How much savings should I have by the age of 30? What percentage should be liquid cash, FD, stocks? - Seedly
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Asked 3w ago

How much savings should I have by the age of 30? What percentage should be liquid cash, FD, stocks?

Concern about not investing my liquid cash enough and whether the amount I have at the moment is considered at least average for my age.

I'm married and have purchased a 4rm HDB. No car. With no outstanding loan on education, wedding or renovation. Have purchased the general insurance coverage -hospital, life, eCI, accident.

Is cash in shares and FD, liquid cash? I have more than my annual salary in savings accounts (can withdraw) anytime.


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Zi Shuen
Zi Shuen, Economics at NTU
Level 5. Genius
Answered 5d ago

You are in a good position to start with no loan, no car, and already have insurance coverage.

Now back to the question, how much savings should you have? Well, it depends (duh).

  1. You have your annual salary in savings account, I am not sure if that is too much or too little, depending on your goals. But generally, 3-6 months of monthly expenses as emergency fund is a MUST. Then, you can save about 10% - 20% of your monthly salary in another savings account (don't lump together with emergency fund account)

  2. Let's assume your expenses make up to 60% of your monthly salary, and you save 20%, then you have 20% left. Now your SHOULD invest the remaining 20% instead of just putting them in the bank account and let inflation eat their value away. Well, as for what to invest in, that's another whole new topic to talk about.

But in general, do not bother with FD, I mean, if you invest $1,000, you are getting about $10 a year with a 1% return, or $20 with 2% return. Since you are below 30, go for a higher risk ones (not casino please). Some options you can consider as below:

(a) Buying individual stocks or ETF (can se Interactive Broker, Saxo, TD)

(b) Robo-advisor (StashAway, Syfe, EndowUs, etc)

(c) Regular Savings Plan (FSM One, DBS, OCBC)

(d) Cryptocurrency (super high risk, proceed with caution, please invest less than 5% in this asset class)​​​


👍 0

I believe you ask wrong question

Saving is the amount of free cash flow you have. Saving is equivalent to emergency funds + liquid cash ( defined by most community members here). This amount of saving is correlated to your x months of future expenditure. Thus, it is subjective because everyone has their own lifestyle

Borrowing a joke from Chua I-min,

You should ask about your assets by 30. In other words, how much r you worth? How much do u think u r worth now and future? This is a good guidelines.

What % should be liquid cash, FD, stocks?

Liquid cash is an fixed amount looking at e. G your 6 months expenditure. % FD and stocks?

This is a question of how much risk /money lost u r willing to take to increase your capital

Always go back to the basic of finance and what r your financial goals in life? How do u then meet your goals? That will then be your allocation


👍 0
Level 4. Prodigy
Updated 3w ago


a. “How much savings should I have by the age of 30?”

I would say that this is a question that is very subjective as you probably would have guessed, but if i have to give a ball park figure, by the age of 30 your net worth should be from $70,000 - $200,000 for the average working adult. (excluding CPF)

b. “What % should be liquid cash, FD, stocks?”

This is subjective to your risk tolerance and investment horizon.

Generally, liquid cash should take up 10%-30% of your money set aside for investing, stocks and other instruments will then use the remaining 70%-90%, once again it depends heavily on the aforementioned; the risk you are willing to take and the timeframe in which you stay in the market.

c. Stocks can be liquidated quicker than deposits in fixed deposits as stocks are marketable assets.

d. Personally I would not keep more than an annual salaries worth in a savings account.

If you’d like more tailored responses with respect to your investments and allocations of money, perhaps you can let us know what you’ve invested in and your investment objective.


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