Starting the year anew, it is once again the time of the year to set resolutions. However, before we get carried away, it is important to first think of how feasible these resolutions will be. While we may start the New Year with a long list of resolutions, how many of us are actually able to stick to them? More often than not, we set ambitious financial goals bordering on being idealistic which then results in us being intimidated by these unattainable goals. This then results in us falling short and finding excuses to not stick to our resolutions. To avoid such situations from occurring again, we suggest 3 realistic goals you can achieve in 2019.
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#1 Be in control of your financial situation
While it is easy to set a goal to "clear off all debts", fulfilling this goal may be harder than expected. As such, instead of just striving to be debt-free, your 2019 resolution should also be to aim to be in control of your financial situation. This not only includes clearing off outstanding debts but also to make a conscious effort to improve your finances and not accumulate any new debts.
For example, to avoid debt from accumulating, aim to pay off all bills right after payday. By paying off your financial obligations early, this will help you to avoid incurring late payment charges. Additionally, this will also help you to work within your budget and ensure that you do not spend beyond your means.
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#2 Plan for your retirement
Planning for your retirement may sound like a daunting task, but what if it doesn't have to be? While you may feel intimidated by the astronomical amount needed in order to retire, starting your retirement planning early would give you a head start. This allows you to enjoy a longer time horizon to plan and save thus reducing the pressure of retirement planning.
Age that you start planning for your retirement |
Ideal retirement age |
Number of years you have to save for retirement |
Retirement goal |
Amount needed to save each year |
25 |
60 |
35 |
$1,000,000 |
$28,571 |
45 |
60 |
15 |
$1,000,000 |
$66,666 |
*Figures are an estimate and do not take into account inflation. This may also differ between individuals. For a more accurate calculation, refer to our insurance discovery tool.
Take small steps to start planning for your retirement by saving and contributing a fixed amount every month to your nest egg. Alternatively, consider using annuities to help you achieve your retirement goal.
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#3 Ensure sufficient coverage
Last but not least, setting up an emergency fund should be on your list of resolutions for the New Year. If you already have one, you should then aim to increase your emergency fund in 2019. Start by aiming to have at least a month’s worth of your monthly expenses in your emergency fund then slowly increase this by building it up to your desired amount.
Additionally, also ensure that you are adequately protected for unforeseen circumstances. This will allow you to avoid having to dip into your rainy day funds for events that you may be able to receive coverage from your insurance policies.
(See "The Fundamentals Of Protection Planning")
Find Out If You Have Sufficient Coverage
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Etiqa Insurance, Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
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