Is SGD 100 a month even meaningful?

Yes. The amount is less important than starting early and increasing over time as your income grows.

What return rate should I assume?

Use conservative assumptions for planning, then stress-test a lower-return scenario so your plan remains realistic.

Should I wait for a market crash before starting?

Waiting for perfect timing often delays action. A consistent monthly plan reduces timing pressure and keeps behavior stable.

How often should I check my portfolio?

For long-term plans, monthly or quarterly reviews are usually enough. Daily monitoring can trigger emotional decisions.

Compounding 101 for Young Singaporeans | The Compound Club

A practical compounding guide using real timelines and realistic behavior patterns for young Singaporeans.

Why Compounding Feels Slow at First

In the early years, most of your portfolio value comes from your own contributions. That makes progress feel flat and boring.

That slow phase is normal. The curve only starts to look dramatic when the accumulated base gets large enough to produce meaningful yearly returns.

The Math With Simple Numbers

If you invest SGD 100 monthly for 30 years at an 8% annual return, your final value is far higher than just your total cash in. The gap is compound growth, not luck.

If you delay by ten years, you can still reach a strong result, but you need either more monthly contribution or a longer runway. Time is the variable you cannot buy back cheaply.

Behavior Before Optimization

A simple auto-invest plan beats a sophisticated plan you cannot maintain. For most first-jobbers, execution rhythm matters more than asset-level complexity.

Start with a fixed monthly amount. Increase it when your salary increases. Keep the process boring and repeatable.

Common Early Mistakes

Mistake one is stopping contributions whenever market headlines turn negative. Mistake two is changing strategy every three months.

Mistake three is comparing your year-one portfolio to someone else in year ten. Use your own contribution streak as your scoreboard.

Action Plan for This Week

Pick one monthly amount you can sustain for 12 straight months. Set the transfer date close to payday so you remove friction.

Then run your scenario in the calculator and save the baseline. Review once per quarter, not every day.

Compounding 101: Why $100 Today Can Change Your Future

Why Compounding Feels Slow at First

The Math With Simple Numbers

Behavior Before Optimization

Common Early Mistakes

Action Plan for This Week

Frequently Asked Questions

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