What is the good proportion for savings and investment? Also, in this uncertain period, is it good to invest more? - Seedly
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Jayden

Asked on 12 May 2020

What is the good proportion for savings and investment? Also, in this uncertain period, is it good to invest more?

Current portfolio

Saving:66%

Bonds:11%

Stocks/ETF: 23%

Appreciate if all can share your portfolio too. Thanks!

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Gia
Level 2. Rookie
Answered on 13 May 2020

Hi there! Based on what I've read, you can start by simple budgeting: 65% essentials (housing, food, transportation), 30% end game (your future), 5% extras (small indulgences)

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Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Depending on your life stage and goals, the proportion gets adjusted accordingly. Generally, the guideline is to keep 3 to 6 months of monthly expenses as emergency funds. (Part 4.1) Accordingly, this will form your short term savings.

This is in addition to the funds that you may need for the short-term, e.g. buying a house in 6 months time.

As for investment, it depends on your risk appetite. In general, we will want to invest at least 10% of our money for long-term goals, e.g. retirement.

I share quality content on estate planning and financial planning here.

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Alvin
Alvin
Level 4. Prodigy
Updated on 12 May 2020

My current portfolio:

Cash (DBS Multiplier) - 62% (War Chest + 6 months rainy days fund)

Stocks - 24%

StashAway - 9%

DBS digiPortfolio (Asia) - 5%

My plan will be continue to DCA weekly for StashAway and digiPortfolio. For stocks, I am waiting for a good entry point to average down.​​​

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Hey there! Seedly has an amazing guideline called the 5:3:2 rule whereby 50% of your salary goes to expenses, 30% is used to capitalize on wealth building opportunities and 20% for emergency funds. Link below, very helpful! You prolly can tweak it yourself, personally I feel 50% on expenditure is quite unnecessary.

https://blog.seedly.sg/working-adults-allocate-your-monthly-salary/

Financial planning is an integral part of life. You can reach me at this platform to find out more.

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