Should I consider investing as a full timer earning $2300 per month excluding bonus?

Hi there, I'm pretty new to saving / investing myself and when I started off, this simple framework helped me a lot - protection and then accumulation:

• Protection = emergency funds and insurance

• Accumulation = investment

I've further refined this framework into the following:

1. Earn income

2. Save income

3. Build emergency fund

4. Buy insurance

5. Grow your wealth (invest)

6. Protect your wealth (don't lose money)

7. Hand down your wealth (writing a will, estate planning)

You've already managed steps 1 and 2. I assume your $30k in cash would account in some part for your emergency fund (step 3). The next step would be to get coverage, if you haven't.

After you've sorted that out, you can look at investing.

Some principles when it comes to investing:

• Invest only disposable income. (You can survive without it)

• Buy what you understand.

• Index investing is a good place to start for beginners. Robo-advisors can help with that too.

• You don't need to be an expert, but you cannot be absolutely clueless.

• Find out what your true risk tolerance is. I thought I was risk-averse, until I learnt that I actually wasn't.

I designed an IG page to help beginners like you and me gain a quick but simple understanding of some concepts in personal finance and investing. Regarding practical advice, there's this article on how someone invested her first $5000. At the beginning, I always find it's easier to have someone talk you through the basics rather than struggle on your own. Who that someone may be for you - whether friends, family, or financial advisors - I'll leave it entirely up to you!

Good luck :)​​​

To begin with, it will be good to understand you further. For instance, are you risk-adverse because of a lack in knowledge in the markets? If this is so, then this is a problem that we can overcome by learning how the market works.

In like manner, through comprehensive financial planning, we will understand and determine the financial instruments that may be suitable for you, e.g. Singapore Savings Bonds, treasury bills, high-grade corporate bonds. Of course, some of my clients look into a well-diversified portfolio that is capable of meeting their needs in the long-run. And you will be glad to know that some of them are low risk takers too, i.e. 100% invested into bonds.

With this in mind, it depends on two things - are you capable on investing on your own? If yes and you don't need the help of a licensed consultant to provide you with professional advice or to keep your emotions in check, then you are good to go. Otherwise, you may seek help from a professional to help you create a portfolio that you will become confident with.

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