Cory Diary : Is all about Inflation, Stupid !

According to mom ( http://stats.mom.gov.sg/ ) the gross monthly income from work is as follow.

Gross Monthly Income From Work

 Median Gross Monthly Income From Work (Including Employer CPF Contributions) of Full-Time Employed Residents

Mid-Year	2006	2007	​2008	2009	2010	2011	2012	2013	2014​	2015
Levels ($)	2,449	2,543	2,897	2,927	3,000	3,249	3,480	3,705	3,770	3,949

 The average annual increment compounding % probably roughly about 5.4%.

Going to another website on Singapore CPI, the chart as below. Roughly 2.7%. Thanks to the tapering off in 2015-2016 due mainly I believe to the property curb and low oil price. It would have hit 4%.

What this means for saver is we are able to save half of our annual increment. Perfect !
But wait .... let's look closer on CPI basket.

Notice something ? Housing and utilities constitutes only 26.3%. Didn't some guru say ~ 35% of our income for housing ? Or Property curb on 60% of our gross income ? So why CPI did not match them. Is CPI meant more toward people who live in average HDB value ?

If the Median income is $3949 that's about $1000 allocated for housing and that has to include interests and principal down payment. Some may argue is not right since property is yours.

Fine ! Let's use rental instead of property purchase. A 4 room HDB easily fetch $2500 monthly for a family. Sorry ladies, wife has to go to work and we are still more than $500 short in allocation.

Cory
20160317