I’ve heard of the 50/30/20 rule for monthly salary allocation. Is there a similar rule for net assets? As in, how much of my total net worth should be in investment, insurance, cash and etc?

Hi anon,

I'd say to invest at least 20% of your salary. More if you can help it. Also, try diversifying beyond robo advisors. You will need other asset classes in your portfolio as well.

You can calculate the guidelines here using a calculator I made:

https://www.aaronleow.com/life-budget-calculator - For Life Budgeting

https://www.aaronleow.com/insurance-requirement... - For Insurance Budgeting and Requirement Guidelines

The above should be taken as a guideline, but engaging a financial adviser will be helpful.​​​

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Generally, the guideline will be to have 3 to 6 months of total expenditure as rainy day funds (Part 4.1). At the same time, save and invest 20% to 30% of your annual income.

The allocation on savings and investment will vary according to factors, e.g. risk appetite, short-term goals.

As always, the more money you are able to set aside today, the more you can grow for your future.

I share quality content on estate planning and financial planning here.

I have never use this rule. I use discipline and good habit. I list down my expenses, depending on the remaining income which will be my savings. I split this portion of saving into investment and rest going into emergency fund.
Net worth= Assets - liabilities.
There are no rules for networth. And you should focus too much on Networth. Do your best, everything is by the way.
#planwithcolin