There comes a
time in everyone’s life, usually in our mid-20s, when we all share
the same sense of fear and adventure – commonly known as Adulthood.
It is during
this period that we learn to take responsibility to craft our own
future. Paying bills, building a career, buying a home, starting a
family and more…it sounds daunting, doesn’t it?
perfectly normal to feel this way. This is all part of taking on the
challenges that adulthood offers – and we’re here to offer tips,
provide you with key information, and ultimately give you the tools
you need to craft your own future.
Read on, and
be prepared to confidently say #ICanAdult at the end!
1 to “Adulting”: Creating your own path towards financial
independence is probably the most important goal in adulthood. The
good news is, you’re already on the path towards attaining it the
moment you start working and earning your own income.
is also the time when you’re starting to figure out how to manage
your money. Between funding your daily expenses, lifestyle habits and
future goals, you’ll soon realise that having a budgeting system in
place will come in very handy for keeping track where your pay goes.
of the most common ways of setting up a budget is to split it
according to a percentage for various expenses – for instance, the
course, this is not a hard and fast rule, as budgeting should be
tailored to your own individual lifestyle and needs. For instance, if
you’re planning a holiday to Europe in a couple of months, your
budget would probably include a percentage set aside for the expenses
relating to your trip.
can even try adopting a “Budget Challenge” of your own – by
testing yourself to see how well you can structure a budget to meet
your desired lifestyle, both present and future needs.
a budget is ineffective if you don’t stick to it, so make it a
point to measure your success in sticking to the plan each month!
2 to “Adulting”: Understand how your actions now determine your
you’ve already had a budget set up, good on you. That means you’re
ready to take on the next step towards financial independence, which
is to think about your retirement.
we know. In your early 20’s, when you’ve just started working,
retirement seems like a lifetime away. But this is really the best
time to start planning for it, because you have time on your side.
Now is when you are in the best position to maximise your potential
for accumulating and growing your savings.
a Singaporean, you’ll know by now that part of your monthly income
goes towards your CPF savings. Your employer will also have to make
regular monthly contributions towards your CPF according to the CPF
contribution and allocation rates.
Coupled with the attractive interest rates offered by CPF, these
savings will add up to a considerable sum over time.
an example of how a CPF member managed to save up $50,000 in his CPF
accounts over the course of 5 years:
more about this at “Is
it possible to have $50,000 in your CPF in 5 years?”
how his CPF savings grew up to $51,450 in just 5 years?
amount will continue to grow in 10, 20, and even 50 years’ time and
beyond. That’s the secret to building financial independence –
interest, and time.
that into consideration, you’d also have to budget, save, and
invest the rest of your salary now, in order to build up a secure
financial future for yourself.
what young Singaporeans really need to know to start planning for
wait till you’re 30 to make these 4 financial decisions
saving 10% of your income and your annual bonus can change your
3 to “Adulting”: Keeping your wallet and your health in good
that you’ve got the basics of being financially independent, it’s
time to move on to the most important thing of all – health. Or
rather, the potential costs associated with managing your healthcare
needs through life.
Did you know that all Singaporeans are
covered under MediShield
Life, which functions as a universal, basic healthcare insurance?
MediShield Life protects you in the event of unexpected medical or
top of this, you have the option of adding on additional coverage in
the form of Integrated Plans (IPs), which come at extra costs.
To make a better decision, it is useful
to consider these two questions to assess which plan suits your needs
Read more: Two
questions to ask before you buy an Integrated Shield Plan
managing your insurance premiums is crucial to keeping both your
health and wallet in good shape, in the unexpected event of major
illness – which could strike anyone.
fresh graduate’s guide to different types of health insurance in
you know that you can do this with your Medisave?
101: Tips to get healthcare ready
you ready to say #ICanAdult?
there’s much more to learn, but for now, this should provide the
basis for you to confidently step into the future. Your entire adult
life is ahead of you, so go ahead and experience the adventures that
adulthood has to offer!
out the #ICanAdult hashtag and our Instagram
page for more bite-sized financial tips!