Does financial planning put you off because of all the big words? Or are you simply confused by all the financial jargons? Guess what, you are not alone! Back in 2017, Today has reported that 41% of adults in Singapore are not financially literate.
Have you wondered what you can do with the spare cash after you have set aside money for your expenses and regular savings? Should you leave it in your savings account for a rainy day, spend it on a shopping spree or invest it? This is a decision that you will encounter throughout your life. Planning the amount that you will set aside for saving, spending and investing is the first step to help you achieve your short, medium and long term goals.
We all know planning is a painful process. It is tedious, time consuming and not the most interesting task. However, this is essential in financial planning as it helps you to figure out the steps you need and build a blueprint to your goals.
For example, if you have just landed in your first job with university loan to pay off, planning and budgeting will help to minimise the disruption in your payment of the student loan. Or if your family depends solely on your income for bread and butter, planning ahead for unexpected events will help to protect their financial needs. In other instances i.e. if you are a young couple with a newborn, financial planning will ensure that you will not have to fret over your child’s education needs when the time comes. Regardless of the reasons or your income, financial planning will point you in the right direction to achieve financial security and fulfill your ambitions.
Having said that, you ask how should you start your financial planning journey.
You can start off by taking the needs analysis online with Ottermise. Within 3 minutes, you will get a snapshot of the protections you require given your situation. If you prefer to speak to an advisor for a more human touch, Ottermise can link you up with a financial advisor to help you plan. With all the routes mapped out, all you need to do is to get started!
Procrastinating will only result in you taking a longer time to achieve your goals. Despite the painful process of planning, your financial journey will become clearer and easier to manage. With each step you take, you will learn how to differentiate between needs and wants, track your spending and adjust your savings habit to attain your goals.
On top of that, regular review of your portfolio ensures that you and your loved ones are sufficiently protected. The best way to get something done is to get started. Wait no more and take the first step today!