Are we allowing money to rule our lives?

Money is a tool to be managed. Do not allow money to manage us. Here are some financial tips for young families who feel that money issues are taking a toll on their relationships with their spouses and their children.

Take CALCULATED RISKS and invest your money.

Inflation is around 5-6% every year, do we still want to put our money in Fixed Deposits and get only 3% return, making a net loss of 2-3% yearly? Ensure that your net assets are growing at a faster rate than the rate of inflation.

Mark Zuckerberg's famous quote, 'The biggest risk in life is not taking any risk at all.'

So start taking some calculated risks and invest your money, but do get professional advice before embarking on any investment.

Buy TERM insurance for protection.

Insurance is a risk management tool. All bread winners need to buy insurance to protect loved ones who are NOT financially independent yet.

There are generally 4 types of insurance namely life, PA, critical illness and hospitalization/surgical. Consult your Financial Planner to see which ones you need and which ones you don't need. Not everyone needs all the 4 types.

Insurance is not suitable for investment purposes. If you wish to look for returns higher than the rate of inflation, look into other investment options.

It's ok to invest in PROPERTY but calculate your NETT rate of return.

Remember that you are borrowing to invest, thus your nett return may not be that great. If you are getting 8% in property appreciation but paying interest of 4.8% yearly, your net return is only 3.2%. Minus inflation of 6%, your money is shrinking by 2.8%. Is it worth it?

There are many hidden costs also in property investments such as yearly quit rent, assessment, repairs and maintenance, security and utility costs. Work out your NETT returns before you decide to embark on another property investment.

ELIMINATE all credit card debts

It's pointless investing your money and getting returns of only 10-15% if your credit card has outstanding balances and is shrinking your money by 18% every year.

Set a GOAL

Calculate how much you may need when you retire and work towards how to achieve that target.