“Your Financial GPS” – Your Personalised Digital Financial Advisor Planner at Your Fingertips

Many of us know the importance of personal financial planning, but do not know how or where to get started. Some of us are hesitant to approach a financial consultant for advice, in fear of being pressurized to commit to a financial product. Some of us may seek out advice or recommendations from our friends, family members, and colleagues, but the advice may not always be suited to our personal needs. Many of us are put off, or even intimidated, by hearing all the unfamiliar financial jargon.

These are just a few of the many difficulties that we encounter in personal financial planning. What if we could remove these challenges and get free, easy to understand, and personalised financial advisory at our fingertips?

Introducing Your Financial GPS

Here’s introducing NAV -Your Financial GPS, a digital financial advisor that helps people like you and me navigate through personal financial planning effortlessly. Your Financial GPS makes the principles of personal finance easy to understand using the acronym ‘SAIL’, which stands for Saving, Assurance, Invest and Life Goals. Starting with Life Goals as the destination for our journey, the other ‘SAIL’ components act as the mainsail, lifebuoy and hull of the boat to help us move towards our destination. For the boat to weather through storms and successfully reach its destination, all ‘SAIL’ components must be looked after, and well-balanced. Thus, this helps to simplify the process of financial planning for many.

Your Financial GPS At A Glance

Your Financial GPS is available to all DBS and POSB customers through the DBS/POSB iBanking and digibank app. When you log into your DBS/POSB iBanking or digibank app, you will see a tab for Financial GPS, which provides a personalized snapshot of your financial health. Your Financial GPS allows you to check your monthly spending across different categories, set budgets, and provides personalized insights based on your saving and spending information.

As a digital financial advisor, Your Financial GPS also provides a snapshot of your current SAIL status. It provides insights on the areas in which you can work on, and suggestions on how to work on these areas to achieve your life goals.

For me, personalizing Your Financial GPS for myself was a breeze. Most of my spending was linked to my DBS Live Fresh card, which was automatically categorized into different categories under spending. For spending that I have incurred using cash or on other banks’ credit cards, I could easily add in the amount as expenses so that Your Financial GPS has a comprehensive picture of my total finances.

I also set up my first Life Goal, which was to pay off my home down-payment of $300,000 by age 40. Your Financial GPS immediately calculated the amount of money which I would need to set aside monthly to achieve this goal. This helped me realise how unrealistic my goal was, which was similar to key insights of how many do not know how much they need for their goals. This was one of the insights that DBS had learnt from its intense and rigorous research to understand customers’ financial planning needs. Besides that, Your Financial GPS also came up with a list of suggestions tailored to my life goals, one of which was very relevant advice on how to avoid common mistakes as a first-time home buyer.  

DBS NAV Hub: Free Personalized Financial Consultations 

Want to do even more for your personal finance? Book an appointment with the dedicated NAV Crew at the DBS NAV Hub for a free personalized financial consultation. During the private one-on-one session, the crew will help you to assess your financial health and answer any money-related questions you might have. You will receive a free report on your financial health, with absolutely no product or sales pitches involved.  

Ready to Sail?  

Here are three ways how: 

Your Financial GPS
DBS Nav Hub
DBS Nav Website
Available on DBS/POSB iBanking
and Digibank

Click to download the DBS
Digibank SG app on iTunes or on Google Play

Free personalized financial consultation

45 Tras Street
Singapore 078984

Click here to book an appointment

  • Resources on personal financial planning
  • Get updated on NAV classes

Click here to visit the NAV website

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5 Steps In Building A Financial Plan

Generally speaking, a financial plan is a comprehensive evaluation of an individual’s current and future financial state. Crafting a financial plan involves using known variables to predict income, asset values, and withdrawal plans. Thus, you have to go through a series of steps to adjust your savings and spending habits.

Here are just some of the steps:

STEP 1: KNOW WHERE YOUR MONEY GOES

Your top priority is to develop a detailed list of where your money is heading to. It does not matter if you are using a legal pad, a smartphone app, or a computer software! The only thing that matters is that you have a working system. An organized system lets you identify the expenses that occur each month (fixed expenses) and those that change (variable expenses).

Do not forget to input seasonal expenses such as the Labor Day staycation or Valentine’s Day present. Calculating your cash flow may seem like a hassle, but it will help you determine the amount of money that you can commit to your goals.

STEP 2: SET YOUR MONTHLY SAVINGS GOALS

Much like a road trip, you must set a route to stay in the course of your financial plan. Select a path which you want to reach in a specific amount of time. For instance, you may want to start saving for retirement as early as aged 25. Set a monthly savings goal upon knowing your time-frame and how much you need to save. Fit your monthly savings goal within your budget.

If you cannot save as much as your goal requires, you can trim down your monthly spending. Alternatively, you may look for ways to increase your income or to extend your completion date.

STEP 3: CELEBRATE THE MILESTONES

Why do you think corporate incentives exist? Well, they are deemed to keep you motivated while in the process of achieving a company or a cooperative goal. The same goes for your finances. The only difference is…you have a personal goal to fill.

Image Credits: pixabay.com

Image Credits: pixabay.com

Create milestones after completing your monthly savings goal. Celebrate in a simple and satisfying fashion (e.g., eating your favorite Korean dessert). You do not want to blow up your credit even more!

STEP 4: CONQUER YOUR DEBT

As tough as this may sound, you must attack debt while avoiding further debt. Start by listing down your outstanding debt including two columns for balances and interest rates. There are two main strategies that you can choose from. You can either start with the highest interest rate or employ the “Snowball Strategy”.

The latter refers to eliminating all the smallest items first before working your way to the highest items. Both can be effective as the most important thing is to pay more than the minimum. Seeing your debt diminish one after another can be good for your self-esteem.

STEP 5: STOP PROCRASTINATING AND START SAVING

The perfect time to start saving is at the present. Take a look at your guilty pleasures. Notice where you can make some adjustments, but do not be too harsh on yourself. Aim to control your entertainment expenses and not eliminate them entirely (unless these items are unhealthy)! This will free up some cash to put in your monthly savings goal.

If an emergency comes along and forces you to dip into your savings, do not fret. This is what financial cushioning is for. Just make it a priority to replenish your fund as soon as possible.

Image Credits: pixabay.com

Image Credits: pixabay.com

Financial plans aid in creating a strategy for paying off your debt, in determining where your money goes, and in achieving your other savings goals. I wish you all the best when crafting your own plan.

Sources: 1, 2, 3 & 4

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How Much Cash Should You Keep In The Bank?

You are a responsible adult living in the most expensive city in the world. With this in mind, how much money should you have in your savings account? This may sound like a basic financial query, but it is hard to extract a straight answer from it. Make things simple by aligning your goals with the volume of your savings.

Here are just some goals that you may tap with:

GOAL #1: BUILDING A SAFE NEST FOR THE GOLDEN YEARS

To shed a light to the path of many Singaporean retirees, a social security savings plan has been put into place. This savings plan is none other than the comprehensive Central Provident Fund (CPF). You can use your CPF Ordinary Savings account for important purposes such as purchasing an HDB flat or financing your retirement years.

Image Credits: pixabay.com

Image Credits: pixabay.com

The amount of your retirement fund must be based on your estimated future spending or your predicted lifestyle. This is why it is challenging to quantify a singular retirement fund. It is best to save on a regular basis with the knowledge that all will add up as you age. For instance, many financial experts recommend to save at least “10% to 15% of your income for retirement as early as your 20s“.

GOAL #2: ESTABLISHING A REALISTIC EMERGENCY CUSHION

As the name suggests, an emergency fund is established to cushion unforeseen events. There are many ways to arrive at a specific amount for an emergency fund. First, you may follow the advice of the renowned Personal Finance Adviser Suze Orman. She suggests to have eight months’ worth of your salary because it is the average period before a person finds a job.

Image Credits: pixabay.com

Image Credits: pixabay.com

Second, you may save up a five-figure emergency fund in an investment account with relatively safe allocations in order for it to grow. Doing so will allow you to save more money than by leaving your cash in a savings account.

Lastly, you may save up based on your living expenses. Add up the cost of all your current essentials (i.e., rent, grocery, and utilities) and work from there. For example, you need S$2,000 per month to survive. Prioritize getting about S$6,000 in your emergency fund.

GOAL #3: CONQUERING SHORT-TERM VICTORIES

In a list of financial priorities, chances are, your specific goals reside at the bottom. Specific goals include purchasing a car, backpacking around Europe, and buying a new phone. Do not limit your savings just to suit your specific goals.

Image Credits: pixabay.com

Image Credits: pixabay.com

Remember that starting your savings is the initial step and that you must plan to raise it over time.

Sources: 1 & 2

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Why You Should Not Keep Your Entire Wealth At Home

Not every Singaporean believes in the prowess of financial institutions. There are some people who prefer to hide their wealth in a personal safety deposit. If you are one of these people, take time to introspect.

What is the real reason why you keep bundles of cash at home? Do you foresee a need in the near future? Lacking immediate reasons why you need the money highlights that stashing your cash at home is not necessary. Do not get me wrong! It is alright to spare a decent amount of cash for emergency purposes. However, it is not advisable to store your entire savings at home.

I shall share my own experience to put things into perspective. I started to build my savings in my late teens. As a newcomer in the workplace, I was completely transparent with how I manage my money. Oh! How I wish that I was not. Unbeknownst to me, my boss was a member of a financial “support group”. Those type of groups exist in Singapore. Some of these groups even advocate different methods of expanding one’s income. It was natural for my boss to question my ways. He pointed out how keeping my savings at home will not allow my wealth to grow. At that point, I did not absorb what he meant. So, I did my resarch. I eventually understood the importance of compound interest. I opened my own savings account at a local bank.

The interest rates offered by banks may not seem a lot, but every bit counts! The slightest percentage you would earn in a standard savings account is much better than what the 0% interest that you will receive at home.

The second factor focuses on the “safety” aspect. The mere presence of tangible cash makes you vulnerable to uncontrolled circumstances such as fire, pest infestation, and theft. Despite the relatively low crime rates in the country, you cannot deny the possibility of getting robbed. The temptation can be irresistible for your teen who wants to party on a Friday night or your toddler who wants to create a beautiful artwork. This is why you must place your wealth in clever hiding spots (look through this list). Simply remember where you put it!

The third factor involves accidents. You might actually throw or leave your cash behind. It is easy to neglect where you hid your fund if you are really good at it. What is worse? Someone else may find it and get rid of it. In 2009, a woman in Tel Aviv (Israel) gave up her old mattress. The only problem was that she placed a million of her savings inside the old mattress.

Image Credits: pixabay.com

Image Credits: pixabay.com

The moral of this story is to consider safer alternatives than keeping your wealth at home. For instance, you can pay with your credit card when the rainy day comes.

Sources:  1 & 2

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5 Foolproof Ways To Save Money As A Student

If you cannot ask for a boost in your school allowance, you need to get creative to stretch your dollar!

TAKE ADVANTAGE OF FREE COMMUNICATION

I recently savored a blissful lunch with my long-term friend. Our conversation took an interesting turn as we shared our childhood stories. When she was a teen, she made countless overseas calls to the Philippines. Her father was immensely surprised that her bill amounted to S$400. A plane ticket would have been cheaper!

Many students are fueled by social interactions. This explains your attachment to social media. Rather than flushing hundreds of dollars down the drain, use the free services provided by WhatsApp and other similar apps.

BE YOUR OWN BEAUTY EXPERT

As a female student, you may perceive spa packages and beauty treatments as luxurious expenses. Imagine the financial impact that these treatments can cause on a regular basis. It will certainly get out of hand! Fortunately for you, you can maintain a beauty regimen with a tight budget. Simply do the treatments by yourself.

Let us start with nails. Purchase an inexpensive manicure kit to revamp your look in the comfort of your own home. I recommend Sephora’s manicure kit as it includes several essential tools – nail file, cuticle stick, nail clippers, and a classic red polish. Get all these for only S$17!

Afterwards, you can have flawless skin with coffee grounds. Dip a wet cloth into your leftover coffee grounds. Massage it from your neck down to your body to wash off the dead skin.

BUY AND SELL USED TEXTBOOKS

Textbooks or reference books tailored to tertiary students can cost as low as S$50 each. It is a hefty price to pay for books that you will use for merely 120 days. There are three different strategies to save money on these said books.

Image Credits: pixabay.com

Image Credits: pixabay.com

Firstly, consider purchasing a second-hand book at carousell.com. Secondly, you may rent the book for free at the National Library. Lastly, you may sell your old books to purchase a new one. The premium time to sell your used books is right after you finished your modules. Waiting too long can harm your chances of pawning your books to the next batch of students.

EMBRACE THE BENEFITS OF WALKING

Play a significant part for Mother Earth by opting to walk to school. When I was a university student, I spared 40 minutes of my day for travelling. I walked to school every morning with music in my ears. I can either feel the breeze or focus on my thoughts. Walking, a form of physical activity, was healthy for my body and my wallet. Do the same thing if you are going to travel short distances.

As a friendly reminder, stay safe by having someone accompany you while walking to isolated areas. Let a family member or a friend know about your whereabouts at all times.

REAP THE STUDENT DISCOUNTS

One thing that I miss most about being a student is the discounts that come along with it. Use the Internet to locate the great offers on restaurants, cinemas, museums, clothing shops, and more. Take advantage of your special privileges while you still can!

If you adore the movie theater as much as I do, you would be glad to know about Golden Village’s student promotion. It extends to various types of films. Kindly note that this promotion is valid until December 29, 2017.

Image Credits: gv.com.sg

Image Credits: gv.com.sg

Throwing all your school allowance on new clothes from trendy online shops or on drinks from the clubs at Clarke Quay is tempting for youths. However, it will make your life easier if you focus your youthful zeal on saving money. Employing the strategies mentioned above and earning extra cash can help you build a brighter future ahead.

Sources:  1,  2, & 3

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