December 8, 2017
The future is full of uncertainties. We cannot fully tell how our future may turn out as there are simply some things that are beyond our control. Some surprises may come in our way and shake our plans, but at the same time, we can be more resilient and resourceful in addressing any difficulty and change in plans if challenges do present themselves to us.
But even if life is truly unpredictable, this does mean we should abandon the value of preparing for every single aspecet in our life. Most importantly, if you have a family, you need to be more keen on securing the future of your loved ones. Aside from making sure that your family has a roof over their head and food on the table, there must be secure finances to maintain the kind of lifestyle you may have today.
With the increasing expenses that comes from the instability of the economy, there are sadly some families struggling with their finances. There are those without a solid emergency fund that can help them during times of financial difficulties. This is why some people have no choice but to approach a licensed moneylender Singapore citizens go to for their money concerns, so they can receive extra funds for their needs. In the long run, however, if loans and debts keep piling up, the deeper people can get in their financial conflict.
In Singapore, having a secure employment is highly essential in ensuring the well-being of every individual. Without a good source of income, it can be hard to support various things that require money including a comfortable home, nutritious food, education for the children, and funds to cover entertainment costs. This is why some families end up in debts or they may feel forced to make tweaks with their lifestyle because of limited resources.
It does not matter what kind of business or employment you may have. Perhaps, you are working in a private company with a meager salary, or if you are fortunate enough, your employment in a multinational firm is allowing you to bring in more money for your loved ones. But for the most part, your main goal is to support your family’s needs in the present and the future.
But keep in mind that even if you are making money today, this does not always give an assurance of an unlimited source of funds coming in. There are some unexpected situations that happen among families including retrenchment, accidents, or a sudden illness. You need to be prepared for these by having sufficient funds that can help you and your family stay afloat during times of tribulations.
1. Emergency savings must continue to grow.
As the breadwinner of the family, your responsibility is to make sure that your family has enough emergency savings in times of difficulties. After all, it does not hurt to save for a rainy day, particularly in a country where the cost of living can be very high and with the global economy facing some uncertainties. If you are making good money, then you will have less stress when it comes to building your emergency savings while being capable of paying for your family’s monthly expenses.
With people who do not have emergency savings, they find themselves taking out a loan to cover their needs. While an access to extra funds may be available this way, this does not make you more secured in the long run because of the monthly payments you need to make for your loan. If another tough situation comes along, then you may end up having more debts than you can afford to pay!
When building your emergency savings, you need to aim for at least a minimum of 6 months worth your family’s projected expenses monthly. This is why if there is an average of $3,000 spent each month, try to have about $18,000 saved for emergency purposes – or even more, if you could put in more money each month. This will give you the peace of mind that your expenses are covered for a longer time. Having some kind of cushion should take the pressure off in case life’s little surprises come our way.
2. Review your present health insurance policy and coverage.
Having health insurance can be a big help whether you are single or have a family. As it is not a surprise that healthcase cost can be expensive in Singapore, just one accident or illness can easily cause your savings to face its demise. If you have more than one family member who needs medical attention for quite a period of time, then the issue gets even tougher for you.
With this in mind, you need to really think about having ample coverage in your health insurance plan. If you have an existing policy, check if the coverage suffices for your needs. Reviewing the current coverage is important, particularly if you have a growing family. The insurance policy should cover multiple expenses including medical treatments and hospitalisation. By doing so, you can have the peace of mind that even if medical concerns come along, you will not suffer from massive financial problems because of a skyrocketing hospital bill.
There are additional costs that may come aside from hospitalisation expenses. If you have a health condition, treatments that need to be done outside the clinic and perhaps the instance of having to temporarily leave your job because of the recovery period can paralise the family’s income. If you have a protection plan from critical illnesses, you can have a good support for your finances when you are out of work due to an illness.
3. Life insurance policies are a must for your family’s financial security.
Some people take for granted the value of life insurance for their family. Just because they already have health insurance policies, they assume that these should suffice for their loved ones. But if you are more practical about securing the long-term financial needs of your family, then buying life insurance must be your priority.
In case you no longer have the capacity to provide financial support to your family, where can they get the money to sustain their lifestyle? Be sure to determine the projected amount they will need while factoring in your existing loans and mortgages. If your spouse is unemployed, then you need more coverage for your life insurance plan.
4. Estate planning.
If you have assets that you may leave behind, then estate planning is another important thing you need to arrange for your family’s sake. Your beneficiaries should receive these assets or insurance policies without any problem in the event that you die. This eliminates the stress on your loved ones when it comes to dividing the properties that are righfully theirs.
But then again, there are some complications when you are giving financial support to your parents and your children. If there is no will prepared beforehand, the Singapore Intestate Succession Acts states that there needs to be an automatic distribution of the assets to your children and spouse. Meanwhile, nothing will be left to your parents, which is regardless of the fact that you wanted to give a portion of what you own to them.
By being aware of the proper asset distribution, you can prepare a will that will clearly define what your loved ones will receive when you pass. No one can tell what the future has in store for us, but we can always make some preparations to ensure our safety and security. With these tips, you can keep your family’s finances in check for their future.
December 8, 2017