SINGAPORE – Singapore’s young professionals are earning more than their parents did at the same age. Many of them work in finance, technology, consulting, law or multinational firms. Yet speak to enough of them and a strange refrain emerges: “I feel poor.”
This is not poverty in the literal sense. Many still dine out, travel and own expensive devices. But there is a nagging sense of financial inadequacy – despite their respectable incomes, getting ahead seems harder.
In Singapore today, it is increasingly possible to be affluent on paper yet anxious in reality.
The paradox deserves attention because it says something deeper about investing, wealth and modern middle-class life.
The problem is not simply inflation. It is that the definition of financial comfort has shifted faster than salaries can keep up.
A generation ago, a stable career, an HDB flat and prudent saving could produce a fairly predictable middle-class life.
Today’s young professionals live in a different economy – one that is shaped by rising asset prices, social comparison, digital consumption and a constant fear of falling behind.
A private banker in his mid-20s, earning in the 80th percentile, says he still worries about his future, especially with the constant news bombardment that artificial intelligence is threatening white-collar roles, and banks and technology firms are laying off staff.
After reading that top-quintile households held average wealth of about $5.3 million in 2023 – most of it in property – he began to question how long it would take to get there.
His main concern is being able to afford buying a home.
Official data underscores the tension. Real median gross monthly income, adjusted for inflation, grew 2.1 per cent per annum from 2015 to 2025. Wages have risen but many still feel squeezed by rising cost of living and liabilities including mortgages and personal loans.
This matters because debt and insecurity change how prosperity feels.
Psychiatrist David Teo, deputy medical director at Connections Mind Health, says many people assume their financial stress will fade after they reach a certain income level.
In reality, people adapt quickly to rising standards of living. What once felt luxurious gradually becomes normal.
Dr Teo says: “It is a bit like upgrading from economy class to business class, or dining regularly in fancy restaurants instead of a coffee shop or food court. The first experience feels extraordinary. But after repeated exposure, our brain recalibrates and starts treating it as the expected baseline rather than a privilege.”
Psychologists call this hedonic adaptation or the “hedonic treadmill” where you are running harder without ever quite feeling like you have arrived.
In Singapore, this effect is compounded by structural pressures.
Many professionals are juggling mortgages, childcare, children’s education, ageing parents, healthcare and retirement planning all at once. Even as their incomes rise, their sense of financial security often does not keep pace.
Money is also rarely just about money, Dr Teo says.
In his clinical work, he has found that money is frequently tied to deeper emotional needs and a proxy for security, self-worth, love and validation.
“For some people, especially those who grew up around financial insecurity or highly performance-driven environments, money becomes symbolic of being ‘safe enough’ or ‘good enough’. Earning more may temporarily soothe anxiety, but it seldom resolves it completely,” he says.
The result is a persistent sense of striving, a grind that is not just about money, but about achieving an elusive sense of “enough”.
This helps explain why official statistics often fail to capture how people experience their lives, because wealth is measured mathematically but felt emotionally.
Psychiatrist David Teo, deputy medical director at Connections Mind Health, says many people assume their financial stress will fade after they reach a certain income level.
PHOTO: COURTESY OF DAVID TEO
Inflation is also an important part of the equation. It is visible and immediate, showing up in regular expenses: groceries, utilities, transport, housing, insurance, childcare and education.
Dr Teo says even small price increases, when repeated, create a constant psychological pressure that life is becoming more expensive to sustain, even if their incomes are rising.
Equally powerful is the role of comparison.
Dr Teo says human beings are naturally wired to compare themselves with others. Historically, social standing affected survival and belonging. Today, those comparisons revolve around income, property, travel, and lifestyle.
Social media compounds the problem. Platforms like Facebook, Instagram and TikTok have transformed consumption into theatre, where lifestyles are carefully curated and identities constructed.
We are constantly exposed to others’ short videos revolving around luxury holidays, home renovations, investment windfalls and prestigious schools, while the financial trade-offs behind these lifestyles remain hidden.
Over time, this distorts what feels “normal” or “enough”, Dr Teo says.
It is similar to sitting in heavy traffic and constantly watching another lane move faster. Even if your own lane is progressing, the comparison creates frustration and a sense of falling behind.
In psychological terms, this is known as relative deprivation – the feeling of being deprived not because of an actual lack, but because others appear to be doing better.
A high salary does not automatically lead to wealth, but if handled well, it provides the means to accumulate assets that generate it. This is where investment planning enters the conversation.
Consider two individuals: One earns $7,000 a month but invests consistently and acquires appreciating assets. Another earns $15,000 but maintains a lavish lifestyle with limited savings or investment. Over time, the former may build greater net worth despite earning less.
This distinction between income and wealth is often overlooked in practice.
Many young professionals fall into what might be described as “performative prosperity”, where they spend to signal success before achieving genuine financial resilience.
Again, social media amplifies this kind of conspicuous spending. What is less visible is how these lifestyles are financed – whether through savings, credit, deferred payments or inheritance.
Credit Counselling Singapore’s general manager Tan Huey Min says whether your income is high or low is subjective.
“Often, whether you feel rich or poor depends on the circle of people you mingle with, personal expectations, or personality – whether you are a worrier or not,” Ms Tan says.
That said, the broader economic landscape has become less forgiving. Asset prices, particularly property, have risen faster than wages over the years. Costs associated with aspirational living such as owning a car have risen too.
“Being a millionaire today cannot be compared to before. Thirty to 40 years ago, you could buy a condo or a small terrace house in the outskirts for $1 million. Today, you can’t,” Ms Tan says.
Home ownership remains a key aspiration for many. Beyond a shelter, it is security, status, and retirement planning rolled into one. Missing the property ladder increasingly feels like missing the Singapore dream itself, creating a psychological pressure even for high earners.
Stress and uncertainty shape not just perceptions, but behaviour. When people are emotionally drained, they tend to seek quick rewards, Dr Teo says.
Spending offers that fast dopamine or short burst of pleasure or escape through shopping, travel or lifestyle upgrades. But the effect fades quickly, often followed by guilt or anxiety, and the cycle repeats.
At the same time, many professionals carry deeper worries about retirement, rising costs, job security, falling behind and their children’s future prospects.
This can trigger the opposite reaction: panic-saving or aggressive investing and chasing higher returns in an attempt to regain control.
The result is a constant tug-of-war between two impulses of wanting to enjoy life now and securing the future.
Dr Teo says modern culture amplifies both. It encourages people to indulge and reward themselves, while also warning them that they are not saving or investing enough.
Some forms of spending are also deeply symbolic. A luxury car, a branded handbag or a prestigious address may represent more than consumption. They can serve as markers of success, security or validation – tangible proof that one has made it.
Yet these purchases rarely deliver lasting satisfaction beyond the initial emotional lift, Dr Teo says.
Ambition is natural. It motivates and provides a sense of purpose that can help build better lives for ourselves and loved ones.
But problems arise when self-worth is tied entirely to income, status or material possessions, turning life into an endless pursuit of the next milestone.
Ms Tan says social media has intensified this pressure, often fuelling a toxic culture of comparison, envy, and financial anxiety.
“Let’s be rational here. How many people will publicly post they are not doing well and struggling, or talk about how much money they’ve lost and how badly they messed up?” she says.
Young professionals are better off asking themselves: Am I using my income to buy future freedom, or merely current appearance?
This distinction will shape your investment approach and long-term wealth outcomes.
This does not mean young Singaporeans should stop enjoying life. Spending on experiences, travel and personal fulfilment are important.
The issue is not consumption itself, but the absence of a clear sense of what is “enough”.
Contentment does not negate ambition, experts say. It reflects the ability to pursue goals while recognising sufficiency.
“Money is important. But what’s enough? You have to be realistic. Otherwise you will feel bitter and depressed,” Ms Tan says.
Financial comfort is therefore less about reaching a fixed number and more about defining personal thresholds independent of social comparison.
True wealth-building remains stubbornly old-fashioned. It still depends on owning assets, controlling debt, compounding investments and avoiding the trap of perpetual comparison.
This seems obvious. Yet psychologically, it is extremely difficult in an affluent society like Singapore where success is so visible.
Source : https://www.straitstimes.com/business/earning-good-money-but-feeling-financially-inadequate
