According to a recent survey by Nielsen, 1 in 3 working Singapore adults are not planning for retirement. This is alarming because many people have curated a list of “excuses” for not saving money. Rather than adding glistening fuel to the fire, this article will give you six good reasons why you must save for your future.
1. TO DANCE TO THE BEAT OF YOUR OWN DRUM
Planning for your golden future likely ensures that you covered your living arrangements for the rest of your life. You can move freely to beat of your own drum without worrying about the perceptions and rules of other people. Believe me when I say that living in someone else’s household robs you of privacy. Discretion is one of the fruits that you can reap from your prudence.
2. TO NOT RELY TOO MUCH ON THE CPF SAVINGS
Your Central Provident Fund account (or CPF Savings) was established to provide a basic safety net to cushion the minimum standard of living during your senior years. You must aim for financial independence and not fully rely on what this welfare system can bring.
3. TO HELP YOU DEAL WITH FINANCIAL HICCUPS
As your body’s reflex interplay, hiccups occur unexpectedly. This applies to your finances too. Regardless of the financial hiccups that you will face throughout your life, a secure nest will do wonders! It can help you cope and save you from bankruptcy.
4. TO MAINTAIN YOUR CURRENT LIFESTYLE
Whether you want to admit it or not, you have stable spending habits that you cannot do away from. It is difficult to maintain these habits if your financial resources are limited. More so, the limited funding can put you at risk of barely being able to afford the necessities. This is why you must set a realistic budget to fit your lifestyle.
5. TO BUFFER COSTS DUE TO UNFORESEEN ILLNESSES
Your body will continue to deteriorate with age. Unless you find the “Fountain of Youth”, of course. Old age usually leads to elevated healthcare costs and unforeseen medical problems. Do not forget to plan for emergencies to support your Medisave account.
6. TO EARN THE COMPOUND INTEREST
Creating a bulk of savings ahead of time can help you earn the compound interest. Compound interest allows you to not only earn interest on your principal deposit, but also on any interest that is credited to your account. It helps your money to grow at an accelerating rate! The longer you keep your money invested, the greater the rate at which your initial investment produces returns.