM (ugh), with a global audience and 24/7 business.

I used Solo Build It to drive \$100k worth of clients to my Singapore physiotherapy business since 2010, and I've added affiliate products that make me about \$20-\$30 per month (see my affiliate sales and commissions here)

Visit Solo Build It here, and read my SBI review here.

## Where to next?

A) Take a look at my Books and buy whichever interests you =)

B) Tools & Resources I use to improve my life

1. Christianity: Bible Gateway & Verse of the day (free)
2. Website + Digital Marketing for small / service business: Solo Build It
3. Health:
a

C) Topics & things that interest me

1. Eternal life and salvation: Jesus Christ the Way, the Truth & the Life
2. Fix Your Health: Get healthier, live longer, run faster, more energy, fuck more
3. Passive Income Lifestyle: Build financial security by buying & building assets that provides you recurring passive income.
4. Loving Relationships: Attract, build, grow & maintain relationships you love
6. Philanthropy: Giving to projects & people you care about.
7. Active Philosophy: Conscious, Purposeful Faith, Hope & Love
8. Productivity & Effectiveness: Doing what matters most with less and ease.
9. Insure yourself and your loved ones (Health insurance is important)