facebookI just joined the workforce about 1 year ago, and have recently started investing in stocks and ETFs. Just wanted to know, what is the recommended liquid savings that I should have after investments? - Seedly

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Anonymous

04 Aug 2020

โˆ™

General Investing

I just joined the workforce about 1 year ago, and have recently started investing in stocks and ETFs. Just wanted to know, what is the recommended liquid savings that I should have after investments?

What is a good amount to keep on me after investing?

Discussion (3)

What are your thoughts?

Colin Lim

Colin Lim

25 Apr 2020

Level 9ยทFinancial Services Consultant at Colin Lim

Liquid savings... U should aim multiplier acct. SC Jumpstart should be suitable for u since you just enter workforce.

Hariz Arthur Maloy

Hariz Arthur Maloy

25 Apr 2020

Level 15ยทIndependent Financial Advisor at Promiseland Independent

Hi Anon,

A recommended amount of liquid savings should be before investments, not after.

You should have had this amount first before dropping a single dollar on the securities market.

1) Emergency Fund of around 6 months of expenses.

2) Any money needed within 3 years.

3) Daily spending of about 1 month of income.

So if you make 4k/mth. Spend 2k/mth. And have a wedding that'll cost 15k and a renovation for a home that'll cost 20k coming up within the next 3 years.

I'll make sure I have 12k (emergency) + 35k (money needed within 3 years) + 4k for (day to day spending) set aside before investing.

Oh and make sure I'm adequately insured first as well.

Then you can safely deploy any money saved after that into the markets monthly.

Pang Zhe Liang

Pang Zhe Liang

25 Apr 2020

Level 14ยทSenior Financial Services Consultant at AIA Singapore Private Limited

Before your start investing, it will always be helpful to go back to the basics - understand your ca...

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