How do I prioritise between saving, investment and insurance?
Do I need to have a portion for each of those things? If yes, do you have any recommendation for the portions in percentage how much I spare to them?
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Tan Li Xing
01 Jan 2020
Financial Consultant at Prudential Assurance Company (Singapore)
Hi Kuncoro,
In terms of priority, definitely look at insurance first, get your medical and personal accident covered first, after that look into a whole life policy.
An overall guideline for insurance is that it should only take up 10-20% of your income.
In terms of savings, the saying goes that if you are saving 20% of your income, you are planning for retirement, 30% of your income, then you are looking at getting financial freedom once you have retired, so maybe just something to think about
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I would say that insurance should be prioritised first. Without insurance, you'll need to fork up a ...
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You can do all 3 concurrently, just factor in that insurance is bracket by age , reason being studies have shown that the younger you are, the less likely you are to suffer from health, so for insurance that are dependent on age like CI, get them first if you can afford it.