We must always be prepared to handle financial contingencies. A sudden bill or personal expense can take a good chunk out of your monthly paycheck. A relevant example would be the COVID-19 outbreak that we are currently facing. Such unexpected events can pop-up out of nowhere and leave you scrambling to meet regular expenses such as paying the mortgage or buying groceries. Therefore, it is always important to keep yourself financially secure so that you are able to handle whatever curveballs life throws your way. Wondering how to get started? Read on for some workable tips by financial advisors on staying financially strong in Singapore.
Build an insurance portfolio
Insurance is one of the most important financial products you will ever invest in. Having adequate coverage will protect your hard-earned savings when you need them the most. Now, a single type of insurance policy won’t suffice. You need to protect your finances with a well-planned insurance portfolio that includes life insurance, health insurance, personal accident insurance, and critical illness insurance. If you have a home loan, do consider getting mortgage insurance too.
Invest surplus funds
If you leave your money lying in a bank savings account, your wealth will hardly grow. You will need to invest your money in order to see real returns. There are many different types of investment plans out there that you can choose from, depending on your financial goals. One of a great way to begin investing is by opting for an investment-linked insurance policy that combines investments and life insurance.
Plan your retirement
The right time to plan your retirement is…now! Retirement planning is important even if you are currently in your 20s with your first job; the sooner you plan for your retirement, the better it is. Remember that when you are young, you likely have very few responsibilities. You can start saving a lot of your income or you would otherwise spend without much thought. A great way to prepare for your golden years is to get yourself a retirement savings plan through a reputed insurance company in Singapore. A retirement savings plan will ensure you receive a guaranteed payout each month in your senior years. This payout is safeguarded against market volatility so, you can enjoy your retirement without worrying about money.
Visit a financial consultant
Finally, when it comes to money matters, we all do need a bit of help. Most of us do not have a clear idea of how to save and invest. It thus becomes imperative to visit a financial consultant to discuss the best methods by which we can stay financially secure. A finance specialist can guide you on the best options for savings, investments, and insurance so that your money doesn’t just add up, but rather, starts multiplying exponentially.
For instance, if you decide to put your money into investment-linked policies, a financial specialist can advise you on which sub-funds would work the best for you. So, go ahead and consider getting professional advice.
As we go through life, we understand the truth behind the timeless adage – save for a rainy day. One never knows when the storm kicks in, but we can do our best to be financially secure. We hope this article helps you meet your monetary goals. Take care.
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