There are simple measures everyone can take towards taking control of their finances.Many individuals feel daunted and overwhelmed by having to plan their financesdue to which they delay acting. Unfortunately, the cost of delaying financialplanning,although often overlooked, is significant. It is. As an expat, while you can seek a Singapore-based financial planner’s assistance, it is fairly easy to initially evaluate your own situation. Read on to uncover eight financial planning steps.
Determine financial goals
Being specific about and then organizing your goals including smaller and bigger life goals, will give you an idea of what your financial goals are and by when you aim to achieve them. Start by dividing your goals into three categories, namely short term (5 year goals), medium term (5 to 10 year goals), and long term (over 10 year goals).
Net worth statement
List down all your assets (valuable personal property, investment and bank accounts, real estate etc.)and (all your debts such as loans, credit cards etc.) Subtract your debt from your assets and you will be left with your net worth.
Cash flow and budget planning
Understanding what you are spending your money on and if and how you can save more is necessary. Use a budget calculator to budget your expenses into two categories, namely must-have and nice-to-have.
To budget better, look for tax advice for expats in Singapore from reliable online and offline sources. If you are looking for specific information, you should contact a reputed financial advisor who can provide you with tax advice for British expats in Singapore.
Debt management plan
A monthly budget can be used towards creating wealth through debt. Mortgages help build equity and credit scores, whereas credit cards that offer high-interest debt and can easily ruin your credit score.
Insurance plans
Having insurance plans is a must. However, you should only pay for the coverage you actually need. Choose your health, life, auto, disability, and homeowners’ or renters’ debt after careful consideration.
Retirement plan
For your retirement don’t simply follow the 75% rule. Instead take all your potential needs into consideration and invest accordingly.
Emergency funds
Save at least six months of your essential living expenses in a savings or current account to stay prepared for emergencies.
Estate plan
Having a will, which includes your final wishes with relation to your dependents, assets, and your estate’s executor, is a must.
Conclusion
Use these financial planning stepsto take control of your finances today. For more information contact a Singapore-based financial advisor.