5 Best Personal Finance Books Every Singaporean Should Read (For 20s, 30s, 40s & 50s)

 

Introduction: Why These Books Matter in Singapore

Singapore is one of the most expensive cities in the world. From rising property prices to sky-high COE for cars, the cost of living here is no joke. Throw in GST hikes, inflation, and the pressure to “keep up” in a status-driven society, and it’s no surprise that many Singaporeans feel financially stressed.

Yet, most of us didn’t grow up with strong financial education. Sure, we learn about CPF and insurance from agents or friends, but do we truly understand how to build wealth in a sustainable, stress-free way? Unfortunately, too many people rely on hearsay or make impulsive decisions—buying that condo without thinking through mortgage risk or sinking money into “hot” stocks without understanding the fundamentals.

The truth is, financial literacy isn’t a luxury in Singapore—it’s a survival skill. And the earlier you start learning, the better your chances of building a secure and fulfilling life.

One of the easiest and most affordable ways to level up your financial knowledge? Books.

Books written by financial experts (or people who’ve walked the path themselves) provide timeless wisdom. And while some of these books were written decades ago or in a different country, their principles apply perfectly to Singapore—with some adjustments for our local context like CPF, BTO, and HDB loans.

In this blog, we’ll cover five of the best personal finance books that every Singaporean—whether in your 20s, 30s, 40s, or 50s—should read:

1. The Richest Man in Babylon by George S. Clason

2. Rich Dad Poor Dad by Robert Kiyosaki

3. The Psychology of Money by Morgan Housel

4. The Millionaire Next Door by Thomas J. Stanley & William D. Danko

5. Your Money or Your Life by Vicki Robin

Each book has timeless principles, but I’ll break down how they apply specifically in Singapore, with practical examples, CPF strategies, and real-life takeaways for every decade of life.

Let’s dive in!

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1. The Richest Man in Babylon by George S. Clason

Overview

First published in 1926, this classic offers timeless wisdom on wealth building through a series of parables set in ancient Babylon. The language may feel old-fashioned, but the core principles are universal—and surprisingly relevant in Singapore today.

The key message? “A part of all you earn is yours to keep.” In other words: save first, spend later.

Key Lessons

• Pay yourself first: Save at least 10% of your income before spending on anything else.

• Control expenses: Don’t let lifestyle inflation eat your savings.

• Make your money work: Invest your savings to generate more income.

• Protect your wealth: Avoid get-rich-quick schemes.

Singapore Context: How It Applies Here

• Pay yourself first with automation: Use GIRO to transfer 10–20% of your salary into a separate savings or investment account before you touch it.

• CPF is your Babylonian vault: Your CPF Ordinary Account (OA) and Special Account (SA) earn 2.5–4% interest annually. Topping up your SA early means years of compounding.

• Avoid lifestyle inflation: When you get your first big pay rise, resist the urge to upgrade your car or rent a fancy condo.

Actionable Steps for Singaporeans

• Set up an automated GIRO transfer to a high-interest savings account like DBS Multiplier or OCBC 360.

• Use CPF top-ups or SRS contributions to grow your retirement savings tax-efficiently.

• Start small with investments—consider STI ETF or a robo-advisor like Syfe or Endowus.

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2. Rich Dad Poor Dad by Robert Kiyosaki

Overview

This book is a worldwide bestseller for good reason. It challenges conventional beliefs about money and teaches you to think like the rich. The main takeaway? The rich don’t work for money—they make money work for them.

Kiyosaki introduces the concept of assets vs liabilities:

• Assets: Put money in your pocket (stocks, REITs, businesses).

• Liabilities: Take money out of your pocket (cars, overspending on housing).

Key Lessons

• Financial education is more important than formal education.

• Build income-generating assets early.

• Avoid the trap of working hard only to pay off debts.

Singapore Context: How It Applies Here

• Property decisions: Is your BTO or condo an asset or a liability? It depends on whether it’s generating income or draining cash.

• Avoid the COE trap: Cars in Singapore are insanely expensive because of COE. Unless necessary, skip the car and invest instead.

• Build assets like REITs and dividend stocks: Singapore has one of the most vibrant REIT markets globally—perfect for passive income seekers.

Actionable Steps for Singaporeans

• Before buying a condo, ask: Will this enhance my financial freedom or lock me into debt for decades?

• Start with small investments—SGX blue-chip stocks, REIT ETFs, or robo-advisors.

• Use CPF OA for housing wisely—don’t over-leverage and end up with little for retirement.

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3. The Psychology of Money by Morgan Housel

Overview

Money isn’t just math—it’s emotion. This book dives into the behavioral side of finance, explaining why people make irrational money decisions and how to avoid them.

Housel emphasizes the power of compounding, patience, and long-term thinking—concepts that apply perfectly to Singapore’s structured financial system.

Key Lessons

• Compounding is magic: The earlier you start investing, the less you need later.

• Luck and risk matter more than you think.

• Wealth = freedom, not stuff.

Singapore Context

• CPF is your compounding machine: Your SA grows at 4% guaranteed interest. Top up early and let compounding do the heavy lifting.

• Stay calm during market crashes: Remember the 2020 pandemic dip? Those who held on recovered.

• Avoid financial envy: In a society where status symbols matter, it’s easy to compare. Don’t fall into that trap.

Actionable Steps for Singaporeans

• Automate your CPF top-ups and investments.

• Don’t time the market—focus on time in the market.

• Practice gratitude—stop comparing your HDB to your friend’s condo.

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4. The Millionaire Next Door by Thomas J. Stanley & William D. Danko

Overview

Want to know the real secret of millionaires? They’re not the flashy ones driving sports cars—they’re the disciplined ones living below their means.

This book is about frugality, smart spending, and long-term wealth-building habits.

Key Lessons

• High income ≠ wealth.

• Avoid lifestyle inflation.

• Save and invest consistently.

Singapore Context

• Many Singaporeans earn well but live paycheck to paycheck because of luxury spending—think $200,000 cars or $15,000 Hermes bags.

• True wealth in Singapore often comes from those who resist the temptation of status symbols.

Actionable Steps

• Avoid overspending on COE cars—invest that money instead.

• Cook at home, skip the $12 cafe latte habit.

• Build a portfolio of REITs, Singapore Savings Bonds (SSB), and ETFs.

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5. Your Money or Your Life by Vicki Robin

Overview

This book redefines the relationship between money and happiness. It teaches you to view money as life energy—time and effort you trade for income.

The main question: Are you spending your life energy wisely?

Key Lessons

• Align spending with your values.

• Track every dollar to see where your energy is going.

• Financial independence = freedom, not early retirement only.

Singapore Context

• In our fast-paced society, many trade health and happiness for high salaries. Is that worth it?

• FIRE (Financial Independence, Retire Early) is possible here—but requires mindful planning.

Actionable Steps

• Use OCBC Money Insights or DBS NAV Planner to track every expense.

• Cut unnecessary subscriptions and lifestyle habits that don’t bring joy.

• Calculate your real hourly wage and see if your purchases are worth it.

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Applying These Lessons by Age Group

In Your 20s

• Learn CPF basics early.

• Start investing—even $100/month.

• Avoid credit card debt.

• Read: The Richest Man in Babylon & Rich Dad Poor Dad.

In Your 30s

• Manage housing loans carefully.

• Invest consistently in REITs, ETFs, CPF top-ups.

• Avoid lifestyle inflation as income grows.

• Read: The Psychology of Money.

In Your 40s

• Accelerate retirement savings.

• Focus on wealth protection—insurance, CPF SA top-ups.

• Avoid risky investments chasing quick gains.

• Read: The Millionaire Next Door.

In Your 50s

• Plan for CPF withdrawals, retirement income.

• Reduce debt completely.

• Shift portfolio to safer assets.

• Read: Your Money or Your Life.

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How to Apply These Books in Real Life

• Budgeting: Use DBS NAV Planner or Seedly app.

• Debt control: Avoid personal loans and unnecessary car purchases.

• Investing: Start small with robo-advisors, SSB, or ETFs.

• Tax savings: Use CPF top-ups & SRS contributions.

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Conclusion

Singapore is one of the most financially challenging places to live—but also one of the best places to build wealth if you know the rules. These five books offer timeless strategies, adapted to our local context.

Start with one book. Apply one lesson. Then another. Over time, you’ll build habits that lead to financial freedom—without sacrificing your health or happiness.

Your future self will thank you.