facebookHi all, I’m a 25 year old graduate about to be attend the workforce with a salary of $4000/month. Have $30k in savings. How should i invest it? - Seedly
Seedly logo
Seedly logo

Asked on 17 May 2020

Hi all, I’m a 25 year old graduate about to be attend the workforce with a salary of $4000/month. Have $30k in savings. How should i invest it?

Have been looking into different types of investments. Right now I try to make use of the stand chart jump start and multiplier accounts to increase through savings interest. However, what would be a better Long term plan? SSB don’t look good. I’m looking at POSB’s invest saver to invest in STI or REIT. Should I also use robo Advisors such as StashAway?

Is this a good time to enter these investments? Am at a loss :( (I have no debt)


6 answers

Answer Now

Answers (6)

Hi SHerman,

If your (1) insurance and (2) emergency funds are in order, and that $30K is something that you can invest and not need to liquidate in the near term, then you can start investing. If not, sort out (1) and (2) first prior to starting.

The planning process is important prior to starting to invest; without a plan (or at least a skeleton of one), you are planning to fail. I note that you're looking for a long term plan, which suggests that you are looking at 10 years or more, perhaps even until retirement.

Start by setting a goal:

  • What do you want to achieve?

  • Save for Retirement? Payment for Mortgage? Children’s Education?

  • Determine your investment timeframe

  • How much do you need for that goal?

Next, assesss your financial situation

  • What is your net worth and cash flow?

  • List out all resources and expenses that you have

  • Find out your budget

Then, plan to execute

  • Know how much to set aside

  • Know what rate of return you need

  • Know how much risk you can take

Understand the asset classes you can invest in, their pros and their cons. For a budget of $30K, and for someone new to investing, you can consider the following:

  • Equities (Stocks/Shares)

  • Exchange Traded Funds (ETFs)

  • Retail Bonds

  • Unit Trusts

  • Savings Plan/annuity

With a $4K/mth salary, you can also add on monthly via dollar cost averaging. Asset classes better suited to DCA can include UTs or annuities. DCA into stocks/REITs don't make sense unless your capital is sufficient to lower the transactional costs.

You can probably divide your $30K into 2 portions, one to invest in now (there are plenty of opportunities now, I feel), and another portion as a warchest for future opportunities. Add on to your investments via DCA while continuously saving a portion of your cashflow to build up your warchest.

Lastly, decide which asset class you would like to obtain that fits you and your profile, and you are on your way. Monitor your investments, refine and review your portfolio regularly.​​​


Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about


Hi Sherman,

First of all, congratulations on securing a very decent starting salary for your career.

In my view, your biggest asset is your time. With your time horizon, you can make some serious money if you start investing early because of the power of compounding.

Compound interest is very powerful.

It is the interest you get on top of the previous principal + interest you already got.

Here are 3 actions you can take to make the best use of compound interest:

1. Invest early – the earlier we invest, the more powerful the compounding effect becomes. By investing early, we will truly maximize the effects of compounding – so long as we stay invested for the long haul.

2. Re-invest your profits – remember than compound interests are interests on top of your original capital + your interests. So in an investment point of view, it is your original starting capital + all the profits you already made from the stock market. By re-investing them, you are making use of compound interests to the fullest as you are building your base capital.

3. Add more money – by adding more money to your portfolio, you are building your base capital. It will accelerate the impact of the compounding because the % return is built on a bigger base.

Rule of 72 gives you an idea of how many years it takes for your investment to double. Getting 20% a year, takes you 3.6 years (72/20) and getting 8% a year, takes you 9 years (72/8).

But remember, compound interest is good in theory. But if you lose money consistently on your investments or you cannot get a consistent rate of return over time, compound interest is useless.

That is where your second biggest asset comes which is your energy. With your energy, you can afford to spend a one-time investment and effort into seriously learning in-depth on understanding how to pick stocks.

I personally teach the 4M1S framework at VIM. The framework covers the understanding of our mindsets, companies, valuations, portfolio, and strategies on how to invest in great businesses listed in the stock market. Do consider if it is suitable for you.


Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about


Patricia Law

Patricia Law

Level 4. Prodigy

Answered on 23 Jul 2020

Hi Sherman,

If you have this $30k to invest long term, this will be a great sum to plan for your re...

Read 4 other answers with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Continue with Facebook
Sign in with Apple

Sign up or login with an email here