Esjay Loh is a Financial Planner who contributes with us at Fablysa. Opinions expressed are solely and do not express the views or opinions of Fablysa as we are not a financial institution. 

If you have this question pop out once a while, congratulations! You are financially secured!

Most of us are living paycheck to paycheck, we look forward to every payday, but don’t you want to become so financially secure that you forget that’s it’s already payday? The only way is through proper Financial Planning.

Don’t worry, Financial Planning isn’t about spending less, shopping less and traveling less. It is not meant to take the ‘fun’ out of our lives. Financial Planning is about planning and managing your money to achieve what you want.

I want that bag!

I want to go on a world cruise!

I want to skydive in New Zealand!

But how do I get there when I still live from paycheck to paycheck?

Here are the first 5 steps:-

1. Make saving a habit

We don’t earn money to save, but we save for a purpose. We save for our goals in life:  traveling, gifts and donations, wedding and etc. With these identified, you would know how much you need to save, how much time you have and what needs to be done. A lot of us save what is left after they’ve spent their money, but how many of us manage to save up for the purpose? Hence, identify the fund you need, and think what would be the best way to save.

2. Set aside an emergency fund

Having an emergency fund is crucial. People who fall into debt is often due to the lack of an emergency fund. Set aside at least three months of your monthly expenses for emergencies. 

3. Protect your values

What do you do after you bought a new smartphone? You would get your phone a casing and a screen protector. Why? You want to protect the values of the phone. In fact, you are your biggest asset, you cannot afford to lose any part of you. Get insurance to protect your values and to prevent any further financial losses.

4. Invest (make your money work harder for you)

Saving money is a great habit but making them work for you is an art that you have to learn. There are ways to invest your money. Find out how much you can afford to invest and what is best for you.

5. Get yourself a financial planner (ask for advice)

Qualified Financial Planners are there to help you, providing you advice on what you need to do to achieve your financial goals. 

Being a Financial Planner in my late 30s, there are lots to share with you about financial planning. Stay tuned!

 

Written by Esjay Loh

Comments

  • 19/04/2019
    reply
    Fox

    Good tips! There comes a time when we have to draw the line between planning and simply going YOLO.

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