Asked on 18 Jun 2019
Trying to get my personal finance in order before I start work proper! Pls give any advice, thanks!
As a fresh graduate from just a few years ago, will share my personal experiences.
Banks Account: I started with the OCBC360 account, it works quite well as long as you pair it together with other OCBC products to maximise the bonus interest rates (e.g. using the OCBC 365 credit card).
Recently I have moved over to the DBS Multiplier account because of the constant changes in the OCBC360 account interest rates and requirements (all downhill...). I find that the DBS Multiplier is much easier to work with, main condition being that you need to hit a large monthly earning+spending to achieve good interest rates. It would work increasingly well as your salary increases over time.
Investing: This is a massive topic of which entire books can be written on... But my personal take is to start small and passively invest whatever part of your salary you manage to save. Together with the OCB360 account I used their Blue Chip Investment Plan (BCIP) to invest a small amount on a monthly basis. This monthly investment plan really helped me to maintain discipline in saving/investment over time and you will be surprised at how much it adds up over time!
Cards: Depends on what rewards you are looking for (cashback, airline miles, reward points) and also whether you want to use credit cards from the same bank where you are crediting your salary to in order to maximise bonus interest.
OCBC: OCBC 365 (cashback), OCB Titanium Rewards (miles)
DBS: DBS Altitude (miles), DBS Womans World Card (miles)
If you are indifferent to bank: Citi Rewards Visa (miles), BOC Family Card (Cashback)
Hi Li En! Thanks for the question, I'm sure many other fresh grads beginning their personal finance journey are wondering about this too! I'm gonna break down your question into the following 3 parts: (1) Bank Account, (2) Credit Cards, (3) How to start investing. For starters, these 3 Seedly articles will be very useful for you:
Moving on to your 3 points of interest, here are some of my recommendations:
1. Bank Account
2. Credit Card
DBS Live Fresh (earn cashback, paired well with the DBS Multiplier, interest rate increases the more you spend/save with them)
OCBC 365 (reasonable amount of cashback opportunities, paired well with the OCBC 360)
UOB PRIVI (relatively decent miles rate, paired well with the UOB One, no min. spending)
3. How to invest
I'll begin by recommending these 2 Seedly articles to you first. Catch our #investing101 series on Instagram too!
For beginners of investing, I would recommend you SSB, ETFs, robo-advisors & insurance for yourself. But suggestions aside, I think the most important thing for you to determine is the following pointers:
Have you set aside sufficient emergency funds before starting on your investment endeavour?
What's your risk appetite when it comes to investing?
How much effort & time would you like to put into the investment?
Sit down and plan your financial goals before making any major decisions. We've got plenty of articles on savings, credit cards & investments if you are looking to do some further research. I hope this was useful. All the best for your upcoming job :-)
For credit cards, I think it really depends on what you perceive as good value based on your lifesty...
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