By MoneyBees
Work out your emergency fund from your essential monthly spending on MoneySense's 3 to 6 months, see how long it lasts after a job loss with Jobseeker Support, and where SDIC insures it.
MoneySense, MAS's financial education programme, suggests at least 3 to 6 months of expenses, and 12 months if your income is irregular. On S$3,000 of essential spending a month, 6 months is S$18,000.
The ones you cannot stop if your pay stops: rent or your home loan, utilities, food, transport, phone, insurance premiums, loan and card repayments, healthcare and any allowance you give your parents. MoneySense also lists taxes.
MoneySense suggests a mix of savings accounts and Singapore Savings Bonds, which can be redeemed in any month without a penalty. It does not recommend the stock market for an emergency fund.
No. MoneySense says CPF cannot serve as an emergency fund because its use is tied to retirement, healthcare and home ownership.
Singapore dollar savings, current and fixed deposits, and SRS money, are insured by SDIC up to S$100,000 per depositor per bank or finance company. Foreign currency deposits, structured deposits, unit trusts and shares are not covered.
SkillsFuture Jobseeker Support pays up to S$6,000 over 6 months to citizens and PRs aged 21 and above who lost their job involuntarily, earned up to S$5,000 a month on average and live in a home with an Annual Value of S$31,000 or less. Each month is capped at your past average pay.
SingStat's Household Expenditure Survey 2023 found households spent S$5,931 a month on average, not counting the imputed rent of owner-occupied homes: S$2,426 for one person, S$4,066 for two and S$5,566 for three.
MoneySense does not recommend putting an emergency fund into the stock market, which is meant for long-term investing. Keep it where you can reach it quickly without a loss, and invest what is above it.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).