facebookI’m a fresh grad polytechnic student that just landed on a job recently. Not sure how I should plan my finances. I tried reading online about various kinds of insurances and investments (the risks etc) Any guides/tips that I can follow as ref? - Seedly

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Anonymous

19 Apr 2020

Insurance

I’m a fresh grad polytechnic student that just landed on a job recently. Not sure how I should plan my finances. I tried reading online about various kinds of insurances and investments (the risks etc) Any guides/tips that I can follow as ref?

Discussion (6)

Pang Zhe Liang

Pang Zhe Liang

06 Dec 2019

Level 14·Senior Financial Services Consultant at AIA Singapore Private Limited

First priority is always healthcare. The reason is simple - medical inflation hits 10% in 2019. Accordingly, a single medical treatment could potentially wipe out all your savings. To do this, it is always valued to have your own private integrated shield plan. Here is why: https://www.blog.pzl.sg/is-integrated-shield-pl...

After you have the basic foundation set up, you may consider a basic life insurance plan that covers for death, total & permanent disability, and most importantly for critical illness.

There are many options available in the market, therefore, take your time to understand which suits your needs. Here is a general comparison between a term and whole life insurance to help you with some basic understanding: https://www.blog.pzl.sg/term-vs-whole-life-insu...

Once you have a stable income, here is the general rule:

10% to 20% of your annual income on healthcare insurance and life insurance

Basic Life Cover = 10 times your annual income

Critical Illness Coverage = 5 times your annual income

Having mentioned that, this is a general guideline that may or may not work for you. The best way is always to have an in-depth understanding on your cashflow, current situation and future goals. It is only when we know you well enough, then it is appropriate to give you the best advice or suggestion that fits into your needs.

On planning your finances, here is a guide to help you do some tracking: https://www.blog.pzl.sg/understanding-your-pers...

Accordingly, this is how I do my budgeting to ensure saving more money over time: https://www.blog.pzl.sg/how-to-create-a-monthly...

Of course, speak with a professional who is capable of helping you analyse your situation and create goals for the future. This is like having a personal coach who is able to help you maximise your potential. =)

Here is everything about me and what I do best.

Tan Li Xing

Tan Li Xing

06 Dec 2019

Level 9·Financial Consultant at Prudential Assurance Company (Singapore)

Hi Anon,

Congrats on landing the job! I believe your concerns are very valid, and now you have the power of options :)

I think before looking into investing, we need to look at our protection first, hospitalisation and personal accident plans are the most foundational for every person in Singapore, have you looked into these?

Once you have those and when things have gotten more stable at work, you might want to consider looking into a Whole Life policy, as that will protect your income in the event unforeseen events happen.

Once you have those, then you can definitely start looking into investing because I believe the crucial components of income protection has been covered

Arpita Mukherjee

Arpita Mukherjee

03 Dec 2019

Level 8·Community Evangelist at Kristal.AI

Hi Anon,

There are plenty of safe ways to invest your money. You can go for REITs, other ETFs and b...

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