facebookHow do you manage your finance and allocate your monthly income? - Seedly

Anonymous

07 Jun 2020

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How do you manage your finance and allocate your monthly income?

I know everyone is different in terms of how they allocate their finance. Many factors play a part, like our age, our current financial and life goals as well as our income and maybe more.
Wondering how you will allocate your monthly income

Say for me I usually follow

Expenses: 50%
Savings: 30%
Investment: 20%

Letโ€™s get the sharing going shall we ?

Discussion (7)

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Pang Zhe Liang

26 May 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Yes, you are right to say that different factors will affect the weightage. Here is how I do it:

  • Expenses: 50% to 60%, less than 35% on fixed expenses

  • Savings & Investment: 20% to 30%, at least 10% for long-term

  • Insurance: 10% to 20%, ensure basic gaps are fulfiled

In fact, I have written a guide about understanding your cashflow:

Here is a Guide:

Understanding Your Personal Cash Flow

Additionally, I follow a strict budget when it comes to spending money that is not pre-planned. Here is how I do it:

How I do My Budget:

How to create a Monthly Budget

I share quality content on estate planning and financial planning here.

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You can calculate your guidelines here:

https://www.aaronleow.com/calculators

Much of the ratios really is dependent on the quantum of your income. A person who earns in excess of $10,000 a month would have high disposable income. As such, it is entirely possible for a early 30s person who earns in that income bracket to expense the basic needs at 10-15% and invest/save the rest.

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Elijah Lee

25 May 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

I go by my guideline of 40-30-20-10.

  • 40% of my income on expenses, maximum

  • 30% of my...

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