Your guide to doing a financial health check at home
Set a budget. DBS NAV Planner helps you keep track of your financial health by providing a comprehensive view of your finances as you go through life. Here’s how you can easily monitor key aspects of your finances, even if they are not with DBS, all in one place:
How to get there
|STEP 1: Open digibank
Log in to digibank and look for thePlan tab.
|STEP 2: Understand your 3 rings
Get an overview on your financial health and see how you are doing on your.
The orange Protection ring shows the types of coverage you have compared to what you may need based on your current life stage.
This serves as a guide to ensure you have sufficient coverage in key areas such as healthcare and home.
Find out which areas have adequate protection and which areas require enhancement.
The yellow Emergency Savings ring helps you track the amount you have to tide over unexpected events such as sudden loss of income or illnesses.
This number is based on your total cash savings divided by your 6 months’ average Money Out.
You may need to set aside more if you have dependants.
The pink Investments ring measures the percentage of your net worth you have invested.
If you’ve been letting your money sit idle for too long, you may consider investing more of your net worth to make your money work harder for you.
Action: How to build your emergency savings?
Emergency savings are meant to tide you over unforeseen events, such as this Covid-19 pandemic, so we recommend that you build up 3 to 6 months’ worth of your monthly expenditure (or 6 to 9 months for freelancers).
Whether it’s fixing that laptop that malfunctioned unexpectedly, seeking treatment for your beloved pet that fell ill, or even facing job woes and uncertainties, you’ll sleep a little better at night knowing you have enough savings to tide you over the next few months.
Here’s how to get better at money:
1. Pay yourself first
Whether it’s your allowance or salary, pay yourself first by setting aside some money for emergencies, no matter the amount.
You can automatically transfer your money to a separate account weekly or monthly, so you never forget to save. It’ll take just 5 minutes to set up a standing instruction (recurring fund transfer) in digibank and you’ll only have to do it once!
2. Manage your spending habit
After you’ve set some money aside for savings, you’re free to spend the rest. Don’t go wild though!
Review your spend in the past months, focusing on how much was on necessities, then set your budgets accordingly with DBS NAV Planner.
Ready to start?
Speak to the Wealth Planning Manager today for a financial health check and how you can better plan your finances.
Alternatively, check out NAV Planner to analyse your real-time financial health. The best part is, it’s fuss-free – we automatically work out your money flows and provide money tips.
Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.