Here’s what you should do with Your Entire Salary

All of us need money to keep our lives in balance and to make our lifestyle fulfilling. In fact, every college student is waiting to get their first job and get their first salary into their bank account. After all, that salary is going to open up new roads of financial freedom for them. Everyone needs one way or another to earn active income. That’s the way things work. Because without active income you cannot have passive income either.


A salary will give you the freedom to have what you would want for your living conditions. Therefore, dining out would not be a problem anymore as it’s not your monthly pocket money that your parents gave you. Its hard cash that you’re earning. So now you can have friends over at your place with all the food and beverages to have yourself a nice get together where your friends would get treats from you. But maybe that party can wait for later.

Getting a monthly salary means that you can now buy what you want, eat what you like and spend on what you wish for. But, if you keep spending regularly at the same pace without thinking about your future, you’re not going to reach anywhere else other than where you’re now. A salary is an opportunity that you get so that you can use the money to build something for yourself. Don’t worry it’s just a few easy steps if you manage your money cleverly.

Allocating Your Salary

Allocating the salary you get, is necessary to budget properly. In case, you want to make your salary to take care of all the things that are needed to get a fulfilling lifestyle and to multiply your wealth. Dividing your salary into parts with varying percentages according to the use of that percentage of money is the first thing that you really need.

Determine what your monthly take-home salary is and then allocate your salary into parts. The most popular way is to keep 50% of your salary for your monthly expenses, 30% for your wealth development which will be used for investments and buying shares or stocks, 20% of what’s left with you must be put into a high-interest savings account. This is the best way for budgeting. Although going through the whole month with just 50% of what you’re being paid is not enough but in the long run, the money you save and invest will take you to the position where you won’t have to think about holding back on spending. To make this allocation possible you need to distribute your money into three different accounts. Here is how you can do it.

High Interest saving account

Your salary must get credited into your high-interest savings account every month.

You must automate your account to transfer 50% of the salary to your expenses account.

In the middle of the month automate a deduction of 30% from your savings account and allocate it to your wealth account which will be used to buy shares and stocks. Leave the rest 20% in the account to incur interest on the amount.

When you’ve actually set up your monthly budget, you can take further steps to increase your savings by allocating only 40% to your expenses. In fact, it will stop you from spending on unnecessary things. And you’ll save more for the upcoming investment opportunities and for any unfortunate emergencies. Try not to get into trouble though

Multiplying Your Earnings

Now that you’ve allocated your income to your savings and wealth accounts you can now wait and watch your money grow until you have enough to invest in different segments of the market. Suppose that your monthly take-home salary is S$2000. 20% of that goes every month into your savings account which will be S$400. And 30% to your wealth account which will be S$ 480. By adding interest on both the amounts amassed in a year you’ll have about S$9800 in your savings and S$ 15500 in your wealth account after two years. Now that you have that amount in your wealth, you can go ahead and invest it into different segments of the market.

Invest in Equity Shares

Investing in equity shares can be good for your finances with expected returns. When you invest in equity funds for the first time you must first research the market development of the indexes you want to buy into. Check for the earlier movements of share prices and find a competent index which has a consistency of having a rise in its prices. Many people consider the S&P 500 index of the US equity funds. Although it’s a foreign stock you can rest assured that if your shares perform good on wall-street, you’ll get amazing returns on your investment.

Investing in SGX Funds

You live in Singapore, so it is important to have some investment in the Singapore Exchange. It will be more secure than investing in foreign funds and you’ll have more awareness of where your money will go. In case, you’re investing in Singapore you should probably go for bank shares. Banks are an integral part of the finance system. They handle the money of other people really well along with their own profits and interests. Banks will get you the best dividend shares. Banks like DBS can have a dividend yield as high as 4.5%.

Investing in Real Estate

If you’re a true Singaporean you surely do know about the popularity of real estate investments among the people. In fact, people from all generations have an interest in real estate investment. Since buying properties is not an option for people who have got their first job and are living on grade one salary, it is possible to invest in properties through REITs. REITs (Real Estate Investment Trusts) pool in funds from several people and invest them into real estate holdings. The income, that these trusts make, is then distributed amongst shareholders as regular dividends. REITs are a low-risk investment sector and have assured investment.

Manage wisely

Your salary is the main source of earning for you. But for some people, it’s the only source. Hence, managing your salary wisely can make your finances multiply itself. So, saving a large amount from your salary for investment will give you the real financial freedom that you wish to have for yourself. While investing always make sure you keep your investments diverse. It will increase your chances of returns and dividend yield. So, keep working and financing for your future.

Best Personal Loan– Accredit Moneylender

The way to financial freedom is very long. One of the best methods to be is clear your debt as fast as possible. Hence, your best resource to start for a debt consolidation loan is Accredit moneylender. In addition, we are a responsible licensed moneylender that providing loan with the lowest interest charge and flexible tenure.

The staff of Accredit Licensed Moneylender is brilliant with money lending knowledge and customer services skill. In addition, we are listed as top 10 legal moneylenders in Singapore Moneylender directory. Therefore, Accredit named as Best Legal Moneylender in Singapore. 

[widget id=”text-11″]

Leave a Comment

Accredit Pte Limited has 4 locations island-wide, to bring our transparent services closer to you.


Tampines Branch
(+65 6226 2662)
Yishun Branch
(+65 6219 2662)
Hougang Branch
(+65 6245 2662)
Clementi Branch
(+65 6261 2662)

Accredit @ Yishun

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Tampines

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Hougang

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Clementi

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm