Stages Of Financial Planning – Now think about your life. What changes do you expect in two years? Maybe a new laptop or bedroom decor? What in five years? Do you see yourself achieving big goals like buying your dream home and honeymooning in Europe for a fairytale wedding?
Try to develop your imagination more. Are you putting your child through college or building your retirement nest egg over the years? Everything you envisioned above are your short, medium, and long-term financial goals.
Stages Of Financial Planning
Financial planning is an individual journey as we all have different financial goals and different needs. However, it doesn’t have to be complicated because once you start, everything will happen with proper planning. 7 Steps to Start Your Financial Plan!
Life Stage Planning With Family Legacy Inc
When was the last time you took a good look at your finances? Or are you too busy with a new life stage – your first home or a recently born baby – to think about revisiting your financial chart? It’s not too late because now is the best time to start.
Powered by SGFinDex, NAV Planner collects all your financial data from CPF, CDP, HDB, IRAS and other banks to give you a complete view of your financial situation. It empowers you with personalized insights and advice, allowing you to make better, more informed financial decisions.
If you need help or want a second opinion, meet with our professional wealth planning managers for financial advice that fits your financial goals and circumstances.
Once you’ve set your financial goals, the first task on the list is to make saving a habit. This is the foundation for starting financial planning.
Financial Planning For Startups
As Warren Buffett once said, “Spend what’s left after you save.” Before you start spending, it’s prudent to adopt a “pay yourself first” approach to having a portion of your check automatically deposited into a separate account after you receive it. Depending on your goals and lifestyle needs, you should try to save at least 10% of your income, and that savings rate should be something that works for you.
You can save for many reasons, but did you know that saving for rainy days is important? You need access to cash in an emergency. If you have dependent family members, it is recommended to have an emergency fund to cover expenses for at least 3 to 6 months or more. If you are self-employed, you may want to increase this emergency fund to cover at least 12 months of expenses.
Your emergency fund doesn’t have to sit idle. A recent report titled “Are You Losing the Race to Inflation?” Inflation is at an all-time high and income growth is lagging 40% of our 1.2 million retail customers. So it is important to ensure that we save in the best possible way.
You can grow your savings with a multiplier account and enjoy an interest rate of up to 3.5% per annum. You can also hide your funds in other liquid assets including Savings Deposits, Fixed Deposits and Singapore Savings Bonds which can be liquidated immediately without penalty or loss of value.
Steps Of Financial Planning
Budgeting helps you track your cash flow and plan how to spend your money. This can seem challenging to some, and the easiest way to start is to break down your spending to better understand your needs and wants.
Our report found that consumers are now generally spending more in relation to their income. More precisely, expenses grew twice as fast as total revenue.
Tracking your spending makes it easier to re-prioritize your spending and cut down on “optionals” like fine dining and recurring costs of phone bills, gym memberships, beauty packages and spa services. It helps to be aware of your day-to-day expenses, not just because you enjoy a cup of specialty coffee every day, but because you may be spending hundreds of dollars each month without realizing it.
We know the need to protect ourselves and our loved ones from unexpected events. But many people delay or avoid dealing with insurance because injuries, illnesses, accidents, disasters and death are things we don’t want to think about. However, financial planning is incomplete without discussing your insurance. Insurance protects you and your loved ones, so you have better peace of mind – and can focus your energy on living more!
Our Holistic Approach
But with so many different types of insurance plans, how do you even begin to choose your options? This article will help you start your insurance plan and decide which policy is right for you.
If you need more help, you can speak to our wealth planning managers to identify and close the gaps between your current and ideal coverage.
From personal loans to home loans, most of us will face debt at some point. Hence, debt management is a cornerstone of prudent financial planning. When shopping for a home loan, find the right package that meets your needs. If you already have a home loan, you can reduce it by refinancing. Home loan options include fixed interest rate, variable interest rate or a combination of both. So finding the right deal can help you save a lot.
If you are struggling with debt, we can help you get out of the endless piles of bills. Instead of having loans at multiple banks, a loan consolidation program consolidates all your loans into a single bank, saving you money on interest.
How To Evolve Your Financial Planning & Analysis (fp&a)
If you want to succeed in this financial planning journey, you cannot work hard alone. Make your money work hard for you through investments. Apart from growing your money, investing helps fight inflation. Once you’ve met your savings and insurance needs, you’ll want to put the excess money into higher-yielding investments. The earlier you start investing, the greater the potential for wealth accumulation, thanks to its power to compound and eliminate market volatility over time.
Investing is especially important during periods of high inflation because the value of money depreciates rapidly. Keeping money in bank accounts earning 1-2% deposit interest is not enough. This is because the rate of inflation is higher than the rate of return earned on bank deposits – which translates into a negative real return on our money. Too much money, if not invested, runs the risk of rapidly depreciating in value.
You don’t need much capital to start investing. You can invest up to S$100 per month through Invest-Saver in a regular savings plan. You can leave it to our team of investment experts by investing in managed portfolios through our digiPortfolio robo-advisory platform. Start with S$1,000 for an Asian portfolio or US$1,000 for a global portfolio.
If you want to build your own stock portfolio, opening a Vickers account will give you access to 7 major global markets.
Financial Planning 101
Start a few items now on your way to fighting recession and building a strong financial plan.
Most financial planners assume a 3% inflation rate when projecting future income streams to determine retirement adequacy. Use the Map Your Money feature in NAV Planner to plan for higher living expenses assuming different inflation scenarios of 3%, 4% or 5%.
Financial planning can help you achieve your life goals and protect your loved ones in times of need. It may seem daunting at first, but by taking small steps you can build financial recovery and improve your financial well-being.
Talk to a wealth planning manager today for a financial health check and how you can plan your finances better.
Financial Planning Advice
Alternatively, check the NAV Planner to analyze your financial situation in real time. Best of all, it’s hassle-free – we automatically assess your cash flows and give you money advice.
This article is for informational purposes only and should not be construed as financial advice. Before taking any decision to buy, sell or hold an investment or insurance product, you should consult a financial advisor about its suitability.
Are you ready to start planning better today? Meet with a remote wealth planning manager to instantly check your financial status. Financial planning process is a logical process. It is a continuous process that helps you make smart decisions about spending, investing and transferring income and assets to help you achieve your financial goals. See this financial plan webpage for more details.
You can create your financial plan by going through all the steps carefully. This article discusses the 6 steps in financial planning required to create or develop a financial plan. This will make it easy to understand the meaning of financial planning and all your questions will be adequately sorted.
What Is It?
In this first step of the personal financial planning process, you need to know your current income, savings, living expenses,
