Automating Invest Monthly, Don’t Wait for the Perfect Time
Many people want to start investing, but they often get stuck with three common questions:
- “Is now a good time to enter the market?”
- “What should I invest in?”
- “Do I have enough capital to start?”
As a result, months or even years pass, and the money continues sitting in a bank account. The interest may not be high, while inflation continues to quietly reduce purchasing power. For many working adults in Singapore, you do not need to start with a large lump sum. A simpler and more practical way to begin is through a Regular Savings Plan, also known as an RSP.
What is an RSP?
An RSP (Regular Savings Plan) allows you to invest a fixed amount of money every month, such as S$300, S$500, or any amount that fits your budget. The money is automatically invested into selected products, which may include ETFs, stocks, unit trusts, or funds, depending on the platform.
In Singapore, common options include:
- Straits Times Index (STI) ETF: A low-cost ETF that tracks the top 30 companies listed on the Singapore Exchange (SGX)
- REITs – Provides exposure to the property market without owning real estate directly.
- Global ETFs – Offers access to overseas markets, including the US and other major economies.
It works like an automatic savings habit, but instead of leaving your money in a bank account, you put it to work in the market. You do not need to monitor the market daily or try to predict market movements, as investments are made automatically once the plan is set up. One of the biggest advantages of an RSP is that it helps you build a consistent and disciplined investing habit over time.
Why is an RSP suitable for many investors?
Many people do not struggle with investing because they lack intelligence. They struggle because emotions get in the way.
- When the market goes up, they worry that prices are too high.
- When the market goes down, they worry that it may fall further.
- When the market recovers, they regret not investing earlier.
It does not guarantee profits, but it can help you avoid putting all your money into the market at one single price point. It also makes it easier to stay consistent over the long term. Investing is a little like going to the gym.You do not build fitness by training for five hours on one random day. What matters more is showing up consistently, week after week. RSP works in a similar way. The key is not to invest a huge amount once, but to invest with discipline over time.
A simple example
Let’s say you invest a fixed amount of S$500 every month. Over a horizon of 5 to 10 years（As shown in the image）, your disciplined monthly contributions will steadily build up your core investment principal.
If this money is invested in a diversified portfolio and achieves reasonable long-term returns, it has the potential to grow through the power of compounding. While markets do not rise every year and periods of volatility and losses are inevitable, the purpose of a Regular Savings Plan (RSP) is not to predict whether the market will move up or down in the short term. Instead, it is designed to help investors build wealth gradually through a disciplined and consistent investment approach.
Images are for illustration purposes only and do not constitute investment advice. Past performance is not indicative of future results.
Questions to ask before starting an RSP
Before choosing any product, it is important to ask yourself a few key questions.
1. How much can I invest every month?
This amount should not affect your daily expenses, emergency savings, or insurance protection. For example, if you earn S$5,000 a month, it does not mean you must invest S$2,000. A healthier approach is to understand your cash flow first, then choose an amount that you can sustain over the long term.
2. What is my investment goal?
- Are you investing for a house in 3 years?
- Your child’s education in 10 years?
- Your retirement in 20 years?
Different goals require different investment strategies. Short-term goals usually should not take on too much market volatility. Long-term goals may have more room to ride through market ups and downs.
3. How much loss can I accept?
Many investors only ask, “How much can I earn?” But a more important question is, “If my portfolio drops by 10% or 20% in the short term, can I still stay invested?” If you cannot accept large fluctuations, you should not place all your money into high-risk assets.
Lastly
Markets will still fluctuate. Investments still carry risk. Product selection, fees, investment time horizon, and risk tolerance all matter. Before starting, you should understand your goals, your timeline, and your ability to take risks. From there, you can decide how much to invest each month, what products to use, and which platform is suitable for you.
For working adults in Singapore who are just starting their investment journey, an RSP can be a practical starting point. It helps turn investing from something emotional into something systematic.
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From waiting for the perfect time into building discipline. |
Over the long term, that may be one of the most important steps in building wealth.
Not sure which investment option is right for you? I can help you assess your goals, risk profile, and investment horizon to create a plan that works for your financial future. Contact me today to get started.
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Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Martin Hsia 乙未
歡迎來到我的個人網站，我是Martin乙未，土生土長的台灣人。曾經在澳大利亞和上海求學，目前定居於新加坡。
從小便對財務與投資充滿興趣，尤其是在家庭的熏陶下，這股熱情愈加濃烈。13歲時，便在金融海嘯中擁有了人生的第一張股票，也由此踏上了投資之路。在30歲之前，我成功累積了自己的第一桶金。
目前，我在新加坡最大的優質理財顧問公司工作，專注於為客戶提供資產增值和風險管理的專業服務，協助他們在多變的市場環境中穩健成長。
希望未來可以成為您在新加坡，投資理財的資源人士。
持續不斷為您輸出有價值的訊息，成為您在新加坡值得信賴的理財顧問。
I’m Martin Yiwei, a Taiwanese based in Singapore, with study experiences in Australia and Shanghai.
My passion for finance and investing began at the age of 13 when I purchased my first stock during the Global Financial Crisis. Through disciplined investing, I achieved my first major financial milestone before the age of 30.
Today, I work at one of Singapore’s leading financial advisory firms, helping clients grow and protect their wealth through strategic financial planning and risk management. Through this platform, I aim to share practical insights, valuable knowledge, and real-world perspectives that can help you make more informed financial decisions.
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