Expat Financial Planning
The New Year is a great time for expats to set some good financial goals. Be sure to set realistic targets that will help you work toward your larger goals.
You may want to start with a large goal such as buying a house or retiring early and then look at the things you will need to do to achieve it. Regardless of your goal, it’s wise to set up a support system to make it easier to reach your financial goals. It’s also important to measure your progress periodically throughout the year.
Consider these financial goals to take on in 2022.
Start Investing
Investing should be one of the top priorities on your list of New Year’s resolutions. While it may not be the easiest resolution on this list, it is one of the best ways to build your wealth. Investing into different assets classes such as stocks, bonds, and other assets will give you the potential for a profitable return. Leaving all your money in the bank is likely mean the real value of your money is being eroded by inflation. If you are ending 2021 without any investments, don’t let yourself end 2022 the same way. You could be missing out on returns, even if you only have a small amount of money to invest!
Build An Emergency Fund
When the unexpected happens, you don’t want to be stuck without an emergency fund. Emergency funds can be lifesavers when unforeseen challenges make their way into your life. Since COVID-19 is expected to last well into 2022, and have even longer-term effects, it is more important than ever to ensure that you have a financial safety net.
So, if your emergency fund is non-existent at the start of the new year, it is time to change that! The general rule of thumb, you should have enough funds in the bank to cover 3 – 6 months of expenses.
Start a Budget and Track Your Spending
If you don’t already have one, you need a budget. Creating and sticking to one could be the single best thing that you do for your finances in the new year. Budgets force you to take a hard look at the money that you bring in, the money that you pay out, and the money that you may owe.
If you have never followed a budget before, the thought of starting one can be daunting. The truth is, budgets can be incredibly liberating. Once you get used to following your budget, you can begin finding ways to free up cash to put towards your future.
Start or Fine Tune A Retirement Plan
When you are young, saving for your retirement probably sounds like the least exciting thing that you can do with your money. The truth is, the sooner that you start, the more secure you will be when your retirement comes.
This is involves saving a percentage of your salary each month that you can utilise when you stop working. There are many tax efficient options for expats that they can continue to you use even if they decide to leave Singapore.
Put Insurance In Place
If 2021 has taught us anything, it is the importance of protecting the ones that you love. In 2022, why not make it a goal to do so?
As we grow older, get married, build families and start businesses, we come to realize more and more that expat life insurance is a fundamental part of having a sound financial plan. Taking out term life insurance is fairly cheap, which means there’s no excuse not to get coverage now. Plus, over the years, you’ll find comfort in knowing money will be available to protect your loved ones in the event of your passing.
Make A Will
If you are an expat and want to make sure your wealth goes to the people you love and care about, then making a Will is the only way to make sure your final wishes are carried out. Making a Will is important for anyone, but even more so for expats who could have their estate spread across two or more countries that apply different rules to who can inherit.
Because inheritance rules vary so much between countries, expats need a will in each place where they have assets. Dying intestate – without a will in place – can pile on financial stress for families who do not receive what they expect from an estate as assets are distributed according to the law rather than the deceased’s wishes.
Work With a Financial Planner
Our finances touch nearly every aspect of our lives. So, working with a financial planner can have a positive impact on your own financial well-being, but also on your loved ones, future generations and even your community.
Moving confidently toward the future you desire, begins with that first step of deciding who will walk alongside you. A deeply committed partner who puts in the work and sticks with you for the long haul can help you get more from life and put more back into it.
So, we encourage you to take this first step – learn about the benefits of working with a financial Planner and see what a difference it makes to have a partner on your financial journey.
Singapore Expat Advisory is a leading Singapore based financial planning company. We provide unbiased financial planning advice to expatriates, permanent residents and Singapore citizens to help them to build, manage and protect their wealth. As a premier, regulated firm of Financial Planners, our staff hold all the required professional qualifications and are committed to ethical good practice. Our financial planners possess extensive experience working with expatriates from across the world.
If you would like further information, please feel to contact us.
Email: advice@singaporeexpatadvisory.com
Tel: +65 9432 8781
www.singaporeexpatadvisory.com
Regulatory Notice
Singapore Expat Advisory is a financial services platform of PromiseLand Independent Pte Ltd , who are a MAS Licensed Financial Adviser. Matt Baker is a licensed Representative of Promiseland Pte. Ltd (RNF No. MAB300205281).
This advertisement has not been reviewed by the Monetary Authority of Singapore