Surprisingly, saving $100,000 by 30 years old has become a widespread goal among young adults in Singapore. For the average income, it is somewhat difficult but not impossible to reach the goal. The first piece of advice we would offer is: start saving as early as possible to take advantage of the compound interest. Meanwhile, we have compiled some useful tips for you to achieve this target.
Something we want to emphasize is that saving up to 100K before your 30s is beneficial, but not essential. Don’t be stressed out and continue reading if you are keen to explore possibilities!
Learn new skills
If your current income seems impossible to reach that goal, don’t be disheartened. Learning new skills can lead to higher pay or better career prospects. Practical skills such as photoshop, coding, photography, and translation can be learned online for free. There are plenty of resources available for you to upgrade yourself if you just google them.
Get a side job
If the circumstances permit, try to get yourself a side job that can effectively help you to hit the 100K goal. Bear in mind that not any side job will do; you should find something related to your main job that you will enjoy doing at the same time. An ideal side job would even equip you with new skills which are helpful to your future career path. However, if you are already exhausted from your current job, we discourage overloading.
Adopt a minimalist lifestyle
Saving up usually means cutting back on expenses, but how do you do it without losing your standard of living? Adopting a minimalist lifestyle does not mean you have to live a boring life, but cutting down your possessions to only what is necessary. Saving before spending on something, always ask yourself three questions:
Do I really need this?
What value will it add to my life?
Can I live without it for a while?
Suppose you are prone to material temptation. In that case, you should stop following social media influencers who promote their luxurious lifestyle and turn on the ad blocker on your browser.
This might be something you should consider living in a country like Singapore, where the cost of healthcare is prohibitive. Although we all wish it would never happen, buying health insurance is wise if some critical illness wipes out your savings. Don't be too stingy about such costs; if you save up to 100K and spend all on treatment, what is the purpose?
It might be challenging for an investment newbie to start investing, but all the helpful information is available online, like what was mentioned earlier. You can choose the way of investment that suits you the most, such as buying stocks, bonds, or funds. It is important to invest only in things that you understand well, so you may need to put in some effort before taking action. Meanwhile, get an interest-bearing bank account so that your savings can be snowballed.
Last and most importantly, stay mentally and physically healthy when working towards your goal. Saving up 100K before your 30s is a challenge that will bring about some level of stress for most people. If you feel burned out (check our previous blog for the symptoms of emotional burnout), it is time to put things aside and take a break. After all, your health is the basis of everything.