We’ve all been there; we’ve all said “this year will be different” and then let procrastination and daily life get in the way. We understand, it’s human nature.
But imagine this scenario:
That feeling, you know it. You start to feel chipper, enjoying that sense of accomplishment and pride. Productivity makes you feel good, also human nature.
While that feeling of accomplishment about simple tasks is amazing, we assure you it’s even better when you take control of a critical part of your life such as your finances.
Here are some ideas on how to make that happen:
In the words of Warren Buffet: “ Don’t save what’s left after spending, but spend what’s left after saving.”
A simple trick is to impose a “savings tax” on yourself. Everyone pays taxes. Typically we suggest setting aside roughly 20% of your income for the future.
Utilize automatic contributions to give yourself the discipline to prioritize your savings and yourself first.
Watch your savings steadily grow.
You can adopt one of two ways to save more money:
Earning more isn’t easy in these uncertain times. Regardless of the times, most people can easily name areas they could eliminate or scale back their spending. Consider an audit of your expenses, ask yourself “what’s unnecessary?”
Trim the fat.
Your retirement is ultimately YOUR responsibility. In Southeast Asia, without any government- or employer-provided pension, you’re on your own to save for your future.
The ball is in your court, start scoring.
Like tip #3, in Southeast Asia we don’t have much of a safety net for medical expenses. You can’t rely on Medicaid, NHS or other state provided system to take care of you.
Medical care is relatively cheap in the region but relatively minor medical bills can quickly run into the thousands. Serious surgeries, chronic conditions and ongoing treatments can further escalate that to $35,000, $50,000 and beyond.
At a minimum, we recommend getting an inpatient only plan with a deductible. Even if you loathe health insurance, at least get protection for the big-ticket items and make sure you have access to the best healthcare in Southeast Asia.
Protect yourself and your savings with health insurance.
What is your motivation for increasing your savings? Set the “why” goals to give yourself tangible and achievable savings goals. What are you saving for?
Just like with your to-do list or errand list, start with goals that are achievable first, then increase your goals as you grow your savings. Imagine that moment, that day, that feeling of pride and achievement.
Without why goals, there’s no what or how.
Market timing, which is the opposite of a buy-and-hold strategy, is buying or selling because you expect a specific change in the price of a stock or value of an index. By trying to time the market, you have to be right twice:
Relieve the stress of investing by doing a regular investment savings plan with recurring monthly contributions regardless of what the markets are doing. Over the long term, take advantage of dollar cost averaging. As prices go down, you actually get more units for the same price.
Sit back and relax, you have a plan, stick to it.
The driving factor in the accumulation of wealth is usually time. The longer your money is working for you, the more you will accumulate due to compounding interest.
A delay in starting your savings journey means at least one of three results:
Time is the healer of all wounds and the creator of fine scotch whisky and wine – it’s what you need to give yourself to accumulate savings.
Earn while you sleep.
Just like any project, you want to take things one step at a time. Difficult questions need to be asked and answered. Here are some:
There are things you can’t control in life, but you can be prepared. Having a plan to build your savings and putting away a small amount of each paycheck is something you can readily do.
Control what you can control.
“Are you ready to:”
Remember, with anything in life, you have to start somewhere. And we’re here to help.
These articles are intended to give you enough information to make informed decisions, but investment solutions are complicated. Whether you still have questions on this topic or feel ready to take the first steps toward getting a policy, our advisors can help.
We will never sell or use your personal information for any reason other than to provide these services.
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