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Old 24-09-2020, 11:44 AM
Old man
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I had your income and savings and your age. Now I’m 35, annual comp around 400k, cash savings also around 400k (growing at 250k per year)

1. Focus on increasing your income. If you make 9k at 29 (with 4 years experience if you are a guy) you should be fairly high potential. Take on challenging assignments, invest to upgrade yourself.
2. At your income level, you can save your way to being rich. But that would mean a threadbare lifestyle. Focus on earning more instead.
3. It’s okay to inflate your lifestyle when you’re earning more, but please make sure that (1) your lifestyle inflation is less than your income inflation, (2) your income inflation is not a fixed long term liability, unless it is an income producing liability.
4. People will tell you to stop renting, if it helps you be more productive at your work (mental health, tiredness from commute, etc) then keep renting. Again you should focus on earning more.
5. Insurance is cheap - just get disability and CI first. You don’t have liabilities/family you need to match.
6. Mobile what plan also won’t make much difference - you should be thinking in hundreds or even thousands now not tens. Don’t be penny wise pound foolish.
7. Agree you should review your expenses, but please focus on the 3-4 digit ones
8. If you know nothing about investments just use endowus or stashaway first. You should at least max your SRS so you get the instant tax benefit.
9. Your savings rate should automatically increase this year due to no traveling - use that amount to invest.
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