Asked on 10 Aug 2018
Hi there, i've recently graduated with a diploma cert and started a full time job, however i may be taking up uni next year as well.
As i have no savings at all now, i'm trying to start with a finance plan along with start investing. Are there any suggestion on how i may improve on my financial planning and investment planning?
Currently my financial plan is to set aside $200 of my pay to savings (long term saving, emergency and uni maybe?) $100 of my pay for more fluid savings (travel and wants) then $100 for investment (thinking of posb invest savers but i need to have unit trust with dbs to be eligible?) the rest would be expenses (including bills and etc.)
All these are imo.
CIMB fast saver. 1% p.a. but need maintain min $1000; though no fall below fee. Dump all your cash in here.
Any account. But since you just finish your studies, I'm assuming you're still 20-23.
Have either OCBC FRANK account(no fall below fee till you're 26) or DBS multi currency autosave account(no fall below fee till you're 29).
Only transfer your cash to your expense account when you need to spend it. To me, this form let's you know how much you are spending based on transferring basis.
Robo advisors: Smartly has pretty low investment amount needed so you can consider.
RSP: Nikko am STI ETF with DBS. No need to create a brokerage account as long as you have a existing account with DBS, Internet banking can just do it.
P2P loans: If you're a more hungry investor and willing to take risk you can try this out. For me I will go for invoice financing loans since to me it's less risky as backed by an invoice. Shorter tenure loans, able to see interest repayment as short as a month.
Hope it helps! :)
Hi, I would do this if I'm in your shoes! :)
For the $200 (savings), I would park them in:
Or the Singapore Savings Bond once you reach the minimum sum of SGD500 as there are no penalty for early withdrawal and you still get the interests up to that point or accounts.
As for the $100 investment, I would either invest them in Robo-advisors (e.g. StashAway) or Regular Savings Plans (e.g. DBS Regular Savings Plan)
amount will be invested automatically monthly so you don't have to worry about forgeting or lack of discipline
In addition, also find it rather fuss-free and beginner friendly (not much knowledge needed)
Lots of reviews in Seedly's Product Reviews section to understand better
Going for investment courses also help to gain more exposure, most of them are affordable, and there's even some that are free! :)
Lastly, find this article by Seedly's team really useful and succinct for starting out!
Hope these helps, all the best! :)
You don't really need to be invested in unit trusts with DBS to start on POSB Invest Savers. Believe the latter can be started via an atm instruction at any POSB atm.
Firstly, you may wish to look into getting your insurance protection and health plans in place first before looking at investing. Good to have an hospital plan in place so that it can relieve potentially heavy hospital bills. Look into low cost term protection plans as well.
As some of the others have already mentioned, for the amout you are looking of investing into, you may consider robo advisory platforms for a global investment perspective (perhaps StashAway if you don't have a large capital base to start off with), or STI ETF via POSB if you prefer a local flavour. Please do your own due diligence before embarking on any investment. And perhaps the best investment you can make is on educating yourself via books. Or feel free to ask anyone in the community here if you have any questions.
For medium to long term investing, if you are keen, look into the investment programmes widely available and choose one that fits your personality. Not to mention you need to find the right mentor that is approachable, even after graduating from the programme. You'll need to pay quite a bit, but I see it as a shortcut to retiring earlier.
All the best in your journey. Cheers :)
Just save everything, don’t even bother to invest or travel. Set aside some money once you have sufficient savings/captial to do other things. But for now just save
Is your uni local or private? For local unis, easier to obtain partial or full scholarship/bond. Sometimes bonds are good because there may be allowance too and of course job security after graduating. If its private, you still can try and find bonds; scholarships are less likely. If you're from a low income family, bursaries are easy to apply and approve.
For loans, local uni (ntu nus smu) can take up the govt loan which is interest-free until graduation. After that, it's 4.75% p.a. which is really low. You can make flexible payments for this type of loan.
If it's a private uni, you can consider working and studying at the same time. I did that after working and saving for first year's school fees for one year. After that, you'll be self sufficient.
To be honest, for a small amount, the type of account is not likely to make a huge impact. Also, don't go into investments without being ready to lose everything. Read up first and always do your own due diligence.
Hi, you can consider opening a POSB Save As You Earn (SAYE) account and deposit your $200 inside monthly for long term savings. This account gives you an additional 2% interest after 2 years and is ideal for your situation since you cannot make any rewithdrawals otherwise the 2% interest will be forfeited. When opening the account, you will select the amount that you want to put into the account every month and on which date, it's all done automatically thereafter. You can read up more about this account here - https://www.posb.com.sg/personal/deposits/savings-accounts/saye#
As for the $100 of your fluid savings, you can consider opening a CIMB Fastsaver account which gives you 1% interest on your savings so long as there's at least $1000 inside, fuss-free and no strings attached. You can then just transfer over $100 monthly into this account after making the one time $1000 transfer. There is no lock in and you can transfer the money out anytime. Feel free to check out real user reviews on the account here - https://seedly.sg/reviews/savings-accounts/cimb-fast-saver
Note that both accounts can be opened online, simple and straightforward process & is much better than earning just 0.05% interest.
As for investments, you can consider using POSB invest-saver to purchase the Nikko AM Singapore STI ETF or make use of robo-advisors like Stashaway/Autowealth/Smartly to buy US ETFs. You can do dollar cost averaging (DCA) with just $100 monthly, note that this is a long term investment in order to see some returns.
Hope this helps!
As per what financial books said, it's better to have 6 months of your expenses as rainy day savings. As such I believe the investment plan should be put on hold until you achieve this saving amount.
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