Am I investing “enough”? - Seedly
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Anonymous

Asked 2w ago

Am I investing “enough”?

Hi, I’m a student who’s graduating next year, 22 this year. I currently have 2.6k in StashAway ($100 per month) and 2.5k in SingLife, and about 5k left in savings. I’m starting to panic a little about my finances, and I feel like I’m not investing “enough”. Is this amount ok for a student, and how else can I invest safely?

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Hi!

Good job on kicking start your investment journey at such a young age. Super impressive.

In fact, I dare say you are doing better than about 80% of Singaporeans already!

On top of that, it seems like you portioned your investment/savings amount quite well.

You have

  • $2.6K on a riskier side

  • $2.5K on SingLife to gain interest

  • $5K for liquidity.

To determine if you are investing enough, first, you need to understand the type of investor you are.

Are you a risk-taker or more risk-averse? I may be wrong, but from your asset allocation, I think you are very much on the safer side of things. A total opposite of me when I was your age. I remember investing almost everything on Penny stocks (worst decision ever!).

After identifying the type of investor you are, set aside 6 months worth liquid cash (money you can immediately access to if need be).

The rest of the amount, you will allocate it based on your risk preference.

I know of a very safe investor, my age, who simply invest everything into government bonds or like yourself, into SingLife to gain more interest.

If you plan to take up slightly more risks, you can either:

  • Have a separate portfolio on a robo-advisor undertaking a higher-risk portfolio.

  • Start dipping your toes into the stock market (local and overseas)

As for the latter, please get the basic right first.

Here's a guide to get you started:

https://blog.seedly.sg/ultimate-personal-finance-guide-to-investing-singapore

You can also stay tuned to our daily investment article here:

https://blog.seedly.sg/category/investments

Just to familiarise yourself with some of the terms and how stocks are being analysed. Also, to train up a habit of reading up news and investment information.

Hope this helps yo!!​​​

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Kevin Seah
Kevin Seah
Level 5. Genius
Updated 2w ago

You are actually doing well already!

I think one of your main concerns is that you are not actively investing. Meaning to say you are not picking individual stocks and bonds and hence you feel left behind amongst the sea of others who do so.

I can assure you, putting 100/month into StashAway might have already put you ahead of some of them as it is a good way to hedge against huge dips in the market. You are practicing passive investing. If I were to suggest something else that you can do, it would be to start an RSP with FSMOne to invest into the Vanguard S&P 500 ETF if you have the additional funds. Take advantage of the US's strong growth and ride on its momentum to maximise your returns in the long run.

Hope this helps :)​​​

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered 2w ago

Until one reached their financial goals, its uninevitable to feel its "never enough".

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Yang Teng
Yang Teng
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered 2w ago

It depends on each individual. Each of us has different investment objectives and risk tolerance, and therefore invest a different percentage of our money.

If you feel there is no short term need for cash, and you are able and willing to take up more risk for higher returns, then you can invest part or all of your money in SingLife.

Some may have emergency funds + investment portfolio while others have an additional buffer of cash as an extra layer of safety net. Minimally though, it would be good to have emergency funds (~6 months' worth of expenditure in a savings account).

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