By: Derek Lim
Admit it, we all know the importance of having a sound financial plan but many of us are always putting it for. Below are my top 5 reasons why a typical Singaporean do not want to do Financial Planing.
1) The Government – Many of us grew up with the mind set that the Government will take care of our every needs. We have our CPF for our retirement and our Medisave for health. That basically covers everything we need ya? Sadly, most of our CPF is wipe out when we apply for our HDB flat and our Medisave is use pay for our parents hospital bills.
2) Budget – We hear that all the time especially in our work place – how many times have we hear that due to budgeting constrains we are unable to do this or that. If that is not frustrating enough, you still want me to set aside a budget for my personal expenditure?
3) Insurance – While insurance is a form of financial planning, many of us are not buying the correct insurance policy. The common notion is that the more insurance policies I have, the better is my financial plan.
4) Discipline – Even with the best financial plan, indiscipline to adhere to it will eventually lead to failure.
5) Financial Planning is for Sissys – I still remember the look my friends gave me when I am unable to join them in their outings. Of course, I didn’t tell them that I only have $10 left. ‘Face’ is a pretty big issue in our society – many will ditch financial planning after the ‘loss of face’ without realizing that the problem is not with the plan itself but with ourself.