Singaporean man earning S$3K/month says he doesn’t want to invest his savings because investing is “only for the rich”

SINGAPORE: Investing is something that anyone can do, regardless of their financial status. However, a man shared on social media that his friend doesn’t believe this and thinks “investing is only for the rich.”

“I talked to him about investing and inflation and stuff and he knows the basic idea of inflation but he told me that he is not comfortable with losing money and thinks that investing is only for the rich,” the man wrote on r/singaporefi on Monday (May 27). “He also doesn’t have much interest in finance,” he added.

Providing further context, the man mentioned that his friend is a new employee earning approximately S$3,000 per month. 

When he asked his friend about his finances, his friend disclosed that he prefers to keep his savings in a standard POSB kids’ account, finding satisfaction in observing the numbers increase over time.

Given this situation, the man wonders how best to assist his friend in embarking on his financial literacy journey. He asked everyone in the online community, “How do I help a friend who doesn’t invest?”

“If he doesn’t want to invest, so be it. His money, his choice.”

Many Singaporean Redditors advised the man to take a hands-off approach and allow his friend to make his own financial decisions.

They emphasized that personal finance is a unique journey, and trying to push someone into investment strategies can have negative consequences. One Redditor said, “If he doesn’t want to invest, so be it. His money, his choice.”

Additionally, some Redditors highlighted the importance of respecting his friend’s choices and refraining from pushing the topic of investments, especially if the man was not willing to bear any potential risks or losses on his friend’s behalf.

One Redditor asked him, “Can you take responsibility if global markets tank 90% and they panicked and sell? Or if it doesn’t recover? Don’t think investing in an extremely diversified ETF will give you no risk.”

Another Redditor shared his perspective, stating that he would not attempt to persuade or influence others to invest as it is not his business. 

He added, “Things can go very wrong in a bear market, and friends (and family) might want to blame losses on you.”

Meanwhile, some who advocated for a hands-on approach suggested starting with low-risk options like high-interest bank accounts, T-bills, or Singapore Savings Bonds (SSBs) to ease the friend into the world of investments. 

They emphasized the importance of starting investments slowly and introducing more complex investment vehicles like ETFs later.

Another Redditor added, “If he is receptive, can ask him to put in Mari Bank. It’s also a bank but there’s daily interest credit to whet his appetite for interest gains.”

Read also: Singaporean advises younger generation “to focus on enhancing their skills rather than learning about investments”

Featured image by Depositphotos