Asked by Anonymous
Asked on 24 Jul 2018
do i need a certain amount of money to start making money work for me? how much should i earn per/month consider wealthy? i have no background basics, really don't know where to start
You can start as low as $100 per month by setting up a regular savings plan with POSB or OCBC
Just using $10k for an example,
If your mobile bill is $50 per month and that is $600 per year.
A 6% dividend yield vehicle with $10k, will generate $600 which covers ur mobile bill expense.
A DOLLAR saved is A DOLLAR EARNED.
Wealth does not only comes from how much you earn but how much you SAVE before you SPEND.
Focusing on Savings with a PURPOSES and let that purposes grow wealth for you.
At the same time, you get to save more and enjoy life a little bit better too.
Hope my reply helps.
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You can do dollar cost averaging to the STI at 100 a month that is the cheapest way to start investment
I think you should change your focus from “consider wealthy “ to a sustainable lifestyle
your lifestyle will determine how much money you send and that would be in a direct relation to how much you earn.
As Long as you keep you expenses in check and not live a lifestyle that you can’t afford then you are in a stable state.
U can start investing even if u don't have alot, just start with smaller amounts. Depends on your definition wealthy. The median household income in 2017 is about $9k.
If you're able to set aside just $100, you just some invest in STI ETF. If you have more money, you can invest in others. Read up on books to learn more. But if you're new I will say read on financial blogs. Bite sized informations are easier!
You do need some money to start investing or trading. But you need to pick up the basics first in investment or trading. Don't rush into investment or trading.
Honestly speaking there isn't a minimum sum which you need accumulated in your bank to start investing, but often you should have a couple of months of emergency savings to tide over any storms which might hit you before jumping into investments! Wealth is relative, it depends on how much you require to live comfortably, so if you're frugal you would probably need less emergency savings; likewise if you're a spendthrift and can't do without daily meals at high end restaurants with family, you'd probably need a greater amount of emergency funds.
If you are a salaried worker, start with using higher interest savings account, which rewards you for crediting salary into the account, e.g DBS Multiplier, UOB One or OCBC 360 or BOC. Different bank has different criteria to fulfill so it's hard to advise you without knowing your monthly spend profile, how much savings you plan to set aside to earn the higher interest.
Next would be to build emergency fund which can be 6 months of your expense. Afterwards can start to venture to investment.
Most of us start small. Start saving small amounts, slowly increase your savings.
Then gain more knowledge on investing, and start investing small amounts. Slowly, the small investment will grow and grow.