Friday, 15 August 2014

80% of young Singaporeans have little to no savings at all ; are you one of them?

According to this link
(http://sbr.com.sg/financial-services/news/disaster-in-making-4-out-5-young-singaporeans-have-no-savings)
4 out of 5 Singaporeans have little to no savings at all! True?

Source: Singapore Business Review


Now, firstly I would not know if EnjoyCompare.com, which did the survey is accurate or not. 80% of Young Singaporeans is an appalling number. 

Having no savings is nobody's fault but yourself. Be honest with yourself, do you make an effort to save but end up spending on the latest gadget, fashion apparel or clubbing?

Do refer to my previous blogpost on how to save if needed.

I constantly emphasise the fact that Singapore is getting increasingly expensive to survive in, and young Singaporeans should not be ignorant of this fact. 

Indeed, social media has done an excellent job of posting things like "PRCs shitting outside MRT station" or "PRC allows child to urinate in plastic bag" and so on. These are not the things that Singaporeans should be concerned about. I'm not saying that we shouldn't be indignant that a foreigner is doing such absurd acts in their host countries but we should be more focused with ourselves and our lives.

Other than the fact that the PRC or the famous Anton Casey has made us feel insulted and angry they could and did not do any harm to our personal lives, am i correct? (Feel free to disagree)

However, if you suddenly lose your job today, and have no savings to fall back on until you find your next job, would that concern you and directly impacting your life?

All I'm trying to say is that we should be focused on the things that "Directly" impact us. Once we are done with that, then by all means focus on the things that "Indirectly" impact us.

What about teenagers like myself? 20% of you reading this blogpost may have already understood that fact and have taken the necessary arrangements to secure your financial future. Or at the very least we have exactly 6 months worth of "Emergency Funds" which i will talk about in my next blogpost.

The main thing of emergency funds is having exactly 6 months - 1 year of your allowance / salary as your back up fund should you run into a crisis *touch wood* but it's always better to be prepared.

Better Safe then Sorry. 

The 80% of the people who read or do not read this, are however happily lost in their own world and caught up with their own lives to monitor Singapore's economy and the ever worrying rising costs of living. Or else they were already born to rich parents and have no cause for worry. 

However, don't assume that because you're already in this situation there is "No Use In Doing Anything" because once you assume that mindset. It's Good Game for you.

Simple steps to secure your financial future is very easy.

1. "Start saving." Work on that Emergency Fund




2. "If you feel that your allowance or salary is too little, get a job." 
If a 70 year uneducated old lady can save up to $400,000 in her lifetime, why can't you? In which way are you inferior?

3. Earn side cash. 
Because you're a Singaporean, there's always ways to make money if you truly put effort. We have the popular app Carousell don't we?

[Carousell will also be featured in the subsequent blogposts if possible :) Stay tuned.]


It is an excellent place to sell off pre-loved or new stuff and get some cash. Of course if you wish to blow your money on great deals, it's your choice too. But limit your spending!




4. PAY OFF ALL YOUR DEBTS ASAP. 
It's crucial. The interest on your debts can ruin any saving measures you have already set into place. University loans, bank loans, money you loaned from a friend, whatever. Just pay if off!

5. Start planning for your future. 
How much do you intend to save for your wedding, your house, your retirement? It's never too early to start planning. Have a plan.
As the saying goes, if you fail to plan, you plan to fail. Keep that in mind.

6. Set your short term goals.
Simple things like, I intend to save up 1k! Don't laugh, I've seen friends who have $2 left in their accounts. When you achieve your short term goals, you will feel motivated to set other goals and it will become a habit.

7. Monitor your expenditures.
No matter how much you save, if your expenditure exceeds your budget you will have NO savings. That's definite.


8. Invest, Invest, Invest.
Don't invest blindly. Read books, ask an adult that knows about it. Heck, ask your accounting teacher if you must. Just invest. Savings will slowly lose its value as inflation increases. $50k now and $50k in the future will not have the same value. $1 now and $1 during your primary school days is different isn't it?



It won't be easy. But it's doable. Step by step. Dream big! Start small. But most of all, START.


Signing off,
Teenage Investor











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