If you have recently started work, here are a few tips:
a) Set aside 15% to 20% of your monthly income as your savings
b) The balance is to be used to meet your personal expenses, including contribution to your parents
c) Avoid buying a car, as it is too expensive and take away too much of your income
d) Do not borrow on credit card
e) Let your savings accumulate in your savings account to earn 1% interest
f) Later, Invest your savings in a low cost investment fund or the STI exchange traded fund.
g) Do not buy a high cost life insurance policy (as it gives a poor return).
h) Buy low cost term or accident insurance to cover your income.
Your savings will accumulate to a large sum over 5, 10 or more years. You may need it for your major financial commitments, e.g. wedding, buying a home, education and retirement. If you do not take a loan, you can save on the interest payments!
Read these FAQs:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/benchmark.html
As a young just starting out the first insurance maybe a H&S.But if you have CPF you are automatically covered with a medishield and this should provide a good medical base.If you have parents or siblings depending on you buy a term that covers your income until your responsibility is discharged otherwise you don't need an insurance. Same time buy a CI term covering up to 5 times your salary.
ReplyDeleteIf you have budget problem buy on a 5 year term with guaranteed renewalibility. This should give you the peace of mind.Whatever money left save it in a FD for emergency and apportion some for regular investing in a well diversified portfolio.