How to manage Regular Investment Saving Plan while living in Singapore?

Beginner investors have probably repeatedly heard the phrase "dollar-cost averaging" used. Dollar-cost averaging's fundamental tenet is that regardless of price changes, you set aside a specific sum of money each month for investing.

By using this approach, market timing is not necessary. Over time, those that use DCA are typically able to average out the highs and lows of the market; you purchase more when prices are low and less when prices are high.

 

What is a Regular Savings Plan (RSP)?

Getting on board with a monthly savings programme is a simple approach to starting dollar-cost averaging. RSPs enable investors to automatically make a set amount of money a regular contribution to a financial product (usually on a monthly basis). The minimum investment amount for this fixed sum is frequently low (about $100), which makes it more accessible for novice investors or those with limited resources.

One precaution is that although RSPs are designed to be automated, so you must make sure to have enough money in your account. As a result, you run the risk of overlooking the monthly purchases of investment units made from your account.

 

Manage Your Saving with Regular Investment Saving Plan

Know whether you want Short-Term or Long-Term Savings:

Identify the goal for your saving like Starting a family, Getting married, A trip, A degree, and A house. These would require a more short-term investment plan.

Having a goal, and knowing when you want to achieve it, will help you figure out how much you'll need to set aside each month.

Having a goal keeps you motivated to save money. You'll have a legitimate, practical reason for saving that money rather than putting it away for "the future" in an amorphous location.

 

Set up recurring instructions:

The benefit of frequent saving is that your money increases with each tiny investment. You don't even need to remember to make a monthly money transfer thanks to contemporary banking.

Simply create a recurring instruction to transfer funds to your savings account on a regular basis, preferably a few days after your paycheck. The transfer happens instantly and without trouble.

 

Save and invest at the same time:

Once you've got the hang of making regular monthly contributions, you might want to consider a Regular Investment Savings Plan Just like before, you'd still be setting money aside on a regular basis. But instead of just earning the basic interest of a savings account, you'd be investing in Regular Investment Saving Plan.

 

Don't stop saving

You should continue saving even after you've achieved your objectives or after your wealth has grown to the point that you can concentrate more on investment. It's a fantastic habit to form. There will always be unanticipated circumstances where you require money to pay for unforeseen costs. If you entirely abandon saving in favor of investing, you may need to sell your investments to raise cash and may even incur a loss when you do so.

It is important to consistently save a small amount of money so that you have a safeguard in the event of unforeseen expenses. If you're prepared to begin making big savings, take a look at our different savings accounts and see which one is right for you.

Hence, our experts team is ready to guide you as per your availability. Call us for detail on go about Regular Savings Plans & High-Interest Saving Accounts Today!