Am turning 30 this year. Not married, earn about 4k a month. I want to buy a house in a couple of years. How much would is good practice to put aside for retirement and how much toward the housing? - Seedly
 

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Asked by Anonymous

Asked on 28 Sep 2018

Am turning 30 this year. Not married, earn about 4k a month. I want to buy a house in a couple of years. How much would is good practice to put aside for retirement and how much toward the housing?

And how much "emergency savings" does a person typically need on hand?

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Minimum to save would be 20% of your income into assets that beat inflation.

Housing price I'd keep it to 3-5 X of your household income. So if you're making 50k a year, try to not stay in a house that costs more than 250k.

If you're talking about rent, then not more than 20% if your income on rent.

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Hariz Arthur Maloy
Hariz Arthur Maloy

28 Sep 2018

But now since you're not married and without kids, try to save more. Preferably 40-50% of your income.
Fang Fang
Fang Fang
Level 4. Prodigy
Answered 2w ago

No fix

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Hi!

Emergency savings typically has 4-6 months of your expenses to be used in case of an unforseen situation. In order to make my budget, I prefer the 40/30/20/10 rule. 40 percent of the income can be used in regular monthly expenses such as rent, food, electricity etc. Not more than 30 percent shall be used to pay off loans including mortgage, education etc. 20 percent will be used to prepare for the future like retirement in long term investments. The remaining 10 percent will be used to cover inurance needs.

In this case, since you want to buy a house in the future, you can redirect you 30 percent for loan repayment in safe investment options so that you can buy a house with it in the near future. Taking too much risk in the portion will be too risky as investments are volatile in the short term.

I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

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Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 5. Genius
Answered on 05 Nov 2018

Leverage your age and your money, use OPM to increase your wealth. Housing is not just for self stay it is also another form of investment.

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Jayden Tan
Jayden Tan, Logistics at University College Dublin
Level 3. Wonderkid
Answered on 29 Sep 2018

If you are working and have cpf you can use most of your cpf money to pay for the house installments..get a 4rm hdb you can also rent out one room to milk for rental..how you set aside for retirement depend on much do you need to survive monthly?use an app to record all your expenses to get the exact number.

Emergency fund of 3-6mths is more than enough and you can invest the rest..if you want to retire much earlier live well below your means and save invest more than 60% mthly

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