facebookHow does a 25 year old save and invest? I am currently only earning about 3.5k and my bf and i recently managed to secure a BTO successfully.? - Seedly

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          Anonymous

          13 Jul 2019

          General Investing

          How does a 25 year old save and invest? I am currently only earning about 3.5k and my bf and i recently managed to secure a BTO successfully.?

          However, our monthly repayment is pretty high (approx $2.5k per month). My take home is only $2700. And my bf and I are most likely going to split the repayment which means i would be paying $1.25k per month and that leaves me with $1.5k per month. Minusing my expenses, i would be left would $800 per month.. how do i invest with $800 only? Not to mention i need to save a portion of the $800 for rainy days.... Advices pls :(

          9

              Discussion (9)

              What are your thoughts?

              Hariz Arthur Maloy

              Hariz Arthur Maloy

              12 Jul 2019

              Level 15·Independent Financial Advisor at Promiseland Independent

              I don't wanna be too harsh but you may be buying a too expensive house.

              It's 550k++?

              Your home should only cost between 5-7X of your combined annual income.

              If y'all make 2.7k each. That's 65k a year and at max should only be buying a 450k house. Preferably a 325k house.

              I suggest earning a higher income to compensate for the home purchase.

              Now, if let's say you can only invest 800 a month, that's way more than enough to start a globally diversified portfolio.

              Save 6 months of your income aside for emergency, so about 15k before investing everything after that.

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                  Hi,

                  Before you go investing, you should get your insurance right first as, you don't want to fall into the case where you need to sell your investments because your insurance doesn't cover you enough.

                  So, get your:
                  Hospitalisation and Personal Accident Insurance.
                  Mortgage Insurance.
                  Home Contents Insurance.
                  Life and Critical Illness Insurance (once you have dependants e.g. old parents or children).

                  Also, at the same time, keep a healthy sum as emergency funds in a high yielding interest account (maybe DBS Multiplier). Just imagine if you're suddenly retrenched, so how much money you would need to survive til you get a new job.

                  After all these, then your cash is called spare.

                  With the spare cash, you can divide into 3 parts.
                  1) Short term investment
                  2) Mid term investment (E.g. children needs)
                  3) Long term investment (E.g. retirement)

                  Short term.

                  You can consider maximising your high yielding saving account. For the risk taker, you can try purchase crowdfunds.

                  Mid term.

                  You can consider Endowments. If you don't mind DIY you can purchase unit trusts or ETFs.

                  Long term.

                  You should consider Maximising your CPF SA, by transferring from OA or cash top up.

                  Just some basic guidelines, further information are found all over the Web.

                  If all these not possible, although not recommended, just buy a ILP but please don't buy ILP as your first choice.

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                      Jefremy Juari

                      Jefremy Juari

                      13 Jul 2019

                      Level 5·Financial Writer at Medina Books

                      One has to know what is an asset and a liability. A house that you are living in is a liability, no ...

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