Money Hacks Ep 46: How to start investing with just $100 a month in your 20s

11:16 mins

Synopsis: In this podcast series every Monday, The Straits Times and The Business Times break down actionable financial tips.

This episode is brought to you by OCBC Bank. It is aimed at those in their later 20s, and how to move beyond just insurance and good bank accounts.

Money Hacks' Chris Lim (left) hosts OCBC Bank senior investment strategist Vasu Menon (centre above), who gives Lynette Tan - a 26-year-old Business Times journalist - practical tips to get started.

In a Jan-Feb 2019 Frank by OCBC survey of 866 students and young working adults aged 16-29, close to three-quarters said they wanted to start investing, with almost a third in it for long-term gains, though fewer than two in five considered themselves knowledgeable about investing.

We cover three structured tips to help young people consider when wanting to invest.

Is a five-figure sum the minimum you need to start investing properly? (1:40 mins)

Step 1: How to automate investment of unit trusts with as low as as $100 monthly? (2:01)

A $100 monthly minimum can also get you started in an OCBC blue chip investment plan (2:23)

Step 2: Knowledge is critical next, after you get started with a monthly $100 investment. Attend workshops and talks like Frank by OCBC's Young Investor programme (3:35)

Step 3: How to do your homework safely before jumping into the markets? Create a simulated portfolio and how to write yourself a private proposal (4:32)

What is time diversification, and why is it good to do this in a blue chip investment plan? (6:42)

Why it is good to take emotions out from a structured investment journey, and not let it affect your work or distract you needlessly (7:29)

Get more Frank by OCBC articles for the young here.

Produced by: Ernest Luis and Christopher Lim

Edited by: Adam Azlee

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Do note: Any financial or investment information in this podcast is for use in Singapore only and is intended to be for your general information. Any particular investment or decision should only be made after consulting with a fully qualified financial adviser.

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