Why do you feel 'broke' even if you earn 12k/mth?

Living in Singapore and earning a stable income of about $12K per month might seem comfortable on the surface, but many still feel the pinch when it comes to accumulating real wealth. From my experience and observations, the key lies in understanding how net wealth is distributed—and how property ownership greatly impacts this. The Ministry of Finance's recent data reflects a significant wealth gap, illustrated by the Wealth Gini coefficient of 0.55. This measure highlights how wealth inequality surpasses even income inequality. What this means for an average earner is that despite a good salary, actual wealth accumulation can be lagging. The major determinant? Property. In Singapore, your HDB flat isn’t just a residence—it’s arguably your largest asset and wealth vault. Those who have no property or are still renting effectively fall behind in the wealth race. This also explains why the top 20% of households average $5.3 million in wealth, while the bottom 20% hold only around $293K. Interestingly, data shows that income grew by 6.8% last year, outpacing property price increases, which slowed down to about 2-4%. For prospective homebuyers and upgraders, 2026 could be the sweet spot to capitalize on this convergence. Your purchasing power might finally catch up, allowing more Singaporeans to convert higher income into lasting wealth. From my personal journey advising clients in the property market, timing your purchase matters as much as location and affordability. Waiting has sometimes meant paying more due to rising prices, but rushing without proper financial consideration can be risky. It’s important to assess your financial readiness, potential property appreciation, and market trends before making a decision. Ultimately, feeling 'broke' despite a decent salary is often a reflection of these broader economic dynamics and asset disparity. Owning property not only offers shelter but also a crucial leg up in establishing wealth security in Singapore’s competitive landscape. Whether you’re thinking of upgrading or buying your first home, understanding these factors can help you make smarter financial decisions and break free from the 'average trap'. Feel free to share your thoughts or experiences on property investing and how it has impacted your financial wellbeing—I’d love to hear different perspectives in this evolving market.