SPEECH BY MR HENG CHEE HOW, MAYOR OF CENTRAL SINGAPORE DISTRICT AND MP FOR JALAN BESAR GRC, AT THE INAUGURAL FINANCIAL PLANNING TALK, "MONEYSENSE AND YOU - ARE YOU MAKING EFFECTIVE FINANCIAL DECISIONS?" ORGANIZED BY AFA, FPAS, IFPAS, CENTRAL SINGAPORE CDC AND TANJONG PAGAR GRC, ON SATURDAY, 22 MAY 2004, 2PM AT QUEENSTOWN COMMUNITY CENTRE THEATRETTE
Mr Chay Wai Chuen, PBM, MP for Tanjong Pagar GRC and Advisor to Queenstown Grassroots Organisations,
Ladies and gentlemen,
Good afternoon.
1 I am very happy to join you at this talk.
2 I once saw a wall poster with these words: "If your Outlay exceeds your Income, your Upkeep will be your Downfall."
3 One sentence. Twelve words. Full of meaning.
4 Spend more than you have, or not save for a rainy day, and you are asking for trouble.
5 On the other hand, when you live within your means, invest wisely for your future, you create a better life for yourself and your family.
6 At the most basic level, this is it.
7 Now if it is really so simple, why isn't everyone doing it already?
8 First, it is a question of attitude. Many people see themselves as hapless victims of circumstances beyond their control. They see their friends, relatives and neighbours spending in a certain way, and they feel compelled to follow. That is fine when you have the money. But when you spend money you don't have, to live a lifestyle you cannot afford, to impress people you don't really know, you begin to dig your own hole.
9 You may think that I am talking about poor families. Well, not necessarily. I have seen low-income families who through their discipline still enjoy a decent standard of living, put their children through polytechnic or university, and have some small savings.
10 On the other hand, I have seen those who earn a lot more each month who splurge their income away, run up high credit card bills, mortgage arrears and a host of other financial problems.
11 So we cannot run away from living the consequences of our own choices.
12 At the same time, we know that choices don't happen in a vacuum. People decide based on what they think life and the future hold. They pick options according to their understanding of the pros and cons of each alternative.
13 For example, if we think the world will always be peaceful and we will always have a job and our pay will always increase, then we will dare to buy many expensive things. And if we don't think we will live much longer than our working life, then we will not save much for a long retirement.
14 But if the opposite is truer, then some additional savings is the smarter way to go.
15 Again, the choice is ours. But the events of the past few years should tell us that misfortune can strike very suddenly. So it is better to be prepared.
16 And as for understanding the options, it is really very important. Every day, advertisements in the newspapers, the Internet and word-of-mouth promise us all kinds of ways to get rich.
17 Some sound too good to be true - no risk, high return, overnight.
18 In this noisy marketplace, it is easy for the common folk to be confused. Some may put their money into wrong investments, and others into wrong hands. This is why we must step up public education on financial planning. It is also why the Government has launched a national financial education programme called MoneySENSE to help consumers learn how to better manage their finances.
19 Financial Education is the practical way to help our people, young and old, make better financial decisions for themselves and their families.
20 I thank our partners:
- The Association of Financial Advisors
- The Financial Planning Association of Singapore
- The Insurance & Financial Practitioners Association of Singapore
- And the Tanjong Pagar GRC Grassroots Organisations
for joining hands with the Central Singapore CDC to bring this series of talks to our community under the MoneySENSE initiative.
21 I hope that participants will find the sessions useful as you make plans for a more rewarding and secure financial future.
Thank you.
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