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Anonymous

08 Oct 2020

Saving Hacks

What is the ideal amount to save for a 25 year old with a monthly income of $3,400?

Currently worked for 10 months, total savings about 20kish. Is that enough?

Discussion (2)

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Pang Zhe Liang

08 Oct 2020

Lead of Research & Solutions at Havend Pte Ltd

Generally, you should save and invest at about 20% to 30% of your monthly income.

Here is a Guide:

Understanding Your Personal Cash Flow

Meanwhile, if you are currently single and have no liabilities, e.g. mortgage, then you should increase the ratio to about 50%. Additionally, you may also look into the financial instruments that you are parking your money - whether you need so much liquidity in the short term.

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

Hariz Arthur Maloy

08 Oct 2020

Independent Financial Advisor at Promiseland Independent

Hey Anon, if you started from 0, saving 2k/mth for 10 months on a post CPF income of 2720 is fantastic. That's a 70+% savings rate. I'm assuming you don't have a mortgage or have to pay for rent at the moment plus have little liabilities so it's a fantastic time to be saving that much.

My only advice is to find more ways to add to your income, side hustles that can earn you a few hundreds each weekend will definitely boost your savings capability.

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