Asked by Anonymous
Asked on 07 Jun 2018
Invest in yourself, get more knowledge.
Depends on how hard you want to work. Firstly, you have 7.5k in savings, and 5.5k left. I would just leave them all in either SSB, or a short term endowment (less than 4 years.) This is to have money to pay off your fees on your final year and prepare for grad trip (if you intent to) and savings when you transit between being a student and working. FD also isn't a bad choice if you can find one with good rates, but SSB 1 year rate is kinda really good now.
PS this assumes you are going to pay your fees in cash in full.
1) If you have a sum of money, firstly set aside an emergency fund for rainy days.
2) make sure you have protection for your downside, health, critical illnesses, and personal accidents
3) Any FREE cash after point 1 & 2, then take out a portion to invest in the most important thing - your own knowledge.
Buy investing/financial education books: Rich Dad Poor Dad, One up Wall Street, 5 Rules of Successful Stocks Investing.
Watch online investing videos to learn the ways of Warren Buffett.
Your 5.5k should serve as your emergency fund and as your income comes in you can continue to put into your SSB due to its good liquidity.
As university starts, you need manage the cash flows properly as working would take up the time you need for studying. A delicate balance is required, save some money for some overseas exposure as when you get into the working world, sometimes money can’t even buy you that overseas experience + network.
Hi, given your age and info (further studies in uni) you would want to take a moment to assess your risk appetite and horizon.
Risk appetite can be found by asking yourself questions like how much are you prepare to lose, are you a high/medium/low risk taker etc
Horizon would mean how long do you intend to stay invested for in that product etc
By understanding more about yourself, you will have a better idea of your investing direction :)
Find out your risk profile first. Are you the conservative type? Balanced, or aggressive? Each profile has its own range of suitable instruments.
Conservative: SSB, savings accounts, bond ETF, fixed deposits, CPF SA. More "risk-free" in nature
Balanced: Mix of equity and bonds, about 50% each
Aggressive: Heavily leaning towards equities, little portion on bonds. Alternative instruments. Equity ETFs, stocks, derivatives (options, forex, futures trading). Crypto. Commodities
Learn about investing through books like Millionaire Teacher (local SG context) or Intelligent Investor. This will help you gain some perspective on investing and attain some basic knowledge.
If reading books is not really your cup of tea, I'd suggest paying to attend an investment workshop. Will cost a pretty penny, but it's a skillset you can apply for life. For me, I see this as a shortcut towards an early retirement.
End of the day, you need to be able to sleep well at night and not worrry about the performance of your portfolio. Hope this helps.
Hey, I'm assuming that you're trying to save up to pay off for your university fees. You can consider increasing the amount you pump into your POSB SAYE account to make full use of the 2% interest at the end of 2 years. Alternatively, you can park it in CIMB FastSaver (1%) or CIMB's Fixed Deposit (1.84%) for 1 year (promotion until end of September). You can also choose to invest in US ETFs through robo advisors via Stashaway or Smartly. P2P lending offers attractive returns as well but it's more risky as lenders (SMEs) might default on their loans
You might want to consider using a small portion of this amount to learn or buy books and i crease your competency in investing. But investing in a low cost fund if you have no idea what to invest in is a good idea. Once u build the competency you can do stock selection.