how can a poly student like me start in the investing world? - Seedly
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Anonymous

Asked on 21 Jun 2019

how can a poly student like me start in the investing world?

I have tried going on singapore owned financial blogs detailing about investing, but as a noob who has recently only even heard about investing, i have no idea what they are talking about.

i would, however, still like to learn on how to start by going into SSB since it is low risk and i can withdraw anytime.

is $1.2k in my bank enough for me to start investing? i have another $1.6k coming in from my bursary and i earn around $700 per month from part time jobs!

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Take your time bro. A 10% return (a high return) on $1000 is only a hundred bucks. Something you earn in less than a week and you have to risk a chunk of your capital for that hundred bucks.

Build up your knowledge and capital first. And make sure you have emergency money set aside before even thinking about investment. And after that, settle your downside protection with insurance before looking for upside and investing.

10% of 30k is 3k. That's someone's monthly salary, now that is something worth risking your money for. Before that, you can take your time and build your base with earning more money, saving more, and spending less.

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šŸ‘ 10
Elijah Lee
Elijah Lee
Top Contributor

Top Contributor (Feb)

Level 10. Unicorn
Answered on 22 Jun 2019

We all walk before we learn to run. Hence, take baby steps first to build knowledge before you start. The lure of making money through investing may be strong but what will sting more will be losing your hard earned money.

Hence, always make sure you set your foundations in order before you commence investing. By that, I mean:

  1. Look at your own finances. A lot of times, I see people spend beyond their means. Don't try to keep up with the Jones. That $1 coffee does the same thing as a $6 Starbucks. By adopting prudent habits, you trim waste and save more. This is not about being stingy, but frugal.

  2. Ensure you have your safety nets in place. 3-6 months expenses in liquid cash, and appropriate coverage for the unexpected events that life throws at you.

  3. Have a game plan. Know what your risk appetite is. Boost your knowledge. Understand the asset classes and your preferences. And invest with the mindset that you will lose your money.

Hence, looking at your situation, you really shouldn't be in a rush. Invest in yourself too. A higher earning power (via things like a degree) will boost your cashflow far more than skimping on your food and drinks. You have the advantage of time after all.

Lastly, about the SSBs, this is something you can park some money in without any risk. Open a CDP account and you can apply. But looking at your funds now, build more savings first.

I wish you luck in your investment journey.

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šŸ‘ 5

Some inputs here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

know thy stuff well, read and experiment a bit with smaller sums, add regularly, don't panic

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šŸ‘ 0

I would say build up your savings and capital first.

By building up your savings, you would have built up good spending and saving habits. This will carry you a long way in future. If one is unable to save well, then investing is not going to help much in building wealth.

Along the way, you can learn more about investing through books, free courses and videos, online blogs.

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Cheng Yuan Yong
Cheng Yuan Yong
Level 2. Rookie
Answered on 26 Jun 2019

U can try doing Regulare Savings on DBS bank for the STI ETF

as it gives flexibility, u can stop, hold, take out anytime u want

that could be a good way to start!

("'')(^_^)(''")

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SW
Shaun Wq Lim
Level 6. Master
Answered on 23 Jun 2019

If you are in poly, I believe you have time on your side i.e. you are young. Time is the most important resource that you can have.

Since you are asking about investing, I am assuming that you also are aware of the importance of savings and protection. Do a 360 review if you have not thought about them. This reply will focus on the investing portion and taking a very long term view.

Invest as much as you can, as early as you can. Then let time do its magic. Compound interest works on the same principle.

You can choose to go with a low cost monthly investment plan into ETFs or robo-advisers with a portion of your planned investment amount. The other portion can go to SSBs.

Learn along the way but get started first.

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Tay WenHao
Tay WenHao
Level 6. Master
Answered on 22 Jun 2019

Hey as what Hariz said, dont rush into the market. Take your time to save up and read more to understand the market.

You can consider POSB INVEST SAVER Programme and start with $100/month on NIKKO AM STI ETF. Do your own research and find out more.

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Tan Wei Ming
Tan Wei Ming
Level 5. Genius
Answered on 22 Jun 2019

Before you even start investing, I always advise people to have sufficient emergency fund (liquid cash) of at least 6 months of your expenses.

There are many strategies of investing. Many prefer to pick their own stocks while others just buy ETFs every month. I recommend you to read up more before picking your own stocks to invest. In the meanwhile, you can invest in STI ETF using POSB InvestSaver to get a taste of investments.

As for SSB, you have to sign up for CDP account and apply for direct crediting service before you can buy it.

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Gavin Tan
Gavin Tan
Level 4. Prodigy
Answered on 22 Jun 2019

Hey there!! I am also a poly student, year 3 !! Just started investing in May 2019 with a ridiculously small capital (2k). The best advice I can give to you if you want to focus on learning how to invest, is to put your feet into the water, test the waters out, so you'll know what is your true risk appetite!

Are you able to watch your portfolio drop 10-20% in a few weeks? I bought my stocks at a very bad timing, when they were at their 52w highs, and then they dropped close to 5% in a matter of 1-2 weeks, but I held on strong, and now I'm up about 5% on my portfolio !!

Do your own research, yes you can read financial blogs and stuff but dont just buy anything that people say is good, you must know what you are investing in, if not you might just jump into a sinking ship without even knowing !

If you are planning to invest for the long term, say 5-10 years, I'd recommend going for bluechips if you really want the safest option around. For example, DBS is giving close to a 5% dividend yield right now, which is almost 2x higher than what SSB can offer, but of course high returns come with higher risk, you must be able to tahan the market's volatility and hold on to the stock without panic selling.

Aside from that, with 700/month maybe save it up in a high interest savings account like the CIMB fastsaver account, gives you 1% interest as long as you maintain a minimum of 1k daily balance in there. Wait for the stock market to dip and start buying stocks on sales !!

Good luck on your investing journey ma man !

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šŸ‘ 0

How about investing in yourself first? Go for courses that teaches you soft skill, self development like public speaking per se, these are skills that can be etched into your muscle memory.

Still not too late to learn about investing 1-2years later. But if you would like to know abit more abt investing, do PM me and we can talk more

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