Maximise your cash at every stage of your life.

If you are 75 and reading this, it’s probably too late for you. So carry on and lim kopi with your kakis. Financial planning must plan early early one! (Even if you are in your 40’s – not too late). The more you know about how to manage your finances, the better it will be for you as you age. Today, I got some tips for you. Some are my personal ones, some from my finance friends.

1. Ready, set, goals.

Create an overall plan. If you want money to spend in the future, you must plan. Set a financial goal for yourself, and start setting money aside for your retirement. Remember, for retirement, it always pays to plan early. Also hor, plan for the unexpected. Like people say, plan for a rainy day. Unexpected expenses, especially medical ones, can drain your savings. So read the next few tips carefully.   

2. Take advantage of CPF schemes 

Are you aware of CPF Life? I tell you, very useful one. The government help you, so take advantage of it lor. CPF is very crucial as we age. And we need to maintain the balance inside. One way is to contribute spare cash towards your Ordinary Account. And if you plan properly, your CPF life (for retirement) will give you cash regularly each month, at the amount you set, until you go to heaven. You can read all about the useful CPF schemes on their website.

3. Pick the right healthcare plan

Having adequate health insurance is very important! Because ah, you will never know when a serious illness will hit you. Don’t get caught unprepared like some of my friends. They had to use their savings, and that is not the right way. The government created the Integrated Shield Plan. So better to get one. There are a few insurance companies you can get your plan from. So check them out and see what benefits suits you before choosing the right plan. You can study all the plans here. 

4. No need to belanja your kakis

Don’t spend more than necessary. It’s ok to treat your neighbours and kakis. But do so only if you have extra cash on hand. Don’t buy excessively also. Buy what you need, and don’t buy to hoard! You may end up wasting your money.  

5. Seek treatment at government clinic and save!

OK, don’t paiseh. I know most of you got Merdeka and Pioneer Generation privileges liao. No need to shy, because thanks to the generosity of our “gahment”, we citizens save a lot on healthcare services. No need for fancy specialist treatment lah, if you can help it. Treatment at polyclinics and government hospitals can save you a lot! Trust me, I used to take my chronic medications from a private clinic. Then I switched to polyclinic – wah! My savings hor, I can go to Phuket! But too bad, now cannot. And don’t forget your CHAS card when you visit the doctor – more savings!

6. Avoid scams and scums

Bad people who are scammers always look for older folks to con. So, you need to be very alert hor. They are after your money and will think of all kinds of tricks to con you one. If you are enticed by a super-attractive investment offered by these people, think twice. It’s probably not true. You don’t want to part with your hard-earned money this way. If unsure, don’t proceed. Ask your children, ask your bank. Also, be wary of relatives who may try to cheat you of your savings. This one I can’t help you.

7. Unlock more cash with Lease BuyBack Scheme

Another way to unlock cash is by leasing the HDB flat back to the government. This scheme is called the Lease BuyBack Scheme. How does it work? Simple lah. You lease your HDB flat back to the government. In return, you get a regular stream of income in your retirement years, while you still get to stay in the flat Read all about it here.

8. Do sideline work then can drink more Tiger

Eh, how about doing some part-time work for extra cash? It’s harmless what. Not only will you be able to save some extra cash, but you may also even add on to your savings or retirement fund. But do so legally and responsibly hor. If your company say cannot, better listen. Some examples of sideline jobs are baking, writing, training. Essentially hor, use the skills that you have to carve out some sideline or freelance gigs.

9. Invest in the right type of investments 

A lot of people think that when they start to plan for retirement, they should invest safely, meaning in low-yield investments. That is wrong hor. Low risk means low returns. So these “safe” investments may not be enough for you to build up your retirement nest egg. Plan with your financial adviser to find more attractive returns for your money. 

10. Don’t anyhow part with your money

If your son or neighbour ask you for money to start a business, don’t be so fast to say “yes” hor. Your hard-earned money saved over those long years are yours to spend, with your ah Lao. And not for investments that you have no guarantee on. At this point, if you do not have any investment plans, the best way is to safe-keep it. Under the pillow also can. You do not want to lose this sum in any way. But like that no interest hor. 

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