facebookI cant seems to save up. I need some reality checks and 'knock' on my head. 23yo with no rainy day fund? - Seedly

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Anonymous

18 Apr 2019

Saving Hacks

I cant seems to save up. I need some reality checks and 'knock' on my head. 23yo with no rainy day fund?

Hi, I need some help and guidance. I started my work during the start of June. My current salary is 1.9k after cpf deduction. Currently, for that amount of pay, I need to give my parents $350 for family expenses and clearing a 2k(Paying $250) loan from my close friend. However with all the rest of the money in my hands, I need to save up for marriage and possibly housing but I can't possibly save so much in 5years time.Is there any way/method to save up or some 'Life walkthrough' I can follow?

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If you need a financial walk through example, find Dave Ramsey's financial life steps simple and easy to follow: https://www.youtube.com/user/DaveRamseyShow

I don't personally agree much on his side of investment or credit, but his steps encourages someone who are new or have never save, to start financial planning.

Basically, Dave Ramsey lists what his 7 Baby Steps to financial freedom are:

Baby Step 1 – $1,000 to start an Emergency Fund ~
I believe most Singaporeans would have POSB account as a child. Set up a SAYE and/or eMySavings Account with standing order to transfer minimum $50 monthly. This can be easily done in the POSB digiapp. Don't have a card link to these account and ignore it. This will force you to spend around your main bank account. Increase the transfer once you are more confident.

Baby Step 2 – Pay off all debt using the Debt Snowball ~
List your debts from smallest to largest. Make minimum payments on all your debts except the smallest. Pay as much as possible on your smallest debt. Repeat until each debt is paid in full.

Baby Step 3 – 3 to 6 months of expenses in savings ~
Look to increase your money. Increase your standing order to the savings account. Look at expenses that you can cut.

Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement ~
Set aside for retirement. Put into the Sg equivalent -SA and SRS Account.

Baby Step 5 – College funding for children

Baby Step 6 – Pay off home early

Baby Step 7 – Build wealth and give! -
5-7 could be looked into concurrently. Learn the basics of investing. Diversify it, don't put all in one basket. Do enough research before committing to an investment.

Hariz Arthur Maloy

06 Nov 2018

Independent Financial Advisor at Promiseland Independent

The others have stated to track your expense and cut down on your spending. But honestly, there's only so much one can do. We still have a life to live.

I'll focus on making more money. 1.9k is not enough. Take on side gigs, learn a marketable skill and get paid for it, start a side hustle. It's easier to make an extra $500 per month than it is to cut $1k expenses to only $500.

So go out there and make some moolah babe.

A simple advice. Open a CIMB Fastsaver account here. https://www.cimbbank.com.sg/en/personal/product...

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