Is my savings adequate?

Hi Mr Tan,

I read your blog faithfully for financial tips because I really trust and value opinions from a veteran like you. Most younger financial planners (not all) that I've met seemed too eager to sell despite their claims to want to help. Sometimes, one can tell.

I have a question for you. I am a 30-year old married female with cash savings of almost $30K. I don't have other assets apart from co-owning a HDB flat with my husband.

Can I find out if this is an "acceptable" amount of savings at my age? I only have one life insurance policy. How much cash assets do most Singaporeans have when they are in their 20s, 30s and 40s?

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Ny reply:

I suggest that you read the FAQ in my website, www.tankinlian.com/faq

You and your husband should save about 10% to 20% of your monthly earnings and invest in a large, well diversified, low cost fund.

Assuming that you have worked for the past 5 years and your combined annual income is $50,000, a 10% saving rate require you to save $5,000 a month. Your total saving of $30,000 seems to be just about right.

This looks like a financially prudent approach. You can call me at (nuamber), if you wish to talk to me.