facebookI am a fresh grad looking for general financial advice as I am completely new to managing finances (parents have always controlled my money tightly)? - Seedly



13 Dec 2019

Saving Hacks

I am a fresh grad looking for general financial advice as I am completely new to managing finances (parents have always controlled my money tightly)?

My take home salary is 3.975. I intend to partition it such that: 35% expenses, 35% savings, 30% investments. I live a frugal lifestyle & think for the long term, have both life and hospitalisation insurance.
1. How to maximise my Multiplier account? Understand that I need 6mths worth of salary in order to invest (does that apply for investing in unit trusts with dbs? It’s Low risk)
2. At this point in time, idk what to do with the money allocated to the 30% investment! What should I do?

Discussion (10)

What are your thoughts?

Wong Ming Yao

Wong Ming Yao

13 Dec 2019

Product and Community Associate at 8VIC Global Pte Ltd

Hi there!

Good to know that you have done up your risk management in terms of insurance coverage. For investing, do save up 6 months of emergency fund for any rainy days, you wouldn't know if something hit the fence.

Before investing in unit trust, it is better for you to understand what kind of investment tools would suit yourself better. Read up some books about investments: One Up Wall Street, 5 Rules of Successful Stocks Investing

Most importantly, have clarity of your end goal and reverse engineer to your required rate of return!

Hey, it’s been 5 months. Have you solved your 2nd question?

Arpita Mukherjee

Arpita Mukherjee

22 Oct 2019

Community Evangelist at Kristal.AI


Since this a new space you are entering, I'd suggest that the first thing you do is read up and try to understand the basics of investments. And then once you're through with that, go for a robo-advisory platform to do the job of assessing your current financial position and recommend a portfolio strategy after reviewing your risk profile. As for the "catch", I would say that Robo-advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees.
I work at kristal.AI, and my mojo is to help people make the right financial decisions.

If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.
I hope this helps you make the right decision.

Personally, as a fresh grad, I was more extreme and would spend $800 a month on all expenses (disclaimer: at that time my office provided breakfast, lunch and coffee in between so I was able to save quite a bit) and simply had no time to spend money due to long work hours.
With regards to investments - start reading up and also deploy a small amount to invest. There are so many asset classes that you can invest in, so it makes sense to get educated on what your options are and the risk-return profile.
For no-frills savings accounts, there is CIMB. Re: multiplier accounts, get one that doesn't require a spending minimum that is above your usual rate of spending. Personally I have found Citibank Maxigain to be quite good as long as I don't touch the principal amount - and that gives me a few hundred in terms of interest a month.

You do not necessary need to have 6 months of salary to invest. You can start as little as SGD $100....

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