Asked by Anonymous
Asked on 22 Jun 2018
A good start for you to kick start your investing journey!
Some of the preferably considerations you could take into includes:
1) Making sure you are insured (Insurance Policy)
2) Have two bank account (1 for expenses and 1 for investment that have high interest rate savings account)
3) Have a good portion of around 6 months of income or expenses as emergency savings
You could start planning your financial roadmap like allocating your monthly salary in the 20% savings, 50% expenses and 30% wealth or something that suits you better.
Some of the investment plans that you could starting tapping on is STI Exchange Traded Funds (Passive Investing) by employing Dollar Cost Averaging where you put out a fixed amount of sum every month to accumulate shares no matter the different market conditions.
Date Price Shares Cost
Jan 20 5 $100
Feb 15 6.66 $100
Mar 10 10 $100
April 18 5.55 $100
Total 27.21 $400
Avg Price Per Share $14.70
So basically you average out the price during a long term period of investing where you accumulate more shares if prices dropped and accumulate lesser shares if prices rises. You could start this as little as $100 on POSB Invest-Saver on autopilot mode where they will deduct on your account $100 every month and buy shares on your behalf.
High interest rate - https://blog.seedly.sg/best-savings-accounts-2018/
Financial Roadmap - https://blog.seedly.sg/working-adults-allocate-your-monthly-salary/
Dollar Cost Averaging - https://blog.seedly.sg/working-adults-easiest-ways-to-invest-a-monthly-sum-for-beginners/
Bonds (Government such as SSB and corporate ), equities (STI ETF, Blue Chip stocks), P2P Lending (at a rather infant stage) and many more you can research on! :)