The Cost of Lifestyle in Singapore: Why It's Rising and How You Can Afford It

Understanding the Cost of Living vs. Cost of Lifestyle

Recently, the soaring price of formula milk in Singapore made headlines. Upon further investigation, it was discovered that the issue wasn't a lack of production or high tariffs, but a simple consumer behavior: most Singaporeans preferred the more expensive brands and were willing to pay a premium for what they perceived to be better quality. This has led to a rise in the overall cost of living but, more importantly, the cost of lifestyle.

Consumers in Singapore are increasingly opting for premium products and services, which may seem evident in everyday purchases like food. For instance, a plate of chicken rice has increased from $2 to $3 within a few years. The choice to continue paying for these items is often driven by the belief that higher prices equate to higher quality or better experiences.

The True Cost of Lifestyle

Rising prices don't inherently impact everyone. Take my personal experience, for example. In the year 2017, from January 1 to May 11, I spent a total of $8 on food and groceries. This illustrates that with smart choices and a frugal mindset, the cost of living can be surprisingly low. However, not everyone can afford to live like me, and most people in Singapore continue to opt for more expensive options.

Understanding inflation statistics in Singapore can provide further insight into the cost of living. The Consumer Price Index (CPI) in Singapore has been relatively stable since 2014, while the core inflation rate has also been relatively low in the past three years. This stabilization suggests that the cost of basic human needs, such as food, water, and shelter, does not necessarily rise at the same rate as inflation.

Basic Human Needs and Lifestyle Choices

Shelter

One of the key factors in the cost of living is the choice of housing. Do you prefer to live in a condominium or a government-built Housing Development Board (HDB) flat? The type of housing you choose can significantly influence your costs. Condominiums usually come with more amenities and services, but these come at a higher cost.

Water

The choice of water you consume also plays a significant role in your expenses. While it is possible to drink tap water, some people may prefer to buy more expensive bottled water brands. My own water bill is just $5 each month, indicating that basic needs can be met affordably.

Electricity

The cost of electricity is another important factor. Some households incur significantly higher bills due to the use of air conditioning, which is a choice you can make if or when needed. I, for one, have trained myself to sleep without air conditioning, thus drastically reducing my electricity bill. Choices like these can make a substantial difference in your monthly expenditure.

The True Question: Why is the Cost of Lifestyle Rising?

The real question that arises is why the cost of lifestyle in Singapore is rising so quickly and shows no signs of slowing down. It's not just about meeting basic human needs; it's about making lifestyle choices that prioritize convenience, quality, and comfort. These choices often come with a price tag, and if you are living beyond your means, the rising cost of lifestyle can be a significant challenge.

The key is to be mindful of your choices and make informed decisions. Are you truly necessary to live in a condominium or can you make do with an HDB flat? Are you paying for bottled water when tap water is sufficient? Are you using air conditioning at home when it's not absolutely needed?

Ultimately, the cost of lifestyle is about more than just the cost of living. It’s about how you choose to live your life, and whether those choices are sustainable in the long term. By making conscious and informed choices, you can navigate the rising cost of lifestyle in Singapore more effectively and enjoy a fulfilling quality of life without breaking the bank.

So, the real question you have to ask is: Why are we making more expensive lifestyle choices than we can afford? It's a question worth pondering, especially as the cost of living continues to rise in Singapore.