Dominic Cordeiro

20 Aug 2020

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How to manage multiple accounts for the 50-30-20 rule?

I am a fresh grad and am going to start work soon, so I wanna start things out on the right track. I have been seeing this 50-30-20 rule a lot lately, and was wondering where I should keep the savings portion. I thought of putting the savings into a high interest savings account, but accounts like the dbs multiplier and its competitors tend to have some minimum transaction amount in order to hit the increased interest rate. Any recommendations for account(s) structure?

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Aaron Leow

20 Aug 2020

You can consider investments in equity or bonds.

The 20% is really used for the longer-term goal, it is not meant to be kept as a short or medium-term goal. Some would like to combine both guaranteed and non-guaranteed instruments to achieve their goals.

The high-interest savings account would be better used for your emergency funds and depending on your risk appetite, short-medium term events.

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