Happy New Year 2017… I wish you above all love, joy, peace and hope in the new year! Let’s remember the lessons that we learnt in 2016 and move bravely forward in 2017.
Financial Planning for individuals has always been elusive and will continue to be difficult because of the Singapore as well as the global lifestyle that is engulfing all of us. The pressure of keeping up our lifestyles with inflation eating away the purchasing power of our money in bank makes us uneasy but we carry on the same habits. Habits die hard and they will kill us financially speaking when we don’t face the bad habits directly and get rid of them as soon as possible.
This year’s resolution for me is to be aware of my spending habits as well as increasing my work rate to improve my income, at least to match inflation here in Singapore.
Looking back at the years of raising my children, there was one regret that I wished I had addressed many years ago. Tertiary education funding. This aspect of funding our children’s tertiary education was neglected and now I have to take a bank loan to solve the financial short fall. This would not happen if I had started an education savings plan when my children were born. Many things demanded my financial attention in their growing years and my income was not stable as a real estate agent in the early 1990’s.
My wish for young couples with babies now is that you must set aside at least $500 to $800 a month for the future tertiary education funding. Now it costs about $8,300 a year for tuition fees at National University of Singapore. With education inflation at 5% p.a. the cost of enrolling into NUS will be a whopping $23,124 a year when the child enters University at age 21 for guys! That will be a total of $92,496 for 4 years of University Education. Not to mention overseas trips to further their education.
The NUS Financial Needs Calculator can be found HERE.
If you are serious about giving the best education for your children, please consider starting a savings plan now. Never leave your money in the bank with an interest rate of less than 1%, it will never help you as inflation (5%) will eat away your purchasing power!
You can meet me to discuss the various savings option available now in the market. Call or text me at 9001-1082. Thank you.
May the New Year bring more opportunities to grow our wealth so that we can take good care of our families.