Asked by Anonymous
Asked on 18 Jun 2019
Currently in the first quarter of my National Service endeavour. My financial goal currently is to have a sufficient amount by the end of National Service (500 days to go), that’s sufficient for me to have in case of emergency purposes like family matters or health stuff.
However, I’d also like to have the privilege to sometimes spend on things on myself like clothings, food and other more but on a control per month.
I currently earn $735 monthly.
Add on: What’s the best bank to have?
You got to define sufficient in your head. Its always better to have a number to work towards.
I came out of Army with an additional savings of about 10k and I think thats a very good amount to have as a goal.
An integrated shield plan with rider will help you to offset about 95% of your hospitalisation bills. You will want to get that, it will protect your money.
So how to get to 10k.
Commit an amount to save every month. This should grow as your allowance increases. Just saving 400/month on average will give you 9.6k after 2 years.
Avoid canteen (seriously, the food is nothing special but just an illusion created cause we are in-camp) stick to cookhouse food. Avoid ninja van when out too.
Don’t go ra-ra over nights off. Many NSF will spend more during nights off, don’t. In fact if my nights off are 3 hours only, I don’t even bother to go out.
As much as you can, do not cab to camp. Just stick to public transport. If you have to cab to camp, share with someone else.
Sell your time for duty. I do that and earn a few hundred bucks extra in the month. I use the time in camp to do reading too. But of course, I will have a bit less of social life. So balance that out accordingly.
Basically, it’s just being aware of what you are spending on. Army is a great opportunity to learn side skills and save (especially if you are stay-in like me)
I will recommend that you use CIMB Fast saver for your savings. Hassle free.
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18 Jun 2019
18 Jun 2019
Cimb fast savers, no requirements, high interest or ssb
Hi Anon, firstly #ORDLOHHH HAHA sorry just had to. But anyway to answer your question. here's some advice! Try to save whenever you can save... If you are in camp week in week out, you get to save quite a bit on transport and food. Some people might think that since they are in camp from Mon-Fri, they have more money to spend on the weekends. NS is also the time when we start doing certain activities which might cause a hole in your wallet especially if you do it often if ykwim. Here's not to say that you should scrimp and save. I understand that there are definitely certain things we want to spend on. You should! It's your hard earned money! But before you do so, it would be good if you could sit down and have a good financial plan. You have a monthly pay of $735, it's not the most and so the more you need to have a plan. You could allocate a percentage to savings, some for Regular Savings Plans (RSP) investment to let your money grow, and leave some for spending. On certain months, when you have nothing to spend on, then you can save and use this money for your future wants down the road. The key here is that you got to plan your finances and be disciplined enough to carry it out throughout this period especially since you don't have much to work with. You should also be paying yourself first, rather than spend first, save later.
Another thing you can do is purchase concession for your EZ-LInk card. Like what Clarence mentioned, try to take public transport to camp instead of GRAB etc. as all of this adds up. It would be a bonus if your parents can fetch you to and from camp hahah
Grow your money if you can!
To grow your money, you can explore doing a monthly investment called RSP. Every month, you are allocating some money for investments. Though it's not alot, it's still something and when you start early, you are giving yourself more time for your money to compound. Isn't that a good thing? You can check out some platforms which allows you to start at a low sum. Some exmples of investment instruments include robo-advisors and local banks etc.
What's the best bank to have?
I used POSB's SAYE/SAYS as the i/r was quite good. By crediting a certain amount of money into the account monthly and by not touching it, you will get a 2% pa interest on the money in that account. For more info, you can check it out here. Make sure you don't touch the money, if not the higher-than-usual i/r won't apply!
Hope it helps!
18 Jun 2019
19 Jun 2019
Hey i guess Clarence have covered most of the points and its damn good points and it works.
Just to add on, if you are drawing $700+, I believe you are a SCT or in high risk vocation? If you are an SCT congrats because your allowance will increase significantly after you pass out so make sure you do your best and get your 3SG rank so that you get more money.
As for how much you should save, i would suggest about $400/mth. Seems a bit hard but its possible if you follow what Clarence says and dont spend on unnecessary things. $300+ for you to spend per month means a rough $35-40/day for your weekend which is more than enough for food and transportation. Just dont go club. Or perhaps you can.
If you intend to go out for a drink once in a while (e.g. once a month) just cut down on your expenses for the other weekends and 'save up' for your club/pub.
18 Jun 2019
Get POSB SAYE with BE YOUR OWN BOSS(BYOB), you can contribute any amount from $50 to $3000 every month, will auto-deduct from your main DBS/POSB Account. Dont touch the money for 2 years and you get 2% + Base Interest rate. Then to get the BYOB just use DBS Credit or DBS Debit card 5 times a month, to get extra 2% interest. So total 4%, as long you don’t touch the money for 2 years. Im currently awaity NS and plan to do this.
Perhaps you can look into the POSB Save-as-you-serve account.
It is a savings account with safra tie in promotions, and higher interest rates.
Hello there! you might want to set 40% of your income to go to a savings account to park it in there - make your money work for you and earn that sweet interest! i recommend CIMB fast saver as you get 1% interest rate with no strings attached. best of all, you can withdraw anytime with no worries so if there are any emergencies you can get the money ASAP.
as for the 60%, you can just spend the rest on whatever you want! however, i suggest you create a budget and follow it e.g : a monthly food budget of $150. this is to ensure you don’t overspend and also try to get you to spend lesser of the 60%, so you can dump the leftover money by the end of the month into your savings account thus increasing your savings! well for me, i feel that this is the time to start increasing your savings as you’re in NS for almost the whole week and thus will have lesser expenditures and more opportunities to save!
you don’t have to follow per say, work with the percentages and see what you’re comfortable with! of course, this is just my opinion and what i would do if i am in NS.