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Anonymous
Currently worked for 10 months, total savings about 20kish. Is that enough?
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Pang Zhe Liang
08 Oct 2020
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
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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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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.
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