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Living Your Single Life to the Best

Introduction

Being single definitely has it perks, with the main one being that you don’t really need to worry about how your life decisions affect others. You could quit your job today without finding a new one, you could buy a luxury car just for the thrill of it or you could just go on a trip around the world. In any of these examples, you’re the sole decision maker and there wouldn’t be much of a consequence for anyone else.


Having lesser commitments compared to someone who’s married with kids, does give you the freedom and flexibility to do as you please, even financially, but at the same time things would also cost more. Take for instance; when you book a hotel room, you’re one person paying for a single room, instead of splitting the cost for a double room with your spouse or partner.

Here are some tips to help you manage your finances, so you can enjoy your single life to the fullest.

 
  1. A Basic Budget
You work and earn for yourself, so you’ll have more money in hand, since you don’t need to worry about providing food for your wife/husband and kids or paying for your children’s education and such. However, it’s also very easy to give in to temptation and splurge with the extra money you have.

In order to ensure that you don’t spend too much, all you need to do is to create a budget. First and foremost, list down your basic household expenses. This includes your utility bills, phone and internet bills and also your essential groceries.

Once you’ve ironed out the minimum amount you need for each month, you can spend accordingly and it helps make life all the more comfortable for you, without the need to worry about whether you’ve overspent.

 
  1. The Double-edged Sword of Debt
Yes, being single means, you don’t have to carry the burden of another person’s debts as well. But at the same time, this also means that you can’t share the burden of your own debts.

This plays a big role when it comes to housing loans, which singles may find harder to get approval for compared to couples who take joint loans. However, you can increase your chances of getting a loan approved by clearing off as much of your existing debts as you can, including credit card debts.

Once you’ve got the loan approved and successfully purchased a house, then you could look for a financial adviser to help you restructure your finances.

 
  1. Self-Protection
Everyone has to protect themselves financially, in case of any incidents that leaves them unable to create income, be it temporarily or permanently. As for those who are single, this is important because they would not have a spouse or partner to lean on for financial support during such times.

Insurance or takaful is the best way to go in this aspect. Among the options to consider are Total Permanent Disability, Medical and Critical Illness policies. The first pays out a lump sum if you become disabled, preventing you from returning to work. The latter covers you against medical expenses and health problems like cancer and stroke. As you can see, the two are for separate issues, so having all would be the better option.

Thankfully, insurance / takaful plans now come with comprehensive coverage, including optional benefits for Total Permanent Disability, Medical and Critical Illness, with the flexibility to adjust the amount covered in each category. A financial adviser would be able to help you assess your risks and needs to figure out how much you should be covered for.

It would also be a good idea to create a special savings account meant for emergencies. However, this is not an alternative to getting insured, as your savings may not be enough to support you in dire situations.

 
  1. Preparation for Your Permanent Vacation
Preparing for your retirement is all the more important when you’re living your life as a single person, with one of the reasons being that you wouldn’t have children to look after you once you’re grey and old. There is of course your pension or EPF, but in most cases the amount you’re getting would not be able to sustain a comfortable lifestyle, even if it’s a modest one.

As mentioned earlier, insurance plans nowadays are very comprehensive, and they even include investments which you can cash out on after reaching a certain age. There are also unit trust funds, where banks help you make investments according to the amount of risks you’re willing to take.

Rope in a financial adviser, who can help you strategize, so that you can invest without overstretching your current finances, while ensuring that you would have enough money after retiring.

 
  1. Six Feet Under
It doesn’t matter whether you’re in your 20s or 60s, you should decide now what happens to your assets after you pass away. After all, we can never tell when our time is up.

If possible, make a will for your physical assets like your house and car and even money in the bank. As for your insurance policies, EPF and unit trust funds, ensure that you have officially signed off on the nominees who would be inheriting the pay outs.

You get to decide who gets what; it could be your family member or a close friend or you could even give to charity.

Overall, make the best of your single life. Set a plan that works for your lifestyle and always seek help from a financial advisor when you are in doubt on your financial wellbeing.


 
Posted by admin on 12 July 2018