Skip to main content
  • Search
  • AIA Singapore
  • Our Products
    • Life Insurance
    • Medical Insurance
    • Critical Illness Insurance
    • Disability Income Protection
    • Accident Protection
    • Savings
    • Investments
    • Platinum
    • Travel & Lifestyle
    • AIA Vitality
    • Employee Benefits
    • Corporate International Medical
  • Life Matters
    • Health Matters
    • Wellness Matters
    • Money Matters
    • Wealth Matters
    • Your Financial Needs Matter
  • About AIA
    • Our Leadership Team
    • Environmental, Social and Governance
    • Careers
    • Media Centre
    • Awards
    • Our Top Awardees
    • MDRT Members
    • AIA Financial Advisers
    • AIA Brunei
  • AIA Vitality
    • About AIA Vitality
    • How It Works
    • Rewards & Partner Benefits
    • Join AIA Vitality
  • Help & Support
    • Contact Us
    • ONLINE PAYMENT WITH AIA PAY EZ
    • AIA HealthShield Support
    • Lodge a Complaint
    • SGFinDex
    • FAQs
    • Form Library
    • Submit a Claim
    • Notices To AIA Policyholders
    • AIA Funds Information
    • AIA Annual Fund Reports
    • AIA's Participating Fund Commentaries
    • Consumer Guides
  • My AIA
    • My AIA SG
    • My Rewards
    • AIA Altitude
    • Make Payment Online
    • Submit a Claim
    • Request HealthShield Pre-Authorisation
    • FSC Access
    • Bank Partner Access
    • FA Broker Partner Access
    • eBenefits
  • AIA Vitality
    Visit the AIA Vitality website
  • YOUR FINANCIAL NEEDS MATTER
    Explore our financial calculators and resources for your long term and short term goals at different life stages.
  • Recent Promotions
    Find out more about our latest campaigns and promotions
AIA
AIA Logo AIA Logo
  • Our Products

    Our Products

    Find our products and services according to your protection needs.

    See more
    YOUR FINANCIAL NEEDS MATTER

    Explore our financial calculators and resources for your long term and short term goals at different life stages.

    EXPLORE NOW

    Recent Promotions

    Find out more about our latest campaigns and promotions

    See more

    For Individuals

    For Business

    • Life Insurance

      Protect your loved ones’ future from life’s uncertainties

    • Medical Insurance

      Adequate coverage for medical bills so you can focus on getting better

    • Critical Illness Insurance

      Protect against the financial burdens of critical illness

    • Disability Income Protection

      Protect your ability to earn an income.

    • Accident Protection

      Be financially prepared for the unexpected

    • Savings

      Start planning early and fulfil your saving goals.

    • Investments

      Make your money work harder for you – your dreams matter

    • Platinum

      Plan your enduring legacy, and share it with the generations to come.

    • Travel & Lifestyle

      Cover your personal belongings from loss or damage

    • AIA Vitality

      AIA Vitality is one of the most comprehensive wellness programmes with a wide spectrum of tools and benefits that target different aspects of your health.

    • Employee Benefits

      Secure your company’s most important asset through our market-leading domestic solutions

    • Corporate International Medical

      Give your local and international employees world-class healthcare with our corporate international medical solutions.

  • Life Matters

    Life Matters

    We take care of the matters of your life because your life matters

    VIEW ALL IN LIFE MATTERS
    • Health Matters

      Kick-start your journey to better health

    • Wellness Matters

      Live life to the fullest

    • Money Matters

      Prepare for your lives ahead

    • Wealth Matters

      Start protecting your wealth and enabling succession and legacy for your generations

    • Your Financial Needs Matter

      Explore our financial calculators and resources for your long term and short term goals at different life stages.

  • About AIA

    About AIA

    For almost a century, AIA has served the ever-changing needs of millions of people all across the Asia-Pacific region.

    Healthier, Longer, Better Lives

    • Our Leadership Team

      The Executive Committee and Board & Board Committees of AIA Singapore

    • Environmental, Social and Governance

      Our ESG commitment aims to deliver value to all our stakeholders

    • Careers

      Explore opportunities to work at AIA

    • Media Centre

      News and information about AIA

    • Awards

      Check out our awards and achievements over the years.

    • Our Top Awardees

      Presenting our top performers of FY2022

    • MDRT Members

      Presenting our top performers of FY2022

    • AIA Financial Advisers

      Who we are, what we do. Let's forge a partnership that lasts beyond a lifetime.

    • AIA Brunei

      Find out more about our branch office

  • AIA Vitality

    AIA Vitality

    AIA Vitality supports and motivates you every step of the way towards achieving your health goals. What’s more, get rewarded for healthy choices and earn points when you get active, eat well and complete Health Checks!

    Find Out More
    • About AIA Vitality

      AIA Vitality is a comprehensive programme that motivates you to keep fit and helps you to manage your health.

    • How It Works

      ​Discover how you can live a healthy lifestyle by staying active, eating well and maintaining good health with AIA Vitality.

    • Rewards & Partner Benefits

      Discover the rewards and benefits you have unlocked with your AIA Vitality points.

    • Join AIA Vitality

      Join us today, and get motivated to live a healthier, longer and better life!​

  • Help & Support

    Help & Support

    We strive to assist you for all your inquiries with high touch customer service.

    Contact AIA

    For Customer Support

    For Resource/Useful Links

    • Contact Us

      Cannot find the answer in our FAQ section? Contact us now

    • ONLINE PAYMENT WITH AIA PAY EZ

      Manage all your AIA payments from one convenient location

    • AIA HealthShield Support

      Quality Healthcare Specialist Partners exclusively for AIA HealthShield Gold Max customers

    • Lodge a Complaint

      On the sale of insurance products under the Financial Advisers Act (FAA)

    • SGFinDex

      Connect securely and view all your financials at one glance

    • FAQs

      Have a question? You may find the answer here

    • Form Library

      A selection of forms you can download, fill in and send back to us

    • Submit a Claim

      Need to make a claim? Learn more about the claim process.

    • Notices To AIA Policyholders

      Useful information for policyholders

    • AIA Funds Information

    • AIA Annual Fund Reports

    • AIA's Participating Fund Commentaries

    • Consumer Guides

  • My AIA

    My AIA SG

    Exclusive for AIA policyholders and Vitality members to conveniently access policy information, Vitality membership and rewards

    Register For My AIA SG

    If you are an AIA customer, and do not have a login, you can register for My AIA SG account here.

      Customer
    • My AIA SG

      My Rewards

      AIA Altitude

      Submit a New Request
    • Make Payment Online

      Submit a Claim

      Request HealthShield
      Pre-Authorisation

      Distribution
    • FSC Access

      Bank Partner Access

      FA/Broker Partner Access

      Employee Benefits
    • eBenefits

    My AIA SG

    Exclusive for AIA policyholders and Vitality members to conveniently access policy information, Vitality membership and rewards

    Register For My AIA SG

    If you are an AIA customer, and do not have a login, you can register for My AIA SG account here.

      Customer
    • My AIA SG

      My Rewards

      AIA Altitude

      Submit a New Request
    • Make Payment Online

      Submit a Claim

      Request HealthShield
      Pre-Authorisation

      Distribution
    • FSC Access

      Bank Partner Access

      FA/Broker Partner Access

      Employee Benefits
    • eBenefits

    Home

    My AIA Perks

    Logout

  • Search
  • Contact Us
    • Book an Appointment

    • Contact us

Money Matters
Prev | Next
Back to Top
  • {{title}}

    {{label}}
  • 4 easy steps to getting your finances in order


    Young married couple browsing iPad – Financial Planning Tools

    Financial planning is a lot more important than many people give it credit for. While some could think it is just a simple exercise, the reality is that there may be a significant number of people who may not be doing it well.

    According to the Monetary Authority of Singapore (MAS), credit card rollover balances has increased by nearly 63% in the past 10 years, to $5.5 billion today. The Life Insurance Association, Singapore (LIA Singapore) released a study in 2018, highlighting Singapore’s mortality and critical illness protection gap of $893 billion. News articles, as well as our AIA360 Retirement Survey, have also reported that Singaporeans are lacking an adequate retirement plan.

    With proper personal financial planning, you can better understand where your money is going each month and put in place a strategy to get your finances in order. If you need help managing your finances, here are 4 easy steps to get you started.

    Step 1: Create a prudent, but feasible, budget

    The first thing you can do is to understand where all your money is going each month. This starts with creating a budget, listing down all your necessary living expenses, which typically includes: 

    • home mortgage
    • utilities, mobile and broadband bills
    • transport costs
    • allowances for children and/or parents
    • food and beverage, groceries
    • insurance premiums
    • taxes
       

    These can be viewed as fixed expenses you cannot avoid each month. Next, you might like to list down all the other expenses you are paying for that you don’t necessarily need, but you might want to have. These can include, among many other things:

    • car loan
    • entertainment expenses 
    • shopping and dining out
    • subscriptions to streaming services, such as Netflix, Amazon Prime and Spotify
    • gym memberships
    • gifts (for ourselves or loved ones)
    • spa, manicure, and pedicure sessions, and massages
    • yearly vacations (split into monthly amounts)
       

    The majority of these expenses should be labelled as your discretionary expenses, which means that if you want to, you should be able to live without them. Sure, you may justify that you are working hard each month and deserve to have some luxury in your life. That’s reasonable, but what’s not is spending more than you can afford.
     

    Step 2: Cut as much of the unnecessary expenses as you can

    Once you have listed down what your typical monthly budget looks like, you should be able to clearly identify what you need to cut out.

    Often, there’s very little you can cut from your fixed expenses. However, this doesn’t mean you should not scrutinise your expenses here. You should zoom in to your mobile and broadband bills to determine if you really need the plans that you are currently on. Your transport costs could also comprise many unnecessary Grab or GOJEK rides that you can reduce. Often, your grocery bills may also include many things from your discretionary expenses which you don’t really need, such as fizzy drinks, ice-cream, chips and other snacks.

    While no one expects you to live like a hermit, you could cut down a large proportion of your discretionary expenses. Keep those that really make you happy, and forgo those that you can live without.

    By doing this, you would be able to visualise all the money that you could actually be saving and putting towards your future.
     

    Step 3: Get your basic personal financial needs covered – insurance coverage, emergency funds, pay off high-interest debt

    Your next move should be to get the insurance coverage that you need right, before you try to invest and grow your retirement nest egg. Coverage for your basic personal finance needs will help you tide through the curveballs that life inevitably throws you from time to time.

    In the order listed above, you should be adequately insured. This means getting the right level of health and life insurance coverage.

    • Your health insurance will protect you in the event that you are hospitalised or require surgery and incur large medical bills.
    • Your life insurance, whether whole life or term, provides financial security for your loved ones in the event you are no longer able to provide for them.
    • You should also consider purchasing a critical illness policy to cover yourself and your loved ones in the unfortunate event that you are diagnosed with a major illness.
       

    Your emergency funds come next. You should set aside at least six to 12 months of your average monthly expenses in cash for emergency. This will help you get through unexpected events such as retrenchments, medical requirements, unpredictable large expenses for home repairs or replacing appliances, and other things that could unexpectedly happen.

    Holding high-interest debt can be financially detrimental to your long-term financial security. You should pay it off as quickly as you can, either with the savings from cutting down your monthly expenses or using part of your emergency funds. By doing so, you further reduce unnecessary cost that you need not have to incur.
     

    Step 4: Start growing your retirement nest egg

    Steps 1 to 3 will help you get your personal finances in order. Thereafter, you should be ready to start growing your retirement nest egg.

    While the old adage of “better now or never” holds true, it really is better if you are able to start saving and investing for your retirement as early as you can. This is because you will be able to enjoy compounding interest for a longer period of time, as well as ride out market fluctuations or economic cycles.

    AIA Smart Wealth Builder is a savings plan that magnifies your returns, while giving you the flexibility to withdraw at key milestones in your life, such as to pay for your child’s university education, afford the retirement you want or to leave a legacy behind to your loved ones.

    This plan provides 100% capital guarantee on the premiums you pay from the 15th year onwards, regardless of how well or poorly the market performs. In addition, you will also stand to earn non-guaranteed bonuses on your savings. To get started, AIA Smart Wealth Builder allows you the flexibility to choose your premium payment term of between 5 and 20 years, while also providing you death, total permanent disability and terminal illness benefits.

    Find out more about AIA Smart Wealth Builder here

    Related Articles

    • HOW MUCH SHOULD YOU HAVE IN SAVINGS BY 35
    • 4 IMPORTANT FINANCIAL DECISIONS TO MAKE IN YOUR 20S
    • 5 EASY WAYS TO BUILD YOUR RETIREMENT NEST EGG IN SINGAPORE

    Recommended Products

    AIA SMART WEALTH BUILDER

    AIA SMART WEALTH BUILDER

    Goals are often drivers to why you work hard in life - to support your child through a good education, enjoy a fruitful retirement or simply to leave a legacy behind

    AIA Pro Lifetime Protector

    AIA Pro Lifetime Protector

    AIA Pro Lifetime Protector is an affordable one-stop protection and investment solution that helps you stay on top of your changing needs.

    AIA Healthshield Gold Max

    AIA HEALTHSHIELD GOLD MAX

    AIA HealthShield Gold Max is a Medisave-approved medical expense reimbursement plan which combines a MediShield Life component with additional private insurance coverage

    Get in touch

    What’s your name?*

    What's your mobile number?

    What's your email address?

    Are you an existing AIA Singapore customer?*

    Area of concern:




    Thank You

    Partial NRIC / Passport / FIN No.

    (last 4 characters)

    Date of Birth

    CONTACT AIA

    1800 248 8000

    1 Finlayson Green
    Singapore 049246
    View Details

    BOOK AN APPOINTMENT

    GO TO

    AIA.COM

    Visit our corporate site to learn more about AIA.
    Go To
    CONTACT AIA

    1800 248 8000
     

    1 Finlayson Green
    Singapore 049246

    View Details

    BOOK AN APPOINTMENT

    GO TO

    AIA.COM

    Visit our corporate site to learn more about AIA.
    OUR INSURANCE PRODUCTS
    Life Protection
    Medical Protection
    Critical Illness Protection
    Disability Income Protection
    Accident Protection
    Savings
    Investments
    Platinum
    Travel and Lifestyle
    EXPLORE AIA
    AIA Retirement Solutions
    Your Learning Buddy
    AIA Altitude
    Careers
    AIA Vitality
    Sitemap
    USEFUL LINKS
    Recent Promotions
    AIA Funds Information
    FAQs
    Form Library
    Digital Payments
    Security Advisories
    Report a Vulnerability

    This website uses cookies for the purpose of enhancing your user experience. You can find more information on the types of cookies we collect, what we use these for, and how to manage your cookie settings in our Cookie Policy and AIA Personal Data Policy (Singapore).

    ABOUT AIA
    Explore AIA
    AIA Retirement Solutions
    Your Learning Buddy
    Wealthbeing by AIA
    Careers
    AIA Vitality
    Sitemap
    OUR INSURANCE PRODUCTS
    Life Protection
    Medical Protection
    Critical Illness Protection
    Disability Income Protection
    Accident Protection
    Savings
    Investments
    Platinum
    Travel and Lifestyle

    This website uses cookies for the purpose of enhancing your user experience. You can find more information on the types of cookies we collect, what we use these for, and how to manage your cookie settings in our Cookie Policy and AIA Personal Data Policy (Singapore).

    USEFUL LINKS
    Recent Promotions
    AIA Funds Information
    FAQs
    Form Library
    Digital Payments
    Security Advisories
    Report a Vulnerability

    Copyright © 2022 AIA Group Limited and its subsidiaries. All rights reserved.
    Terms of Use | AIA Personal Data Policy (Singapore) | Cookie Policy