Ultimately, it’s about: 1) Pre-empting or estimating the cost of future expenses (e.g. wedding, BTO, insurance, car), taking into account estimated annual inflation rates 2) Identifying how flexible your timelines are for each of your milestones (e.g. first home by 2022) 3) For short-term savings – placing it in a high yield savings account like OCBC360, which offers 1.2% interest on the first S$35k, and 2% interest on the next S$35k (capped at S$70,000) 4) Ensuring you’ve set aside a minimum of six months’ salary – a rainy day fund – for unforeseen circumstances, whether a medical emergency or retrenchment (God, no!) 5) Taking stock of your progress quarterly Short-term savings My salary is credited to my OCBC 360 account, of which around 45% is then transferred to my POSB Savings account for monthly expenditure – which could include anything from food and transport to taxes. In order to finance the down payment for my BTO, I plan to funnel $20,000 into a short-term endowment plan like the Aviva MySecureSaver. I’m also looking to GIRO 20% of my monthly salary to my CPF Special Account, which would yield up to 5% interest annually. Long-term savings Some level of risk comes into play if you hope to grow your funds at a quicker rate – so diversification is crucial. I’d recommend: i) investing in stocks that can withstand inflation, e.g. Singapore Savings Bond (averaging 2.13% interest p.a if held for ten years, based on interest rates for the June 2019 bond), and ii) dabbling in higher risk investments like bonds, stocks (e.g. STI ETF) and REITs. At the same time, topping up your CPF in January rather than December could earn you 20% more interest on your savings over ten years.