The economic and job uncertainty wrought by the pandemic has made more folks keenly aware of the need for good financial discipline and a rainy-day kitty. But what are good budgeting practices? How much emergency funds do you really need, and how do you set this aside?
Chin Teck, 32, a father of two young kids and Jasmin Jayadas, 30, who lost her full-time job due to the pandemic, share their challenges in saving and budgeting.
Financial experts Christopher Tan from Providend and Jolene Ong from the Institute for Financial Literacy weigh in, giving their tips on proper budgeting, buying insurance, building up an emergency fund and the basics of investment.
Produced in partnership with MoneySense.
(JASMIN)
00:00 Introduction
01:51 Why do budgeting?
02:15 Budgeting basics: 3 easy steps
02:34 Online budget calculator
02:48 Phone apps to track expenses
02:54 Use debit, not credit cards, if you tend to overspend
03:33 Saving before spending
04:00 Rebuilding your emergency funds
04:58 How to save up for your wedding
05:45 Buying BTO vs resale flat
(CHIN TECK)
07:24 Introduction
08:26 How budgeting changes as you grow older
08:56 How much of your income should you save?
09:46 Budget using your bank accounts
10:39 What can you do to avoid splurging on impulse?
12:14 You need a “bad mood fund”
12:48 Are you spending too much on insurance?
13:59 Endowment plans and investment-linked policies (ILPs)
14:25 Exchange-Traded Funds (ETFs)
WATCH Part 2: How To Start Investing In Your 20s & 30s For Retirement
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Actually I disagree with using debit card to pay instead of credit card to prevent overspeed. What you need to do is to pay directly after u use a credit card so is just like u r using a debit card, but u get the perks of loyalty point and good credit rating when you are planning to get a house
I'm sorry – but I feel bad for the chin teck in getting endowment plans and ILP. You should never mix insurance with investment
I actually agree using the debit card,i do the same thing coz I believe that credit card is still a somewhat like borrowed money that is like digging a hole for your early death if you can't control it
Most young men or women will get scam before they become adults.😂
The only one way to fix financial problem is to make sales cash flow everyday……. end of story….
Wished CNA interviewed me instead. Honestly, if you know how to invest, you only need term insurance + critical illness and hospitalization plan. Insurance products have poor returns. My roboinvesting has an average of 13% for the past 3 years without me doing anything except to set up auto deposit. Will continue to monitor and compare with S&P500 and my own stock picking performance. And for emergency fund, after covid, it's safer to have at least 6 months worth of emergency funds. I have a year's worth just to be safe. And as you're trying to build your wealth after uni, live like a freaking beggar. Think that you're super poor like you're making $1k even if you're making $5k as a fresh grad in Singapore. Then invest the rest. That's how you get ahead of the game.
I don't think splurging when you are down is actually good for long term mental health.
It is worrying that Jasmin didn't even speak about investment or insurance.
Asking these 2 dinosuars who called themself experts is way out of times. Saving cant do much. Its expanding your income revenue that is the key. Suggesting using a debit card is a poor recomendation. Credit card is no way worse off than a debit card.
Bad mood fund? Pacify emotions with money?
By the way I'm also from Swab Ops, the government has already started to close the position since Mid October, so…. GG Jasmin. Time to work in another line, or work as a swabber in the private companies which pay lesser than $3k a month :/ Jiayou!
I am sorry but in general as a whole for the laymen, this is good advice. However, for someone who knows how to invest a little, some of the options they are advising has really bad returns!
ETF should go towards S&P500, I lost money a significant amount in SG ETFs over a 5-year investment forecast done by the financial adviser as the adviser himself is not up to date with the hidden fees (don't get me wrong overall in general financial advisers are decently trained but if ask them about the nitty-gritty they have no idea).
Not all IPLs are bad but most of them give terrible returns, do not settle for returns giving you less than 4% (as that is the estimated inflation rate in the projected for future economy)
P.S. I am by no means an expert but I have talked to many financial agents, investment brokers and tried for myself for this first-hand experience (the good and the bad returns) that I am sharing RN.
If most people do an automated savings account by putting $ 100 to $ 200 separately once they received their salary monthly, they could make it👍 That would add up in a year savings forward without thinking about it💪
Not sure if STI ETF 14:45 is a good choice of investment….its stucked at the same price since 2008 lol, giving only 3 – 4% dividend
Stay single biggest save hands down.
As a spender who cant "save", i choose to put up to 70% of my income into investments and no turning back since . And yeah, I choose investment that giving me more % than inflation rate. Thats the fundamental of why investors invest.
Can, just return 100% of the CPF after 55 just originally stipulated.
Just put in crypto and stake usdt usdc done
Jasmine should work to improve her income. She is young she should focus on building skills that will help earn more
Just saving in a saving account, to me it’s not an ideal advice, invest in a mutual fund ,index funds or ETF n contribute every pay day n with dividends reinvested is a better choice.
That 32 yr old guy looks like a teenager 😂
4:29 if you have emptied your kitty
a y o