Getting Started on Financial Planning for Young Couples

This year, I am 23-years-old. Or 22 anyway, since my birthday is towards the end of the year.

(picture from Get Fined)

I feel old, where have all my teenage years gone to? I admit, I still feel like a teenager. Look like one too, some people say I look like I'm 18 years old (thank you) hahaha. Anyway, feeling like a teenager and actually fitting into that age category is different. So as we start hitting our early and mid-twenties, we start moving on from 21st birthday parties to wedding invitations, and perhaps baby showers for some early bloomers and such.

(this was just a fun couple photoshoot we went for, not a wedding shoot yet haha)

This brings me to thinking about my own future. My ideal age to get married is 26/27 years old and that's like in 3 years' time! I'm a lucky girl because I've already found the right one, so what do after you've found your soulmate and the one you're going to marry?

TIME FOR SOME FINANCIAL PLANNING!! 

We all know that it's important and it's essential, but WHERE TO START? Ken and I recently sat down to plan for our future, and below are some small tips I can give. (I'm not an expert on this or anything, but this is just a starting step for couples to have some concrete plans at least.)

Of course, capital wise, you should, if you haven't, read this very informative article How Much Money is Needed to Get Married & Start a Family in Singapore by SG Young Investment, and this is super important as well: How Much Money does a a couple need to earn to afford a 300k HDB flat. More loan details on Ken's property website HERE as a short add-on.

STEP-BY-STEP

1. Plan/draw a timeline.
This should be easy! Engagement, marriage, honeymoon, getting your own house, and having children.

When do you want to get married? Are you planning to get a BTO flat? (Speaking of this, every couple should get because it's the earliest and best chance given by the government to own a property of your own) Would you like to apply for a BTO flat now? Keep in mind there's this pesky little thing minimum occupancy period (MOP) which means that you cannot rent/sell your house until 5 years after you get the keys to your flat. When can you move in? Where are you going to be staying meanwhile before your own flat is ready? Have your parents/in-laws fully paid our their flat and you and your partner going to help if you're staying with them? All these are essential questions you have to think about.

2. Estimate a sum for your wedding expenses
(dinner, photoshoot, honeymoon)

You can average it out around 50k without counting the angbaos you would receive. Be able to put aside enough if you're planning to head somewhere expensive/far for your honeymoon. 

3. Estimate a sum for your first HDB flat
(10% down payment, renovations, monthly installments)

To go about doing this, think about the location of the flat, the housing grants available, and how-many-room flat you would want. Compromise on the level (floor/storeys) or height of your flat for a lower price, but keep in mind that the resale value of flats situated on higher floors are higher. Also, will you have saved enough for the 10% down payment of your BTO flat when it's due?

Are you going to take a HDB loan or a bank loan? You should read more HERE, on Ken's website where he explains the different types of loan available for you to take, as well as the details.

4. Plan your savings.
This is a very broad statement; how to plan savings? 

First, calculate or estimate both your combined income. If you're like me, still an undergraduate in university, estimate when you're going to get a job and your lowest estimated salary. Then from there think of how much cash you have left after deduction for CPF, and how many percent of that you want to save. Make sure an amount is kept every month, and only removed for emergencies. For those already working, get down to putting aside an amount every time you get your pay!

Yep that's about it. Not much, but it's really important to get started on financial planning if you want to settle down soon. Bye for now! Questions/replies to my email at chengkaiting@gmail.com or just leave a comment below.

xoxo, kaitinghearts