To The Moon

Personally, I set a goal of 1.5 mil SGD which might be comfortable for me after my retirement life 😜. 

If you're into personal finance at all, you should know about the common 50/30/20 rule when it comes to our expenditures.

As a rule of thumb, 50% of your income should go to your needs like food, groceries and transport, while a maximum of 30% should go to your wants, which you don't need but might be good to have. The remaining 20% should go to your savings.

Being in your 20s is all about self-exploration and experimenting with which career path you’ll want to pursue. Though your starting pay will probably be a lot lower than another person in their 30s, it is time to build a solid emergency fund for yourself.

When you're in your 30s, this is the juncture where you might be taking on the most financial commitments. Whether it's getting a house, planning for a wedding or trying for a baby, all these milestone events will most likely happen during this phase and dip into your savings pot a lot.

This might shake up your savings quite a bit, and it might be unrealistic for some to still maintain the same level of savings. But with that said, you should never drain your entire savings on these costly necessities. Even if you have enough saved up to pay for these costs.

In your 40s, you're probably set in your career and probably in the prime years when your salary is at its peak. But you might belong to the second camp too, considering a career change after pursuing the same industry for the past 20 years.

At your 50s, Retirement is just around the corner. Savings is really more important than ever. You shouldn't focus on too many investment products where your money is locked up, especially in high-risk investments.

This is when you should relook at your investment strategy and focus more on shorter-term products that are much safer. You should also focus on your savings and build them up bit by bit for retirement.

Last but not least, savings should not be an age-specific goal. It's unhealthy to focus on age. Ultimately, your savings goal should be a dollar amount and not an age. Whether you want to make reference to average personal savings rate or the 50/30/20 rule, you shouldn't follow it like it's the law. Always make sure the rate at which you're saving is sustainable according to your financial goals and current financial situation. How do you think?

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