Hit your target net worth early : Page 2 of 4

Hit your target net worth early

But earning $10,000 a month would mean nothing for your finances if you splurge every single cent.

So it is imperative to develop the habit of prudence from the get-go - to spend less than what you earn.

Advisers say that young people with minimal financial commitments should save at least 20 per cent of their income.

Ms Salena Kanasan, senior financial services manager at AXA Life Insurance Singapore, said they can aim even higher, to save at least 50 of their income.

"When they settle down, when they have a wedding and a house, they will need the money," she adds.

When other commitments come in, like car or mortgage repayments, young children or aged parents, the savings rate can then drop to 20 per cent.

Mr Christopher Tan, chief executive of financial advisory firm Providend, provided a less ambitious saving target: People with commitments like a house and children can aim to save at least 10 per cent.

It may also be a good idea to open a separate account for your savings, says Ms Tok Geok Peng, DBS Bank's senior vice president for consumer deposits.

Get medical insurance Health insurance, otherwise known as medical coverage, is the most important insurance that everyone should start off with, say financial advisers.

This helps cover medical costs - which can be sky-high in Singapore - in the event of a serious illness.

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