🦁 Why Starting an Investment Plan Early Is the Greatest Advantage a Young Singaporean Can Have

By MERLION$ | MerlionFinance.com

If you’re between 21 and 25 in Singapore, you’re probably feeling the pressure already – first job, first paycheck, first time paying your own bills… and also the first time hearing your parents whisper, “Aiyo, don’t invest lah, very risky one. Later lose money how?”

But here’s the truth they never tell you:

The riskiest decision is doing nothing.
Especially when you have something more powerful than capital: time.

While most Singaporeans start investing late – usually at 30+, when responsibilities are heavy and expenses are high – the young adults who start early often end up with dramatically higher wealth. Not because they earn more, but because they understand the quiet superpower known as compounding.

Let’s break down realistically, in Singapore terms, why starting early is the difference between financial stress… and financial freedom.

🎓 When Do Young Singaporeans Actually Start Working?

For females, most start working at 21–23, right after poly or university.
For males, add two years of NS, so working life starts around 23–25.

This difference matters – because two years in your early 20s is not “just two years”.
In compounding terms, it could mean:

hundreds of thousands extra by age 60
or falling behind by more than a decade

Starting earlier is an advantage money cannot buy back.

💼 What Does a Typical Fresh Grad Earn in Singapore?

Based on MOE and MOM statistics:

University fresh grad median salary: ~$3,800 to $4,500 (gross)
Poly fresh grad median salary: ~$2,800 to $3,200

Take-home after CPF (20% employee contribution):

University grad take-home: ~$3,000 to $3,500
Poly grad take-home: ~$2,200 to $2,600

Singapore’s CPF system forces you to contribute 20%, but it’s not a punishment – it’s actually your first investment plan.
CPF OA grows at 2.5%, SA at 4%, both risk-free and guaranteed by the government.

But CPF alone will not bring you financial freedom.
It’s designed for retirement, not wealth acceleration.

That’s where your own investment plan comes in.

🚇 Monthly Living Costs for a Young Singaporean

Let’s be brutally honest and not pretend everyone is living on Maggi Mee.

A realistic breakdown:

Food: $450–$650
Transport (MRT/Bus & occasional Grab): $120–$200
Phone bill & subscriptions: $50–$120
Parents allowance (common in SG): $200–$500
Personal spending (shopping, outings): $200–$400

Total typical monthly expense: $1,000–$1,800

This means most fresh grads can realistically invest $300–$600 a month without sacrificing lifestyle.

The big question is: Should you?
And the bigger question: What should you invest in?

📈 Why Young Singaporeans Should Invest Early — The Math That Changes Your Life

Let’s say two people invest the same amount monthly:

Person A starts at age 23
Person B starts at age 30
Both invest $400/month into a broad-market ETF like VWRA (global) or VOO (US market).

Assume 7% annual returns (long-term average).

By age 60:

Person A would have:
~$920,000
Person B would have:
~$600,000

Same contribution.
Same effort.
Same risk profile.

But a 7-year difference in start time leads to a $320,000 difference in outcome – almost one free condo downpayment, or your entire retirement cushion.

This is the power of compounding.

Time > Money.
Time > Salary.
Time > Skill.
Time > Everything.

The earlier you start, the more the system does the heavy lifting for you.

🟦 Why ETFs Like VWRA and VOO Are the Smartest Choices for Young Singaporeans

Let’s be honest: stock picking is fun, but not everyone wants to analyze 10-K filings or monitor charts daily.

ETFs solve that problem.

VWRA – Vanguard FTSE All-World UCITS

Globally diversified (developed + emerging markets)
Reinvests dividends automatically
Perfect for set-and-forget investing
Minimises country-specific risk
Huge, reputable Vanguard fund

VOO – Vanguard S&P 500 ETF

Tracks the 500 largest US companies
Historically strong returns
Ultra-low fees
One of the most stable long-term ETFs on earth

These ETFs are:

diversified
safe by equity standards
long-term proven
low-fee
recession-resistant
passive
zero-maintenance

For most young Singaporeans, they provide better long-term performance than trying to time markets or chase individual stocks.

🧠 So How Should a Young Singaporean Actually Start?

Here’s a realistic, achievable plan.

Step 1 – Build a 3-Month Emergency Fund

Life happens.
You don’t want to sell investments just because your laptop spoils.

Step 2 – Invest $300–$600 Monthly Into VWRA or VOO

Use regulated brokers like:

DBS Vickers
FSMOne
Interactive Brokers
Tiger Brokers
Saxo

Focus on:

discipline
consistency
long-term horizon

Step 3 – Increase Your Monthly Investment As Your Salary Grows

When you hit $5k/month salary, increasing to $800–$1,000/month is realistic.

Step 4 – Avoid Lifestyle Inflation

Expensive hobbies can wait.
Wealth compounds; shoes depreciate.

Step 5 – Stay Invested Even During Market Crashes

This is the part most Singaporeans get wrong.
Crashes are discount seasons, not exit signals.

🦁 Final Thoughts: For Young Singaporeans, The First Step Is Everything

You don’t need to be rich to start investing.
You just need time, consistency, and the right vehicles.

Whether you’re a poly grad starting at 22 or an NS boy starting work at 24 – you have something far more powerful than capital:

You have decades ahead of you.

By investing early into broad, safe, proven ETFs like VWRA and VOO, you give your future self a gift no one else can give you:
freedom.

Financial freedom.
Career freedom.
Life freedom.

Money doesn’t guarantee happiness –
but it definitely gives you options.

And the earlier you start, the fewer sacrifices you need to make later.

Stay sharp. Stay rational. And as always – 🦁 Stay ballin’.

– MERLION$ | MerlionFinance.com**

The Merlion Baller