Ever wondered how you can afford your first home if you've only been working for a few years?
Previously, we showed you how
Calvin and his fiancée can afford to pay the monthly housing instalments for their 4-room BTO.
In today's example, we'll show you how Calvin & his fiancée can afford to buy his first home after working for 3 years.
Calvin started his first job when he was 23, with a monthly salary of $2,100. Here's a look at how much he would have accumulated in his OA, with the help of compound interest, after working for 3 years.
| |
OA Contribution (From Self & Employer) |
Interest Earned |
Accumulated OA Savings |
| At 23 years old | $5,796 | $66.42 | $5,862.42 |
| At 24 years old | $5,796 | $212.97 | $11,871.39 |
| At 25 years old | $5,796 | $363.19 | $18,030.58 |
Let's assume that Calvin's fiancée earns the same amount as him. They would have a total of $36,061.16, which is more than enough to pay for the 10% downpayment of their 4-room BTO which costs $300,000.
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