Posted on 29 Jul 2020
-$2200 take home every month
-Bought insurance and some cheap saving plans
-no loans & no commitment
just finish saving 1 year of emergency fund (should I put in fixed deposit?)
only $5k of saving now (save more?)
Please help me..
Fret not, the community is here for you. If you currently have 1 year of emergency funds, its actually better than the recommended average of 6 months.
Having 1 year in this instance is good during a period like covid, however having too much in your bank is also a detriment to yourself. Fixed deposits are illiquid, and is only withdrawable at maturity. If you have excess emergency funds, and would like to let it grow better, it would be good to take up a Singlife account. It allows your first 10k to grow at 2.5%, however do note its not guaranteed.
As your drawn income is considered on the low end in Singapore, after you have established your emergency funds, you should consider some long-term savings for yourself. If you have any future milestones which you want to plan for, it would good to pen them down, and know the respective amounts your might need to for your goal.
Do hope i was able to address your queries! Ask more, and we might be able to understand your situation better!
Hey, awesome job! I encourage most young people to take your time to read up on the FIRE movement. While i personally dont agree with everything the FIRE movement advocates, there are some good pieces of advice there which is going to benefit you. Good luck!
I have written up, here, what not do:
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