As an independent financial adviser helping people make wise financial decisions everyday, I got to know the real situations and struggles of many families in Singapore, many trying to make ends meet on a daily basis. I am not surprised at all if I meet a person living in Singapore who is not financially prepared for the future.
So what do I mean when I say “Making Wise Financial Decisions”? What are the factors that will help us make wise financial decisions? Why even bother to make any wise financial decisions at all?The reason is very simple, it is not how you start that is important, it is how you end that is equally important, if not more important. Why? It is very easy for anyone in Singapore to earn a decent four figure monthly income at the beginning of our working career but are you able to live on a decent four figure monthly income after you retire at age 65?
As we live longer and longer, our retirement will stretch to more than 20 years! Simple Mathematics will tell you that you will need at least S1,000,000 of retirement nest egg if you are going to have a $50,000 a year lifestyle. That’s $4167 a month. Can you and your spouse live the same lifestyle that you are currently enjoying based on $4167 a month? Think of inflation, 30 years down the road, what will $4167 a month lifestyle will you get?
Then it is wise that you start to create a financial road map to bring you to the destination that you want. I am sure you have planned many overseas holidays and you are no stranger to planning… Start Googling and do your research. Find the best independent financial planner to help you realize your financial dreams, That’s Step 1.
Create a plan that suits you, not one that someone tells you because it is more likely that you will stick to the plan much longer if you really own it. Just like the dream holiday that you have always been looking forward to. That’s Step 2.
What are the ways that will lead you to your destination? I am sure there are many ways to reach Rome. Which way is the most economical and which way is the most scenic and memorable? Start finding out what is available out in the financial markets that will lead you to your financial success. Talk to reliable people who had been there and succeeded. Find the way that you are comfortable with and fully understand what you are getting into. Sometimes, it may be uncomfortable at first because it is alien to you but you will get used to it as you read up and talk to more people who are experts in that particular financial product. That’s Step 3 for you!
Congratulations! You are on your way to making great and wise financial decisions, but wait a minute, you may be lost and could be heading a wrong direction, missed a turn when you were distracted with the beautiful scenery in front of you. Check where you are and consult your financial adviser regularly, orientate your compass and redirect your resources when you have a good bonus payout, don’t splurge on a new 60″ LED Curve Screen Smart TV! Yes, consult and redirect if necessary. That’s Step 4.
Finally, don’t forget to smell the roses and greet the people along the way or else you may be very lonely when you reach your final destination. That’s worse than being bankrupt… Building a great character and making great friendships along the way is definitely a great way to travel… I wish you success in making wise financial decisions that will bring you the desired lifestyle that you have always wanted but remember, it is a journey not a destination.
Enjoy the journey as you plan your way to financial success that you will share with your family and friends, yes even people that you don’t know, bless them and God will bless you too. Merry Christmas my friend. God bless you!