facebookNow @ age 37 gross income $3800, age 30 gross income $2300, 2 child age 5 and age 1. Stay in 4 room hdb flat. Only have $10,000 cash saving, and monthly saving of $1000. What advice you have for us? ? - Seedly

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Anonymous

30 Aug 2019

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Now @ age 37 gross income $3800, age 30 gross income $2300, 2 child age 5 and age 1. Stay in 4 room hdb flat. Only have $10,000 cash saving, and monthly saving of $1000. What advice you have for us? ?

Discussion (3)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

30 Aug 2019

Level 15·Independent Financial Advisor at Promiseland Independent

Get yourself covered with insurance first.

Coverage in the event of death of about 15-20 X your income for both parents (this will also include the expected tuition fees for your children).

Coverage in the event of Critical Illness about 5 X of your income for both parents as well.

And upgrade both Medishield Life to Private Integrated Shield Plan.

You're saving 20% of your income right now. Good, but having just 10k in savings is too little. Make sure you bump that up to about 6 months of your combined income. So about 30k. Invest everything after this.

Then try saving 5% more, purely for your kids education. You might need more, but it doesn't matter, it's the max you should save, because you have to plan for your reitrement as well.

The 20% that you're saving, please make sure that after setting aside the emergency expense, the rest has to at least generate you 4-8% returns. If not, inflation is gonna kill you.

Start taking account your CPF monies, and all other resources you may have.

Make your CPF nominations wisely, especially now while your kids are still minors, if both parents were to pass away, they cannot handle the money directly. So follow this up with a will.

Plan for your retirement, where you going to live, how much you need per month, factor in other costs that will continue after you stop working, and what extra you might start incurring.

These are just basic overviews, there are still more that can be done. If you need help to do all the above, please speak to a financial advisor.

Not really strict finance, but matters a whole lot ESPECIALLY given that your children are young.
Take care of your health.
This is especially so if you are the sole breadwinner - taking care of yourself is actually your responsibility to your children.

Nicholes Wong

Nicholes Wong

28 Mar 2019

Level 10·Diploma in Business Management at Nanyang Polytechnic

You save abit more than 20% of your income which is not bad at all. Maybe start to look and research...

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