How do I know what financial goals to set?

I'm currently 19. I know I wish to be able to afford a BTO and/or marriage in early 30s. How do I know how much to set as the goal (and different milestones along the way) to be and how can I achieve it when returns from various securities are projections from past results? Can you share with us your goals and how you worked towards it. Thanks!

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Elijah Lee

30 Jun 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

If your goal is a BTO, you can use a compound interest calculator to work out how much your CPF OA will have by the time you are 30. Usually if you have worked around 5-10 years, the down payment of your BTO will be sufficiently taken care of when you combine finances with your partner. Try to reach $50k - $75K OA and you should have enough combine with your partner to settle the down payment. Personally if I have $100K OA it would be enough for just about any BTO.

On wedding, it just requires diligent saving. Usually that, plus working within your budget will allow you to afford your banquet. Most weddings cost in the region of $30K-$50K. Saving over 5-10 year will get you there.

However, if you intend to invest to achieve the amounts, then do so defensively. As you have mentioned, past stock movements do not define future price movements. When the time comes to liquidate, if the markets are down, you may be at a loss. Hence a combination of investing and saving cash will be better.

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