“How much are my peers setting aside for their insurance/savings/investment?”
Does this question sound familiar? You may have asked this to your friends or your financial consultant before, so that you can get a rough gauge how much you should be setting aside. But the truth is - every person’s financials and situation are different so why are you using your peers as a benchmark?Here is how you can budget for your financial planning:
If your annual income is $100k,
- Death Cover (Income Protection for Family): $1,000,000
- Critical Illness Cover (Income Protection for Self): $500,000
- Retirement Planning: Save $20k annually
- Education Planning: Save $5k annually
Your needs may also vary based on your your current life stage, your fixed expenses, your liabilities (if any). If you have a wedding or a BTO coming up soon, please make sure you find a good balance for your shorter term goals as well. It’s best to speak to your trusted financial consultant for a proper review so that they can advise you based on your personal financial situation and needs.