SINGAPORE: It’s probably the first rule anyone hears when they start investing, right alongside “do your own research” and “nothing goes up forever”: Never invest more money than you can afford to lose.
Recently, however, a 28-year-old Singaporean man shared on social media that he had ignored this advice, a decision that ultimately resulted in the loss of his entire life savings.
Posting on the r/singaporefi forum on Friday (Jan 2), the man revealed that he had lost about S$100,000 in the financial markets, an amount that took him close to seven years to save.
“[It is] around seven years of my life savings,” he wrote. “I’m still trying to cope with the loss, but it has been extremely difficult for me as an average Singaporean.”
The damage, he explained, went far beyond the numbers on his trading screen. The loss now follows him into his everyday life, affecting both his mental health and his ability to function normally at work.
“Every morning when I wake up, I would think about the losses, and it leaves me feeling very low and unmotivated,” he said. “I struggle to focus on my day job because I keep thinking about what I’ve lost.”
Feeling overwhelmed and unsure how to move forward, the man turned to the online community for perspective, asking whether others had experienced similar financial wipeouts and how they managed to recover.
“Has anyone here experienced a significant financial loss before?” he asked. “I would really appreciate it if you could share how you coped with it and how you eventually managed to bounce back from such a major financial loss.”’
“You are still very young and have so much potential.”
In the thread, several users shared their own stories of six-figure losses and painful financial mistakes, all to remind him that however bad things get, he can always bounce back.
One wrote, “Lost S$200k at the age of 40, practically wiped out. Was unemployed for 8 months. Got a job, then moved up, and became manager. Saved bonus and 50% of salary, then got married to my dream lady. Invested and compounded every year. Now 50, with over S$500k in savings and owning property.”
Another shared, “Kinda the same situation as you. Lost about $100k in the markets when I was 25 years old. Very painful situation, but just need to reflect on what went wrong, change risk appetite, and change strategy.”
“Lay out your finances one by one and work towards a goal. Treat it as if you went for an ultra-luxurious holiday of S$100k that nobody knew about. Pick yourself up from there and start from zero.”
Others encouraged him to zoom out and look at what he still had.
“Focus on the positive,” one commenter said. “You are healthy and able to have S$100k in savings by 28. You are still very young and have so much potential and no doubt will be able to earn that back and even more.”
Another added, “Just know that you’re in Singapore, and you have a job here earning SGD. You are already in a very well-off position. I always think about my colleagues and friends in ASEAN; they are as capable and as hard-working, but they get fractions of what we get paid.”
“Their time is not worth less than yours; everyone has a finite life, but they are not getting rewarded for their efforts. It is not fair, and I recognise that. But they don’t give up, and they cannot afford to give up. So, you also cannot give up.”
So how much of your income should actually go into investing?
According to financial expert Matt Rogers, a good rule of thumb is to invest about 15% of your income. The remaining portion should be spread across other financial priorities.
Around 5% can be set aside for short-term savings, while roughly 50% should go towards essential expenses such as housing, food, healthcare, and transportation.
The final 30% can be used for discretionary spending, including dining out, entertainment, or additional savings, depending on your lifestyle and goals.
