Retirement Saving Tips for Millennials

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Published on: April 10, 2017

 

With today’s more competitive job market and fresh graduates burdened with student loan debt, it’s obvious why most millennials are less aggressive when it comes to saving for their retirement. If you are part of the generation Y who’s ready to explore the world of investing, here are some important points to keep in mind when planning to start saving for a retirement fund.

  1. Find a Reliable Advisor

If you have zero experience and limited knowledge about bonds, stocks and mutual funds, you’ll probably feel overwhelmed by the volume of investment options out there. Finding someone who can give you sensible and unbiased advice on what moves to make is critical to your financial health.

While it’s tempting to run to your parents for financial advice, it’s a better idea to talk to an expert who specializes in your demographic. After all, financial strategies suitable for a 25-year-old is likely very different from a 45-year-old.

  1. Start Investing Early

If you find it difficult to save a portion of your monthly pay check, you need to find an investment tool to make saving less effortful for you right away. Check if your employer offers a CPF (Central Provident Fund) or an SRS (Supplementary Retirement Scheme) and learn how to use it well.

These programs will help you save by providing tax benefits and automatically deducting your monthly payment from your pay check, so you’ll never get a chance to spend it. If you’re self-employed or if your employer doesn’t offer such programs, set up a direct deposit to an independent retirement account to make saving easier.

  1. Budget Your Lifestyle

If you’re young, this might be the hardest thing to do. Millennials tend to enjoy life too much—we often buy expensive things recklessly, travel on whims and have frequent night-outs. All of these habits cost you more money that you could have saved for your retirement.

Realistically, we don’t want to deprive ourselves of having fun in order to save, so plan for practical ways to save. Things like minimizing use of air conditioning system or turning off appliances when not in use will help reduce electricity bill. Pay your bills on time, so you won’t incur penalty charges and deactivate unnecessary premium subscriptions.

Investing and planning for retirement can seem like a hassle, but for millenials who have witnessed firsthand how unpredictable the economy can be, it’s particularly scary. If you are not ready to take the risk, taking baby steps and starting educating yourself as early as now goes a long way to ensuring your future.

What to Do with Your First Paycheck

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Published on: March 22, 2016

 

 

It’s graduation time again in Singapore and soon the market is packed with new employees on their first jobs. This is a good sign and a boost to the economy. It’s always better to have a new workforce joining the labor field than see a rise in unemployment among capable citizens. But where do these first paychecks usually go? They say what you do with your first paycheck can say a lot to how you’ll be spending your money.

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The following are some worthwhile ideas which you can do with your first paycheck:

Give this to your parents

One noble advice I’ve heard was to give your first paycheck to your parents. It doesn’t matter if your parents need this money or not. What matters is you give them your first paycheck as a sign of your gratitude for all those difficult years of raising you up. If you do take this course of action, they did indeed raise you up well. Kudos to your parents and kudos to you for honoring your parents!

Put it in a bank

A responsible way to do with your money is to put it in a bank. You can do so in the intention of building your emergency savings fund. You’ve just earned your first paycheck so that means you’re already old enough to stop depending on your parents for your daily needs. Start your financial independence by being financially wise with your money. Your emergency savings fund should also be your safety net in times of unforeseen events. You don’t have to worry about where to get money that is out of your budget.

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Start an investment

Another wise way to do with your first paycheck is to start investing them on stocks. Keep in mind to have a long term sight for your investment as your money will go farther if you leave it longer as investment. You’re never too young to start an investment. Start plotting your financial goals. You’re still young so your financial goals can be as lofty and ambitious as you want them to be. Plan for your early retirement. Plan for your travel fund. Plan for starting a family someday.

Treat yourself to a delicious meal

You’ve worked hard so you don’t have to feel guilty if you spend a portion of your money by treating yourself to a delicious meal. You may have been keeping a list of fancy restaurants you’ve always wanted to try or maybe a list of food you’ve never had yet but always wanted to try out. What you’re paying for is an experience. You’re working hard because you want to experience the good things in life. So go and enjoy!

Give to a charity

You may have a heart for helping other people and used to volunteer your time and skills to some charities or organizations and foundations with good causes. Now that you’re already working and earning your own money, you can start giving some financial assistance to these charitable causes especially when you’re already busy and too tired to go out.

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