Not surprisingly, people are revenge-spending after being cooped up for the last 3years due to covid. More of us are splurging on holidays like there is no tomorrow.
Read Straits Times article here: Travel first and worry later’ is a top money sin in Singapore
All the long-term financial plans which we had in place for our long-term goals like retirement may not seem so important now.
If you are spending slightly more than usual to pamper yourself, it’s ok to do so for a while say, couple of months, but don’t let this type of spending drag out to years.
Adjust your Expectations
If you want to live a carefree life now, you may have to work longer years or have a more thrifty lifestyle upon retirement
Baby steps to get on track
Slowly cut down on your lavish lifestyle like reducing expensive dinners, or opt for cheaper holidays
Re- visit your cashflow discretionary spending
Differentiate between your needs and wants, and see where you can cut down on discretionary spending
Use contractual savings / investment plans
These contractual savings or investment plans will help you build discipline to save consistently, so that you can reach your financial goals. You should aim to allocate at least 20% of your income to such plans to meet your financial goals
Get an experienced financial adviser to help you
It’s always good to regularly review your finances such as cashflow management, Income Protection and Wealth Accumulation, to ensure they keep up with changes to your income, expenses or life stages.
If you would like to have more ideas on how you can better manage your cashflow, do drop me an email winniechan@fapl.sg or chat with me here
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Winnie Chan is a distinguished Certified Financial Planner (CFP) with over a decade of expertise in financial advisory services. Her commitment to her clients has led many to achieve their financial aspirations while ensuring their families’ protection. Winnie‘s extensive experience in insurance claims has been instrumental in securing successful payouts, providing crucial financial relief during challenging times.
Her passion for community engagement is evident through her financial education initiatives. She has conducted insightful financial talks for esteemed organizations such as Carousell Group, Singapore National Eye Centre and Singtel, empowering their employees with valuable financial knowledge.
Outside of her professional commitments, Winnie balances her life with a passion for fitness and music. She enjoys rigorous workouts at the gym and is a pianist, recently awarded ABRSM Piano Performance Grade 6 (Merit).
