facebookI saved 50k after working for 2 years, am I on track? What should I do now? - Seedly

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Anonymous

25 Aug 2020

Random

I saved 50k after working for 2 years, am I on track? What should I do now?

Would like to know more about how much others also saved in 2 years, and if I should be actually saving more and spending less, or if this is ok. Also I’m not sure what to do with my savings, I might get married/house etc in 2-3 years, but should I invest some money? If so, how much?

Discussion (6)

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It's hard to tell without knowing your income, number of dependents, spending behaviour. Nonetheless, 50k in 2 years is a great feat, at least it's not something I achieved in my first 2 years of working.

Getting married/buying a house in 2-3 years is a short-term target. The money you plan to spend on this should not be subject to volatility (investment), perhaps placing the money in a high interest savings account or short-term (2-3 years) endowment plan may be a better option.

The balance, after putting aside the money for your wedding, house dowpayment, honeymoon etc., can then be invested

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Aidan Neo

25 Aug 2020

Financial Services Consultant at Manulife Financial Advisers

Whether it's your savings ratio good, depends on your income.

If your monthly take home is $10,000, over the span of 2 years, your savings ratio would just be 20%. However, if your monthly take home is $3000, your savings ratio will be at an applaudable ratio of 70%.

I can't say whether to save more or spend less, because if all your current expenses are for necessity, it's only normal to spend on them. What you can do perhaps would be increase your earning power instead. All and all, having a prudent saving habit and mentality will benefit you over a long run.

I will not recommend to invest the money needed for your short-term liability, especially for marriage and house. There's no reason to subject your resources to volatility, worst still at a bad time, should you need those resources. The worst thing is to realise the losses because you got no choice.

Separate your resources individual and allow you to better gauge how much you can invest. 1) Emergency Fund 2) House Expenses 3) Wedding Expenses ; you can start with any leftover and build the portfolio from there.

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50k within 2 years seams great!...

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