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Advice to my younger self starting work

 I wish an adult who has been through working and started retiring successfully was there to give me wisdom when I first started working. This is what I would tell my younger self when I first started working:

- work is a means to a good life, not the life itself

- prepare for a fix term of work and a target retirement age. Not a target retirement sum as that sum will keep moving. Work backwards from the target age

- don’t be tempted for quick gains and don’t gamble 

- buy insurance but don’t over buy. Set a budget

- open trading accounts and CDP account

- open a savings account in a different bank than your account where salary goes in. This is your real savings account. Set a percentage of pay you want to save every time your salary comes in. Start small is ok, say 10%, and stick to it. Transfer that 10% out immediately to the real savings account and then budget all your spending based on what’s left of your salary. If it’s too tight, find out why and what’s bleeding you. If still cannot then lower the savings to 5%. 

- focus on improving your craft at work so you maximise your income growth. This is your main source of income and you want to max it out so your savings grow and you can also start to enjoy life as you grow as a person. Spend and travel, but don’t indulge in recurring luxuries. Focus on value and quality and experiences, don’t be a spendthrift but don’t be a miser. 

- learn how to invest in stocks, SSB/ T bills. Try a little money to experience it. Only by taking action will the muscle develop. The best time to start is “now”. Use the money in savings account to invest. 

- keep a exercise routine, you will thank yourself later

- always keep up with dental appointments 

- always do health screening

- don’t touch CPF. If you are confident of growing you cash to be enough for down payment of a home, then try to top up your CPF special account. This 4% compounding will do wonders for your retirement 

- open SRS account and put $1 inside. This locks in the SRS draw out age. As your income grows, your income tax rate goes up and you will ultimately use SRS contributions as a way to reduce income tax payable. 

- build a buffer of 3-6 months of salary in savings

- buy the largest property ( number of rooms and size) you can afford in SG. It will only appreciate so you want the big ones as early as you can in case you have many kids. It’s always possible to sell for profit and buy smaller later, but no the other way around. Go for BTO flats as it’s a lottery. 

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