Asked on 17 Jun 2020
I'm a female undergrad currently studying in nus pharmacy and was wondering how much savings is normal for 21yo? I have around $40,000 in savings, no tuition loan debt to pay. Is that a lot of money saved up or should I save more? From what I've heard from my pharm mates, most of them have over $50k of savings right now..
When i was an undergrad, (8 years ago) i had about $18k. And that was after i had served in the army. No tuition debt. And i cane from a low-income family.
So you are definitely doing well. ! If i have on advice, it would be that you start investing early. Time is your best friend.
$40,000 is quite a sum for a 21 year old. I know of 25/26 year olds who don't even have that much.
It's always good to save, but don't beat yourself up just because they have more savings than you. Some of them may come from more fortunate family backgrounds that may have given them handouts of cash, or maybe they worked really hard part time and started a business. The point is, it doesn't matter.
Your personal finance journey should be yours alone and you should map out your own goals and milestones rather than focus on what others have or do not have. Besides, savings is a habit, not a number. Even if you had $1 million right now, you could blow it all in a year if you don't have good saving habits.
You're in a good position (considering you already have a sum of money to be used as your emergency savings) as compared to other undergraduates. But whatever my next paragraph would be contradicting what I just said.
In personal finance, I find that it is not beneficial if you keep comparing to others - there will always be someone better off compared to you. It is more important to know your needs and how much money you need to feel secure.
Hope I helped. 😊
If you are considering high-interest savings accounts, CIMB has recently announced today that they will be revising their interest rate for FastSaver. You might want to take a look here.
Other alternative choices that do not require spending/minimum sum include:
Singlife Account (2.5% p.a, capaital guaranteed, interest non guaranteed)
FSM Auto-Sweep Account (1.05%p.a, interest rates may be revised)
Stashaway Simple (1.9%, capital non guaranteed, interest non guaranteed)
SCB JumpStart (1%p.a)
Crypto.com Crypto Earn (Depending on currency, as high as 16%p.a without any prior staking. However, do take note of the volatility of cryptocurrencies)
Vivid Account (1.05% p.a for first 10k, 1.30% for 10k-20k)
Own time own target, its more important to have the right mindset at the outset
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