How investing $10 a month can change your life ….

Leveraging the dividend snowball

CW Fong
4 min readDec 21, 2022


I am 53 years old and I have not saved up for my retirement. Like most Singaporeans, I have been complacent and ignored retirement planning as I had assumed my CPF payouts would be enough. If you have not realized it by now, I have news for you, your CPF is not enough.

Cost of Living

According to data from Singstats, the average cost of living per person in Singapore (based on the 2017/18 census) is about $1,200.50 per month — not including the cost of accommodation:

  • Food and Non-Alcoholic Beverages: $132.40
  • Alcoholic Beverages and Tobacco: $26.10
  • Clothing and Footwear: $59.50
  • Utilities: $189.60
  • Furnishings, Household Equipment, and Routine Household Maintenance: $102.90
  • Health: $133.20
  • Transport: $266.90
  • Communication: $105.70
  • Recreation and Culture: $184.20

Money no enough

Taking an inflation rate of 2% per year, in 2022, the average cost of living per person per month in Singapore is $1,299.45. This will increase to $1,584.05 when I reach my retirement age of 63 in 2032 (and will continue to increase each year I live).

Image by macrovector on Freepik

Assuming that I have the Basic Retirement Sum of $106,500 in my CPF at age 55, I will receive a monthly CPFLife payout of approximately $953 starting at age 65. Definitely not enough! Even if, as a retiree, I cut down on Transport, and Recreation and Culture by 50%, my monthly cost of living will still be $1,358.50 — exceeding the $953 I am projected to receive.

Thankfully, it is not too late

While benefiting from the power of compound interest takes years, the compounding effect of the dividend snowball can be almost immediate. Investing $1,000 in a $10 share that pays a monthly dividend of 1% starts the snowball growing.

100 shares x $0.10 dividend per share per month = $10

By reinvesting the $10 earned in dividends each month, you will be adding one more share that pays you…



CW Fong

I blog therefore I am. Passionate about #Singapore, #Leadership, #PublicRelations, #SocialMedia, #Marketing, and #PersonalDevelopment. Above all, I do no evil

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