Protecting your finances also means protecting your financial well-being from life’s uncertainties. Ms. Shen, like many others, finds peace of mind through comprehensive insurance. “I consulted a trusted estate planning manager to get professional advice tailored to my needs,” she said.

Her sister, equally cautious, also reaped the benefits of careful planning. Her health insurance covered most of the medical expenses for the spinal fusion surgery, alleviating a significant financial burden.

To be well prepared, make sure you have adequate insurance coverage six key areas: Health, life, critical illness, mortgage, long-term care and general insurance. Together, these policies help you and your loved ones avoid financial strain in times of crisis.

In general, it is advisable not to allocate more than 15 percent of your net salary for insurance protection. In terms of coverage, aim a mix of policies which provides up to four times your annual income in case of unexpected illness and nine times your annual income in case of death or permanent disability.

To stay organized, Mr. Lew uses SGFinDex through the POSB digibank app, which brings together financial information from banks, insurers and relevant government bodies in one place. “It’s very useful to have a consolidated overview because we often have policies from different providers,” he said.

NO. 3: GROW AND INVEST FOR THE FUTURE

Once you have a robust savings and protection strategy in place, the next step is to make your money work harder through investments that can grow over time.

Ms. Shen learned the hard way that picking stocks based on popularity is not always wise. “My core portfolio now includes diversified investments such as exchange-traded funds (ETFs) and unit trusts,” she said, stressing the importance of making informed decisions.

Determining your risk profile is a crucial first step in investing. Mr Lew uses the POSB digibank app to assess his risk tolerance. The app offers a simple four-question assessment that helps users assess their financial situation and risk toleranceensuring that they select investment products aligned with their goals and preferences.

For beginners, POSB offers options like Invest-Saverwhich allows you to invest a fixed amount regularly in ETFs and unit trusts. Alternatively, you can explore robo-advisors such as DBS digiPortfolio for personalized and efficient investment management.

A useful practice is to invest at least regularly 10 percent of your net salary. Working to have at least 50% of your net worth in investments it can also be a useful indicator of how effectively your money is working for you.

“After experiencing several financial downturns, I realized that successful investing is not about timing the market, but rather timing the market. Stay invested for the long term, diversify your portfolio and leverage the power of compounding,” said Ms. Shen.

NO 4: PLAN FOR YOUR PENSION