Aunty Scroogey has always emphasized that financial planning it not an option, it’s a responsibility. Just last week, the Aunty came across a Business Times article about the retirement village concept. One particular line caught her attention – A recent study by the Lien Foundation revealed that Singaporeans’ greatest fear is to be a burden to their family and friends. Among their top five wishes is to spend their final days at home, but with medical and nursing support nearby.
If you’re like me, and prefer not to add on to the financial burden of your loved ones when you’re in old age, then what better time to prepare yourself for it than now, when you’re robust and healthy? For those who have taken the first step, good for you. For those who would like to start planning but are unsure of what to do, a good way to kick start would be setting aside some money every month as savings. You’ll need a structured, discipline approach to it rather than saving money by the I’ll-see-what’s-left-at- the-end-of-the-month-after-all-my-spendings method. Refer back to this for the 70% 20% 10% method of allocating your hard earned money.
Then there are some of us who have gotten a little further ahead and have accumulated a nice tidy sum from the monthly savings set aside. What do you do with the money in order to make it grow? Well….. until you can answer these questions here , neither you nor your financial advisor/planner can determine what sort of investments would be appropriate for you? Would you much prefer to take market risks or credit risks?
Managing your own money isn’t any rocket science; it just takes lots of discipline – there are people out there who are not highly educated but yet manage to grow their networth to a comfortable level. People such as the secretary and the fruits seller.
And in the midst of all these, if you feel that you’ve benefited from someone’s actions/money/teachings/advice, let’s not forget those who are struggling to earn a living. You might want to think about how you can give back to society, and if you are making monetary contributions, you should ideally, formulate your own guidelines as to what sort of beneficiaries you would like to donate to.
This is Aunty Scroogey’s final blog entry for 2009. In the coming year, the Aunty will be writing more specific topics such as equity investments, bonds, property, charity, etc. Live well, and have fun while on your financial journey.