Ladies, here’s how to manage personal finances at different stages of your life

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Ladies, here'south how to manage personal finances at different stages of your life

From being a fresh grad to being all grown upwardly – with or without children – here'southward a crash course on what to consider when dealing with your finances.

From being a fresh graduate all the manner to retirement, women need to consider a few things when managing their personal finances. (Art: Jasper Loh)

03 May 2022 06:30AM (Updated: xi Aug 2022 eleven:50AM)

At 43, Vivian Li recounted how her mindset about personal finances has changed and then much compared to when she was younger. "When I just started working in my twenties, I was more nervous about my finances and felt the demand to salvage up and so I tin i day buy my own house," she shared.

After getting married and starting her own family unit, Li, who'due south an editor at a commodities publication, prioritised acquiring insurance for her family and building her but son'south third teaching funds.

With prudent budgeting and planning, she and her spouse have since paid off their home loan and gear up aside sufficient didactics funds for their kid. At present, her sights are focused on building her retirement nest egg via income from her stable job and low-hazard investments.

Li'south experience reflects how a woman's priorities and gamble appetite can evolve aslope milestones in their lives.

WOMEN PLANNING FOR THEMSELVES

A 2022 survey conducted past United Overseas Bank and Prudential Singapore among more than 800 women in Singapore found that 37 per cent of women put the needs of their loved ones earlier themselves. Among married women, this figure went up to 52 per cent.

While industry practitioners notation that there is no one-size-fits-all recommendation when it comes to managing personal finances, having women be confident and proactive when looking at theirs is e'er a good matter.

"I am happy that many women I run across are starting to take charge in the planning of their finances, learning about investment and about chiefly, planning for themselves," said Cass Naomi Poh, a financial services director at AXA Insurance.

"I believe that women today should be independent and not exist reliant on anyone financially when they are one-time."

Dawn Cher, who writes pop financial blog, SG Budget Baby, also brash that women have charge of their personal financial planning and not merely "go out information technology to the men". "Being in control of your finances is empowering and is an essential skill for life," she said.

And so how should women manage their personal finances at various stages of their lives? CNA Lifestyle asked financial experts for tips.

FRESH GRADUATE WITH Showtime JOB

For a fresh graduate starting on her first job, "adulting" matters like saving, investing, managing credit carte expenses and repaying study loans are probable to come into view.

Personal finance experts advised women to start accumulating their wealth early via savings and investments as information technology means having a long "rail" to grow one's funds and compensate potential investment losses.

Leaf Tan, a personal wealth manager with 25 years of experience in managing insurance and retirement portfolios, advocated making saving and investing regular habits in club to build upwardly good for you greenbacks savings.

"Practice non just start saving when yous need to purchase large-ticket items," she said. "The earlier 1 starts saving, the easier they can attain that 'aureate retirement'."

Industry experts see setting bated betwixt 10 to 20 per cent of one'south monthly income as a good way to kickstart a saving addiction, though ultimately the amount to save still depends on one's income level and commitments such as paying off study loans.

Cher as well recommended that women apply financial tools to help with saving and budgeting. "Be flexible and savvy about utilising new financial applications," she said. "Many banks accept launched digital versions of their financial planning services after SgFinDex was launched, which I find is very helpful for Singaporeans on the whole."

Launched past the Budgetary Potency of Singapore, the Singapore Financial Information Exchange or SgFinDex is a free digital service which allows individuals to admission their financial information held beyond dissimilar government agencies and financial institutions.

It is also at that point in a woman's life that would be a good time to await into important insurance plans similar those for hospitalisation and critical illness protection.

"A good time to start buying insurance is always before one is admitted to the hospital, before 1 is diagnosed with a major disease, and before one passes on prematurely. Unless nosotros know in advance when a financial loss is to occur, I will suggest to get insured while you are withal insurable," said Poh.

PLANNING FOR Matrimony, Big-TICKET PURCHASES

As women mature, some could be planning a wedding or purchasing a new home or motorcar. Hence, information technology is of import to understand i's land of finance like monthly cash inflows and outflows, and ascertain a realistic target to work towards when planning big-ticket purchases.

"Planning would be key. You'll need to at least figure out what amount you'll need to reach, past when, and how you intend to become there. Practise your research and come up with an estimated corporeality that you demand, and so you know what goal(due south) you're working towards," said Cher.

After knowing how much nosotros need for the purchase, one will need to be disciplined in sticking to one's budget. "We need to salve first before paying our expenses," says Brian Teo, a financial representative with Great Eastern.

He advised using tools like Excel to list down i'southward expenses as it gives a clear picture on how 1 can cut downwardly on discretionary expenses.

Cost-saving hacks, which ane can easily look up on the internet, can also aid reduce ane's big-ticket expenses.

For instance, money tin can be saved during home renovations based on the type of materials to utilize and where the materials are purchased, while those planning for marriages can compare bridal packages and maximise credit card cashbacks when making wedding or other big-ticket purchases.

MARRIED WITH CHILDREN, CARING FOR PARENTS

With time, women may discover their resources and time stretched by dissimilar obligations, like their children's healthcare and teaching needs, and caring for ageing parents.

"When you're young you lot might have a lot of fourth dimension to enquiry and actively manage your investments. But one time you lot take children, juggling a full-fourth dimension task with household duties and spending fourth dimension with your kids tin leave y'all with very piddling free time and energy to proceed upwardly the level of effort you used to be able to put into your investments," said Cher, who advised that women review their investment and retirement strategies over time as their risk appetite and liabilities like debt and dependents change.

In addition to hospitalisation and critical affliction coverage, one might too need to look into other insurances like life, early critical affliction, disability income and if one is in high-hazard jobs, personal blow likewise. "This is especially if you have many dependents like elderly parents and young children who depend on your income," she noted.

Meanwhile, Teo said women should address their retirement needs, if they accept not already done and then.

"The priority will be to plan for your retirement then that you can be financially independent. By existence so, you will not take to depend on your children as you will not wish for them to be a sandwich generation burdened with taking intendance of elderly parents and their own families in the futurity," he noted.

One can consider endowment plans which tin provide steady greenbacks flow during 1's retirement years. Depending on one's risk appetite, one can as well wait at medium-risk unit trusts and equities to supplement the retirement income, he added.

Endowment plans can as well be useful when planning for education funds. For case, when a child is young, parents can embark on a plan with a maturity date that matches the age of the child when he/she is expected to demand the funds for academy.

Unless one is adept in investments, Poh suggested leveraging on the expertise of fund houses and/or financial planners proficient in hazard direction and investment to manage ane's money and preserve its value.

"Ultimately, I believe you lot would rather spend time with your family and loved ones than following the ups-and-downs of fiscal markets," she noted.

OLDER WOMEN WITH GROWN-UP CHILDREN OR WITHOUT CHILDREN

As we age and get closer to retirement, our risk tolerance may change, and it is important to review and rebalance the risk in our portfolio, said Tan.

"You lot should review your retirement to ensure you lot have regular retirement income from different sources," she said. "Upon retirement, your retirement income has to be able to embrace expenses including inflation, ascension medical costs, and health insurance later you take stopped working."

Tan also noted that women tend to be more than anxious with their personal finance planning as the "rails" becomes shorter.

"Especially during COVID-nineteen, I have more female clients calling me to review their retirement plans. The economic and social disruption acquired by COVID-xix fabricated them rethink nearly their existing retirement plan," she said.

Other than endowment plans, women can also consider investing in blue chip stocks for dividend income that can provide regular cash menses, noted Teo.

Manor planning, which sets out how one wants their manor or avails to be managed and transferred to their dependents as a form of legacy, should too be looked into, he added.

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Source: https://cnalifestyle.channelnewsasia.com/women/women-personal-finance-different-stages-of-life-258186

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