How Much of Your Income Should You Save?
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- Опубліковано 4 чер 2024
- Is there an 'ideal' percentage of your income to save each month? Could saving 30% of your income be the perfect approach? Or would 50% be better? How about going to the extreme and saving as much as 80% of your income? At this roundtable, we discuss how much you should set aside for your bills, savings, investments, and spending. And why saving TOO much isn't always the best strategy for your financial health and overall well-being...
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Became big fan of The fifth person lately.. you guys are real… not trying to sell some financial advice or whatnot.. I differ on one of the comment.. I rather drink hawker center coffee for $1.40 than Starbucks.. but I love to travel in business class.. it’s not expensive when you plan well in advance and book (6 months or earlier).. ultimately it’s an experience .. its personal opinion and preference.. looking forward to joining alphalab 💪
Fair enough! Everyone has their preferences. We look forward to seeing you in Alpha Lab 😊
Thanks for the roundtable of sharing. Always the loyal fan here from the neighbor country, Msia.
Thanks Eric!
Hi there i m one of those that seldom travels as i always find it troublesome to pack n unpack stuff , going thru customs etc. But i like to do volunterring . So on weekends i volunteer . No need travel n yet i feel my life is very eniching n satisfying as i m helping the disabled, elderly , poor families etc the community . N yes i save / invest but i also donate a fair bit to the charity organisarions . So i want to say is that travelling is not the only way to enrich your life journey . You can do volunteering too
Thanks Khin Peng! It's so wonderful that you do volunteer work and donate to help others! 🙏💕We totally agree. Travel is just one very common example, but there are so many ways to lead a fulfilling and enriching life.
Great sharing!! Totally agreed!
Thank you!
Haha, wait till your kid goes to primary school and you have to pay for all sorts of enrichment activites and tuition fees😂
Hahaha true 😂
Good sharing. Thank you.
Thanks Zen!
Enjoyed your candid chitchat. You touched on some aspects of personal expenses (and tradeoffs) that some of us should take a second consideration in the light of brevity of life.
Thank you! Glad you enjoyed our discussion!
For someone who takes home 2k and saves 80%, means he's well taken care of. No student loan, Insurance cover, no bills to pay, no need to give allowance etc etc. How many people out there can do that LOL
Yes, it's a good starting point
For those with high fixed commitments or obligations, u can set a target savings rate at your own personal disposal income. Life is never fair. Got to do what it takes.
Really enjoy this episode, especially the conclusion to not put all the focus on savings but also living life as it is.
Thanks Shawn!
thanks for sharing
Thanks for watching!
Big fan of Ramit Sethi . How he advocates living a rich life . Spend extravagantly on things u love and cut down mercilessly on things that don’t . Ask the $30,000 qn and not the $3 latte qn. Indeed no point being a “poor” rich man. Balance is the key . We don’t live forever ,
'Poor' rich man -- that's a good way to describe it!
"certain experiences are different at different ages" - couldnt agree more with this! Money is just a tool to exchange for value. Just saving up big chunks of money have no meaning if you dont spend it.
Backpacking in your 20s: "I was built for this lifestyle!"
Backpacking in your 40s: "Why are the toilets so dirty?"
so funny, i get u sir , the guy on the right , i get u!!! u love starbks so much but u didnt spend on them, u went for coffeeshop!!!! i totally uds it!!!! u made me giggled cos we all been thru that
Hearing this while on my family trip to Seoul 😊
Enjoy your trip!
Hey guys. Love your vids.
Currently am turning 20 and I am generating about 6000/month from tuition and my side hustle. Spending 10% of it on dining out and treating my family.
Totally agree with your opinion on saving less when you are married. Though it is far off for me, I am planning to get a sizeable portfolio by the time I turn 30.
Currently I have about 80k invested and will be able to reach about 140k before uni starts(a year later).
I am hoping to achieve 1 mill by 30 so I am able to support my future family.
Would love to have some advice on how I should allocate my portfolio. Currently I am 50/50 in sreits and us stocks.
Due to my young age I am of the opinion that I should concentrate my army of dollars on riskier US markets but the valuation right now is mindboggling. I am invested in certain companies that have good balance sheets and are more conservatively priced.
I aim to retire at 45 with a portfolio of 5 million (about 3 million in todays money assuming 3% inflation rate). With a 6% dividend yield(planning to transfer all of my us stocks to reits/banks before I retire) I will be able to live a comfortable life and enjoy my years.
Would love to have you guys opinion on how to get additional income streams and where I should focus my portfolio on.
Currently I am DCAing into VOO I know on your last vid you said to do it in CXPX instead( am planning to change it)
Have about 20% of my portfolio in cash.
Currently I am very conflicted on whether to be a stock picker or not. I have read numerous books on the pros and cons of stock picking and I have separate portfolios(dca vs stock pick).
Currently in my second year of investing and I am lagging the market due to me entering interest rate sensitive plays earlier.
Would love to hear your opinion on stock picking. Currently the stocks I invest in are stable companies such as aapl msft ulta unh visa McDonalds
Interest rate sensitive plays are not doing so well now but the stocks are enphase tmf tesla and buying quality s reits.
Great sharing!
I would like to get the Fifth Person's opinion on Dave Ramsey's 7 Baby Steps for Wealth.
I hope youll read this and talk about it 😊
I do agree my dad has been vfrugal up till today when he could afford expensive meals, travel and cars.. prob similar to the example of your aunt.. now that he is 70 years old, all the more he doesnt find any meaning in spending on material stuff.. the true beneficiaries of his frugality are his children and descendants
Hopefully he's in great health too so that he can spend many more precious moments with all of you!
I guess I have a more unique question is do you guys SAVE and INVEST or do you guys just SAVE Only or Invest Only?
I wonder how much percentage do yall invest after yall saved as mentioned in the video and also at what point do you decide to put the savings into investment since we know banks can never beat inflations
Because I INVEST but I don't necessary SAVE. Pay check come, pay for family, pay credit card bills then remaining I INVEST after which left with probably a few hundred bucks (less than $300) for some scenario where no credit payment is accepted. But of course I have wide variety of INVESTMENT and in event of emergency I can liquid most of them and still make profit off initial capital without loss.
We save until we have 6 to 12 months' worth of expenses. One month is kept in your bank account, the rest is parked under SSBs for higher interest which you can withdraw anytime without penalty.
how do u guys factor in gifts? do u guys take the portion out of ur savings? investings? whenever I need to buy a present, i try to be generous but the money hurts
Gifts would come out of the 20% you set aside for discretionary spending.
Do you still save once you reach emergency fund? Or put everything to investment?
Do you put your emergency savings on Singapore savings bonds?
We save until we have 6 to 12 months' worth of expenses. One month is kept in your bank account, the rest is parked under SSBs for higher interest which you can withdraw anytime without penalty.
Is SRS and endowment considered as savings？
We'd consider them long-term investments, especially if you invest your SRS
This is such a great video. Very insightful and heartfelt. Victor's sharing was particularly emotional for me. It brought back memories of my childhood. Whilst my parents were considered middle class (teachers in civil service), emotionally I always felt impoverished. We never went out for meals, and neither did we go for holidays. My parents were extremely frugal, to the point where we had a Toyota but we never used it, because my dad would not stop complaining about fuel cost & carpark charges. I vowed to myself to work hard and to escape this kind of life. So I did. But it was a brutal journey, and some part of me is always scarred. I was ultra focused on amassing the Enhanced Retirement Sum (ERS) in CPF, and was ultra focused on saving money. Hence, I hardly travelled in my 20s. Part of me wishes things could have been different, but I am also comforted by the fact that if I one day depart earlier than expected, my spouse and my children will have enough for them to get through the next 20 years without much struggle.
Thank you for sharing your story, Angie! Your family is lucky to have you!
Life is short, living for the moment is important while we continue to work toward financial independence.
Life is not short. Most people live past 80. Life is a major drag when you're 60, broke and renting
fixed minimum expenses, unfixed income
For me 30% percent goes to insurance (I know it’s too much but well what’s done is done ….) and with the crazy mortgage now, another 30% goes into that. With other expends like household, giving to parents, etc …. Nothing much is left ….
30% to insurance is quite a bit! Hopefully you're past breakeven or positive
@@TheFifthPersonChannelsome yes some no …. But as time past, this commitment will be reducing (all clear in 3 to 4 years time). Anyway these overly committed insurance is suppose to be a “guarantee” sum of money if all else fails …. Not sure it’s the correct mentality 😅
All clear in 4 years' time is no problem at all! Once the proportion of income is freed up, you can reevaluate your budget again
@@TheFifthPersonChannelyea man but I’m not young (40 ish) anymore ….. well better late then never. Anyway love your show on both UA-cam and Spotify, thanks for all the sharing!!!! Always great information and wisdoms. Let’s hope everyone FIRE soon!!!
It’s truly NOT expensive to raise children in Singapore. Spend what is needed and what you can afford on your children. Unfortunately, many parents are spending extravagantly on their kids without even giving a slightest thought! Then, in hindsight, they will start complaining that children are TOO EXPENSIVE! Just have to identify and separate their NEEDS and WANTS (and your own too) which will make life easier, the world of difference!
Not easy as a parent myself as today many scientific knowledge and needs are known unlike in the past we take our chances. I went through vaccination routine dozen, everytime there is fever is doctor, ... you just need to miss once and there maybe a small chance they will get into serious sickness. There is no need to if we can afford.
So true. Raising kids in Singapore is like an arms race among parents sometimes 😂
Victors early days experience may be why he is now interested in distress stocks 🤣🤣🤣
He's still distressed 🤣
Saving is a very good habit but don't be obsessive. As you get older remember to spoil yourself sometimes - and always remember the saying "Money not spent is not yours".
Well said!
Please cover SATS again given the latest results
We'll consider it!
1. Work overseas. Save all salary. Spend only overseas allowances
2. Spend passive income. Save all salary
Fantastic. You can save up really fast this way
Life suddenly becomes even more purposeful when you have kids.
Kids don’t require a lot of money. They require a lot of hard work.
that's Money !
"The greatest gift you can give your child is your time."
I saved abt 74%
Married with 1 kid, 1car n 1 helper
Wow! How do you do it?
Me saved 89% with 2 kid, no car and 4 parents
Ur pay must be really high in order to do that.
@@user-gm7du2ms7v yeah thats AMAZING
@TheFifthPersonChannel my bto n car r fully paid so easier to achieve. I lead a simple n boring life so not much expenses
80% saving is too much