Assessing Your Financial Situation

Financial Planning involves three steps:

1) Setting goals

2) Assessing your financial situation

3) Managing your resources.

Step 2: Assessing your financial situation

List out all the resources you have, such as your salary and wages, any bank savings or investments like shares or unit trusts. If you have any insurance products which are bundled with investments or savings, like whole life participating policies, investment linked plans or endowment plans, do list out how much protection you are getting and the value of the investments portion (do note that the projected values in your benefit illustration are not guaranteed). Do make use of the various CPF schemes for housing, healthcare and lifelong savings.

Also make a list of all your liabilities or outgoings – there are household expenses to pay, debts you owe (e.g. home loans, car loan payments), credit card balances, health and life insurance premiums, taxes and so on.

Next, look at how you can manage them to pay for those needs and goals.