I am a fresh grad and working as a private tutor. I have just paid off all my loans and I now have 3k in CIMB Fastsaver, 2k in cash. Every month I will have average 3k of spare cash. How should I divide this among my POSB, CIMB, SSB and STI ETF?

Question

Kenichi Xi · Accepted Answer

You divide based on your 
1. Family Plan
2. Asset purchase Plan
3. Retirements Plan

Not short changing the reply here but is good to think thru point 1 to point 3 to commit ur investment tt benefits u and not go against u.

Hope my reply helps.

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Thank you.

Kenneth Lou · Answer

Hello there! You actually left out a very key criteria, your age and life stages (eg attached, getting married or planning to have a kid etc).

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But I will take it as though you are single and thinking to grow your wealth over a longer period of time :)

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It's a very good base to begin with actually, let's get that straight! Good on you :)

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And to be honest, 3k of spare cash a month is very ideal actually.

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**If I were you I would do this... (But this is not a recommendation):**

- **POSB: **$500 (for daily spending) cos it's easier to acess via iBanking, paylah, payNow etc. (and since you don't have SALARY credit)
- **CIMB: **$1,000 (for my forced savings) at 1% p.a flat. (You can use this to also build up your cash reserves as well for larger ticket items in the future, eg wedding or home etc.
- **SSB: **$500 (this one i think is preferential... depends on whether you want to lock up your cash by lending it to the government (10 year is not a bad time frame as well for your later half commitments eg kids expenses etc, when your SSB matures. ) I think effective p.a interest is around 2-3% not too bad...
- **STI ETF: **$1,000 (let it compound magically over time!) 
- **Robo-advisors:** Oversease ETFs at a low cost (Something to consider as well, if you don't want to just limit your investment portfolio to just the Singapore market :) You can read what other community member's say here:  https://seedly.sg/reviews/robo-advisors

Hope this helps :) And if you have any questions, feel free to ask me in the comments section below!

Penny Chong · Answer

Look into S&P 500 for better returns (historically 10%)

Heng Kai Le · Answer

Hi there!

How has your situation evolved since your posting?

I think it will be good to think of your short-term and long-term saving goals and name your various accounts accordingly. For example, my CIMB account is my **Emergency Fund **and my SSB is my **Retirement Fund**. (BTW, SSB yields ridiculously low interest rates these days. The 'in' thing to go for now is a Singlife account. 2.5% per annum!) I also have a **Japan2026 fixed deposit** with my wife; it's a goal that both of us came up with together. I think having such clear goals (with names!) helps to concretise your saving motivation.

Then channel your spare cash accordingly based on how soon you wish to attain each of these short-term and long-term goals.

Hope this helps!​​​