This is very good discussion.👍 Settle important thing first and take your time before rushing into medium and high risk investment. no need to rush. ☺I hope someone told me about this when I started (instead of rushing into stock 😅). or maybe someone did, and I should have listened~
SRS can be an option too (those working in SG) 😊 At the minimum can help to save tax. After invidual is savvy with stocks, he/she naturally knows how to manage/invest their SRS.
Never really understood the prioritisation of having 6-12 months savings over/before paying off high interest debt. The savings are meant to help avoid high interest debt, whilst yielding nominal interest. However, if you already have high interest debt, surely the best thing is to throw all excess savings immediately into paying it off (guaranteed circa 30% return in avoided interest charges, dependent on credit card of course).
Having zero savings would be quite nerve-racking too! But yes, you could prpbably save 1-2 months of expenses first as a buffer, then pay off your high-interest debt as much as you can. As your debt goes down, you can build up your savings in tandem.
Perhaps it might be better to pay off the high interest loans, credit cards etc first, rather than building up the emergency pile? I feel that the high interest loans are like leaks in a boat, as you're straining to bail out the water, it's still leaking in. Once you've patched up the leaks, then it'll be easier to build the emergency funds.
