Start with one number. Get your plan.
The three rules of thumb from the MAS Basic Financial Planning Guide, applied to your take-home pay. Save, insure, invest — what the numbers should be. It starts here.
Start with one number
Your monthly take-home pay
S$
After CPF deduction, before any savings or investments.
What the MAS guide recommends
Three rules of thumb. One plan.
01 — Save
Build a fund of
S$10,800 – S$21,600
Emergency fund target¹
Set aside 3 to 6 months of typical expenses¹. Liquid, accessible, not in markets. This is the foundation under everything else.
02 — Insure
Spend at most
S$900 / month
Maximum total protection spend — 15% of take-home¹
What that budget should cover
Life cover
S$648,000
Replaces income for dependents if something happens to you. Typical recommendation: 9 × annual take-home².
Critical illness cover
S$288,000
Lump sum at diagnosis to cover treatment costs and time off work during a typical 5-year recovery period³. Recommendation: 4 × annual take-home³.
Hospitalisation
✓ MediShield Life⁴
Automatic for Singapore citizens and PRs⁴ — covers basic public-hospital wards (B2/C)⁴. Add an Integrated Shield Plan⁵ if you want private or A1 ward access.
Long-term care
✓ CareShield Life⁶
Automatic for Singapore citizens and PRs born 1980 or later⁶ (older Singaporeans may have ElderShield⁷ instead). Pays out for severe disability⁶. A CareShield Life Supplement⁶ can raise the monthly payout if you want more cushion.
03 — Invest
Invest at least
S$600 / month
Minimum for long-term goals — 10% of take-home¹
Directed at long-term goals — retirement, future income, large purchases on the horizon. Below 10%¹ and you're likely losing ground to Singapore inflation⁸.
This is general guidance, not personalised financial advice. The emergency-fund range assumes typical expenses of around 60% of take-home. Your actual situation may differ.
References
- 1.Basic Financial Planning Guide — MAS, MoneySense, CPF Board, ABS, AFAS, LIA (2023). Source of the 3-6 month emergency fund, 15% protection budget cap, and 10% investment minimum rules of thumb. www.moneysense.gov.sg/planning-your-finances-well
- 2.Life cover multiple (9 × annual income) — Common Singapore protection planning rule of thumb covering income replacement, dependent obligations, and outstanding debts. See LIA Insurance Calculator Resources. www.lia.org.sg/tools-and-resources/insurance-calculator-intro
- 3.Critical illness cover multiple (4 × annual income) — Singapore MoneySense — Basic Financial Planning Guide. Covers treatment costs and time off work during a typical 5-year recovery period. www.moneysense.gov.sg/planning-your-finances-well
- 4.MediShield Life — Universal basic hospitalisation insurance for Singapore citizens and PRs, administered by the CPF Board. Covers basic public-hospital wards (Class B2/C). www.cpf.gov.sg/member/healthcare-financing/medishield-life
- 5.Integrated Shield Plans (IPs) — Private supplements to MediShield Life for higher ward-class coverage (Class B1, A, or private), regulated by the Ministry of Health. www.moh.gov.sg/cost-financing/healthcare-schemes-subsidies/medishield-life/integrated-shield-plans
- 6.CareShield Life — Universal severe-disability insurance for Singapore citizens and PRs born in 1980 or later, administered by the CPF Board. Supplements available from private insurers. www.cpf.gov.sg/member/healthcare-financing/careshield-life
- 7.ElderShield — Predecessor scheme to CareShield Life for Singapore citizens and PRs born before 1980, administered by the CPF Board. www.cpf.gov.sg/member/healthcare-financing/eldershield
- 8.Singapore Consumer Price Index (CPI) — Singapore Department of Statistics — official CPI data. Singapore inflation has typically run 2-3% per year in recent years, above the rate earned on most savings accounts. www.singstat.gov.sg/find-data/search-by-theme/economy/prices-and-price-indices
Behind this page
"Most consultations in Singapore start with a product. I'd rather start with the rules of thumb above. If a product fits, I'll say so — that's when I get paid. If nothing fits, I'll say that too."
Isaac Lim Wei Loong · Wealth Solutions Consultant · MAS RNF ILW300805707
Knowing the targets is step one. Hitting them is step two.
These are general rules of thumb. Building a plan around your income, your CPF, your existing coverage, and the trade-offs your life actually makes is a different conversation. Send a quick message — Isaac responds personally within one business day. The first call is 30 minutes, video or in-person, no product pitched. If something fits afterwards, you'll know exactly what and why. If nothing fits, you'll hear that too.