Posted on October 14, 2009 - by Tan Kin Lian

Financial Planning (2) – What are your future needs?

Photo by Bombardier

Your savings are required to meet your future financial needs, of which the most important are:

a) to provide an income after retirement
b) for your children’s education
c) for unexpected events, such as unemployment, disability, medical expenses

The amount of savings that you have to set aside from your monthly income will depend on how much money is needed for the future. What kind of lifestyle do you plan for the future? What is the future cost of educating your child?

You have a range of choices. If you want to have more money for retirement, you have to save more and spend less now. You should have a balanced approach. You need to enjoy some luxuries now, while you are young, instead of keeping most of the money to spend when you are old (and weak).

Educating a child can be very expensive at a good overseas university. You may want to give the best for your child, but is this a sensible way to spend the money? Will the investment in an expensive education give a good return? Will this money be taken away from your own retirement fund? Read more…

Related posts:

1. Financial Planning (1) – How much to save?
2. Financial planning – buying a property for own occupation
3. 7 Financial Planning Tips for Property Purchase