My Income is in the Bottom 1% and I'm OK With That

Thanks to that toxic Straits Times compare-your-salary-against-your-peers microsite I have just learnt that I'm at the bottom 1% lol. 

In an unrelated incident, I was catching up with my cousin and we were talking about money. She is one of those well-paid but burned-out civil servants that Singapore never seems to run out of - and a few years ago she took no-pay leave and ran away, living in Korea for an extended period of time. 

One of the big things she learnt during this phase of adult truancy is that she can't live on low pay. In her fantasies she thought she'd be cool about her reduced means. But in reality, being broke was far from romantic - it was stressful and made her worry about many micro-decisions, such as what to eat. She didn't say as much, but I suppose this realisation also rules out the possibility of meaningful/enjoyable but low-paying work in the future. She has since gone back to the iron rice bowl.

It was good of her to state simply, without judgment, that she needed a certain amount of money to live well. This is true for everyone. But personally I find it hard to admit it to myself. Is there such as thing as "toxic self-sufficiency"?

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As things stand the only income I can reliably count on is from my part-time bookstore job. I work the minimum number of hours -16 a week - resulting in a paycheck of $550-570 a month. (That's if I don't fall sick and skip work, since I have no paid sick leave. I am quite literally financially motivated to stay healthy.) 

In theory I could work more hours to make more money. But CPF deductions apply to any earnings above $500, so if I work longer hours, my take-home pay per hour would (perversely) be lower!

The rest of my income is a patchwork of rabbit boarding/grooming fees, a few dollars from selling used books, the odd freelance writing job (a windfall!) and/or food delivery. So far I have been making close to $1,000 a month, which just about covers expenses...

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Do I have to stress out and think real hard before I spend? In the beginning yes, I did, but after living on a reduced/inconsistent income for almost 2 years (quit working full-time in Oct 2021) I think most of my spending habits are quite fixed.

For groceries I buy roughly the same few basic items - bread, coffee, butter, local veg, fruit - I tend not to buy much meat; my proteins of choice are cheaper beans and tofu and eggs. I don't buy fancy ingredients or make things according to recipes - just not super keen to experiment in the kitchen these days. I don't have a habit of drinking or entertaining and I think that helps a lot with costs.

As for eating outside: Jon and I are happy to eat at hawker centres or fast food all the time, and I'm thankful I don't have any friends who like eating at restaurants. (In fact my friends are terrific about hanging out teenager-style, in the park.) But as a general rule it's costly to eat outside. I feel that any meal I make at home, even if it's simple pasta salad or sandwiches, is a win.

What else? There's utilities and pet stuff - those are fixed costs, I just pay and don't worry about them. I obviously don't have a gym membership. Lately I have been using Down Dog for yoga - but there's also walking, cycling, swimming for cheap exercise. I guess you could consider my job a form of exercise, especially if I lift heavy cartons.

Right, and there are costs associated with owning a house. Little repairs, little upgrades, little things like ant killer to deal with ant problems. I guess these are quite small compared to the cost of a mortgage. Surprisingly many people seem to hire weekend cleaners... we save the money and live with the dirt.

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So those are the necessary expenses. I'll admit I don't have much left over for discretionary expenses i.e. "wants". Things like art materials, books, exercise gear, home decor. Some things I get on Olio, others I buy second-hand where possible. 

I wouldn't be this careful with purchases if I were drawing a $5K paycheck, of course. But I don't mind having limited means - it really helps me essentialize. 

For example, I'm feeling blue. Do I need to spend $100 on therapy? Nah - I go for a walk to the library and do my own "art therapy". Do I really need those fancy Prismacolor pencils? Nah - I make do with the $2 colour pencils from Popular. You must understand that these frugal options aren't compromises but actually more satisfying and enjoyable than throwing money at problems.

If my habits seem boring and annoyingly virtuous to you... haha. I literally cannot afford vices, so I'm glad I'm not built that way. Another Pollyanna-ish side effect is that tiny gains feel like windfalls. I got like $38 in interest on my savings account last month and I felt super happy - that's almost 4 hours' work and I got it for free! 

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By the way, I don't have a budget. I track my expenses and it sums up the total for each category - that/s about it. My habits are so fixed and my expenses quite consistent, I don't see the point of breathing down my own neck. I figure that if I really do overspend I'll just try and make it back by doing food delivery or getting extra shifts. A mindset of abundance rather than scarcity. 

What I've found is, when you try and scrimp on the essentials, you end up paying it back another way. Like if you try and save too much on food and compromise nutrition - or if you avoid meeting friends because you want to save money - that's going to bite back. You'll get sick or go nuts. Better to spend that $10 or $20!

I don't think there's any point to worrying about inflation either. It's not within my circle of control so worrying about it is only gonna cause me pain, like Epictetus said. I try to focus on things I can control and make it a positive lifestyle choice. If I ever feel like milk is too expensive then I'll just start drinking coffee black. You know what I mean?

One thing that's probably unpalatable to other Singaporeans is that I'm willing to "die with zero" (like the Bill Perkins book). Even if I had kids I wouldn't bother leaving any money behind for them. I think the ability to stomach the decline of your financials - your income, your savings, your net worth - is an important life skill for getting old. You gotta spend the money you made - otherwise, what was it all for!? But then I don't know anyone who agrees with me.

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Joel asked me if I'm going to look for a job anytime soon, and I thought about that. The answer is no. Right now I'm quite happy with what little I make. The inconsistency frightened me for a long time, but now that I have gotten used to it, I feel content with my income. There is a certain peace and happiness in deciding "this isn't much, but it's enough".