facebookI’m a fresh poly grad waiting for university this year, currently freelancing and will continue to for as long as I’m earning about 1.5K per month, current savings of 3K. Any financial advice for me? - Seedly

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Anonymous

08 Jul 2020

Saving Hacks

I’m a fresh poly grad waiting for university this year, currently freelancing and will continue to for as long as I’m earning about 1.5K per month, current savings of 3K. Any financial advice for me?

I’m currently awaiting university, I’m very fortunate that my parents are financially able to fork our local university fees, I’m looking into ways to earn passive income/save in the long run as my job is not guaranteed of fixed. Currently I’m using SC’s jumpstart acc, Singlife with my POSB passbook account that my mom started for me. Should I start getting myself insurance (which i don’t) or start investing? Please help!! I’m quite lost with what to do. Feel free to let me know your opinions!

7

Discussion (7)

What are your thoughts?

Elijah Lee

Elijah Lee

17 Jun 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

I'd recommend that you focus on your studies first. As you don't have to worry about the university fees, do your parents a favour and ensure that the funds they use on your education is well spent. Get a good foundation in your chosen field so that you may be able to have a better chance at securing a job when you graduate.

As you are freelancing, there isn't much stability in your income. I'd hold off on committing to any insurance plans at the moment. However, you can build on your emergency savings first with the bank accounts that you are currently using.

You can use your spare time to build your personal finance knowledge. Start with the basics first such as money management, etc, before you move on to investing. This is an entire topic that cannot be summarized in my answer here, but you may read my other answers for an idea. You can already open a CDP account, and a trading account, so get that set up first so that it'll be ready for you to use in future.

For insurance, please ensure that you at least have a hospitalization plan. Your parents might have bought some policies for you, so please do a check with them. As you enter your final year of your studies, you might want to pre-emptively get yourself critical illness coverage if you don't already have any, since your savings by then should be able to pay off a couple of years of premiums. This also helps you to lock in lower premiums due to age.

Good luck!

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PolicyPal

PolicyPal

08 Jul 2020

Level 11·Official Account at PolicyPal

Before you start investing, it is key to ensure that you set aside funds in a Saving account to cover for your liabilities and short-term expenses. This includes your student loans, BTO, or even upcoming travel plans. You can consider putting your money in some short term endowment plan (2-5 years) while you understand more about the financial market. Great SP by Great Eastern and Tiq 3-Year by Etiqa is some short term endowment plans you can consider as they offer a decent guaranteed return for a short period of time. You can also consider Elastiq, which allows you to withdraw after 90 days, while providing a good rate of return. You can check out a detailed analysis here.

Next, it will be to ensure you are well insured should there be any cases of emergencies. Thus, it is essential to find plans that are well suited for you. Ensure the basics such as hospitalization and critical illness plans that would cover you from the hefty medical fees in the unfortunate event that you encounter a medical emergency. Some good health insurances you can consider are AXA Shield by AXA (only insurer with outpatient and PA benefits embedded into the cash rider) or the Great SupremeHealth by Great Eastern. You might also want to adding on or purchasing a Critical Illness plan to ensure you are well covered.

For investment plans, do take the time to understand the different plans available and risks involved. There are many asset classes with different projected returns on investment and risk.

Feel free to reach out to us here if you are looking for personalized and unbiased advice.​​​

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Heres the living life slightly dangerous approach. Assuming your parents don't provide you additiona...

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