Entries Tagged 'Finance Management' ↓

3. Build Your Safety Net.
Financial safety nets are vital, especially for a woman with kids or a single woman with elderly parents.
“A common perception among women is that we can get insurance later, when we can afford it,” says Jacqueline Chua, Business Development, Van Gogh Preferred Banking, ABN AMRO Bank. “But premiums get more expensive as we get older.” Insurance firms tend to think women over 40 are more prone to “women’s illnesses”, so premiums at many firms rise sharply around ths age.
There is no set rule on how much you should spend on insurance, which can over your life, mortgage or health, but most experts recommend coverage of at least eight to 10 times your annual income.
“You should spend about 10 per cent of your disposable income on insurance, but this will vary with your lifestyle and stage in life,” says Lim Meng Tat, Chief Marketing Officer, AXA Wealth Management. He points out that many women overlook the importance of medical and critical illness plans, which he rates as more crucial than protection for loss of income and lifestyle.
“As she advances in age, a woman must look at long – term care. So, she should consider a good disability plan. And for life protection, consider term protection instead of a life plan for affordable maximum coverage.”

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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.

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