23 Sep 2021
I'm 25 yrs old with a networth of ~$60k not counting CPF ($15k cash savings and everything else invested). I'm still young and wish to grow my wealth asap so I'm investing the bulk of my monthly salary (~50%) and only saving a small % (~$300).
I'm looking at getting married and buying a resale flat when I'm 30. Is this a good idea? All advice and opinions appreciated. thnak you!
Definitely ok. 5 years is a decent timeline and too long to keep your money in a bank. I did my renovation and furniture with 30k, earned 10k from my wedding so in fact I was overly conservative for my cash savings. Invest more agressive when you are younger so the older you can thank you later.
I currently is waiting for BTO, but I started investing quite late. However, I think having a 60k net worth at the age of 25 is really great and provide you a more options on what you could do next.
I would suggest that maybe you could try sit down with your future spouse and do up a spreadsheet on your finances. Have an idea on the future expenses vs earning etc. This will help in a bigger picture on how much you should spend, invest and save.
End of the day can your savings meet the future expenses or is there any investment instrument that allow easy liquidity/withdrawal etc.
Assuming your household income within limit, you should go for BTO if possible. This has been setup for citizens, even LKY talked about it if he grew up in modern Singapore. Buying BTO would basically almost double in prices. Say $400k BTW, would be at least $600k to $800k after MOP.
My recommendation, go for BTO - 5 room at nice place if possible. Stay there and try to paydown loan where possible. Then by 40, when MOP, you can choose to upgrade to resale... this time wuth $800k - top up little cash and get $million, super prime Resale HDB, or could strive for condo depending on preference and your level of income. Or stay in BTO until end of days.
As young citizen, average income, recommendation always go for BTO. It's designed to give us leg up early in life... And that sets up Singaporeans for long term.
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