Basic Financial Planning
Guide to essential topics in basic financial planning with guidance useful for different life stages.
Last updated 5 August 2026
With so many tips on financial planning out there, it can be hard to ascertain if you are on the right track, especially if you do not have a financial adviser.
To help you identify and plug potential gaps in your finances, this page compiles information sourced directly from MoneySense, alongside guidance drawn from their Basic Financial Planning Guide.
This guide offers practical rules of thumb to help you take proactive steps at different stages of your career and aims to provide as starting point for those figuring out where to begin.
Overall Summary
Key points (please see individual sections for more specific reccomendations)
Key Needs | Rules of Thumb | Rules of Thumb |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guaranteed by the Government. You can exit your investment in any given month without penalty |
Protection | Obtain insurance protection for:
Familiarise with national schemes such as:
| Consider Term Insurance Plans for affordable protection **Purchase of bundled products (e.g. Whole Life Insurance) may exceed 15% of take-home pay as they contain both investment and protection elements ^Income after deducting CPF contributions |
Investments | Invest at least 10% of take-home pay^ for retirement and other financial goals Start your retirement planning now | Consider:
#Across asset classes, industries and countries Start planning using the CPF Planner |
For those new to the workforce
Your first pay cheque is a bigger opportunity than you realise. Learn how to budget, maximise CPF, get insured, and start building savings from day one.
Image credit: MoneySense
Summary for Fresh Entrants
Key points
Key Needs | Rules of Thumb | What to Do |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guaranteed by the Government. You can exit your investment in any given month without penalty |
Protection | Obtain insurance protection for:
Familiarise with national scheme, MediShield Life, that have you covered for large healthcare bills Spend at most 15%** of take-home pay^ on insurance protection | Consider Term Insurance Plans for affordable protection **Purchase of bundled products (e.g. Whole Life Insurance) may exceed 15% of take-home pay as they contain both investment and protection elements ^Income after deducting CPF contributions |
Investments | Invest at least 10% of take-home pay^ for retirement and other financial goals (e.g., wedding, home purchase)
| Consider:
^^Across assets classes, industries and countries Start planning using the CPF Planner Prepare and budget for HDB purchase |
For a budget planning case study and more information, read more here | ||
For those supporting dependants
Supporting children and ageing parents simultaneously? You’re not alone. Get practical financial strategies for Singaporeans navigating the pressures of caring for dependants.
Image credit: MoneySense
Summary for those starting a family
Key points
Key Needs | Rules of Thumb | Rules of Thumb |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guranteed by the Government. You can exit your investment in any given month without penalty |
Protection | Obtain insurance protection for:
Familiarise with national schemes such as:
Spend at most 15%** of take-home pay^ on insurance protection | Consider Term Insurance Plans for affordable protection **Purchase of bundled products (e.g. Whole Life Insurance) may exceed 15% of take-home pay as they contain both investment and protection elements ^Income after deducting CPF contributions |
Investments | Invest at least 10% of take-home pay^ for retirement and other financial goals (e.g. children's education, home purchase) Start your retirement planning now Prepare for home purchase | Consider:
#Across asset classes, industries and countries Start planning using the CPF Planner Prepare and budget for HDB purchase |
For a budget planning case study and more information, read more here | ||
Summary for those supporting aged parents
Key points
Key Needs | Rules of Thumb | Rules of Thumb |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guranteed by the Government. You can exit your investment in any given month without penalty |
Protection | Obtain insurance protection for:
Familiarise with national schemes such as:
Spend at most 15%** of take-home pay^ on insurance protection | Consider Term Insurance Plans for affordable protection **Purchase of bundled products (e.g. Whole Life Insurance) may exceed 15% of take-home pay as they contain both investment and protection elements ^Income after deducting CPF contributions |
Investments | Invest at least 10% of take-home pay^ for retirement and other financial goals Start your retirement planning now If you are 55 years old or above, explore options to monetise your property:
| Consider:
#Across asset classes, industries and countries Start planning using the CPF Planner |
Legacy Planning | Make will and CPF nomination, and appoint trusted persons | Consider making your:
Learn more on My Legacy Portal |
For a budget planning case study and more information, read more here | ||
Summary for those supporting your own family & aged parents
Table caption
Key Needs | Rules of Thumb | Rules of Thumb |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guranteed by the Government. You can exit your investment in any given month without penalty |
Protection | Obtain insurance protection for:
Familiarise with national schemes such as:
Spend at most 15%** of take-home pay^ on insurance protection | Consider Term Insurance Plans for affordable protection **Purchase of bundled products (e.g. Whole Life Insurance) may exceed 15% of take-home pay as they contain both investment and protection elements ^Income after deducting CPF contributions |
Investments | Invest at least 10% of take-home pay^ for retirement and other financial goals (e.g.children's education) Start your retirement planning now If you are 55 years old or above, explore options to monetise your property:
| Consider:
#Across asset classes, industries and countries Start planning using the CPF Planner |
Legacy Planning | Make will and CPF nomination, and appoint trusted persons | Consider making your:
Learn more on My Legacy Portal |
For a budget planning case study and more information, read more here | ||
For those approaching retirement
Prepare for your golden years. Find out about how CPF, SRS, and smart investments are used.
Image credit: MoneySense
Summary for Pre-retirees & Retirees
Key points
Key Needs | Rules of Thumb | Rules of Thumb |
|---|---|---|
Emergency Funds | Set aside at least 3 to 6 months' worth of expenses | Consider keeping money in a combination of:
*SSBs are guranteed by the Government. You can exit your investment in any given month without penalty |
Retirement Goals | Start your retirement planning now & spend within your means Invest at least 10% of take-home pay^ for retirement ^Income after deducting CPF contributions Explore options to monetise your property
| Find out more about monthly payouts under CPF LIFE Consider:
#Across asset classes, industries and countries |
Legacy Planning | Make will and CPF nomination, and appoint trusted persons | Consider making your:
Learn more on My Legacy Portal |
Protection | Familiarise with national schemes such as:
Insure your home Review if your insurance plans remain affordable | Check if you have switched to CareShield Life Consider fire and home content insurance, even when you have fully paid off your mortgage |
For a budget planning case study and more information, read more here | ||
For more information and financial planning tips, check out MoneySense's page