Can Living Paycheck to Paycheck Be a Good Thing?

A recent article revealed that 60% of Singapore workers now live paycheck to paycheck - the highest among Asia-Pacific peers.

If you’re in your 30s or 40s, you've probably felt this:

You work hard. You earn a decent income. Yet by month-end, your paycheck vanishes.

It’s frustrating. Sometimes it feels like you’ll never get ahead.

But here’s what might surprise you: living paycheck to paycheck isn’t always a financial disaster.

Two very different paycheck-to-paycheck situations

The Spending Problem

Lifestyle choices quietly drain your cash flow:

• $15 office lunches daily = $300/month

• Food delivery 3–4 nights weekly

• Forgotten subscriptions

• Kids' activities chosen from “fear of missing out”, not genuine value.

The issue here isn’t your income - it’s lack of awareness of where your money goes.

The Allocation Problem

Your paycheck feels stretched, but for good reason:

• $3,000 mortgage (building home equity)

• Insurance premiums (protecting family)

• Regular investments (funding retirement)

• Kids' enrichment (genuinely supporting growth)

These aren’t “bad” expenses - they’re assets in the making.

Finances may feel tight monthly, but you’re building long-term wealth.

Why net worth matters more than monthly budget

Many people track income and expenses.

But the real measure of financial health? Your net worth.

Net worth = All your assets (cash, CPF, property, investments) minus All your liabilities (loans, credit cards).

Even if cash flow feels tight, if your net worth is steadily rising, you’re moving in the right direction.

So…can living paycheck-to-paycheck be a good thing?

Yes - if your paycheck funds assets that grow your future, not just present consumption.

But if you’re caught in the spending cycle, here’s how to shift:

• Track your expenses for one month - you’ll be surprised what adds up

• Reassess recurring costs - e.g. are all those kids' activities necessary?

• Make intentional trade-offs - future security beats impulse buys today

Key takeaway:

With 60% of workers living paycheck to paycheck, it’s easy to assume everyone’s in trouble.

The truth? Some are quietly building assets while others are stuck in spending cycles.

So the real question is: Are your paychecks funding your future - or just your present?

This week, examine your expenses and ask: how much goes to consumption versus building my future?