Xie Meishi

Money scripts are the beliefs and rules about money that we learn from our family, society, and culture.

They can shape our relationship with money and heavily influence our financial decisions.

Here are the four most common types of money scripts:

1️⃣ Money Avoidance

Money avoidance is a type of money script where individuals believe that having money or engaging with it is wrong or bad.

This may manifest in avoiding opportunities to make money, working long hours for low pay, or feeling uncomfortable discussing financial matters.

Money avoiders often think that money will bring them unhappiness and can be connected to feelings of guilt or shame.

2️⃣ Money Worship

Money worship is the opposite of money avoidance, but can still be unhelpful.

Those with this script believe that having more money will bring them greater happiness and power so they become obsessive about acquiring wealth.

Money worshippers are often overconfident in their financial decisions and can make irrational and reckless choices due to their obsession with money.

3️⃣ Money Status

Money status scripts involve associating money with social standing and comparing one’s finances to those of others.

Those with this type of money script may strive for material possessions that are expensive or fashionable, attempting to match or outdo the perceived financial success of friends, family, or colleagues.

4️⃣ Money Vigilance

Money Vigilance is a type of money script where individuals are cautious with their money and focus on saving, budgeting, and planning for the future.

Money vigilantes often have a strong aversion to debt and prioritize financial security over material comforts.

They may also be risk-averse investors.

🤔🤔🤔

It is important to become aware of the money scripts that influence our financial decisions and to recognize which type of script we are operating under.

Developing an understanding of money scripts can help us to make more informed and effective financial choices, in order to create greater security, freedom, and abundance in our lives.

If you are concerned with the long-term effects of your financial decisions, then inflation should be at the forefront of your mind.🧠

Over time, inflation can erode your purchasing power, which means that the same amount of money won't buy as much in the future as it does today. 💰⬇️

It's important to factor inflation into any long-term financial plan, such as retirement. 👩‍🦳👨‍🦳

People often ask, "How much is truly enough for retirement?"

"$1 million?"

"$2 million?"

The answer depends on the rate of inflation.

For example, if you have $1 million saved and expect to retire in 20 years, a 4% annual inflation rate means the same amount of money won't buy as much by retirement.

Instead of being able to buy $1 cup of coffee, the same amount will only buy you 3 quarters of it.☕

Since we cannot control the inflation rate, 𝙨𝙖𝙫𝙞𝙣𝙜 𝙢𝙤𝙧𝙚 𝙩𝙝𝙖𝙣 𝙮𝙤𝙪 𝙩𝙝𝙞𝙣𝙠 𝙮𝙤𝙪 𝙣𝙚𝙚𝙙 𝙞𝙨 𝙞𝙢𝙥𝙤𝙧𝙩𝙖𝙣𝙩.

By factoring inflation into your financial plan, you can ensure that the money you have saved will allow you to maintain your current standard of living.

Knowing 𝙝𝙤𝙬 𝙢𝙪𝙘𝙝 to save for retirement is an important step toward achieving financial security in the future.

With a little bit of planning, you can ensure that your money won't be devalued by inflation over time.

If you are young, it is not a bad idea to invest in higher-risk portfolios because you have more time for your investments to recover from market downturns.

However, if you are older and closer to retirement, we suggest lower-risk portfolios because there is less time available to recoup losses.

However, it is also essential for clients to have a long-term investment plan that reflects their financial goals.

The desire to retire earlier should not push you to invest a big portion of high-risk instruments such as cryptocurrencies and stock options.

Instead, you should focus on a diversified portfolio with stocks, bonds, mutual funds, ETFs, and other investments that offer some capital safety as well as the potential for gains.

It is important to understand your risk tolerance and make sure it aligns with your goals.

Even if you opt for a more conservative portfolio, there are still opportunities to earn returns over time.

Remember, high risks do not mean high and quick returns.

Moreover, a successful investment strategy necessitates consistent monitoring and reallocation of your portfolio.

Doing so will permit you to capitalize on the most beneficial opportunities available while also ensuring that your risk profile is in line with what you wish to achieve.

Do you find yourself struggling to keep up with your bills? 😢

Are you feeling like your mental well-being is tied to your current job or relationship? 😖

When people are stressed about money, it can have a serious impact on their mental health. 😞

In fact, money stress is one of the leading causes of anxiety and depression. 🥴

Here are 👌 tips to get financially literate and take control of our finances.

1️⃣ 𝗠𝗮𝗸𝗲 𝗮 𝗽𝗹𝗮𝗻

- 𝘋𝘰𝘯'𝘵 𝘫𝘶𝘴𝘵 𝘴𝘪𝘵 𝘢𝘳𝘰𝘶𝘯𝘥 𝘢𝘯𝘥 𝘩𝘰𝘱𝘦 𝘵𝘩𝘪𝘯𝘨𝘴 𝘸𝘪𝘭𝘭 𝘨𝘦𝘵 𝘣𝘦𝘵𝘵𝘦𝘳 - 𝘮𝘢𝘬𝘦 𝘢 𝘱𝘭𝘢𝘯 𝘢𝘯𝘥 𝘵𝘢𝘬𝘦 𝘢𝘤𝘵𝘪𝘰𝘯!

- 𝘛𝘢𝘤𝘬𝘭𝘦 𝘺𝘰𝘶𝘳 𝘥𝘦𝘣𝘵, 𝘴𝘵𝘢𝘳𝘵 𝘴𝘢𝘷𝘪𝘯𝘨 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘧𝘶𝘵𝘶𝘳𝘦, 𝘰𝘳 𝘤𝘳𝘦𝘢𝘵𝘦 𝘢 𝘣𝘶𝘥𝘨𝘦𝘵 𝘵𝘩𝘢𝘵 𝘸𝘰𝘳𝘬𝘴 𝘧𝘰𝘳 𝘺𝘰𝘶.

Small steps can make a big difference when it comes to your finances.

2️⃣ 𝗧𝗿𝗮𝗰𝗸 𝘆𝗼𝘂𝗿 𝘀𝗽𝗲𝗻𝗱𝗶𝗻𝗴

- 𝘒𝘦𝘦𝘱𝘪𝘯𝘨 𝘵𝘳𝘢𝘤𝘬 𝘰𝘧 𝘸𝘩𝘦𝘳𝘦 𝘺𝘰𝘶𝘳 𝘮𝘰𝘯𝘦𝘺 𝘨𝘰𝘦𝘴 𝘤𝘢𝘯 𝘩𝘦𝘭𝘱 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘸𝘩𝘦𝘳𝘦 𝘺𝘰𝘶 𝘮𝘪𝘨𝘩𝘵 𝘣𝘦 𝘢𝘣𝘭𝘦 𝘵𝘰 𝘴𝘢𝘷𝘦 𝘴𝘰𝘮𝘦 𝘤𝘢𝘴𝘩.

Seeing where you're spending the most money might surprise you!

3️⃣ 𝗦𝗽𝗲𝗮𝗸 𝘁𝗼 𝗮 𝘁𝗿𝘂𝘀𝘁𝗲𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗱𝘃𝗶𝘀𝗼𝗿

- 𝘛𝘢𝘭𝘬𝘪𝘯𝘨 𝘵𝘰 𝘴𝘰𝘮𝘦𝘰𝘯𝘦 𝘸𝘩𝘰 𝘤𝘢𝘯 𝘩𝘦𝘭𝘱 𝘺𝘰𝘶 𝘶𝘯𝘥𝘦𝘳𝘴𝘵𝘢𝘯𝘥 𝘺𝘰𝘶𝘳 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘪𝘵𝘶𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘤𝘳𝘦𝘢𝘵𝘦 𝘢 𝘱𝘭𝘢𝘯 𝘵𝘰 𝘪𝘮𝘱𝘳𝘰𝘷𝘦 𝘪𝘵 𝘤𝘢𝘯 𝘣𝘦 𝘳𝘦𝘢𝘭𝘭𝘺 𝘩𝘦𝘭𝘱𝘧𝘶𝘭. 𝘛𝘩𝘦𝘺 𝘤𝘢𝘯 𝘩𝘦𝘭𝘱 𝘺𝘰𝘶 𝘴𝘦𝘵 𝘨𝘰𝘢𝘭𝘴 𝘢𝘯𝘥 𝘤𝘳𝘦𝘢𝘵𝘦 𝘢 𝘣𝘶𝘥𝘨𝘦𝘵 𝘵𝘩𝘢𝘵 𝘸𝘰𝘳𝘬𝘴 𝘧𝘰𝘳 𝘺𝘰𝘶.

Our financial life, background, and attitude toward money are unique to each and every one of us.

The right advice can get you on a track tailored to you and your situation.

There's a lot to learn, but it's important to understand the basics so you can make smart choices for your future. 😀

"One kopi-c kosong. How much?"

"$1.60," Auntie said, preparing my coffee behind the drinks stall.

I gulped involuntarily as I rummaged for more coins in my pockets.

Inflation can have a significant influence on our everyday lives, particularly if it erodes the worth of money.

"𝘍𝘰𝘤𝘶𝘴𝘌𝘤𝘰𝘯𝘰𝘮𝘪𝘤𝘴 𝘊𝘰𝘯𝘴𝘦𝘯𝘴𝘶𝘴 𝘍𝘰𝘳𝘦𝘤𝘢𝘴𝘵 𝘱𝘢𝘯𝘦𝘭𝘪𝘴𝘵𝘴 𝘦𝘹𝘱𝘦𝘤𝘵 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯 𝘵𝘰 𝘢𝘷𝘦𝘳𝘢𝘨𝘦 3.4% 𝘪𝘯 2022, 𝘸𝘩𝘪𝘤𝘩 𝘪𝘴 𝘶𝘱 0.6 𝘱𝘦𝘳𝘤𝘦𝘯𝘵𝘢𝘨𝘦 𝘱𝘰𝘪𝘯𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘱𝘳𝘦𝘷𝘪𝘰𝘶𝘴 𝘮𝘰𝘯𝘵𝘩’𝘴 𝘧𝘰𝘳𝘦𝘤𝘢𝘴𝘵."

(𝘚𝘰𝘶𝘳𝘤𝘦: 𝘩𝘵𝘵𝘱𝘴://𝘩𝘪.𝘴𝘸𝘪𝘵𝘤𝘩𝘺.𝘪𝘰/𝘚𝘪𝘯𝘨𝘢𝘱𝘰𝘳𝘦𝘐𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯)

If inflation is 3%, investing in a bond with a 2% yield will result in a loss.

The objective is to invest to preserve the value of your money and take inflation into account.

Here are 🖐 inflation-beating investment ideas that may be suitable for you:

1️⃣ ᴅᴏɴ'ᴛ ʟᴇᴀᴠᴇ ᴀʟʟ ᴏꜰ ʏᴏᴜʀ ᴍᴏɴᴇʏ ɪɴ ᴀ ꜱᴀᴠɪɴɢꜱ ᴀᴄᴄᴏᴜɴᴛ

𝘐𝘧 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘱𝘶𝘵𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘣𝘶𝘭𝘬 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘮𝘰𝘯𝘦𝘺 𝘪𝘯 𝘵𝘩𝘦 𝘣𝘢𝘯𝘬, 𝘵𝘩𝘦 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵 𝘳𝘢𝘵𝘦 𝘰𝘧 0.05% 𝘪𝘴 𝘢𝘣𝘭𝘦 𝘵𝘰 𝘨𝘦𝘵 𝘺𝘰𝘶 𝘢 𝘤𝘶𝘱 𝘰𝘧 𝘤𝘰𝘧𝘧𝘦𝘦 𝘦𝘷𝘦𝘳𝘺 𝘮𝘰𝘯𝘵𝘩 𝘪𝘧 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 $38,400 𝘴𝘪𝘵𝘵𝘪𝘯𝘨 𝘪𝘯 𝘺𝘰𝘶𝘳 𝘣𝘢𝘯𝘬 𝘳𝘪𝘨𝘩𝘵 𝘯𝘰𝘸.

2️⃣ ɪɴᴠᴇꜱᴛɪɴɢ ɪɴ ᴄᴏᴍᴍᴏᴅɪᴛɪᴇꜱ

𝘎𝘰𝘭𝘥 𝘢𝘯𝘥 𝘴𝘪𝘭𝘷𝘦𝘳 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘶𝘴𝘦𝘥 𝘢𝘴 𝘢 𝘧𝘰𝘳𝘮 𝘰𝘧 𝘤𝘶𝘳𝘳𝘦𝘯𝘤𝘺 𝘢𝘯𝘥 𝘴𝘵𝘰𝘳𝘦 𝘰𝘧 𝘷𝘢𝘭𝘶𝘦 𝘧𝘰𝘳 𝘤𝘦𝘯𝘵𝘶𝘳𝘪𝘦𝘴. 𝘛𝘩𝘦𝘺 𝘢𝘳𝘦 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯-𝘱𝘳𝘰𝘰𝘧 𝘢𝘯𝘥 𝘮𝘢𝘺 𝘢𝘤𝘵 𝘢𝘴 𝘢 𝘩𝘦𝘥𝘨𝘦 𝘢𝘨𝘢𝘪𝘯𝘴𝘵 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯.

3️⃣ ꜱɪɴɢᴀᴘᴏʀᴇ ꜱᴀᴠɪɴɢꜱ ʙᴏɴᴅꜱ

𝘛𝘩𝘦𝘴𝘦 𝘣𝘰𝘯𝘥𝘴 𝘰𝘧𝘧𝘦𝘳 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯-𝘭𝘪𝘯𝘬𝘦𝘥 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴, 𝘸𝘩𝘪𝘤𝘩 𝘮𝘦𝘢𝘯𝘴 𝘵𝘩𝘢𝘵 𝘵𝘩𝘦 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘸𝘪𝘭𝘭 𝘳𝘪𝘴𝘦 𝘢𝘭𝘰𝘯𝘨 𝘸𝘪𝘵𝘩 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯.

4️⃣ ɪɴꜱᴜʀᴀɴᴄᴇ ᴘʀᴏᴅᴜᴄᴛꜱ

𝘚𝘰𝘮𝘦 𝘪𝘯𝘴𝘶𝘳𝘢𝘯𝘤𝘦 𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘴 𝘴𝘶𝘤𝘩 𝘢𝘴 𝘢𝘯𝘯𝘶𝘪𝘵𝘪𝘦𝘴 𝘤𝘢𝘯 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘢𝘵𝘵𝘳𝘢𝘤𝘵𝘪𝘷𝘦 𝘰𝘱𝘵𝘪𝘰𝘯𝘴 𝘧𝘰𝘳 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯-𝘱𝘳𝘰𝘰𝘧𝘪𝘯𝘨 𝘺𝘰𝘶𝘳 𝘱𝘰𝘳𝘵𝘧𝘰𝘭𝘪𝘰.

𝘠𝘰𝘶 𝘱𝘢𝘺 𝘱𝘳𝘦𝘮𝘪𝘶𝘮𝘴 𝘧𝘰𝘳 𝘢 𝘧𝘪𝘹𝘦𝘥 𝘢𝘮𝘰𝘶𝘯𝘵 𝘰𝘧 𝘵𝘪𝘮𝘦. 𝘐𝘯 𝘦𝘹𝘤𝘩𝘢𝘯𝘨𝘦, 𝘺𝘰𝘶 𝘳𝘦𝘤𝘦𝘪𝘷𝘦 𝘢 𝘮𝘰𝘯𝘵𝘩𝘭𝘺 𝘰𝘳 𝘺𝘦𝘢𝘳𝘭𝘺 𝘱𝘢𝘺𝘰𝘶𝘵 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘳𝘦𝘴𝘵 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘭𝘪𝘧𝘦 𝘰𝘳 𝘧𝘰𝘳 𝘢 𝘧𝘪𝘹𝘦𝘥 𝘯𝘶𝘮𝘣𝘦𝘳 𝘰𝘧 𝘺𝘦𝘢𝘳𝘴.

5️⃣ ɪɴᴠᴇꜱᴛɪɴɢ ɪɴ ᴍᴜᴛᴜᴀʟ ꜰᴜɴᴅꜱ, ᴇQᴜɪᴛɪᴇꜱ, ᴇᴛꜰꜱ

𝘐𝘧 𝘺𝘰𝘶 𝘢𝘳𝘦 𝘸𝘪𝘭𝘭𝘪𝘯𝘨 𝘵𝘰 𝘵𝘢𝘬𝘦 𝘰𝘯 𝘴𝘰𝘮𝘦 𝘳𝘪𝘴𝘬, 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘪𝘯 𝘢 𝘥𝘪𝘷𝘦𝘳𝘴𝘪𝘧𝘪𝘦𝘥 𝘱𝘰𝘳𝘵𝘧𝘰𝘭𝘪𝘰 𝘰𝘧 𝘴𝘵𝘰𝘤𝘬𝘴 𝘢𝘯𝘥 𝘣𝘰𝘯𝘥𝘴 𝘮𝘢𝘺 𝘰𝘧𝘧𝘦𝘳 𝘵𝘩𝘦 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘧𝘰𝘳 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯-𝘣𝘦𝘢𝘵𝘪𝘯𝘨 𝘳𝘦𝘵𝘶𝘳𝘯𝘴 𝘰𝘷𝘦𝘳 𝘵𝘩𝘦 𝘭𝘰𝘯𝘨 𝘵𝘦𝘳𝘮.

Inflation can have a big impact on our lives, but there are ways to try and beat it.

If you invest in the right assets, you can help to keep your money safe. 👍

As the restrictions on travel are being lifted, insurers are starting to offer coverage specifically for Covid-19.

This is good news for people who want to travel now and are seeking related Covid-19 medical treatment coverage. It is also critical to obtain Covid-19 insurance coverage since the treatment might be expensive.

Here are some categories to look out for to consider what type of coverage is best for you.

1️⃣ 𝗠𝗲𝗱𝗶𝗰𝗮𝗹 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲 (𝗜𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗢𝘃𝗲𝗿𝘀𝗲𝗮𝘀 𝗗𝗮𝗶𝗹𝘆 𝗛𝗼𝘀𝗽𝗶𝘁𝗮𝗹 𝗖𝗮𝘀𝗵)

If you get hospitalized or needed medical treatment while traveling or for up to 14 days after returning to Singapore, you can claim medical expenses and hospital cash benefits.

2️⃣ 𝗤𝘂𝗮𝗿𝗮𝗻𝘁𝗶𝗻𝗲 𝗔𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲

This covers the cost of being quarantined overseas after being diagnosed with Covid-19.

3️⃣ 𝗧𝗿𝗶𝗽 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻

If your trip is canceled or reorganized as a result of Covid-19, you may claim under this section. This includes a death in your family due to Covid-19, public transportation stopping operation as a result of Covid-19, or you are unable to complete your journey because of a Covid-19 outbreak at your destination.

4️⃣ 𝗧𝗿𝗶𝗽 𝗣𝗼𝘀𝘁𝗽𝗼𝗻𝗲𝗺𝗲𝗻𝘁

If you have to postpone your trip to Singapore because you catch Covid-19, or if you or a family member catch the virus before your scheduled departure date (less than 30 days) and have to cancel your trip because of that, you will receive compensation.

𝙒𝙝𝙖𝙩 𝙎𝙝𝙤𝙪𝙡𝙙 𝙔𝙤𝙪 𝘿𝙤 𝘼𝙛𝙩𝙚𝙧 𝙔𝙤𝙪 𝙃𝙖𝙫𝙚 𝘾𝙤𝙣𝙛𝙞𝙧𝙢𝙚𝙙 𝙔𝙤𝙪𝙧 𝙏𝙧𝙞𝙥?

✅ Retain all receipts, tickets, and itineraries in case your trip has to be canceled or altered

✅ Make a claim by submitting the insurer’s form with supporting documents within the deadline mentioned in your contract

✅ If you catch Covid-19 while you’re in Singapore, submit PCR Swab Test or Antigen Rapid Test results

✅ If you need to be quarantined overseas, make sure you have a quarantine order from the government

A sharp pain radiated through his head, down his neck and shoulders, and the left-hand side of his body.

He had been riding home to the car park entrance when the barricade swung down on him. It hit his head with a resounding thud. He counted himself lucky not to have fallen off the bike, but that didn't make the pain go away.

After a couple of days, the pain seemed to have settled and he was back to his normal self. One night, however, the pain was back and it didn't seem to be going away.

That's when he decided to see a Chinese Practitioner for Traditional Chinese Medicine (TCM) treatment with a bill amounting to $237.

Fortunately, he was able to claim under his 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗔𝗰𝗰𝗶𝗱𝗲𝗻𝘁 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗽𝗼𝗹𝗶𝗰𝘆 under 𝗧𝗖𝗠 𝗺𝗲𝗱𝗶𝗰𝗮𝗹 𝗿𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗲𝗺𝗲𝗻𝘁.

Here's what you need to know:

Some Personal Accident Insurance provides medical reimbursement under Traditional Chinese Medicine. If you are injured in an accident, you have the option to seek both Western and Traditional Chinese Treatment or just one of them.

You can seek your 𝗳𝗶𝗿𝘀𝘁 𝘁𝗿𝗲𝗮𝘁𝗺𝗲𝗻𝘁 𝘄𝗶𝘁𝗵𝗶𝗻 𝟯𝟬 𝗱𝗮𝘆𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗮𝗰𝗰𝗶𝗱𝗲𝗻𝘁. Any further treatments must be done w̲i̲t̲h̲i̲n̲ ̲a̲ ̲y̲e̲a̲r̲ from the day of the first treatment.

Your insurer will conduct a review before approving your claim for reimbursement under TCM medical treatment.

𝗧𝗵𝗶𝘀 𝗮𝗹𝘀𝗼 𝗺𝗲𝗮𝗻𝘀 𝘁𝗵𝗲 𝗯𝗶𝗹𝗹 𝗵𝗮𝘀 𝘁𝗼 𝗯𝗲 𝗽𝗮𝗶𝗱 𝗯𝘆 𝘆𝗼𝘂 𝗳𝗶𝗿𝘀𝘁 𝗯𝗲𝗳𝗼𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗿𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗲𝗱 𝗹𝗮𝘁𝗲𝗿.

To know more about the various limits and policy terms and conditions of your insurance policies, be sure to read them as well as your coverage limits and exclusions.

Alternatively, your financial advisor can help you understand them better. 😉

This is a question that many young adults face: should I be saving or investing first? Which is more important? Before thinking about investments, how much money should I have in my savings account, and what are the best ways to ensure growth in your savings?

Although...

Is there ever really enough money set aside for the long-lasting rainy season in light of the pandemic that appears to never end?

This is a tough question to answer because everyone's circumstances are unique, and only you will know whether what you've saved thus far is enough.

Adults in their mid-to-late 20s were found to save roughly $500 to $1,000 each month on average, according to a brief survey conducted by The Straits Times. Salaries range between $3,500 to $5,000.

Here are three methods to boost your savings if you haven't already.

𝗖𝗼𝗺𝗺𝗶𝘁 𝗮 𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝗽𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲 𝗼𝗳 𝗶𝗻𝗰𝗼𝗺𝗲 𝗮𝘀 𝘀𝗮𝘃𝗶𝗻𝗴𝘀

Do set aside a certain proportion of your income in savings. To keep the balance in your spendings/savings, you must be able to save at least 10% of what you make.

To put things into perspective, if you save $500 monthly, it will take approximately 20 years for you to save enough money to buy an apartment.

If you have a $1,000 monthly fixed expenses, make sure you have six months of emergency savings (i.e. $6,000) available to use whenever the need arises. Cash liquidity is critical.

𝗧𝗿𝗮𝗰𝗸 𝘆𝗼𝘂𝗿 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴

Another way for people who are struggling with saving is to track their spending habits in order to identify where they are spending too much money.

One of the main complaints I often hear about is how their financial information can feel like it is all over the place - Housing loans, CPF balances, deposits, credit cards, loans, and investments.

The Singapore Financial Data Exchange (SGFinDex) is a collaboration between the Monetary Authority of Singapore (MAS) and the Smart Nation and Digital Government Group (SNDGG), with support from the Ministry of Manpower (MOM). It's based on Singapore's National Digital Identity (SingPass), and it was created by public-sector experts in conjunction with The Association of Banks in Singapore and 7 participating banks.

Individuals can use their SingPass to access their personal financial information (such as deposits, credit cards, loans, and investments) from the participating banks and their financial data (such as HDB loans and CPF balances) from the relevant government agencies with SGFinDex. This will allow individuals to have a better grip on their overall financial situation and planning.

You can check the website at https://www.mymoneysense.gov.sg/

𝗙𝗶𝗻𝗱 𝗼𝘂𝘁 𝗪𝗵𝗮𝘁 𝘆𝗼𝘂 𝗮𝗿𝗲 𝗦𝗮𝘃𝗶𝗻𝗴 𝗳𝗼𝗿 𝗶𝗻 𝘁𝗵𝗲 𝗟𝗼𝗻𝗴 𝗥𝘂𝗻

Another way that may help is to think about what you are saving for in the long haul.

If nothing else, choose to establish a Freedom Fund. It's a financial mechanism that allows individuals to have complete freedom in deciding when to retire, further education, or just to take a year off traveling.

By spending below your means after committing 10% aside for steady savings, you can now start investing. And dollar-cost averaging can be your starting point to compound returns.

Achieving your financial goals will take perseverance, dedication and discipline. The key is to keep your eye on the prize.

The more educated we are about our finances, the better prepared we will be for life's surprises that can happen when least expected!

Planning for future financial decisions is one of the most important things you can do to ensure that your finances are taken care of.

An often neglected part of finanical planning is doing up a Lasting Power of Attorney (LPA) and this can lead to a potential financial disaster.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 𝗟𝗮𝘀𝘁𝗶𝗻𝗴 𝗣𝗼𝘄𝗲𝗿 𝗼𝗳 𝗔𝘁𝘁𝗼𝗿𝗻𝗲𝘆?

A Lasting Power of Attorney (LPA) is a legal piece of paper that names someone to make decisions for you if something happens to rob you of your mental soundness.

𝑁𝑜𝑡𝑒: 𝑊ℎ𝑒𝑛 𝑦𝑜𝑢 𝑔𝑖𝑣𝑒 𝑖𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛𝑠 𝑜𝑛 𝑡ℎ𝑖𝑠 𝑙𝑒𝑔𝑎𝑙 𝑑𝑜𝑐𝑢𝑚𝑒𝑛𝑡, 𝑦𝑜𝑢 𝑎𝑟𝑒 𝑡ℎ𝑒 𝑑𝑜𝑛𝑜𝑟. 𝑊ℎ𝑒𝑛 𝑦𝑜𝑢 𝑟𝑒𝑐𝑒𝑖𝑣𝑒 𝑡ℎ𝑒 𝑖𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛𝑠 𝑡𝑜 𝑐𝑎𝑟𝑟𝑦 𝑜𝑢𝑡 𝑡ℎ𝑒 𝑤𝑖𝑠ℎ𝑒𝑠, 𝑦𝑜𝑢 𝑎𝑟𝑒 𝑡ℎ𝑒 𝑑𝑜𝑛𝑒𝑒.

𝑨𝒊𝒏'𝒕 𝒕𝒐𝒐 𝒐𝒍𝒅 𝒕𝒐 𝒍𝒐𝒔𝒆 𝒊𝒕 𝒚'𝒂𝒍𝒍

There are many reasons for loss of mental capacity. Some people lose it because of a stroke, dementia, brain injury or an intellectual disability. And it can happen to anyone, even if they're not old.

When you don't have the mental capacity, your LPA will come in to enlist donees to make decisions on your behalf.

𝗪𝗵𝗮𝘁 𝗸𝗶𝗻𝗱 𝗼𝗳 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 𝗰𝗮𝗻 𝘁𝗵𝗲 𝗱𝗼𝗻𝗲𝗲𝘀 𝗺𝗮𝗸𝗲?

Donees can make decisions about your property, financial affairs and personal welfare. It can be the following:

1️⃣ Where is Donor going to live and stay
2️⃣ Who will take care of Donor
3️⃣ Who will give consent to Donor's medical treatment
4️⃣ Financial arrangements for Donor in terms of property, funds in banks and insurance claims

This decision power will stop when the person they are representing passes on.

What's the worst thing that can happen?

If you don't have an LPA, and you lose mental capacity, your family member does not automatically get the right to make legal decisions on your behalf.

For instance, if you are in a coma, your spouse and children won't be able to use your assets to pay hospital bills. Banks won't give them your money unless they have the LPA or a court order.

This can make it financially hard for parents, siblings or partner to care for you.

In the meantime, the courts will appoint someone (a.k.a stranger) to take over your affairs. Family members will then have to apply to the Family Court to appoint themselves as the deputy.

Deputyship can take from 3 weeks to 3 months depending on the complexity of the application and typically cost a few thousand dollars. Legal documents and doctor's report will have to be prepared and submitted. This can ultimately be an expensive and time-consuming process due to added stress to already difficult circumstances.

𝗪𝗵𝗮𝘁 𝗰𝗮𝗻 𝗜 𝘀𝘁𝗮𝗿𝘁 𝗱𝗼𝗶𝗻𝗴 𝗻𝗼𝘄?

Getting insurance is taking care of yourself and your loved ones before something happens. Having an LPA ensures your wishes are carried through whilst you are still alive but unable to make sound financial decisions.

Start thinking about who are the people closest to you (they may not necessarily be your family) and if you can trust their financial literacy to carry out your finanical wishes.

3 criteria to be eligible to apply for an LPA

1️⃣ Be 21 years of age
2️⃣ Be mentally sound
3️⃣ Not an undischarged bankrupt

The LPA is an important item for any adult to have in order to protect their assets and safeguard what you work so hard for.

Currently, LPA Form 1 fee ($75) is waived for all Singapore Citizens till March 2023.

For more information, you can head over to https://www.msf.gov.sg/opg/Pages/Home.aspx

Investing is often seen as a daunting task, but it doesn't have to be.

Let's explore the basics of 𝗱𝗼𝗹𝗹𝗮𝗿-𝗰𝗼𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 and how you can start investing today.

𝗗𝗼𝗹𝗹𝗮𝗿-𝗰𝗼𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 is a strategy used for investing lump sums of money over time.

This technique lets you buy a 𝘧𝘪𝘹𝘦𝘥 𝘥𝘰𝘭𝘭𝘢𝘳 𝘢𝘮𝘰𝘶𝘯𝘵 of shares every month.

This means that no matter how the market fluctuates, you will always buy the same dollar amount of shares (𝘦.𝘨. $100 𝘱𝘦𝘳 𝘮𝘰𝘯𝘵𝘩)

The magic of this strategy is that you 𝗱𝗼𝗻'𝘁 𝗽𝘂𝘁 𝗮𝗹𝗹 𝘆𝗼𝘂𝗿 𝗺𝗼𝗻𝗲𝘆 𝗶𝗻 𝗮𝘁 𝗼𝗻𝗰𝗲, which would expose you to market volatility if the asset prices suddenly drop after you invest your full amount.

Instead, when prices are 𝗹𝗼𝘄𝗲𝗿, you will buy 𝗺𝗼𝗿𝗲 shares.

When prices are 𝗵𝗶𝗴𝗵𝗲𝗿, 𝗳𝗲𝘄𝗲𝗿 shares will be bought.

[𝘚𝘦𝘦 𝘪𝘭𝘭𝘶𝘴𝘵𝘳𝘢𝘵𝘪𝘰𝘯 𝘣𝘦𝘭𝘰𝘸]

The beauty of this is that you don't have to be concerned with questions about when the stock market is going through a bubble and there's 𝗻𝗼 𝗳𝗲𝗮𝗿 of trying to time your investments perfectly.

As long as you contribute regularly, you'll benefit over the 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 from investing in the stock market.

With 𝗱𝗼𝗹𝗹𝗮𝗿-𝗰𝗼𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴, there's no need to try and predict the best time to invest in the stock market.

You simply continue to contribute a 𝗳𝗶𝘅𝗲𝗱 𝗮𝗺𝗼𝘂𝗻𝘁 𝗼𝗳 𝗺𝗼𝗻𝗲𝘆 into investments 𝗲𝗮𝗰𝗵 𝗺𝗼𝗻𝘁𝗵 and let the 𝗽𝗼𝘄𝗲𝗿 𝗼𝗳 𝗰𝗼𝗺𝗽𝗼𝘂𝗻𝗱𝗶𝗻𝗴 do its work for you over time.

The assumption is that over time, share prices will 𝗿𝗶𝘀𝗲 and the "𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗰𝗼𝘀𝘁" per share that you pay for your investments will 𝗱𝗲𝗰𝗿𝗲𝗮𝘀𝗲.

Because stock market returns are not guaranteed, there is 𝙣𝙤 𝙜𝙪𝙖𝙧𝙖𝙣𝙩𝙚𝙚 that this strategy will benefit your portfolio in the long-term.

𝗕𝗨𝗧.

If you stay consistent with regular contributions over an extended period of time, it can be a very effective way to build your retirement nest egg.

One disadvantage of the strategy is that your money might grow slower than if you were to invest in just one lump sum. However, this is offset by the fact that you are less likely to lose 𝗮𝗹𝗹 of your investment should the stock market crash.

Another disadvantage is 𝗱𝗼𝗹𝗹𝗮𝗿-𝗰𝗼𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 requires 𝘵𝘪𝘮𝘦 and 𝘥𝘪𝘴𝘤𝘪𝘱𝘭𝘪𝘯𝘦.

You will need to contribute set amounts of money 𝗲𝗮𝗰𝗵 𝗺𝗼𝗻𝘁𝗵 in order for the strategy to work.

If you have what it takes to be patient and consistently put in the fixed amount of monthly contributions, you can use 𝗱𝗼𝗹𝗹𝗮𝗿-𝗰𝗼𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 to build your dream retirement portfolio.

All that is needed is the desire to start investing today and add a little money over time in order to create wealth. 😀

𝗜𝘀 𝗕𝘂𝘆𝗶𝗻𝗴 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗙𝗿𝗼𝗺 𝗧𝗵𝗲 𝗦𝗮𝗺𝗲 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗧𝗵𝗲 𝗪𝗶𝘀𝗲𝘀𝘁 𝗖𝗵𝗼𝗶𝗰𝗲?

When it comes to buying insurance policies, most people are of the mind that it is wiser to buy from a company that they really trust. However, as long you have done your homework well and found the right insurance company for all your needs, it may not matter whether or not the company you buy from is the same one that provides them.

What most people do not know is that there are many insurance companies out there with a variety of policies to offer.

There is no reason for you to go with the first company you come across or the one your friends may be using just because it has been around for while.

Even if this insurance company has a really good reputation, it may not be the best fit for you.

Before you buy a plan, take the time to compare as many options as possible so that you can find the one that is really meant for you and fits your needs perfectly. You have to be sure about what you are getting into before making your final decision so that you do not end up having to jump ship soon after.

What you should keep in mind is that just because a specific insurance company or policy may be offering great deals, it does not mean that they are necessarily the best ones.

You have to consider your needs and the requirements of the policy before making a decision so that you do not end up making a decision in haste.

Finding the right financial consultant matters a lot too. They will be able to guide you when it comes to finding a company or policy that is most suited for your specific situation and needs. With the right financial consultant on your side, you can worry less about making a wrong decision.

In the end, as long as you are comparing different options and find a company that is able to give you what it takes and match your requirements perfectly, there will be no reason for you to worry about buying from the same insurance company.

Even if it is the same company as your friends and family members, you will be sure that you are making the right decision with the help of a financial consultant. 🤓

You know that you should have an accident plan, but it's hard to get started. Injuries may be sudden and unexpected, but sadly inevitable.

A homemaker slipped and injured her thumb while cooking for her family. It left her with a lot of nagging joint pain, swelling and stiffness.

Costs piled up quickly as she went for an x-ray and a steroid jab was needed. More consultations may be required to assess the recovery of the injury.

A personal accident insurance plan protected this homemaker against the financial burden of paying for medical care. She is able to have a peace of mind because the claims have been quick and the claim process was seamless.

Having a hospital plan is not quite the same as a personal accident plan because injuries sustained from an accident may not require hospitalization but still cause significant pain and inconvenience to your daily living.

Personal injury plans typically have low premiums so
when life throws you a curve ball, your finances are not thrown out of whack too.

"Saving more that you think you need today also buys you more choice and freedom in the future. The usual guideline I give to clients to help them achieve this is to save 25% of annual gross income."

I'm a financial planner, and there are 5 pieces of money advice no one ever wants to hear from me Eric Roberge's clients never want to hear that they should save more than they need to, buy less house, and leave their investments alone.

Saving is hard. We all know that budgeting is a good idea. But it's hard to stick with the strict rules of your budget when you are eating pork buns everyday.

And if you're not careful, strict budgeting can lead to frugality fatigue and burnout.

You don't want to be a miser and you don't want to spend frivolously, but you also don't want to miss out on the fun things in life.

Fun spending is about finding a balance between savings and splurging. It's not about giving up everything that makes life worth living; it's about saving money without feeling deprived or miserable.

Small splurges and occasional unnecessary spending while still keeping your overall spending under control will keep you balanced.

Mindful budgeting lets you see where most of your money goes so that if there are areas where you want to cut back, at least it will be easier because they won't be an unexpected expense.

And if there are areas where you spend more than expected, then at least now knowing about them means that next time around they'll be planned expenses instead of impulse purchases!

Discussing and sitting down with a Financial Advisor can help you chart out what is financially necessary (and unnecessary).

In this way, you can enjoy saving money without going overboard with the frugal stuff or having an expensive lifestyle that doesn't match your income level. ☺️

Are you growing golden eggs for your retired years?

If you want to retire comfortably, it’s important that you have a long-term passive investment strategy.

The best way to do this is by investing wisely in globally diversified portfolios at a low cost and at a risk tolerance suitable for you.

You can start with speaking to a Financial Advisor to list down your goals and map out how you can achieve them through different milestones.

Is your full-rider integrated plan (IP) a.k.a hospitalisation plan transitioning to a co-payment scheme?

This means that policyholders will now need to co-pay part of ther hospitalisation bills.

Reason?

"Full riders that cover the entire co-payment required under IPs have contributed to the over-consumption, over-servicing and over-charging by doctors and policyholders which in turn impacts healthcare costs".

So don't throw away or delete your insurance mailers. Keep a lookout for them as they will be informing you of changes (if any) in your benefits and premiums. ☺

Do you have adequate retirement funds to last you for the next 15-20 years?

The National Trade Union Congress (NTUC) is urging for higher Central Provident Fund (CPF) contribution rates from 1 January 2022.

Statutory retirement age will also increase from 62 to 63; re-employment age from 67 to 68.

Higher CPF rates will help accumulate more savings to tide senior citizens through their non-working years.

This allows them options to continue earning an income should they choose to work longer.

Make working a choice in your retirement years and start thinking about the activities you would want do most when income is no longer a pressing priority. ☺️

Do you go for regular health check-ups?

While it may be daunting to receive the results, early detection helps us to treat the condition quickly before complications creep up.

Typical conditions such as high cholesterol or high blood pressure show no early symptoms. Hence, regular health screenings go a long way to increase your overall health and lifestyle.

Some insurance policies have complimentary health screenings.

General health checks include:
1. Body mass index (high levels lead to higher risk of health complications)
2. Cholesterol (high levels lead to higher risks of heart diseases)
3. Blood glucose (checks for signs of diabetes)
4. Blood pressure (checks for signs of hypertension)

Protect your health and spend some time on doing regular health screenings.

Having some concerns over the Covid-19 vaccination complications?

All 7 private insurers are extending their integrated shield plan a.k.a hospitalisation plan to cover the above should the need arises.

This special coverage will last till 31 December 2021.

Have your finances taken a hit in 2020?

Now that we are in 2021, are your bank savings still enjoying the same high interest rates?

Watch out for non-participating single premium plans that have a short-term commitment of 2 to 3 years.

They often offer guaranteed returns that are higher than your bank interest rates.

The icing on the cake? Your premiums are capital guaranteed as well. 😎