Asked on 09 Jul 2019
Currently 21 years old in Uni with less than 10k savings. Felt the need to grow this money as I am worried that I don't have enough money in the future
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There are plenty of safe ways to invest your money. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.
You can read here for a better understanding.
I work at Kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.
I hope this helps you make the right decision.
Looking at your age, I am assuming you will have loans to pay when you graduate. Build up your emergency funds (6~ 12 months of expenses) and pay off your existing loans first before you go into investing. While doing so, you can read up and research on the different investment products available. Have your insurance set up as well (insurance is part of your defenses together with your emergency funds)
Also, look at expected expenses in next 5 to 10years (big purchase items such as further Education loan, BTO, Renovation etc). You can invest in lower risk products for these purchases.
Have a plan/Budget to monitor your spending, income, savings etc. You will have a better idea where you can reduce your expenditure to increase your savings
As you are young, you can invest in the higher risk options and you but if you are risk adverse, go for low risk investment products.
Also, diversify by investing more than one products. (Do not keep all eggs in one basket)
Investment products (not limited to the below)
DCA into ETFs (DIY or through regular saving plans)
Bonds (e.g. SSB)
Endowment plan/ Investment linked policy (by Insurers)
As you are still young, you can start to do regular saving plan either in local ETF or global ETF, do it for 20 years and you will thank yourself. Nowadays the cost to access global ETF is relatively cheaper via robo advisor or broker like FSMOne.
Hi Anon, be patient! Your money will come. Do set up your emergency funds first by growing your active income. Take part time jobs, teach tuition etc. and save all these money. Do well in your studies also and ask yourself what do your want to do in future, build your knowledge towards that through all the soft skills you'll learn in uni.
In the mean time, learn more about personal finance and investment by reading books and from Seedly. You are doing good with 10k savings don't worry! Take your time but not importantly learn!
Ultra-longterm passive indexing ETF investing, simple & very successful
here some input how it could be done: