Did I manage to save S$100K before 28?

I was reading Budget Babe - How to Save More than $100,000 before 30 (Without working in Finance) and was just trying to recall whether I did manage to save S$100,000 before 31, 30, 29, 28 or 27. Honestly, I really can't recall.

No Plan. Just Save.

Back then, I did not really plan for an amount I needed to save or an amount I needed to save by a certain age. I just knew I needed to save.

When I started my first job, I remember I was paid close to S$2,000. I did not have any commitment and told myself I should be saving really hard. I had close to S$8000 from the savings during my NS days, part-time job,savings since when I was a kid etc.

I clearly remember how happy I was when my savings crossed the S$10,000 mark. I guess my goals just grew bigger.



What did I do?

Since many people want to hit the S$100,000 mark before the age of 30, I am trying to backtrack and recall what I actually did. Looking back, there were 3 main things that I know I did for sure.

1. Saving S$500 monthly from my salary

I remember using the OCBC Monthly Savings Account (OCBC MSA) which allowed me to fix a regular monthly contribution to be saved. This regular contribution remained unchanged for the next 24 months.

I fixed the monthly contribution to S$500 (maybe S$600-700) and did this for at least 6-8 years (3 to 4 cycles on the OCBC MSA plan or a similar product). The OCBC MSA would then offer higher than normal interest rate of 1% or slightly more. I feel so "cheated" now. 1% ?!?

However, this OCBC MSA instilled the discipline and I slowly grew my savings, month by month.

Looking at today's context, I will probably save in banks providing higher bonus interest. For example, OCBC 360 or UOB One Account etc.

Read:

1. Higher Interest on your Money
2. Switching to UOB One Account

2. Investing S$500 in an Investment-Linked Insurance Policy

I started my first job when I was 21-22 years old. The first purchase I did with my salary was to buy an Investment-Linked Insurance Policy which allowed me to purchase some "Singapore Growth" unit trust monthly. I invested S$500 monthly on that plan.

Why an Investment-Linked Insurance Policy? I did not know much about investing then. I only knew I had to invest in something. Looking back, if I was to advise myself 12 years back, I would have invested in STI ETF. 

Read: For Beginners, Invest in STI ETF

After 5 years into the plan, I decided to reduce my monthly investment to S$200. I started to invest by myself believing that I will make better returns. I am still holding this Investment-Linked Insurance Policy till date.

3. Saving 70-80% of my bonuses

This is probably the most important action I took which saw my savings grew at a faster rate. I saved almost 70-80% of my bonuses in the first 3-4 years. Till date, I still do save a big portion of my bonuses which goes into buying more stocks. I do spend more on holidays now. However, I will still try my best to maintain it at 50%.

Conclusion

Unknowingly, I have always been "paying myself first". The concept of "paying yourself first" is one of the pillars of personal finance and has been considered the number 1 rule by financial bloggers and planners. The basic idea is simply putting money into your saving account first before spending the rest.

Unknowingly (also), I have automated my "pay myself first" and investing. Basically, it just forces me. Month by month, then year by year, my money grew.

I strongly believe saving S$100,000 in less than 8-10 years is possible. There are sacrifices. Are you willing to action on "paying yourself first" and "automating"?