Standard Chartered Bank
N IS FOR NEGLECT
Do not neglect your financial outlook no matter what stage of life you are in. Everyone has different priorities when it comes to money and to neglect the fact that you should be proactive about your money could lead to unpleasant surprises later on.
If you are not financially stable, neglecting the need to sort out our finances could land you in even more trouble. However, if you are financially stable, neglecting your finances could also result in careless decisions made later on. Pay attention to the state of your finances so that your bases are always covered.
O IS FOR OPPORTUNITIES
While it is easier to identify what is difficult and challenging, it is harder to look past the bad stuff to see the opportunities that lie when it comes to money sense. Keeping a positive outlook in all situations will help you to stay happy and keep you motivated to look for opportunities for you to plan, build and protect your wealth.
If you are in need of funds, look for opportunities to earn more money like taking a part time job or selling off items that you don’t need anymore. Look out for opportunities to make your money work harder for you through a variety of savings and investment products that maximise the returns for your savings.
P IS FOR PORTFOLIO
Having a balanced portfolio is essential for building wealth successfully. Begin with a basic core portfolio that consists of basic savings that give you moderate returns but carry low risk such as time deposits and low risk unit trusts.
Once you have set this up you can then start exploring other types of investment products with different levels of returns and risks so that you diversify your portfolio.
While it all sounds complicated it is quite easy to decipher between the terms and the forms of investments that you are willing to take.
Many times, people make the mistake of looking for a quick get rich solution for their money but these carry a high risk and a possibility of you losing whatever you’ve invested.
A good banker will advise to keep your portfolio diversified and help to gauge your risk appetite and what you can really afford to invest in.
Q IS FOR QUICK
Don’t procrastinate when it comes to starting on your financial plans. Be quick about putting your plans into action. Of course, one shouldn’t jump to conclusions but once you have formulated a plan and have thought through it a few times, put it into action instead of sitting on it.
Think of the opportunity cost if you continue to put off your plans. You could be losing out on earning interest. You could be losing out on savings by not switching to a cheaper loan package. You could be losing a good deal on a home purchase.
Whatever the financial decision is, once you have decided on a course of action, make it happen and move along.
R IS FOR RETIREMENT
For some retirement may seem years and years away and hence should not be something to worry about now. It is never too early to think about retirement, neither is it too late. However the earlier you save the better.
As such, starting early on your retirement plans is always a good idea. Do not underestimate what you will need for your retirement when the time comes. You will have to factor in inflation over the years as well as escalating medical costs.
Do not turn down the opportunity to participate in Employees Trust Fund (TAP) contributions. When you contribute your five per cent towards TAP, your employer will also contribute an additional five per cent towards it and this is free money that nobody else will give you just for your future benefit.
S IS FOR SAVINGS
Do not underestimate the power of having savings. It can see you through a rainy day. It can help cushion unpleasant unforeseen circumstances. It can help you gain confidence about your financial standings.
Savings can see your children through to university. It can also help you to get the car of your dreams. It can help pay for the down payment on your dream home. It can help pay for your parents medical bills. It can help you to retire comfortably.
Savings is important – simple and true. If you have not started saving any money, there is no better time than now to start. If you are already saving regularly, continue to make your funds work for you by exploring different investment products that offer higher returns for it.
Whatever it is, do not neglect your savings. Look for opportunities where you can save to start building your portfolio quickly.
This article is for general information purposes only and whilst the information in it is believed to be reliable, it has not been independently verified by us. You are advised to exercise your own independent judgement with the contents in this article.