[SG millenials] Types of Accounts one should have

SG Millenials these days must have a hard time balancing a lot of things in life, especially when the pace of life is ever-increasing. Now i am sharing solutions which works for ordinary humble people like me and you, and sincerely hope it can help you in wealth management in the long run.

Active Savings Account

This will be the account with the most traffic, dealing with incoming income and outgoing expenses. No matter how many streams of income you have, it will be best to streamline down to one account. A great way to handle this account is to pay yourself first every month and the primary goal of every month is to spend less than what you paid yourself for each month.

Another usage of this account is to pay to your fixed savings account every month. So after you pay yourself, you may set a budget how much you want to transfer to your fixed savings account. What i did is transfering 50% of my income over to fixed savings and 20% to myself.

Just 2 functions for this, let's move on.

Fixed Savings Account

This account will probably eat and sleep like a Snorlax and then wake up like a Godzilla! Technically it is still a normal savings account, you can use the money whenever you want but you had to set it with discipline that this account's assets can only be used in very tight situations or major investments like the following:

Lost your job and your "active savings account" has used up
Health related issues like operations, cost-intensive treatments, not able to work anymore
You want to set up a business
Withdraw a portion yearly to invest in stocks
Property downpayment

May not be strictly the above pointers but as long as situations is/under "Emergency" or "Major investments", otherwise, try not to touch.

Multi-Currency Account

Travel often? Want to invest in overseas stocks? There are a few benefits of having a multi-currency account one should take note of.

It allows user to hold their money in a number of foreign currencies in one account. Which approved countries will depend on the account you had registered with.
Allows user to trade in foreign markets and keeping transactions in foreign currency to avoid conversion rate. But if eventually, you decided to sell and use the money yourself, the total amount you sold will still be subjected to conversion rate but reduced effect.
You make or received regular payments from overseas, so you can avoid the trouble to conversion manually or conversion fees if you are making transactions at overseas

But before you open a multi-currency account, make sure at your local banks, check out their various multi- currency accounts and see which one suit your needs.

CDP Account

When we save money, we save it in a bank. When we invest in stock market here in Singapore, we also need an account to hold or store all our stocks and shares, that is where CDP comes in. It is totally free, no admin fee, no service fee or any annual fees.

In my previous, i had mentioned how to open a CDP account which i will link it here.

In addition, CDP is fully controlled by Singapore Exchange (SGX) so regular humble folks like us will feel safer putting and holding our assets there.

Brokerage Account

Your CDP account is mainly to hold your shares, you will definitely need a brokerage account to perform buying and selling of stocks.

One of the big mistakes in life is not investing early, there is a saying "The best time to do it is 10 years ago, the next best time will be now". My only advice here before you start investing is Buy and Hold, investing is long term assets growth so don't expect yourself to be rich in a week as wealth takes time or years to build but you may have the option to retire early or semi-retire in the future.

Now back to how to apply, i will link up my previous post on how to apply here. It is the same link i had shared in the CDP account section of this post.