26 Sep 2020
I live on 30% of my salary. How should I optimise the remaining 70% for wealth accumulation?
Love the mindset that you are already thinking of how to invest your money and exploring options rather than just leaving your money in the bank. Currently, I feel that the returns provided by the banks are extremely conservative and do not really make your money work as hard as you would want it to.
I found investing in gold super interesting particularly as I want my money to grow but without the volatility that comes with investing in high risk options. Based on my research, gold had an average annual returns of 10.61% between January 1971 to December 2019, which shows why having some amount of gold in one's portfolio makes sense. Here's the stats: https://www.statista.com/statistics/1061434/gol...
If you are interested in gold, this article should help as well - https://bit.ly/case4gold
I personally have been using Hugo Save (a Wealthcare® app) that allows you to invest in physical gold for as low as $0.01 and for as long as you want to. The gold in the Hugo Gold Vault is physical gold allocated to the user and is safe. I love the fact that I can invest in gold as much as I want to and incase I need to access my gold investments, I can sell it anytime.
There are a couple of options you can do.
Put 6 months of your salary in a high interest yet liquid saving account such as singlife, gigantiq, singtel dash and invest the rest including the 70% of your salary moving forward.
Same earlier steps as above but invest 40-50% of your salary and keep the rest in cash savings in also a high interest liquid savings account to start preparing for your warchest, which will come in handy when the market is down and you want to inject more funds to take advantage of the situation to average down your buy in price.
View 2 replies
Write your thoughts