Good Saving Habit
The habit of saving is a good habit to adopt. Many people believe that:
Income - Expenditure = Savings. That I think is a wrong formulation. The correction formulation should be: Income - Savings = Expenditure.
Set aside the amount you aim to save first before deciding how or what to spend on. This will make you more bias towards your savings portion. Which will inevitably force you to save more over time.
In my view, it is the least one should do once he/she starts to have an income. It is a habit that should be inculcated since young. Put the money that you want to set aside, at its very least, into the highest interest yielding bank one can find and is comfortable with. Get to know all the banks and saving products(SSB etc) that are available out there(esp their interest yields) so that you will have more options later on. You should always aim to save and have a safe & decent return at the same time.
Is putting your savings into equity investment like Reits counted as savings? In my view no. You are putting your savings at risk especially in this long period of market volatility and interest rate speculation. I would separate my funds into what is deem safe to me(capital guaranteed) and what is deem risky to me(equity investment).
Is sticking to the same bank for your saving needs permanently a good idea? In my view no. Because you could potentially lose out to better offers out there. Another reason not to, is that SDIC only insures $50k to each bank. So having more banks accounts with savings capped at $50k for each should technically reduce your risk(although local banks in my view are still very safe).
With that being said, I want to wish you guys a Happy SG50 National Day!