Financial Decisions You Should Make Now


It is okay if we are still studying and under our parent’s roof. We do not need to think about anything but graduate and get a job. However, if at this point we have a job, the time has come to live independently. Living independently is terrifying and uncertain but we have to do it anyway.


We now learned the value of hard work and money through saving. It is true that saving here in Singapore is a challenge knowing that we are living in the world’s most expensive city. The fact is that Singapore will become more expensive in the near future and unless we secure our future now, we will not live confidently and comfortably.

While it is tempting to spend our next paycheque, we have to resist the urge and save adequately to avoid financial heartache in the coming years. If we want to be on the road of financial success, here are some things that we have to decide now:

  • Make an emergency fund: The worst thing to believe when we are 20 something is that things will go according to our plans. This is the reason why we should make and build an emergency fund now.


We have to consider emergency funds for events like retrenchment (a change in the management of the company and possible “restructuring”), accident or injury and repair or replacement. Ideally, we have to build savings that is equal to three to six months’ worth of income. So, if we are making S$3,500 a month, we have to aim at least S$10,500 and set it aside for emergencies.

  • Get insured: We assume that we are covered just because we have little money in our CPF accounts and we have Medishield Life. The importance of insurance is not realized until we actually need it. We should not wait only to find out that our insurance coverage is not enough. Aside from Medishield Life and CPF accounts, we have to consider other insurances like life, travel, car, health and disability.
  • Look for extra income: We hear our colleagues complain “I do not have enough money”. This is also true for us. We can do many things to make enough money. We can either cost-cut or we can look for extra income. If we have a skill that can be monetized, this is the perfect chance to make an extra income. An extra hundred dollar can make a difference at the end of the day.

Life is difficult especially if we do not have enough money. We have to start young and we will end up richer by the day.Extra-income-ideas-wallet-bulging

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