Anonymous
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%
Letโs get the sharing going shall we ?
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Pang Zhe Liang
26 May 2020
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
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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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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.