How to better invest for a young working adult?

Before you start investing, it will be best to understand your objective. Here are some questions to help you:

1. What is your capital?

2. How will you want to invest your capital? E.g. lump sum or an amount on a regular basis

3. How long will you want to stay invested? E.g. 10 years

4. What is your risk appetite? E.g. How do you feel about short-term volatility?

5. What is your objective for investing?

From the questions, you will have a better understanding about yourself. Thereupon, we can discuss on the tools available to help you reach your goals.

At the end of the day, it is all about creating a portfolio that fits into your needs and do constant reviews to ensure that you are using the correct investment strategy and risk management techniques to prevent being overexposed to risk.

Here is everything about me and what I do best.

I will break it down accordingly to what I believe is best:

​1. Get educated first. Invest in your financial literacy.
Read investment books, and/or attend investment courses (most aren't value-for-money / too costly for too basic content, please read my reviews for the ones I recommend, or read the reviews on Seedly to find out more sentiments). SGX offers some great courses, workshops and free webinars too!

Readings:

http://www.sgbudgetbabe.com/2017/07/recommended...

http://www.sgbudgetbabe.com/2018/02/what-you-mu...

http://www.sgbudgetbabe.com/2018/05/what-stock-...

http://www.sgbudgetbabe.com/2018/08/dr-wealth-f...

​

2. Understand yourself and what you're investing for.
   Time duration? Risk appetite? What makes you unable to sleep at night? What's your investing style? What are your emotional strengths and weaknesses?

Readings:

http://www.sgbudgetbabe.com/2015/04/10-question...

http://www.sgbudgetbabe.com/2016/07/10-ways-to-...

​

3. Understand the different types of investments available before you make a choice.
   REITS: http://www.sgbudgetbabe.com/2017/08/understanding-different-types-of-reits.html

ETFs: http://www.sgbudgetbabe.com/2017/10/what-you-sh...

Dividend stocks: http://www.sgbudgetbabe.com/2018/02/what-you-mu...

Value / growth stocks: http://www.sgbudgetbabe.com/2018/05/what-stock-...

​POSB InvestSaver is a regular savings plan. Not bad for a start!

4. Learn about portfolio management and diversification.
   The Singapore Permanent Portfolio: http://www.sgbudgetbabe.com/2015/10/a-fail-safe-method-to-investing-to-beat.html

​
And above all, always stay humble and read a lot :)