Financial – 5 Money Rules Every Smart Woman Should Know. (part 1)

Here’s how to revolutionise your life and never have to worry about money again!

Good News: You don’t need to win 4D to be rich. Neither do you need to hold three jobs simultaneously or stay in the office till midnight. In fact, experts say that following  just five easy money rules will put you in control of your cash, for life.

1. Pay Yourself First.
Most of us try to save what’s left over at the end of the month – but nothing is ever left! So before you pay other bills, set aside a sum to “pay” yourself – that’s your savings, and the basis of your investment plan. Most bankers advise you to put aside 10 to 15 per cent of your income each month and aim to build an emergency fund. “It should be cash or easily accessible,” says Cedric Luah, Head of Financial Planning at DBS Bank.
This emergency fund will come in handy should you lose your job or face a large medical bill. “As a general rule, set aside three to six months of your monthly salary,” advises Cedric.
Regular savings accounts have low interest rates, so you’ll do better with short – term fixed deposits – but nothing longer than three to six months, Cedric notes. And be prepared to lose the interest if you need to withdraw it in a hurry.
Anne Tay, Vise President, Wealth Management at OCBC, adds, “Don’t depend on your husband to save for the both of you. Save as a joint exercise and have a back – up plan fo important needs. Ideally, you should have some savings of your own, aside from joint savings.”
But there’s such a thing as saving too much and being under – invested. So, see a financial adviser, whose initial advise will be free.

Easy Does It.
> Pay yourself first, into a separate account.
> Aim to set aside 10 per cent of your salary.
> Start now, so you can benefit from compound interest. It’s easier to save$50 a month for 10 years than try to save $5,000 a month for two years.

2. Investigate Investing.
If you put all your money into a low – interest savings account, you will be sacrificing growth for security. “As we are living longer, investing becomes crucial for our retirement. Without careful planning, many of us could outlive our savings and CPF money. This is especially important for women, who tend to outlive their husbands,” says OCBC’s Anne.
There’s a wide range of investment products available for different objectives. If you are a first – time investor, list your goals, income and bills, then speak to various financial advisers. You can visit your bank, but also consider independent financial advisers. Don’t be shy to ask questions. Remember, anyone who talks down to you doesn’t deserve your money.

Easy Does It.
> Develop an investment plan with clear objectives, including how much money you need, and when you’ll want it.
> Understand your risk tolerance level – shares have a high – risk profile, so don’t put all  your money in the stock market if you can’t afford to lose it all, or if you need money for your child’s education within a certain period.
> Do not put all your eggs in one basket: Diversify your investments.

to be continued in part 2