Hi. If i am taking home 3k cash per month. How much roughly should i spend on insurance and investments? 20% of the money?

CPF has a guide on the golden ratios of how much you should spend on insurance, investments etc. It honestly depends on your spending habits and how much you can truly afford to. I have friends that put 50% into insurance and investments, gross income, and the rest they spend it. Some extremist in Singapore that are hungry for F.I.R.E., they just focus on the end goal and are willing to suffer the initial phase just to ensure a better future.

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At the end of the day i think you need to know the way you live and how you want your future to roll out. Weigh the pros and cons! 👍🏻

Hi anon,

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I work with a 40-30-20-10 rule.

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That is to say, 40% of my income on expenses, maximum. 30% of my income on loans (such as mortgage), maximum. 20% of my income on savings/investment, minimum. 10% of my income on insurance, maximum. If you have buffer, (e.g. you only spend 30% on expenses), the spare cash flow can be allocated to savings/investment.

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Going by that, you shouldn't be spending more than $300/mth cash on your coverage (there'll be some part that comes from CPF MA for your shield plan). If you're a fresh grad, that's quite doable, as I have many fresh grad clients who achieve this.

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I'll presume your insurance coverage and emergency savings are adequately settled, if not, settle that first before you invest.

Before any suggestions, it's important to know what is your monthly fixed expenses.

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assuming you are still relatively young, your insurance should consist of hospitalization and CI plan which should take up between 2-300 monthly.

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if you are thrifty, you should save at least 1.5k per month. And at least $1000 should go into investment will $500 should go to an emergency fund.

Hi! Seedly recommends that we set aside 50% for expenses, 30% for wealth and 20% for savings. For more info, you can check this article out! https://blog.seedly.sg/working-adults-allocate-...