2K spare cash every month?

Msasd1234

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Hi All,

Im 24yo single this year have been working since I was 18.

OA-41K
SA-12K

I am currently drawing a salary of 3.4k , going to complete my uni course in January.

My biggest regret is not saving or investing any money when I was younger ,buying cars and stupid handbags and getting in ridiculous credit card debt.

I Would be debt free in March 2019(study loans and cc loans)

What would you do if you were my 25 with 2k cash every month and 40k OA?
How would you grow your wealth?
Is it even possible to generate 5k passive income ever month in 5 years time?
Please advise, Thank you!
 

eric5001

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Hi All,

Im 24yo single this year have been working since I was 18.

OA-41K
SA-12K

I am currently drawing a salary of 3.4k , going to complete my uni course in January.

My biggest regret is not saving or investing any money when I was younger ,buying cars and stupid handbags and getting in ridiculous credit card debt.

I Would be debt free in March 2019(study loans and cc loans)

What would you do if you were my 25 with 2k cash every month and 40k OA?
How would you grow your wealth?
Is it even possible to generate 5k passive income ever month in 5 years time?
Please advise, Thank you!

what is SA and SO har?
 

JuniorLion

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Hi All,

Im 24yo single this year have been working since I was 18.

OA-41K
SA-12K

I am currently drawing a salary of 3.4k , going to complete my uni course in January.

My biggest regret is not saving or investing any money when I was younger ,buying cars and stupid handbags and getting in ridiculous credit card debt.

I Would be debt free in March 2019(study loans and cc loans)

What would you do if you were my 25 with 2k cash every month and 40k OA?
How would you grow your wealth?
Is it even possible to generate 5k passive income ever month in 5 years time?
Please advise, Thank you!

Let's work some math. For monthly passive income of 5k would mean yearly passive income of 60k. At around 5% returns, that would require you to have 1.2million invested in some kind of equities, bonds, etc.

Do you forsee yourself to grow your invested amount to 1.2million within 5 years? If yes, then you have a good chance of attaining your goal.

Before we even talk about investment, let's settle some other more important issues:
1) Have you bought a private medical insurance coverage? If you don't know what this is, do check it out. Consider a rider as well
2) Have you bought a term/life insurance on your life?
3) Have you bought some kind of critical illness insurance?

Let's settle (1)-(3) before we talk about investing.
 

BBCWatcher

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1) Have you bought a private medical insurance coverage? [....]
2) Have you bought a term/life insurance on your life?
3) Have you bought some kind of critical illness insurance?
Let's settle (1)-(3) before we talk about investing.
Let's not!

1) Under no circumstances is private hospital insurance coverage an essential insurance need in Singapore, if that's what you meant. You might argue that public hospital insurance coverage is essential, at the B1 ward level (A ward is something like $3 more for a 25 year old, so maybe that's OK), but that's as far as it goes. And it's only a reasonable argument, not an ironclad rule.

2) There is no evidence yet this 25 year old has any dependents, most do not, and you didn't even ask! Individuals should NOT be buying life insurance unless they have dependents who would be in genuine financial distress (after inheritance) in the event of the individual's untimely passing.

3) Disability income insurance (DII) is what most experts would deem essential. "CI" is not. See here for a reasonable discussion.
 
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TabascoSauce

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Hi All,

Im 24yo single this year have been working since I was 18.

OA-41K
SA-12K

I am currently drawing a salary of 3.4k , going to complete my uni course in January.

My biggest regret is not saving or investing any money when I was younger ,buying cars and stupid handbags and getting in ridiculous credit card debt.

I Would be debt free in March 2019(study loans and cc loans)

What would you do if you were my 25 with 2k cash every month and 40k OA?
How would you grow your wealth?
Is it even possible to generate 5k passive income ever month in 5 years time?
Please advise, Thank you!

Possible if u can start a successful business within the next 3 years
Win toto is another possibility
 

ExtremeWays

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Hi All,

Im 24yo single this year have been working since I was 18.

OA-41K
SA-12K

I am currently drawing a salary of 3.4k , going to complete my uni course in January.

My biggest regret is not saving or investing any money when I was younger ,buying cars and stupid handbags and getting in ridiculous credit card debt.

I Would be debt free in March 2019(study loans and cc loans)

What would you do if you were my 25 with 2k cash every month and 40k OA?
How would you grow your wealth?
Is it even possible to generate 5k passive income ever month in 5 years time?
Please advise, Thank you!
Keverus clone :(
 

limster

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Keverus clone :(

Maybe its daughter of M___1234?

I was expecting TS to say that she is single but getting married soon to a boyfriend that is not working but expect her to buy freehold property for them.

:s13:
 

Msasd1234

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Maybe its daughter of M___1234?

I was expecting TS to say that she is single but getting married soon to a boyfriend that is not working but expect her to buy freehold property for them.

:s13:
Buying a property for a Boyfriend?
Not happening!hahaha
 

Msasd1234

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Let's work some math. For monthly passive income of 5k would mean yearly passive income of 60k. At around 5% returns, that would require you to have 1.2million invested in some kind of equities, bonds, etc.

Do you forsee yourself to grow your invested amount to 1.2million within 5 years? If yes, then you have a good chance of attaining your goal.

Before we even talk about investment, let's settle some other more important issues:
1) Have you bought a private medical insurance coverage? If you don't know what this is, do check it out. Consider a rider as well
2) Have you bought a term/life insurance on your life?
3) Have you bought some kind of critical illness insurance?

Let's settle (1)-(3) before we talk about investing.
Hello!
I bought my insurance since I was 18 under the prudential prushield A premier and Prushield extra A Premier.
I do not have any ci plans at the mm but planning to get it next year instead.
I believe it is sufficient at the moment.
And I do not have any dependents and not married.

As time is on my side now, yes I do see myself investing about 1.2m.
But the main question is it possible to do it at 2k a month?
 

TabascoSauce

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Hello!
I bought my insurance since I was 18 under the prudential prushield A premier and Prushield extra A Premier.
I do not have any ci plans at the mm but planning to get it next year instead.
I believe it is sufficient at the moment.
And I do not have any dependents and not married.

As time is on my side now, yes I do see myself investing about 1.2m.
But the main question is it possible to do it at 2k a month?

2k a month for the next 5 years.
ur return need to be 120% each year. the average stock return is less than 10%. u think possible?
 

SBC

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Getting a HDB for rental is a good head-start. Can easily obtain 2k.

Can suplement with another 3k to make up 5k per month.

Not easy though. Need lots of perisistence.
 
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iamveryguailan

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To get 1.2m in 5 years time, TS need to save about $240k every year, or $20k per month. Doable if it's own business or sales. I have a friend who did that when he was 27, but he's in sales line. Managed to save $300k on average per year over the past 5-6 years
 

JuniorLion

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They include some of the people who first ask individuals whether they have any dependents before they recommend life insurance. ;)

Experts also say that a person not having dependents at age 24 doesn't mean the person will not have dependents for the rest of his/her life. Forward planning, including buying insurance, is important.
 

Parka

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As mentioned by someone earlier, to get that $5,000 monthly passive, you need $1.2 million at 5% return. If you start your own business, it's possible to get $5,000 month and you don't even need the $1.2m. No different from holding a job where you get $5,000 salary, except it's your own business. You could earn more if you hold a job, and do a small side business, then quit the job and expand later on.

Anyway, to get $1.2m solely through investment route is not easy. You can do the math yourself. For people just entering the work force, how much can you save a month anyway? Those few thousands of dollars only going to earn you a few hundreds a year only.
 

mummy1234

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It took me and my hubby about 15 years to get our theoretical S$5k/mth or RM15k/mth net passive income combined to live in our paid up JB semid now. Only possible cause our pay enabled us to invest in properties which paid off for us, profited about S$1 mil from capital appreciation of our Sg EC and Sg freehold landed terrace.

The passive income is from rental of our Sg small condo and about 4.2% pa Malaysian FD of investment.

Theoretical, cause we have yet to invest in the Malaysian FD.
 
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JuniorLion

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It took me and my hubby about 15 years to get our theoretical S$5k/mth or RM15k/mth net passive income combined to live in our paid up JB semid now. Only possible cause our pay enabled us to invest in properties which paid off for us, profited about S$1 mil from capital appreciation of our Sg EC and Sg freehold landed terrace.

The passive income is from rental of our Sg small condo and about 4.2% pa Malaysian FD of investment.

Theoretical, cause we have yet to invest in the Malaysian FD.

This person never misses an opportunity to humble-brag.
 
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