100% Spenders in Singapore: How to Break Free from Living Paycheck to Paycheck September 17, 2025

100% Spenders in Singapore: How to Break Free from Living Paycheck to Paycheck

In 2024, 78.3 per cent of companies in Singapore granted wage increases as compared to 65.3 per cent in 2023, according to the Ministry of Manpower’s Report on Wage Practices 2024 1. Despite this growth in earnings, there are still people who end up with no savings every month, specifically 29%, according to a survey done by Sun Life Singapore 2. These are what I call “100% spenders”; every dollar that comes in goes straight out, leaving no savings, let alone investments. On the surface, they may look financially comfortable, but in reality, they are only one emergency away from financial stress.

When asked about their lack of savings, familiar replies surface: “Life is expensive in Singapore” or “I’ll save when I earn more.” But the real reason is not just the cost of living; it is also how easy spending has become, combined with a culture that encourages greater consumption as incomes rise.


The Ease of Spending

Take PayNow, for example. It has become second nature to users to scan a QR code and pay within seconds. A recent study found that 68% of Gen Z in Singapore prefer PayNow as their main mode of payment 3.

This convenience is good for efficiency, but it also makes spending too easy. When spending cash, you physically see the notes leaving your wallet; a more conscious action which reminds you of your accumulative expenses over time. With PayNow and contactless credit cards, no physical cash leaves your hands, making it easy to lose track of how much you are actually spending. The same applies to installment plans. Platforms like Atome have become extremely popular, especially among younger consumers. Research shows that 77% of Gen Z in Singapore have used Buy Now, Pay Later (BNPL) services, compared with fewer than half of millennials and only 13% of boomers. 4 Atome alone has over 1.3 million registered users, mostly aged between 21 and 45. 5

It is not uncommon to see young clients juggling four or five instalments at once. Each one is small, perhaps a few hundred dollars for clothes or gadgets, but together they consume a large portion of monthly cash flow. Debt becomes normal before savings have a chance to take root.


Lifestyle and Culture

Technology is only part of the story; the bigger driver is lifestyle inflation and social pressure.

As income rises, so do expectations. What was once a luxury — dining out, travel, or premium subscriptions — quickly becomes a necessity. Social media amplifies this, making conspicuous consumption part of everyday life, fueling consumers’ urge to “keep up”.

The reality is that most adult Singaporeans understand the basics of savings, having been taught the mechanics of compulsory savings under the CPF scheme. The issue is not financial literacy but the gap between knowledge and action. It is less about what people know and more about taking responsibility for putting that knowledge into practice.


Building Systems That Work

Discipline and will power rarely sustain long-term financial change. What works far better is creating a system that makes saving automatic, much like CPF does.

  • Create a personal CPF-like savings or investment account. As soon as your salary is credited, arrange for a fixed portion, usually 15 to 25 per cent, to be automatically deposited into this separate account. Treat it as untouchable. Over time, it will grow into an emergency fund, long-term savings, or investment capital.


  • Reframe instalments. If you are comfortable committing S$100 a month to fashion or gadgets, why not redirect that same amount into a savings plan or a regular investment? When used wisely, instalments for regular savings can build assets, not debts.


  • Manage lifestyle inflation. Rather than upgrading your lifestyle every time income increases, tie those upgrades to net-worth milestones. This helps to ensure lifestyle growth does not outpace wealth growth.


The Results

With systems in place, change often happens naturally. People who once struggled to save may find their balances growing steadily. Those who claimed “I just can’t save” realise they can, because the system does it for them.

This is not about cutting out joy or living with harsh restrictions; it is about structuring finances so that both spending and saving are intentional. By automating positive habits, the cycle of being a “100% spender” can finally be broken.


Final Thoughts

In Singapore, spending has never been easier. With modern technology, every temptation is just a tap away. But while technology and culture encourage us to consume, only responsibility and structure can create long-term security.

The key is to build systems that make saving and investing a habit, not a choice. That is how “100% spenders” transform into wealth builders — and achieve financial freedom.


Contributor:

100% Spenders in Singapore: How to Break Free from Living Paycheck to Paycheck

Joshua Lim
Wealth Manager
Phillip Securities Pte Ltd (A member of PhillipCapital)
https://bit.ly/TTPjoshualim

Appendix:


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Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

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About the author

Joshua Lim
Wealth Manager
Phillip Securities Pte Ltd (A member of PhillipCapital)

Joshua Lim is a Financial Representative at Phillip Securities Pte Ltd. His wealth journey began at the age of 15, when a fascination of how markets moved and how money could grow if managed wisely sparked over a decade of personal investing and experience, eventually leading to his career as a Wealth Manager.

Joshua is part of a team collectively servicing assets exceeding S$250 million and supporting more than 5,000 clients. Outside of work, he enjoys football and staying active through regular exercise.

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