Archive for March, 2009

Do you find it difficult to save money?

Are you having trouble managing your finances?

Do you wish you had more money to buy something or to go on a trip?

Are you living paycheck to paycheck?

Do you wish you had some money put aside for emergencies?

Do you find it difficult to save money?? Don't worry you're not alone!

Do you find it difficult to save money?? Don't worry you're not alone!

 To most people, saving money is hard to do. It can be a challenge, but there are many methods of saving money in several areas of our life. 

 

I was reading an article on Singapore dream where the focus is now back on basics such as home and family.

This survey is conducted for OCBC.
Interestingly, these are the Top 10 Singaporean Dreams and Goals for 2009:

1. Family and children 
2. Settling down/Starting a family
3. House and home
4. Making money  
5. Retirement 
6. Seeing the world
7. Automobile
8. Good health
9. Starting a business
10. Self-improvement

– Half of the singles have starting a family as their top priority.

– 56% of those married with children put financial freedom and retirement plans as top concerns.

– Married couples with young children put education as a top priority.

Overall, while most respondents do not think the recession would derail their efforts to achieve their financial goals, nearly half believe it will take longer.

 

In a separate article, according to two recent surveys, Singaporeans are financially ill-prepared if they lose their jobs and they can do a lot more to improve their financial health.

About 20% of respondents have savings that would last only four weeks or less in the event of a job loss.

But the average Singaporeans has three months of reserve savings.

It is pretty obvious Singaporeans need to improve their financial health especially in areas such as saving for emergencies.

 

This shows that people still need to save their money despite any economic conditions.

This message is especially for my SINGLE clients/prospects out there who still feel that saving money can be delayed to later part of their lives.

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I always show them the effect of saving early versus at older age. Most of them who met with me finally understood my message that I want to put across. In fact, they also agree at the simple theory and decided to do take some action.

However, what is worrying me is those people who keep postponing or WORSE, those who changed their minds and decided to cancel the meeting.

This is just a personal opinion; I just feel that they are the ones at the losing end. My intention is good but some people out there misunderstood it.

For instance, if an individual decides to take an action, indeed, I earn some commission and at the same time, this particular individual has actually better his/her financial position. Isn’t that a win-win situation?

On the other hand, if the prospect decides to DO NOTHING, at least I know I have done my part by sharing something beneficial.

That is my mission in this business. 

I am on a mission to educate people out there on the importance of proper financial planning.

 

But at the end of it, it is still YOUR decision whether or not YOU want to improve YOUR financial position.

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When is the Best Time to Get Insurance?

That sounds like a weird question.
Should we get it in January? This year? Next year? Ten years later? Or perhaps over one of the weekends?

No, that’s not the point.
The best time to get insurance is when you are HEALTHY.
 

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The worst time to get insurance is when you are sick or need to see the doctor. When you apply for insurance, insurance companies want to always know how your current health is.

Usually, young people don’t think that they need insurance. They will say, “I never get sick.”
If you can guarantee one hundred percent that you will never fall sick, then you don’t need health insurance. But who knows that?

Someone will say, “I am 50 and have never been sick and have never had insurance.” No doubt, that person has been very fortunate.

However, you may get sick tomorrow or even today. And the odds of you having major medical problems increase with age; and over the age of 50 the odds increase dramatically.
If you develop a medical condition, it is going to be very difficult to get insurance or good insurance plan.

sick_boy

I have people telling me that it is unfair when insurance companies decline application of someone with medical condition. First of all, one has to understand that the reason insurance companies exist is just like any other companies and businesses.

From a business point of view, if insurance companies were to accept application of someone with pre-existing illness, what is the likelihood of this particular person making claims?
Very high, indeed.

Premiums received are like “income” for insurance companies whereas paying out claims is like “expenses/loss” to them.
Thus, from a business point of view, it is a fair practice, isn’t it?

Therefore, if you are healthy now, this is the best time for you to get insurance.

 

Another factor is AGE. Premium for a young person is way cheaper as compared to an older person.
Thus, oftentimes, children and those who just started their career are advised to get insurance.
 

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Insurance is not an instrument that can guarantee you to be rich. 

However, with proper planning, your family can be assured of a peace of mind.

 
So plan your life, people!

Dedicated to All Women Out There

Personally, sometimes, I have hard time with some female prospects and clients.
Some of them are just too dependent on their boyfriends or fiancée or husbands.
I just feel like shaking them off from their own world.
Come on, let’s face the reality of today’s world.
Your man in NOT your financial plan. Take control of your own finances.
You may end up in dire straits if you are clueless about family finances.
 
clueless
Can you imagine if your husband suddenly leaves you? It is either because he is being unfaithful to you or he dies without leaving anything behind.

Please for a moment, close your eyes and let the scenario run through your mind.
Yes, just for a moment.

So may I ask, what’s your preparation should that happen to you?

You can definitely do something about your financial matters now.

 
I have mentioned these FIVE FACTS in my last year’s entry so let’s recall them now:

1. Women live longer than men.
Men, on average, die five years earlier than women. According to statistics from the 2008 World Population Data Sheet, the life expectancy for Singapore males is 78 while it is 83 for females.

2. Women retire at a younger age or have shorter careers.
Many spend their productive years as housewives taking care of their families.

3. Women earn less than men.

4. The divorce rate gets higher each year.

5. Women suffer from more debilitating diseases in old age.

How’s the picture so far?

Imagine your situation 25 years later without your husband, with little or no savings at all and worst of all, diagnosed with some illness.

What are the actions that you can take today?

 
Consider some of these EXPERTS’ ADVICE:

– Save as much as you can while you are still single

– Grow your wealth more efficiently by investing your money rather than leave your money in fixed deposits and savings account

– Have your own insurance policies including medical plans (hospital plans, critical illness plans and accident plans)

– Build your own nest egg over and above any joint savings or savings you may have with your husband

– Buy your marital home in “joint tenancy” so as to ensure that the property automatically goes to the surviving spouse in the event of death

 

 
So women, take some action! 
Don’t let your busy day-to-day activities take precedence over planning for a more secure future.
 
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Are you one of those who are wondering how to GROW your money during this financial crisis?

Many of you are probably pondering about our current market situation.
Yupps no doubt we are going through recession but it is not only affecting us in Singapore but it is indeed a WORLDWIDE “sickness”.

You may be one of those who have invested (cash or CPF) with financial institutions.
Do not panic and make rash decision.

panic
Look at the big time investors, do you know they are actually pumping in more money at this “troubled” time?
To them this is the BEST time to make money!!

Oftentimes, advice by most financial advisors when it comes to investing is long-term rather than short-term speculative investments.
It is true, of course, that during the global financial crisis, both indiividual stocks and unit trusts suffered severely.
If you have a well-diversified portfolio, as we have encouraged, you will survive and prosper.

BE DISCIPLINED AND DILIGENT
You should not stop investing during an economic downturn and you should also not over-invest in an upturn(this is always the case with most people).
One way to do this is to invest a fixed sum of money(with as little as $3.40/day) every month.

investfixedsum1
By doing so, it is periodic and systematic instead of putting in a large amount of money at one go.
 The risk of timing the market incorrectly could be greatly reduced!

DIVERISFY
Don’t put all your eggs in one basket.
Diversify your investment portfolio to help smooth out returns in a volatile market and lower overall investment risk.

diversify

KNOW & SET YOUR GOALS
Remember you are investing for a better life.
Set your time horizon(e.g. 7 years or more) so that your financial goals can be achieved.
So don’t invest to the point that you get worried and lose sleep over your investments.

SEEK PROFESSIONAL ADVICE
Get help from a professional to help you map out your financial goals, before you start on your investment journey.
A good financial advisor will ensure that you’d never lose sight of the big picture.

 

HAPPY INVESTING!