National Service (NS)
Asked 2w ago
As a current NSF myself, the best thing to invest in is your time rather than your money.
There are bound to be pockets of time or breaks during these 2 years and what you do during these periods can make a lot of difference. You could read up ahead for uni (which can give you a head start) or just books to keep your mind from degrading. You could further develop your passion or interest (e.g. programming, arts, etc.). You could sign up for online courses (see: e-prep) which can give you a competitive advantage over your peers. What you can do is endless.
Moneywise, the allowance from NS is rather little 1k or less, and returns will also not be significant. You can delay investment first and start by reading up on investment-related books, or if you prefer convenience, going with a roboadvisor. You can look at the comparison between the various platforms here: https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/. You can simply schedule a regular fund transfer from your bank account to the platform and no need for further action.
I think the rest have made good points so i'll like to value add with a different point.
"The best thing you can invest in is YOURSELF." - Warren Buffett
Depending on what you favour, videos, books, online courses or talking to people, in your free time continue to learn more about the investing world. No restriction to choose only one, a mix of each may value add in its own unique way.
As you learn more you'll find out for yourself what your financial goals, risk tolerance, what you have affinity to and what your circle of competence encompases.
You'll decide whether you prefer passive or active investing. You can even use a mix of both. I personally switched to active investing after I realised how interesting and beneficial it is for me, but of course not everyone has similar interest, capacity and goals.
Happy investing! (:
Start a RSP or do DCA into a robo-advisor. These are methods you can start investing passively. But trust me, there are pockets of time where you get to lepak in bunk a lot. Use this time to learn how to pick stocks and get into some S-REIT or US stock investing using your allowance. This skill will be useful to you throughout your entire life!
Take this time and save big time from your NS allowance. I was only earning $400 plus dollars during my NS days (Back in 2009) as a recruit and was already saving half. What matters is not the amount but the habit of saving. Yes it may be an insignificant amount even after 2 years (I've saved about 200 a month and that makes up about $4800 in two years) but I found that I could live with less than I ever needed.
Hi anon, Warren Buffett once said in an interview that the best investment you can make is one that “you can’t beat”. That investment can’t be taxed and is not affected by inflation as well.
And that investment is investing in ourselves.
“Ultimately, there’s one investment that supersedes all others: Invest in yourself. … Nobody can take away what you’ve got in yourself, and everybody has potential they haven’t used yet.”
If you are still learning about investing, you can check out Seedly's investment guide at: https://blog.seedly.sg/ultimate-personal-finance-guide-to-investing-singapore
If you already have the knowledge, there are some things to consider first before investing. Do you need the money over the next 5 years? Do you have your emergency funds already set up? Do you have adequate insurance coverage?
The best way to invest would always be based on your time horizon, investment objectives and your risk profile.
Some instruments you can look into are the robo advisors or exchange-traded funds. More info in the guide too.
Hope this helps. All the best!