Save $3500 monthly when I turn 30

One of my assumptions in accumulating "$500,000 by 33 years old" was "My wife and I will save at least $2500 monthly combined($30,000 yearly) from age 28 to 30 and $3500 monthly($42,000 yearly) after I turn 30" 

To save $3500 monthly from the age of 30 onward, I assume a combined monthly income of $8,000. Also,  household expenses are included as my HDB flat will be ready by then.

Cost of furnishing a new flat

Recently, I have been learning everything about furnishing a new home. I also got to know the various costs involved in renovating a new flat. The following are the basic things needed to renovate a new flat and their estimated costs.

Basic package + add ons such as wall feature etc ($35,000)
1) Homogenous Flooring
2) Lightings
3) Room wardrobes and kitchen cabinets
4) Toilet shower screens
5) Wall feature for television
6) Plumbing works
7) Other carpentry works
8) Other masonry works

Furniture and other necessary stuff
9) Ceramic stove - $1200
10) Refrigerator - $2000
11) Washing Machine - $1200
12) Dining table - $800
13) Sofa - $1500
14) Television - $2000
15) Air conditioner - $2500
16) Living room table - $200
17) Shoe cabinet - $600
18) Beds - $4000


Others : $5000

A) Total cost of renovation = $56,000

According to the estimated price listed above, I will have to set aside $56,000 to renovate my future flat. Assuming that I will be buying a 4/5 room flat which costs around $500k, the costs involved will be:

1) Option fees: $2000 (cash - refunded if CPF OA is sufficient to pay the downpayment)
2) Downpayment: $50,000 [10% of purchase price (CPF or cash)]
3) Stamp fee: $9600
3) Conveyance fee : $312.60
5) Other miscellanous fees : $1000

B) Initial cost of purchasing a flat: $62,913

Total cost = A + B = $118,913

Cost of owning a car

Many Singaporeans start to own a car at the age of 27 or 28. They might think that they could well afford the car since the monthly installment is probably a small fraction of their pay (20%?). I will now try to break down the costs of owning a car:

Monthly car instalment : $700
Car insurance : $100
Petrol : $300
Cash card : $100
Season parking : $100
Total: $1,300

In contrast, the monthly cost of taking public transport is probably just $100

This means that one will be spending $1,200 more than a person who takes public transport. If the person who takes public transport were to invest that $1,200 every month at a rate of just 5% for 10 years, he would have accumulated $186,338. Given a dividend of 5%, his additional monthly passive income at the end of 10 years would be $776.

Estimated future monthly expenses

My average monthly expenses is around $300-$400 currently. However, expenses will definitely increase by a few folds after i graduate and start working full time. In addition, I would be giving my parents monthly allowance which will most probably be $400($200 each). The following is a breakdown of my estimated future monthly expenses.

Parents allowance : $400
Handphone bill: $50
Internet bill: $50
Transport: $100
Miscellaneous(food, entertainment, etc) : $600

Total: $1,200

My estimated total expenses would be approximately $1,200. Given that my estimated starting pay is around $2,800, the take home amount is $2,240(after CPF). Therefore, I would be able to save about $1,000 per month. If my girlfriend save the same amount and we both save our 13th month bonus as well, we would be able to save a total of $28,480 per year. After 3 years of working full time and assuming no pay increment/promotion for both of us, we would have saved up $85,440. Adding in the $70,000 that I aim to accumulate upon graduation, net worth would be $155,440(excluding CPF OA). By then, it would probably be time for marriage.