Savings And Investing

I have written about how to maximize your savings on my previous post here. In my view, we should always focus on savings first before thinking about investing. The habit of putting aside money in your bank teaches you self control. The habit of investing gives you a reason to accumulate your savings. They both work pretty well together.

It is prevalent among first time investors to be afraid of financial loss. If you were to start from savings and move gradually to investing, the fear will subside. You will have a bigger cushion of safety by then. You will also treat every investment as if it was your last. Since it is hard to compound dividend received from stocks(due to min of 1lot per share), a good saver knows how to find the best savings account for dividend compounding.

Putting your money in a special savings account like OCBC360(assuming all 3 conditions are fulfilled and 50k deposited) gives you $127 a month, that itself is a form of risk free investing. By maximizing your savings, you are indirectly trying to 'master' your savings. So by all mean, master your savings first before moving on to investing. That would be a more prudent way to grow your money safely.