Managing life’s priorities in Singapore

Do you find life stressful?

As we juggle our careers and roles as spouse and caregiver/provider to our dependents (children and ageing parents), we also have to manage the family’s finances and try to achieve a better standard of living for our family.

In a fast paced, high cost city like Singapore, many are inevitably caught up in the rat race and it’s no wonder many of us are time scarce and resource limited.

https://sg.finance.yahoo.com/news/singapore-workers-unhappy-bunch-060351733.html

Like most of of the people I have come across, these are probably some of the issues you are facing:-
– new house purchase, home upgrade or additional home
children’s education
– buy a car, car upgrade or buying a second car
family insurance protection
retirement
– buying life’s luxuries e.g watch, handbag, jewellery etc

How would you prioritize these in terms of allocation of your limited resources?

Using an analogy would be best in answering this Question.

Which picture would you like your life to be?

Gilbert_Koh_singapore

If you’ve picked the one on the right, congrats as it shows a life that’s calm and balanced. In contrast, the one on the left appears to be one’s that’s overwhelmed and out of balance.

http://www.ipernity.com/blog/xtof/25345

Using the analogy in the context of financial planning, the

Family having fun in countryside

A. Big stones are like caring for the people who are most important to us

Hence, the following should be of highest priority
family insurance protection
children’s education
retirement planning

financial--adviser-singapore

B. Pebbles are like our house and car and material stuff
– one will have to weigh between a lifestyle choice and utilitarian one
– as these are big ticket items, one should weigh the choices carefully so that it will not have an adverse impact on your cashflow and other more important financial planning needs. Hence, that’s why it’s best to prioritize A over B.

e.g what good is a luxury car or house when (a lot of) money is needed in times of crisis (Death, Disability, Critical Illness in the family)? Would you like to be forced to downgrade your home or sell your car so as to free up resources to fund the family’s living needs? Worse still, it will probably be insufficient.

financial_plan-singapore

C. Sand is like life’s little luxuries
– things that are good to have and not a must have. Without them, one can still have an enjoyable and fulfilling life.

Make sense?

Needs Wants Signpost Means Necessity And Desire

Having your life’s priorities in order will certainly allow you and your family to overcome life’s challenges better and having your life’s priorities in order will certainly allow you and your family to overcome life’s challenges better and enjoy life’s simple pleasures at the same time, translating to less stress and greater peace of mind.

Hope the above was useful. To meet up for a review or refer a friend, just send me a message on the right and we’ll get in touch soon.

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