facebookI'm a 22 year old uni student, graduating in 2022 in with cybersecurity degree. Right now I have $30k saved up. Any recommendations for investment percentage of total savings? - Seedly

Anonymous

08 Aug 2020

Robo-Advisors

I'm a 22 year old uni student, graduating in 2022 in with cybersecurity degree. Right now I have $30k saved up. Any recommendations for investment percentage of total savings?

I recently allocated $14k to stashaway (long term) as I just started learning about basic finance.

As my monthly expenses are low, I feel that the $16k in the bank is 'collecting dust' (low bank interest rates) and am thinking putting money into REITs (stashaway) /trying stocks. How much more money should I invest or am I getting greedy?

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It is important not to neglect the insurance aspect while future planning. While investment provides upsides from returns, insurance gives downside protection from certain events (e.g. accident/hospitalisation/death). Do ensure you have sufficient coverage based on your financial needs. If required, do consult a few advisors for professional opinions.

Once that has been done, you should have some emergency funds prepared as you near graduation. The purpose of the funds is to provide for short term relief in the event of an unexpected situation, such as retrenchment. A rough guide would be 6-12 months' worth of your expenditure. You can increase the amount to suit your desired level of protection.

Once that has been done, you can move on to investments. At this point, it is important to plan and chart out upcoming expenditures which can include housing, wedding or a car purchase. Funds that are needed within a short time frame (<5 years), should be placed in an instrument where capital and returns are guarateed for easier projection of figures. They can include short term endowment plans, fixed deposits or high yield savings account. You do not want to end up in a situation where you end up forking out more money for your spending due to market downturn.
Money that will not be needed can then be invested for long term appreciation.

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