Check if you’re on the right track, and find out what you can do better
Your answers suggest that right now, you have enough, but in 5 years, it might not be the case. If you’re just “making do” right now, it could spell trouble for your future. Consider this quiz result as a warning.
If you don’t change most of your current spending and saving habits, you won’t be able to sustain your lifestyle for long. Yes, you work hard and it’s important to reward yourself, but wouldn’t you also want the reward of a better future?
First, learn how to create a budget, and stick to it. If you have dependents, buy a life insurance product, if you don’t have one yet. It’s the easiest way to get long-term income protection. If you think you can’t afford to set aside a portion of your income for savings or insurance, you can auto-debit your savings through salary deduction or sign up for a premium scheme that has smaller, but more frequent, due dates.
As early as now, start equipping yourself with the right financial instruments so you can save smarter and improve your budget skills. Talk with a financial advisor if you don’t know where to start. It’s less painful than you think.
Your answers suggest that you’re fairly knowledgeable about your finances. Even as you’re investing for your future goals, you’re also prepared for life’s surprises – big or small. In a few years, you would have already accomplished some of your big life goals, and may want to consider moving up to bigger, better ones.
That said, there’s always room for things to improve beyond your imagination. For example, you may already have a life insurance policy or two. Since you’re covered in the basics, you should also consider increasing your protection against major disasters or critical illnesses. Yes, there are products that can help you be prepared for these things as well. Ask your financial advisor about what plans you’re qualified to avail of.
Just keep it up, or better yet, influence others to have the same outlook as you.
Most of your answers suggest that you have very good saving habits. You seem well prepared for certain emergencies. But are you looking forward to enjoying the fruits of your labor? Without long-term goals, saving can seem like a burden.
“Shape” your savings by asking these questions: Where do you want to be when you retire? What kind of life do you want to provide for your family? With specific milestones, it’s easier to pinpoint a specific financial target.
Then, hit that target. Diversify what you save by investing or putting some of your hard-earned money into other profit-generating instruments. The easiest way to start would be to open a mutual fund account. This instrument will complement your good habits by making your hard-earned savings earn more, through the hands of competent fund managers. For example, you can enroll your funds in your bank’s auto-payment facilities so that a portion of your bi-monthly income already goes straight to your accounts. Just make sure that these funds are flexible enough to cover a variety of needs.
Don’t be satisfied with what you can save. Make your money work for you, and you won’t have to feel too uptight about money all the time.