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What are
our priorities?

The first step in financial planning involves identifying your financial objectives and goals. At different stages of your life, you will have different needs and face different challenges. It is important to identify your priorities so as to make realistic goals and efficient use of your financial resources.

In your 20s At this age, you are likely to have started working. You are concerned with meeting your day-to-day needs while setting aside some savings for your marriage or first home.

Although you are unlikely to have significant financial commitments, you should make income protection your top priority. In addition, you should ensure you have sufficient insurance to cover contingencies such as sickness, critical illnesses and disability. Any surpluses after setting aside some cash savings to meet short term goals should be invested in financial assets that will give you better return for your money.

	In your 30s and 40s At this age, you are likely to have set up a family and have children. With greater financial commitments and responsibilities towards your family, adequate protection for your family becomes even more important.
You should review your insurance coverage to reflect your increase in salary and family responsibilities. You will also be concerned with having enough savings for your children's education. A certain amount of your cash surplus should be allocated to retirement funding as the earlier you start, the easier it is to achieve your goals.

	In your 50s and beyond Once your children become financially independent and your home mortgage and other financial commitments have been more or less paid up, it is time to review your insurance coverage. Bear in mind that this is the time you will most likely suffer from illnesses.
You should consider a long term care plan which will be useful in the event you are unable to take care of yourself anymore due to sickness or disability. With few years left to retirement, it is important to review your financial assets to ensure you have enough funds for retirement.

Getting Started – Indicating My Priorities

It would be easier for you to make realistic financial goals if you identify your priorities here.

Make sure you review your Priorities List regularly especially at different stages of your life, and every time your family circumstances change. These include events such as starting work, getting married, buying a home, making an investment, having children or reaching retirement.

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