“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

PS, savings can be any wealth accumulation platform of your preference, be it endowment plan, investment plan or stocks. Do bear in mind this is just a guide (and my own personal view). The first rule of thumb is - be comfortable with what you’re setting aside no matter what. Just like how we’re recommended to drink 8 cups of water daily, you can go drink less, or more, than that amount 😉

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.

How disciplined was I for this challenge?

SUPER. If I only had two $5 notes in my wallet, I would rather PayNow my friends to get cash from them, than to spend those notes. I only missed out saving perhaps two $5 in the past year when I was in a rush and didn’t have time for the ATM (and didn’t have friends around me)

Do take note that I use my credit card most of the times so the cash that I can save may be different from yours.

THE FINAL AMOUNT I SAVED WAS $445!