About Regular Savings Plans
It’s the end of your first month at work, and you’ve received your maiden paycheck. Ah, the first sure step towards financial independence! But before you run off to celebrate your shopping prowess, here are some things to consider.
1) Budgeting: Master the big 50%
It’s perfectly fine to reward yourself for your hard work. However, prudence is key – without careful planning, your budget will quickly diminish. Besides the obvious essentials—food, transport, groceries, telco bills, rent (if you’re on your own), or allowance for the parents, prioritise things that make you happy and help in your growth.
2) The next 30%: reward yourself
The next 30 per cent can be used on “discretionary” spending or, simply put, what you allow yourself to splurge on. Brunch with the squad… after-work drinks… weekend getaways with the pals.
3) The final 20: savings and investments
Starting your rainy-day fund
You need about three to six months’ savings to be termed ‘financially stable’. This means clear liquid money with zero debts to cover, saved up for emergency purposes. If it helps, consider having two bank accounts: one for salary crediting and daily expenses, and the other to build your emergency fund.
Picking your money-making tools
You can also look into getting a basic insurance or investment-linked plan at this age, as premiums tend to be lower the earlier you start. Plus, having adequate coverage during emergencies allows you to remove one item from things to worry about.
An endowment plan with guaranteed cash benefits and capital guaranteed at policy maturity.
An endowment plan that gives you the flexibility to meet your financial goals.
Manulife SmartWealth (II)
An Investment-linked Insurance Plan that gives you access and flexibility to meet your goals.
Take charge of your retirement goals with higher potential returns.
RetireReady Plus II
Guaranteed Monthly Income plan you can customise to your changing needs.
Find out more
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