Issue no.

3 • 2010 A Quarterly Publication

To determine how much

Annual Expenditure Table
your annual expenditure will
Personal & Family Expenditure
increase over a period of time,
Rental for Lodgings refer to Table 1.
Utilities & Communication
Table 1: Rates of Inflation Over Time
Grocery & Household needs
Inflation Rate
No. of
Eating out Years 3.0% 4.0% 5.0% 6.0%

Clothing & Apparel 5 years 1.1593 1.2167 1.2763 1.3382

Transportation 10 years 1.3439 1.4802 1.6289 1.7908

15 years 1.5580 1.8009 2.0789 2.3966

Medical & Personal Care
20 years 1.8061 2.1911 2.6533 3.2071
Personal Expenses
25 years 2.0938 2.6658 3.3864 4.2919
Household maintenance & Conservancy charges

Domestic Help For instance, if your current

Children’s care, Education & Enhancement programmes annual expenditure is $40,000,
and you wish to find out how
Dependant contributions much your current annual
Taxes expenses will be in 20 years’ time,
based on a 4% inflation rate:
Entertainment
1. Look under the column on
Festive Spending the extreme left and go
down to the cell indicating
Vacations
20 years. Then look across
Charity contributions that row until it meets the
column with the inflation
Property Loan repayment rate of 4%. You will find the
factor of ‘2.1911’ in this cell.
Vehicle Loan repayment
2. Take this factor of ‘2.1911’
Insurance premiums and multiply it by your
annual expenditure of
Others
$40,000, to derive future
annual expenditure, which
Annual Expenditure (based on current costs of living)
is $87,644 in this case.

Yes, compounding your expenditure over 20 years

at 4% will more than double your expenditure!
Now, shouldn’t we be concerned about inflation?

First Principal Financial Pte Ltd

24 Raffles Place #14-02 Clifford Centre Singapore 048621
Tel: 6220 5333 Fax: 6220 5377
Email: enquiry@firstprincipal.com
www.firstprincipal.com