I am a 19-year-old and I live on my own. So far, I've
sustained my relatively frugal lifestyle with money that I've
neither worked for nor truly deserved (e.g. cash from my parents,
scholarship allowances, salary/bonuses from my past internships),
and I've actually saved a decent chunk of money from all these
multiple streams of income. I probably have enough now to do some
small-scale investment.
Some background: I will not work for the next four years and
thus will not draw a stable salary. However, I will continue to
benefit from scholarship allowances (praise to the Singaporean
government) and occasional contributions from my parents, which I
predict will give me an excess of, say, S$100-200 each month after
living expenses.
My parents suggest that I place my entire "decent chunk of
money" in a time deposit account, and save my monthly excess funds
aside in short-term fixed deposits (1-6 months) that will allow me
access to my money in times of emergency. I was told to leave
bigger investments for the time when I graduate and start gaining
permanent employment because investments are very "taxing" and can
serve as a severe distraction.
I know better than to "wait until graduation". If anything, I
have to start early in educating myself as much as possible about
personal finance (a department that, admittedly, I feel really
handicapped in), and there is basically no better way than to
expand my knowledge on the subject than to experience first-hand
some small investments. I have a mini-plan that entails making a
consistent monthly contribution towards a unit trust, maybe
something like a monthly investment plan (taking the dollar cost
averaging strategy here). I am also considering making structured
deposits that offer principal protection.
I have to admit that I have done little homework on the subject
of investment (e.g. I have scant understanding of how stocks and
shares differ, if they really do that is, and I don't even know how
one can purchase bonds), but some recent sould-searching and a
half-year-long detachment from an overly idealistic academic prison
have put things in perspective for me and inspired me to learn all
there is to pick up about money management.
If it helps, I am supposed to make a "great" salary by my mid-
to late twenties. I look forward to purchasing my first property no
later than two years after graduation (using the money I've
initially invested as downpayment). Even a studio apartment would
be a great investment milestone for me, which I think is a
realistic goal to strive towards.
I've decided that one good way to expand my knowledge on
investment is to consult people who have been there and done that:
seasoned investors and investment gurus on this forum, so I really
appreciate any advice from you people.
Does anyone want to help a confused youth out?
