I'm new to Investments, what tips would you guys have for me? - Seedly
 

Investments

Stocks Discussion

Asked by Joanne

Asked on 28 Nov 2019

I'm new to Investments, what tips would you guys have for me?

What is a decent amount that one should be leaving in their bank account before investing the rest? After considering the 6 months emergency funds.

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Daryl Liao, Fti
Daryl Liao, Fti
Top Contributor

Top Contributor (Dec)

Level 7. Grand Master
Answered on 07 Dec 2019

6 months of emergency fund is good. I like to keep 5k Around just for day to day use.

Invest into books. Dont be shy to ask people what is their thinking process when evaluating their investments. You get to tap on their many years of experience!

My mentor taught me: Pick up the phone

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Wallace Chai
Wallace Chai
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 07 Dec 2019

Fast track your learning with books and courses. Do not be greedy and use leverage. Only invest for long term.

6 months of emergency fund is good enough.

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9

Hi Joanne,

There is no hard and fast rule as to a 'decent' amount. What matters more is that your insurance coverage is in place, and your emergency funds are also prepared. The rest of your money can be earmarked for investing. The amount you need to leave in the bank consists of your emergency funds (12 months worth of expenses), and the rest would be your war chest that you don't deploy just yet. If you are saving for a big ticket item like a wedding, I'd advise setting up another account for that so that you can stay focused on saving towards the goal.

Once you have that done, you'll need to gain knowledge on the different asset classes, understand their pros and cons, have a multi asset investment account open (along with CDP) and decide what you want to invest in. Execution will be the key, if you don't take any action, nothing will happen.​​​

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Bibiana
Bibiana
Top Contributor

Top Contributor (Dec)

Level 7. Grand Master
Answered on 06 Dec 2019

6 months worth of emergency funds is good! :)

Invest with the money that you could afford to lose first. Gain confidence before putting more of your hard-earned money! :)

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Jonathan Ang
Jonathan Ang
Top Contributor

Top Contributor (Dec)

Level 7. Grand Master
Answered on 06 Dec 2019

1) Start small, so you wont lose all your money due to blind spots

2) Ask and ask and ask, do not have an ego to say your are right or wrong.

3) Find a community or investing mentor who has been there and done that.

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3

Hi Joanne,

It's great that you have 6 months of emergency funds! You can start of by reading some books regarding investments: One Up Wall Street, 5 Rules of Successful Stock Investing.

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Kelvin Seetoh
Kelvin Seetoh, Founder at Kelvestor.com
Level 6. Master
Answered on 08 Dec 2019

Don't get too anxious to start investing.

Arm yourself with the necessary knowledge! Follow the advice given by others. A lot of fantastic content in this thread, Joanne!

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Junus Eu
Junus Eu
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 03 Dec 2019

No decent amount - once you have set aside emergency funds, I would start deploying capital already.

How to Start Investing

1. Accumulate capital. Everyone needs to start with some investment capital. Also of your pool of available capital, decide how much you want to invest.

2. If you can, start as early as possible. Compound interest allows your account balance to snowball over time.

3. Open your CDP account (which you have already). For the benefit of those who haven't, sign up via the instructions here: https://investors.sgx.com/cdp-account-opening/#/form-selection

4. Open your brokerage account, and link your CDP account to it.

5. Understand your investment options.

There is a whole world of investment products out there from stocks, bonds, ETFs, mutual funds to the more exotic or less mainstream ones like art pieces, scultures, gold, and cryptocurrency.

Read up lots to understand your risk appetite, and form your own investment strategy.

6. Execution is everything

I always like to say that one can spend a decade reading and not deploy a single cent because of fear of procrastination. I always say to start early, and start investing in small amounts so that you can better understand yourself as an investor.

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Kelvin Seetoh
Kelvin Seetoh

08 Dec 2019

Fantastic answer!
Kang Jianbin
Kang Jianbin
Level 4. Prodigy
Answered on 09 Dec 2019

Only invest using spare money-do your own research-learn to control your emotion well

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M
Michael
Level 3. Wonderkid
Answered on 09 Dec 2019

Depends on what kind of investment you are referring. I assume is stock investment. I would say build on the knowledge and fundamental first.

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Eliya
Level 2. Rookie
Answered on 09 Dec 2019

I feel at least 6 - 8 months of emergency funds will be good. One tip from me is always only invest in company that you have done due deligence for.

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V
Vanessa
Level 3. Wonderkid
Answered on 08 Dec 2019

Spend some money to learn about investing, be it from books or from courses.

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JC
Jon Chua
Level 4. Prodigy
Answered on 08 Dec 2019

Read, read, and read... Books, forums.. All works..!

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SL
Swee Ling
Level 3. Wonderkid
Answered on 07 Dec 2019

I feel safer to have 12 months of emergency fund.

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A
Alvin
Level 3. Wonderkid
Answered on 07 Dec 2019

One most important tip is do not leverage. Do not invest if you cannot afford to lose the money.

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SL
Sean Lee
Level 3. Wonderkid
Answered on 07 Dec 2019

I am new too! There are so many tips and advices out there. The most important one is get educated and do not invest without any knowledge!

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Choon Yuan Chan
Choon Yuan Chan
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 06 Dec 2019

Buy STI ETF. The 1 counter which owns 30 leage singapore companies across numerous industries

No need to think or research as homework

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Bjorn Ng
Bjorn Ng
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 03 Dec 2019

There isn't any decent amount TBH, it depends on your plans per-say. For example for me, I have my wedding and house renovation to consider, so I keep more in my bank account than just the 6 months emergency.

And at the end of the day, you should only invest in money you can afford to lose. I admit I make that mistake of over-committing sometimes - time to relook at my portfolio! Thanks for the reminder!

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Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 7. Grand Master
Answered on 28 Nov 2019

Hi!

As you are new to investing, before plunging into it, you should invest some time in reading and learning more about it. A good book to start with is "The Intelligent Investor" by Benjamin Graham.

The amount you should put towards investing should only be the amount that you do not need in the near future and that which you do not mind losing on to. The returns in the market are volatile so it may so be that you lose some money, and in case you need the money in the short term, you may not be able to recover it all.

Also, starting investing can be a little overwhelming as there is a lot to know before you can actually earn some returns. Till such time you get more comfortable, you can make use of a robo-advisor. It will create an optimal portfolio for you, based on your financial goals and risk profile.

I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered on 28 Nov 2019

Dont invest with money you cant afford to lose

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