Emergency Funds: Why They Are So Important

This is Part 4 of the Financial Planning series.

Emergency funds are an important part of all financial plans.

These funds are the amount of cash that you should have with you to pay for any unexpected large payments, or the worse case scenario when you lose your job.

As a soccer fan, I’m quite shocked to learn that 100-200 football clubs face the prospect of going bankrupt due to COVID-19.

Due to the cancellation of matches, many clubs face a loss of revenue from both television deals and matchday revenue.

Source: Unsplash

These clubs mainly rely on these 2 sources of income to keep them running, and do not have much cash reserves to last them through these troubling times.

In contrast, when you are considering investing, an advice that some people give you would be to invest in companies with strong balance sheets.

These companies would have the resources to survive most situations and can recover the fastest from these damaging situations.

Examples of such companies include Microsoft, with a whopping $137 billion in cash reserves!

However, striking closer to home, this survey shows that only slightly more than half (55%) of Singaporeans are able to cover their expenses for 6 months if they lose their job. That’s a rather worrying figure!

Just like every business, you should try to set aside funds in the event of any unexpected circumstance too.


  1. What are these funds used for? 
  2. What amount of funds should I be aiming for?
  3. What should I do if I do not have sufficient funds currently?
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Setting Financial Goals

This is Part 3 of the Financial Planning series.

After sorting out your money flow, you’ll have a better idea of your net worth. The next step would be to plan for financial goals that you wish to attain. 

There are a wide range of short term and long term goals that you can set out to achieve: from your next holiday’s budget to the most daunting of them all, retirement.

Knowing your net worth beforehand helps to give you a gauge as to how far away you are from your goals, and can help you set more realistic targets.

If you have not determined your money flow yet, I highly recommend you to read this article first before diving into setting financial goals.

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Investing in the Most Important Asset: Yourself

This is part of the Improving Income series.

People are very intent on finding the ‘next big stock’, where they are able to invest in something that they can ‘buy low’ and ‘sell high’. Instead of focusing on these material assets, why not consider investing first in the most important asset of all, yourself?

There are many things that you can do to add to the current skillsets that you have, and here are some ways you can consider.

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Determining Your Money Flow

This is Part 2 of the Financial Planning series.

Having a high income doesn’t mean anything, if you have a high spending rate too. It is not about how much money you earn, rather what matters most is what you do with your money.

People who win big in lotteries have been known to suffer from ‘Sudden Wealth Syndrome’, and they quickly become poor again if they do not know how to manage their money.

Knowing your money flow is an important step, so that you can optimise the allocation to meet your financial goals.

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Welcome to My Blog!

Hi everyone, thank you for taking the time to read my blog! A bit about myself, I am a current Pharmacy undergrad in NUS. University has been a really stressful experience, and I’ve been focusing too much of my time on trying to achieve good grades.

I recently came across this wonderful topic on personal finance, which I would say has been life-changing for me. I previously did not have a goal in mind, and was just living day by day. 

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