Is it really a must to have savings for 6 months?

[Marslang]

17 minutes ago, yuquidam said:

Orgy of 5 or 6 still can ah. Orgy meant to be squeezy mah. Bods rub rub together so everybody have to participate, no idle watchers LOL. Pl invite me as house warming cum orgy camera man (and director? ) can? I no need too much space. Just stand on a small stool with selfie stick to move phone camera around for close ups and all. Lol

Lol I cannot ill-treat my guest, please join the orgy while i hold the camera. kakaka

[yuquidam]

Just now, Marslang said:

Thank you but I dun indent to sell this unit. Will stay until i go hell.

Let it bring you lots of success in your career then

[yuquidam]

3 minutes ago, Marslang said:

Lol I cannot ill-treat my guest, please join the orgy while i hold the camera. kakaka

Hahaha....very nice of you.. I just pretend pretend only and hoping to be invited LOL

Edited July 4, 2020 by yuquidam

[fab]

1 hour ago, yuquidam said:

Orgy of 5 or 6 still can ah. Orgy meant to be squeezy mah. Bods rub rub together so everybody have to participate, no idle watchers LOL. Pl invite me as house warming cum orgy camera man (and director? ) can? I no need too much space. Just stand on a small stool with selfie stick to move phone camera around for close ups and all. Lol

 

I tot you wanna be a warm cum taster and stool hole poker with the stick.

 

[Larry]

This is a strange post. The title is "Is it really a must to have saving for 6 months?" And post originator Justin started the post with one & only statement as follow:

 

On 6/30/2020 at 6:38 AM, Guest Justin said:

if government usually subsidize the poor or why still need to save?

 

There are ambiguities to be clarified,

1. What are the things the poor get subsidized by the Government?

2. Why the need to save despite the subsidize? Does it mean that the coverage of subsidy is limited?

3. Why 6 months of saving? Why not 4 months? 6 months of $6000 or $9000 or whatever figure Justin is suggesting?

 

[yuquidam]

On 7/4/2020 at 5:45 PM, fab said:

 

I tot you wanna be a warm cum taster and stool hole poker with the stick.

 

Aiiiiiyoh...sounds very vulgar leh...wat tasting after poke poke ah? *LIKE*

 

Coming back to the topic, think there is a POSB "save as you earn" scheme that pays good interest rate. Every month a fixed sum (your choice) of your salary is auto deposited in this account. You could still withdraw the savings but once drawn down the interest will revert back to the much lower current interest rate. Pl check with POSB for latest details.

 

It's a good scheme for in no time your savings will be growing with interest upon interest. 

Edited July 5, 2020 by yuquidam

[Marslang]

On 7/6/2020 at 3:03 AM, yuquidam said:

Aiiiiiyoh...sounds very vulgar leh...wat tasting after poke poke ah? *LIKE*

 

Coming back to the topic, think there is a POSB "save as you earn" scheme that pays good interest rate. Every month a fixed sum (your choice) of your salary is auto deposited in this account. You could still withdraw the savings but once drawn down the interest will revert back to the much lower current interest rate. Pl check with POSB for latest details.

 

It's a good scheme for in no time your savings will be growing with interest upon interest. 

Yes it is a very good scheme, I got this in 2017 and save up to about 12k when the scheme matured 24 months later. The interest is not bad but my motive is to get this scheme to help me save up for my renovation. After the 24 months i close that accounts as one of the DBS officer told me the "save as you earn" scheme only works once per account  and she recommend me to choose the dbs multiplier account since i buying another saving insurance and will get higher interest rate with this account too. 

 

Now I  waiting for my another scheme from POSB too - "Save as you protect" to also matured in next 3 years so can collect the money back too.

Edited July 6, 2020 by Marslang

[rowers]

On 6/30/2020 at 1:16 PM, Guest Guest said:

The cancer guy was approach  by this cancer society  to support for each other in a group of 4 with other cancer patients. As days gone by and relationships were strengthen. Slowly one by one left the world. That make the last one so frightening that his days will end soon too. So spend and enjoy life. Need not worry about tomorrow  .Too bad the healthy Malaysian was influence and got preaching by this cancer guy .

 

Very sorry to hear that. But I believe at least the cancer guy is being accompanied by his healthy friend as his pillar of support until his very last day. 

[Guest Guest]

But they are indulging in all sorts of unhealthy  food everyday. Will the healthy  one get similar illness that the cancer guy have cause before and bring the illness to the healthy  one and when the day come is too late to regret. Is a selfish  way the cancer  guy treated his friend since he is leaving the world any time soon but is dragging  his healthy friend along. 

[yuquidam]

Another way to beef up your savings is with the help of a close relative (or parent) who is 55yo and above, and whose CPF RA account has been fully topped up. A friend of mine places some savings annually in his elderly aunt's CPF Account as annual top ups (max allowed is around $37K* p.a.) earning him 2.5% interest p.a., virtually risk free. If he needs the money, he would just ask his elderly aunt to withdraw the money. Within 3 working days the CPF money is deposited into their joint bank account (opened for this purpose). 

 

Note: As at 2020, the max voluntary CPF contributions p.a. is $37,740. For more details do engage a CPF officer's assistance and advice.

Edited July 6, 2020 by yuquidam

[yuquidam]

8 hours ago, Marslang said:

....

Now I  waiting for my another scheme from POSB too - "Save as you protect" to also matured in next 3 years so can collect the money back too.

Good planning bro! Do share more on "save as you protect" when you have more info. Seems interesting. Thanks!

[Marslang]

38 minutes ago, yuquidam said:

Good planning bro! Do share more on "save as you protect" when you have more info. Seems interesting. Thanks!

its an old plan, now no more liao.

[kidster]

10 hours ago, yuquidam said:

Another way to beef up your savings is with the help of a close relative (or parent) who is 55yo and above, and whose CPF RA account has been fully topped up. A friend of mine places some savings annually in his elderly aunt's CPF Ordinary Account as annual top ups (max allowed not more than around $37) earning him 2.5% interest p.a., virtually risk free. If he needs the money, he would just ask his elderly aunt to withdraw the money. Within 3 working days the CPF money is deposited into their joint bank account (opened for this purpose). 

 

To earn $37 x 0.025 = $0.925 pa? lol

[Larry]

11 hours ago, yuquidam said:

Another way to beef up your savings is with the help of a close relative (or parent) who is 55yo and above, and whose CPF RA account has been fully topped up. A friend of mine places some savings annually in his elderly aunt's CPF Ordinary Account as annual top ups (max allowed not more than around $37) earning him 2.5% interest p.a., virtually risk free. If he needs the money, he would just ask his elderly aunt to withdraw the money. Within 3 working days the CPF money is deposited into their joint bank account (opened for this purpose). 

 

Not even enough to buy a cup of teh-O.

[Guest guest]

On 7/2/2020 at 9:29 PM, Marslang said:

I was lucky left one at 2nd last storey so I book it immediately. Hence my booking number was the first on that day hehe

2nd last storey, you are very lucky. Thought your unit is on the 2nd storey. Haha.

[Guest guest]

13 hours ago, Marslang said:

Yes it is a very good scheme, I got this in 2017 and save up to about 13k when the scheme matured 24 months later. The interest is not bad but my motive is to get this scheme to help me save up for my renovation. After the 24 months i close that accounts as one of the DBS officer told me the "save as you earn" scheme only works once per account  and she recommend me to choose the dbs multiplier account since i buying another saving insurance and will get higher interest rate with this account too. 

 

Now I  waiting for my another scheme from POSB too - "Save as you protect" to also matured in next 3 years so can collect the money back too.

Good for you, knowing how to invest is a good way to grow your money. So far i only know the UOB One account, think the interest given not bad?

[Marslang]

6 minutes ago, Guest guest said:

2nd last storey, you are very lucky. Thought your unit is on the 2nd storey. Haha.

If second floor i rather give up

[Marslang]

53 minutes ago, Guest guest said:

Good for you, knowing how to invest is a good way to grow your money. So far i only know the UOB One account, think the interest given not bad?

Actually all the 4 saving +1 retirement insurances i bought are the cheapest hence the interest i get back will not be high. The purpose of buying is to save my money on other place so that I will not see and will not anyhow spend.

 

The UOB one account interest is good but same with other bank they going to revise their interest rate liao.

[Guest guest]

1 hour ago, Marslang said:

If second floor i rather give up

Some people if tried many times and could not get a flat, even 2nd floor they also take.

[Guest guest]

27 minutes ago, Marslang said:

Actually all the 4 saving +1 retirement insurances i bought are the cheapest hence the interest i get back will not be high. The purpose of buying is to save my money on other place so that I will not see and will not anyhow spend.

 

The UOB one account interest is good but same with other bank they going to revise their interest rate liao.

Insurance saving plan good to buy, since the plan has some coverage and also save money for you and you can save a sum of money after end of certain years.

 

The UOB one account revise their interest rate liao? So no longer good? How come they revise their interest rate?

[yuquidam]

5 hours ago, kidster said:

 

To earn $37 x 0.025 = $0.925 pa? lol

Thanks for the alert. It's around $37K p.a. 

 

Note: As at 2020, the max CPF voluntary contribution is $37,740 p.a.

Edited July 6, 2020 by yuquidam

[Marslang]

8 hours ago, Guest guest said:

Insurance saving plan good to buy, since the plan has some coverage and also save money for you and you can save a sum of money after end of certain years.

 

The UOB one account revise their interest rate liao? So no longer good? How come they revise their interest rate?

will revise next month as stated in their website

[yuquidam]

14 hours ago, Larry said:

 

Not even enough to buy a cup of teh-O.

Yes, you're quite correct. Can imagine local banks paying much less than 1% for a savings account.

[yuquidam]

Coming back to the central question - my personal view (got jobless quite a few times liao) is that building up 6 months of CASH savings for monthly expenses is not only a must but it's the minimum. 

Edited July 7, 2020 by yuquidam

[mate69]

yes the very very very very bare minimum

MUST strive to have 24-48 months of salary set aside as savings

double that amount if u have a SO/partner/spouse who SUXS at money management or is a f-up spendthrift or who doesn't save/has no savings. (yes such losers exist)

then can have total peace of mind

 

 

 

 

Edited July 7, 2020 by mate69

[Guest guest]

need to save even more if you have a house to finance or some other loans to pay off.

[yuquidam]

8 minutes ago, Guest guest said:

need to save even more if you have a house to finance or some other loans to pay off.

In full agreement bro!

[yuquidam]

8 hours ago, mate69 said:

yes the very very very very bare minimum

MUST strive to have 24-48 months of salary set aside as savings

double that amount if u have a SO/partner/spouse who SUXS at money management or is a f-up spendthrift or who doesn't save/has no savings. (yes such losers exist)

then can have total peace of mind

Can't agree more! Absolutely wise.

Edited July 7, 2020 by yuquidam

[fab]

10 hours ago, mate69 said:

yes the very very very very bare minimum

MUST strive to have 24-48 months of salary set aside as savings

double that amount if u have a SO/partner/spouse who SUXS at money management or is a f-up spendthrift or who doesn't save/has no savings. (yes such losers exist)

then can have total peace of mind

 

 

 

 

 

1 hour ago, yuquidam said:

Can't agree more! Absolutely wise.

 

In essence,  the more the merrier. 

[GayFinancePlanner]

I would say its good to have, cant say its a must since nobody could force their thought to us. Only you know best what you need to do

[Guest Terence]

I think nowadays we need at least 1 year of ssvings.

[DeMarko]

With current COVID-19 situation, at least 18 months of savings to survive through this pandemic disease

[PhallusKnight]

Hmm I see that a lot of responses here only focus on risk mitigation only and not optimum usage. The reason most financial advisors put the 6mth salary savings figure takes into account that you're making full use of the rest of your money. If you were to have more than 6mth as some have suggested all the way to 48mths! it's crazy in my opinion. Assuming you make 3k a month that's 144k! And cash is a depreciating asset especially with the abysmal savings rate in sg which doesn't even cover inflation. You would be better off having 6 months savings and put the rest of your money to work and invest: take your pick from stocks, fixed deposits, bonds etc. and spread your risk between higher risk and more returns and safer ones. For me personally since I don't have much debt I don't mind taking a bit more risk so about 40% of my investment goes into slightly riskier individual stocks and the rest into other safer options. If you do have a lot of debt and high monthly expenditure then you of course need to be more prudent but the mindset of having massive savings just to offset the possibility that you might get into trouble is not the way to go, that's what insurance is for. The rest of the time you need to work to make your savings grow.

Just my 2 cents. 

[Alponsu]

The savings will be good to tide over emergencies, especially instances when government help may not even come or arrive in time. Do consider this before resorting to "depending on external help".

[Guest guest]

7 hours ago, Alponsu said:

The savings will be good to tide over emergencies, especially instances when government help may not even come or arrive in time. Do consider this before resorting to "depending on external help".

Never depend on external help, best is to help yourself. From this pandemic, i have learn that no one can be there to help you if that person is not your partner who stay with you, even your so called good friends and even siblings also cannot help much. So must learn to stay alive yourself, and if dies just die alone also.

[allenyoung]

Good to have… just in case no income… However you be 3 - 6 mth depending on your expenses n your perceived risk … cus only you know best your situation n also considering the time required to get next job/income.

[InBangkok]

On 7/4/2020 at 9:09 PM, Larry said:

3. Why 6 months of saving? Why not 4 months? 6 months of $6000 or $9000 or whatever figure Justin is suggesting?

 

Because everyone has a different income and different expenses. So a fixed figure for one may not be enough for another. Remember it's an emergency fund to get you as an individual through rough times.

 

But I have to add there is a wolf we have to be wary about. Inflation. In these days when inflation is extremely low and interest rates from a bank are almost nothing, please remember that it was not always so. In the 1970s, inflation in the UK reached 26% one year an the average inflation rate was over 12% per year during that decade. From the little i know about economics, we are unlikely to have to worry about this in the next few years. But inflation goes up as well as down. So the six months emergency fund should take this into account.

 

 

[mate69]

36-48 months of last drawn

[tyan]

Even with 6 months of saving. It doesn’t mean it can only last u 6 months only. Assuming I do not have loans or liability, 6 months of saving should still last u quite long. 

[Guest Guest]

On 7/20/2020 at 8:28 AM, PhallusKnight said:

Hmm I see that a lot of responses here only focus on risk mitigation only and not optimum usage. The reason most financial advisors put the 6mth salary savings figure takes into account that you're making full use of the rest of your money. If you were to have more than 6mth as some have suggested all the way to 48mths! it's crazy in my opinion. Assuming you make 3k a month that's 144k! And cash is a depreciating asset especially with the abysmal savings rate in sg which doesn't even cover inflation. You would be better off having 6 months savings and put the rest of your money to work and invest: take your pick from stocks, fixed deposits, bonds etc. and spread your risk between higher risk and more returns and safer ones. For me personally since I don't have much debt I don't mind taking a bit more risk so about 40% of my investment goes into slightly riskier individual stocks and the rest into other safer options. If you do have a lot of debt and high monthly expenditure then you of course need to be more prudent but the mindset of having massive savings just to offset the possibility that you might get into trouble is not the way to go, that's what insurance is for. The rest of the time you need to work to make your savings grow.

Just my 2 cents. 

 

How much insurance do we need?

[Guest Dingo]

Yes it is. Once I was let go and it took me about 6 months to find another job. It almost dried my savings

[sgmaven]

I think as a minimum, you should have 6 months of money for your daily needs and other commitments (such as loan repayments, rent, utilities and property maintenance fees) in your savings at all times. This gives you enough of a cushion for you to not panic if you happen to get retrenched. Also, do have some critical illness insurance, such that you have at least some money to use, if you are diagnosed with an illness (or get into an accident) and have to stop working altogether.