Yahoo Finance Singapore

What can millennials invest in with only S$5,000?

Gabriel Choo · Contributor
Updated 5 min read
What can millennials invest in with only S$5,000? (PHOTO: Getty Creative)
Here's why millennials shouldn't shy away from investing. (PHOTO: Getty Creative) · Sushiman via Getty Images

SINGAPORE — Most young adults have the misconception that only ‘rich’ or ‘older’ people can do investments. Yet, we see that most millennials are keen to grow their wealth for financial freedom in the future.

With most youths still studying and taking an allowance from their parents, it begs the question: What happens if I only have a small sum of money to invest? Will it still benefit me in the long run?

This is part of a series where Yahoo Finance Singapore will focus on different aspects of millennials and their finances. In this third part, we find out how and what youths should invest in if they only have $5,000 to spare.

Reasons for investing

First and foremost, it is important to know why you want to start investing the S$5,000. Financial experts that Yahoo Finance Singapore spoke to all agreed that investment is a process that takes time and one should not expect to see immediate results, no matter how much money is put in.

Given how it is increasingly easy for youths to kickstart their investing journey, one all the more needs to know exactly why they want to start investing, and work towards achieving these financial goals.

In fact, some financial experts also advised to first settle the basics, which include ‘boring’ things like setting aside an emergency buffer of up to six months’ worth of expenses.

“When jumping into the world of investing, factors like personal circumstances, saving for education, family needs, medical emergencies will affect your risk appetite, and how much capital you have to work with,” advised Salim Dhanani, CEO and co-founder BigPay, a financial mobile app.

“Regardless, it is important to be well informed and have the proper knowledge before jumping in. Do your research and find the best strategy that works for you, rather than purely investing in something recommended by friends or family,” he added.

22-year old Betty Chew, has been investing under OCBC’s Blue Chip Investment Plan (BCIP) since August 2020, putting in more than S$5,000 since then. Under this scheme, investors can buy shares in bulk of S$100 every month depending on how much they feel like buying.

“I decided to start investing because I have extra income from my part-time job, and wanted to see it grow instead of just letting it stay in the bank,” said Chew, an arts undergraduate from the National University of Singapore who is also working part-time in a cafe.

“This also gives me a sense of long-term financial security as compared to slogging out in a job for years without much financial return,” she added.

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