25 Jan “Less is More” – Declutter Your Way to Successful Financial Management
The secret to successful spring cleaning lies in decluttering – a principle beneficial not only to our living space, but also to attainment of peace of mind and to managing our finances assets too. Here’s how to cultivate the mindset of less is more.
Start by Reminding Yourself That Focused Effort is Better Than Diffused Energy
Think how spring cleaning improves your living conditions – a house filled with unnecessary clutter feels unpleasant, whereas a neat and tidy house is a more pleasant environment to stay in. Similarly, when your financial portfolio is decluttered, your efforts are focused as you do not hold unnecessary or ill-suited financial instruments.
Next, Determine Your Objectives
When decluttering during spring cleaning, you decide what is important to you before you start to tidy up, right? For financial management, jot down your objectives so that you are clear what you wish to achieve. For instance, are you looking to protect your wealth against the erosive effects of inflation, building up a certain sum of money for a big-ticket purchase, or saving up for retirement in Singapore?
Then, Seek to Understand and Consider Your Options
The next step is to understand the various options out there that can help you meet your objectives. Let’s say that you want to build up your wealth over the next 10 years so that you can send your child to a prestigious overseas university. Savings plans and endowment insurance plans may then be what you need (learn more about Etiqa’s range of savings and endowment plans and their benefits).
It is important to understand the details regarding the various plans – what the benefits are, how long are the commitment periods, how much premiums you have to pay, etc. These instruments can offer better returns than the best savings accounts (plus they also offer insurance protection benefits), but a trade-off is that they are less liquid and early surrender or termination may mean that you will not get back the full premiums paid.. Thus, unlike spring cleaning where you throw out stuff that you don’t need, it is better to plan ahead when managing your finances such that they are tidy to begin with and you do not go down the wrong path and acquire savings plans or other types of policies that do not suit your needs.
Do contact us, or start a live chat with us here on our website, if you need assistance choosing between our plans.
Be Decisive, and Get (Only) What You Need
Once you have understood your objectives and considered your options, act decisively. When you identify a plan that suits your needs, get it as soon as possible. Certain plans such as eSAVE assure presto and eEASY save series do not require medical underwriting. eSAVE assure presto is available for purchase through Maybank branches. Whereas eEASY save series can be conveniently bought online. Also, do not overly fragment your portfolio of endowment insurance and savings plans as this will make it more difficult to keep track of your plans. The more your portfolio is focused towards your objectives, the more they are optimised – hence “less is more”.
Protect Your Biggest Asset
No article on financial management is complete without mention on how we can protect what to many Singaporeans, is our largest financial asset – our HDB home. Our home is not only where we live our lives, but it is also a potential source of income if we were to rent it out. The cost of replacing lost or damaged contents and renovations can be devastating in the event of a serious accident and can easily negate gains we make from optimising our savings.
Take steps to protect your largest asset even as you optimise your savings strategy. Designed to complement our HDB Fire Insurance plan (which covers building structures, fixtures & fittings in case of a fire), our ePROTECT home insurance plan covers damage to, or loss of HDB home contents and renovations. It also includes other benefits such as accidental death protection for you and your family to give you extra peach of mind.
Many people do not plan their finances and instead, may pick up an insurance savings plan or two over time without a clear idea of what they want to achieve. They also neglect to adequate protect their biggest asset with good home insurance. This is not ideal. Instead you should determine your savings objectives, understand and consider your options, be decisive with your actions so that they are focused on your objectives, and take steps to protect your largest asset – your HDB home. Do this and you will be well on your way to meeting your financial management goals.
Etiqa is a Singapore insurance company owned by Maybank Ageas Holdings. Maybank Ageas is a joint venture between Maybank Group – the fourth largest banking group in Southeast Asia with more than 22 million customers across 20 countries worldwide, and Ageas – one of Europe’s largest insurance companies with 33 million customers across 16 countries and a history of over 180 years.
Protecting Singapore since 1961, Etiqa offers comprehensive insurance coverage and solutions with affordable and transparent insurance premiums. These include general insurance, life insurance, and savings plans for personal and business needs. Etiqa is also one of the first insurance companies in Singapore to empower its customers with the option of online insurance. Etiqa is dynamic, progressive, and at the core of it all, committed to humanising insurance – placing people over policies.
Discover the full range of Etiqa online insurance plans: https://www.etiqa.com.sg/buy-insurance-online/