TO DELETE - Adulting 101: 4 must-haves in your toolkit

 

Just landed your first full-time job? Congratulations!  

 

While you’re excited about seeing your salary credited into your bank account every month, you may also be struggling to figure out how to manage your finances. Don’t worry, we’ve got you! 

 

Here are four key moves to make when it comes to nailing the financial aspect of adulting. 

 

1. Budget 

Contrary to popular belief that budgeting is only for those in a pinch, this process of creating a spending plan is critical when you have savings goals, be it owning a house or car, or building an emergency fund. 

 

You could check out mobile apps, such as the Singlife App, that allow you to track your expenses in your Singlife Account in real time. For those without the Singlife Account, there’s also a feature for you to set goals for big purchases that might come your way. This allows you to have a record of exactly where your money is going and how much you’ve saved.  

 

As you get familiar with this move, remember that everybody has different lifestyles, savings goals and priorities, and while there are many different budgeting guidelines, you shouldn’t feel pressured to follow them to a tee. Take some time to adjust your monthly expenses and savings till you achieve a budget that suits your needs.

 

2. Invest

Even though your career has just taken off, it’s not too early to start planning for retirement. Be it in the form of index funds, stocks, ETFs (exchange-traded funds), ILPs (investment-linked policies), fixed deposit schemes or robo-investors, investing is a way to start planning for your retirement, as well as hedge against inflation. 

 

There are many resources such as blogs and webinars to help you understand the different investment classes, how they work, and the risks involved. If you’re new, you can opt for lower risk investment products, some of which offer fixed returns. 

 

Singlife Sure Invest lets you invest in portfolios that are managed by world-class investment experts abrdn (formerly known as Aberdeen Standard Investments). The beauty of it is that you can pick from three simplified portfolios to cater to your risk appetite. You can start investing with just S$1,000 and make withdrawals anytime as there’s no lock-in period or penalty!

 

3. Multi-task

Why just spend when you can save, spend and earn all at the same time? Yes, we all like to indulge without feeling too guilty. Heh!

 

Certain bank accounts or cards offer rebates or cashback on spending, as well as higher interest rates. Make your money work for you, and ensure you get more out of each transaction. 

 

For instance, Singlife has several campaigns – Save, Spend, Earn campaign*, Sure Invest Bonus Return Campaign* and Singlife Account Special Incentive Campaign* – that let you earn up to 3% interest per annum in your Singlife Account.

 

Here’s how it’s broken down:

^{*Terms and conditions apply. Valid until 31 December 2022.}

 

4. Insure yourself

Setting aside an emergency fund – three to six months’ salary – ensures that you have access to funds that can help tide you over during unexpected events such as illness or unemployment. 

 

Further enhance your financial security by purchasing necessary coverage for yourself. Besides medical insurance, you may consider getting life insurance which is best purchased when you’re young and healthy as premiums are typically lower. In the unfortunate event of terminal illness or untimely death, life insurance gives you the assurance that you and your loved ones will not be saddled with bills. A payout could also be your dependants’ financial lifeline if you’re no longer around. 

 

Scoring your first full-time job is wonderful, and once you’ve conquered budgeting, investing, multi-tasking your money and insuring yourself, you can say that when it comes to managing your finances, you’re officially an adult. Not only can you look forward to making every dollar you earn go further, you’ll also realise your financial goals with greater certainty.

 

 

 

 

^{Terms and conditions apply.}

 

^{These policies are underwritten by Singapore Life Ltd.}

 

^{This material is published for general information only and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. You should read the Product Summary and seek advice from a financial adviser representative before making a commitment to purchase the product. As this product has no savings or investment feature, there is no cash value if the policy ends or if the policy is terminated prematurely. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premium paid.}

 

^{Investments in this plan are subject to investment risks including the possible loss of the principal amount invested. The value of the units, and the income accruing to the units, may rise or fall. Past performance of the ILP sub-fund(s) is not necessarily indicative of future performance. We hereby disclose to you that: (a) Your relevant money as defined under Payment Services Act (“PSA”) from Singlife Account will be held by us on behalf of you in a trust account opened with a safeguarding institution; (b) Your relevant money from Singlife Account will be deposited in a trust account together with, and commingled with, the relevant money received by us from our other Singlife Account customers; (c) There are no foreseeable risks of such commingling and you are able to withdraw your account value anytime via FAST; (d) The relevant money in the trust account with the safeguarding institution is insured by SDIC. Pursuant to section 23(7)(b) of the PSA, the customers’ relevant money deposited in a trust account are not liable to be taken in execution under an order or any court process, such as in insolvency proceedings. In the event of the insolvency of the safeguarding institution, the Monetary Authority of Singapore may make a regulation under section 103 of the PSA on the manner in which the customers’ relevant money must be treated and dealt with; and (e) The safeguarding institution is not liable to compensate you for your claims against Singlife with Aviva.}

 

^{This advertisement has not been reviewed by the Monetary Authority of Singapore.}

 

^{Protected up to specified limits by SDIC.}

 

^{Information is accurate as at 13 October 2022.}