1 00:00:03,180 --> 00:00:05,329 Speaker 1: You're listening to a CNA podcast. 2 00:00:08,000 --> 00:00:11,359 Speaker 2: Welcome to CNA's Money Talks podcast. I'm Andrea Heng, and 3 00:00:11,359 --> 00:00:14,840 Speaker 2: it's a brand new year, everybody. And with a new 4 00:00:14,840 --> 00:00:17,719 Speaker 2: year comes New Year's resolutions. Now, I'm not one to 5 00:00:17,719 --> 00:00:21,649 Speaker 2: shy away from New Year's resolutions, especially when it comes 6 00:00:21,649 --> 00:00:25,319 Speaker 2: to money. If you're thinking of new ways to gain 7 00:00:25,319 --> 00:00:28,760 Speaker 2: more wealth with much less pain, stay with me because 8 00:00:28,760 --> 00:00:31,840 Speaker 2: I'm gonna ask for some tips from Dawn Shu. She 9 00:00:31,840 --> 00:00:34,799 Speaker 2: is better known as SG Budget babe and she is here. 10 00:00:34,904 --> 00:00:37,615 Speaker 2: To help us out. Welcome back, Dawn, to the Money 11 00:00:37,615 --> 00:00:40,814 Speaker 2: Talks podcast. Hi Andrea, nice studio. Thank you. And I'm 12 00:00:40,814 --> 00:00:44,365 Speaker 2: glad that you are the first guest at this new setup. So, 13 00:00:44,375 --> 00:00:48,294 Speaker 2: back to business. What were some of your financial highlights 14 00:00:48,293 --> 00:00:51,653 Speaker 2: for 2024? I think a major highlight for me was 15 00:00:51,654 --> 00:00:55,654 Speaker 2: hitting five digits in passive income through stock dividends. So 16 00:00:55,654 --> 00:00:57,715 Speaker 2: that was the goal I've been striving towards since I 17 00:00:57,715 --> 00:01:00,014 Speaker 2: was in my twenties and I finally hit that, which 18 00:01:00,014 --> 00:01:00,865 Speaker 2: I think is great, and. 19 00:01:02,080 --> 00:01:05,949 Speaker 2: make it 6 digits. Is that going to be harder though, 20 00:01:06,040 --> 00:01:08,430 Speaker 2: do you think? It is, but the good thing about 21 00:01:08,430 --> 00:01:10,639 Speaker 2: all these is that it really compounds. And the truth 22 00:01:10,639 --> 00:01:13,220 Speaker 2: is I didn't have to add so much new capital 23 00:01:13,220 --> 00:01:15,669 Speaker 2: to get to that 5 digit mark. It was really 24 00:01:15,669 --> 00:01:18,230 Speaker 2: a case of the stocks that I owned, increased the 25 00:01:18,230 --> 00:01:21,589 Speaker 2: dividends and they grew, right? So it was passive. So 26 00:01:21,589 --> 00:01:24,580 Speaker 2: that means in 2025, you're going to be a little 27 00:01:24,580 --> 00:01:27,500 Speaker 2: more active just to get 10 times the amount. OK. 28 00:01:27,870 --> 00:01:29,199 Speaker 2: I've been seeing all sorts. 29 00:01:29,254 --> 00:01:33,845 Speaker 2: Of new money hacks, money habits on social media. One 30 00:01:33,845 --> 00:01:38,643 Speaker 2: of them was Project Pan by influencer Daisy and Mitchell 31 00:01:38,644 --> 00:01:42,404 Speaker 2: on TikTok. So basically what it is is she has 32 00:01:42,404 --> 00:01:46,804 Speaker 2: a goal to finish all her unfinished makeup and skincare. 33 00:01:47,044 --> 00:01:50,745 Speaker 2: They have to hit pan before she buys a new one. 34 00:01:50,845 --> 00:01:54,355 Speaker 2: Therefore project. I thought it was brilliant and I'm honestly 35 00:01:54,355 --> 00:01:56,334 Speaker 2: quite inspired because I have way too much makeup. 36 00:01:57,120 --> 00:02:00,680 Speaker 2: But you are SG budget babe. You're all over the 37 00:02:00,680 --> 00:02:03,519 Speaker 2: internet talking about all things money, so you must have 38 00:02:03,519 --> 00:02:06,819 Speaker 2: tried quite a few new money habits here and there 39 00:02:06,819 --> 00:02:11,220 Speaker 2: over the years. Are there any new money habits for 40 00:02:11,220 --> 00:02:16,600 Speaker 2: 2025 that you're hoping to cultivate? I think it really 41 00:02:16,600 --> 00:02:20,449 Speaker 2: goes back down to that six digits. Walk me through it. 42 00:02:20,520 --> 00:02:23,070 Speaker 2: And at the same time, I'm also building other things 43 00:02:23,070 --> 00:02:24,509 Speaker 2: on the side to get. 44 00:02:24,686 --> 00:02:28,716 Speaker 2: Closer to greater passive income from multiple sources as I age. 45 00:02:28,796 --> 00:02:32,917 Speaker 2: You sound so busy. I do not get enough sleep, 46 00:02:33,197 --> 00:02:35,466 Speaker 2: but I think it's really important because I've always talked 47 00:02:35,466 --> 00:02:38,356 Speaker 2: about on my blog that we should have multiple streams 48 00:02:38,356 --> 00:02:40,757 Speaker 2: of income and a lot of these in my 20s 49 00:02:40,757 --> 00:02:43,677 Speaker 2: were built on active sources of income. Now that I'm 50 00:02:43,677 --> 00:02:46,757 Speaker 2: in my 30s and I have children, I realized it's 51 00:02:46,757 --> 00:02:49,757 Speaker 2: not always possible to exchange our time and energy for 52 00:02:49,757 --> 00:02:52,435 Speaker 2: money all the time. We need to start building. 53 00:02:52,563 --> 00:02:56,393 Speaker 2: Passively, so that comes from building businesses, from investing in 54 00:02:56,393 --> 00:02:59,113 Speaker 2: stocks or instruments that will give us that kind of 55 00:02:59,113 --> 00:03:02,654 Speaker 2: passive income. And at the same time, I'm also exploring royalties, 56 00:03:02,913 --> 00:03:05,142 Speaker 2: which is something new. So then that will create another 57 00:03:05,524 --> 00:03:08,913 Speaker 2: lake to my table of multiple streams of income. I'm 58 00:03:08,913 --> 00:03:11,354 Speaker 2: interested in royalties. Is that really a big market? Is 59 00:03:11,354 --> 00:03:13,154 Speaker 2: there a lot of money to be made? I don't 60 00:03:13,154 --> 00:03:15,154 Speaker 2: know yet. I'm actually writing a book and it's coming 61 00:03:15,154 --> 00:03:17,953 Speaker 2: out in 2025. OK, I always hear things about how 62 00:03:17,953 --> 00:03:19,264 Speaker 2: authors are not rich. 63 00:03:20,440 --> 00:03:22,579 Speaker 2: But we'll find out in 1 to 2 years' time. 64 00:03:22,820 --> 00:03:27,300 Speaker 2: So we know the drill, Dawn, OK. Spend less, save more, 65 00:03:27,791 --> 00:03:31,110 Speaker 2: but surely it's not that simple. I am testament to that. 66 00:03:31,190 --> 00:03:34,281 Speaker 2: I am finding it really difficult to just spend less 67 00:03:34,281 --> 00:03:36,671 Speaker 2: and save more. It turns out that the savings that 68 00:03:36,671 --> 00:03:38,910 Speaker 2: I get from spending less is really not a lot. 69 00:03:38,951 --> 00:03:41,710 Speaker 2: I mean it's pockets here and there and I think 70 00:03:41,710 --> 00:03:45,350 Speaker 2: it's especially hard to do it this time around because 71 00:03:45,350 --> 00:03:48,190 Speaker 2: things are a lot more costly nowadays, let's face it. 72 00:03:48,639 --> 00:03:53,080 Speaker 2: Now, is cutting back the only answer to having more 73 00:03:53,080 --> 00:03:55,039 Speaker 2: cash in the bank? No, it's not, but I have 74 00:03:55,039 --> 00:03:57,750 Speaker 2: to say two things. First of all, it is simple, 75 00:03:58,279 --> 00:04:02,119 Speaker 2: but it's not easy. Yes, it's easier to just spend, 76 00:04:02,199 --> 00:04:05,199 Speaker 2: it's easier to indulge. It's easy to just go out 77 00:04:05,199 --> 00:04:07,720 Speaker 2: for a good meal to reward yourself after a hard 78 00:04:07,720 --> 00:04:10,479 Speaker 2: day of work. Oh, too easy. Yes, but it's more 79 00:04:10,479 --> 00:04:11,279 Speaker 2: difficult to 80 00:04:11,332 --> 00:04:14,082 Speaker 2: Prep that meal and buy groceries so that you save 81 00:04:14,082 --> 00:04:15,763 Speaker 2: a little bit more. And it's even harder to do 82 00:04:15,763 --> 00:04:18,273 Speaker 2: that consistently when you have many things running on your plate. 83 00:04:18,562 --> 00:04:21,433 Speaker 2: So what is simple isn't always easy, but we have 84 00:04:21,433 --> 00:04:23,483 Speaker 2: to really decide what are the decisions that we're going 85 00:04:23,483 --> 00:04:25,972 Speaker 2: to make based on the outcomes that we want to achieve. 86 00:04:26,322 --> 00:04:28,243 Speaker 2: The second thing going back to your question, is cutting 87 00:04:28,243 --> 00:04:30,042 Speaker 2: back the only way? No, it's not. And in fact, 88 00:04:30,122 --> 00:04:33,202 Speaker 2: I feel cutting back is indeed getting harder, right? The 89 00:04:33,202 --> 00:04:34,032 Speaker 2: cost of living has 90 00:04:34,186 --> 00:04:37,645 Speaker 2: Increase if you dine out a lot, especially, food costs 91 00:04:37,645 --> 00:04:40,385 Speaker 2: are up by around 30%. So for people who dine 92 00:04:40,385 --> 00:04:42,445 Speaker 2: out really often, that's where you now need to start 93 00:04:42,446 --> 00:04:45,164 Speaker 2: to decide whether you want to do the harder part 94 00:04:45,165 --> 00:04:48,406 Speaker 2: of prepping your own meals or potentially keep out that 95 00:04:48,406 --> 00:04:51,835 Speaker 2: dining out experience but cut back on other areas in life. However, 96 00:04:51,955 --> 00:04:54,414 Speaker 2: I always feel that cutting back is always a limit 97 00:04:54,415 --> 00:04:56,484 Speaker 2: because the max you can go is just how much 98 00:04:56,485 --> 00:04:56,885 Speaker 2: you spend. 99 00:04:57,399 --> 00:05:00,670 Speaker 2: There is another way to it, which is to increase 100 00:05:00,670 --> 00:05:03,380 Speaker 2: your earning income. Yes, of course. OK, talk to me 101 00:05:03,380 --> 00:05:05,760 Speaker 2: about that. So when you increase your earn income, whether 102 00:05:05,760 --> 00:05:08,719 Speaker 2: through active or passive sources, you can actually get a 103 00:05:08,720 --> 00:05:11,320 Speaker 2: lot more money versus what you spend. So when you 104 00:05:11,320 --> 00:05:14,559 Speaker 2: increase that and still keep your spending moderate, you can 105 00:05:14,559 --> 00:05:17,480 Speaker 2: actually get a bigger difference than simply trying to cut 106 00:05:17,480 --> 00:05:19,640 Speaker 2: back because there will be also this point when you 107 00:05:19,640 --> 00:05:24,029 Speaker 2: say until you're just miserable. And what's the point of life? Exactly, 108 00:05:24,079 --> 00:05:25,799 Speaker 2: and then it feels like, oh my God, I'm working. 109 00:05:26,113 --> 00:05:28,945 Speaker 2: so hard to say and nothing is coming out of it. 110 00:05:28,994 --> 00:05:31,594 Speaker 2: Is this really the only answer. So you're always at 111 00:05:31,595 --> 00:05:34,953 Speaker 2: privy to the fact that people can raise prices rather 112 00:05:34,954 --> 00:05:37,954 Speaker 2: than focus on something we don't have control over, I 113 00:05:37,954 --> 00:05:40,515 Speaker 2: always talk about putting our focus on things that we 114 00:05:40,515 --> 00:05:43,474 Speaker 2: can control, which is how much we spend. OK. We 115 00:05:43,475 --> 00:05:45,424 Speaker 2: cannot control if other people raise their prices, but we 116 00:05:45,424 --> 00:05:47,864 Speaker 2: can moderate our spending and still keep to our budget. 117 00:05:47,994 --> 00:05:50,125 Speaker 2: We might have to increase that budget, but at least 118 00:05:50,125 --> 00:05:52,984 Speaker 2: we're still keeping to one. You know, I'm I've taken 119 00:05:52,984 --> 00:05:54,515 Speaker 2: one of your old pieces of advice. 120 00:05:54,600 --> 00:05:56,579 Speaker 2: When I last spoke to you about, you know, buying 121 00:05:56,579 --> 00:06:00,269 Speaker 2: things in bulk and buying house brands. I know you 122 00:06:00,269 --> 00:06:02,910 Speaker 2: are like house brand queen. I started doing that and 123 00:06:02,910 --> 00:06:05,269 Speaker 2: I have saved a chunk of money. Like my grocery 124 00:06:05,269 --> 00:06:07,909 Speaker 2: bills are not $100 anymore for two people and it 125 00:06:07,910 --> 00:06:11,029 Speaker 2: lasts us like months. So thank you for that. I 126 00:06:11,029 --> 00:06:13,549 Speaker 2: think that it is possible, but you have to go 127 00:06:13,549 --> 00:06:15,950 Speaker 2: through the hardship of it, like you need to put 128 00:06:15,950 --> 00:06:19,469 Speaker 2: in the hard work, buying, making sure that you are 129 00:06:19,470 --> 00:06:23,230 Speaker 2: paying attention to prices, paying attention to calculations. 130 00:06:23,315 --> 00:06:26,984 Speaker 2: And I personally think while it's a bit tedious, it's 131 00:06:26,984 --> 00:06:31,303 Speaker 2: worth it. It's absolutely worth it. So what about side hustles? 132 00:06:31,454 --> 00:06:35,105 Speaker 2: So you wrote something for us at CNA about how 133 00:06:35,105 --> 00:06:37,904 Speaker 2: having a side hustle might be an option as a 134 00:06:37,904 --> 00:06:41,184 Speaker 2: way of diversifying income streams because you know, having a 135 00:06:41,184 --> 00:06:44,794 Speaker 2: full-time job may not be enough to reach our financial goals, 136 00:06:44,825 --> 00:06:48,144 Speaker 2: especially when things are so costly nowadays, right? So for 137 00:06:48,144 --> 00:06:51,375 Speaker 2: those for whom a side hustle is not an option, 138 00:06:51,545 --> 00:06:51,984 Speaker 2: what would be 139 00:06:52,140 --> 00:06:55,488 Speaker 2: an option for someone like me, no time, no energy 140 00:06:55,488 --> 00:06:57,940 Speaker 2: to have a side hustle and I still need to 141 00:06:57,940 --> 00:07:00,529 Speaker 2: work on my full-time job and give it my 150%. 142 00:07:00,738 --> 00:07:02,579 Speaker 2: There's only two ways out of it, right? First, you 143 00:07:02,579 --> 00:07:05,019 Speaker 2: can think about if you can build a side hustle 144 00:07:05,019 --> 00:07:08,488 Speaker 2: that requires less time and energy and my favorite side 145 00:07:08,488 --> 00:07:12,290 Speaker 2: hustle to do is to invest in dividend stocks because 146 00:07:12,290 --> 00:07:14,809 Speaker 2: I just need to find great companies with great leadership 147 00:07:15,059 --> 00:07:17,410 Speaker 2: and they are the ones who are running the business, 148 00:07:17,540 --> 00:07:20,260 Speaker 2: increasing the dividends, not you. Yeah, and all I do 149 00:07:20,260 --> 00:07:20,619 Speaker 2: is just. 150 00:07:20,855 --> 00:07:22,734 Speaker 2: My money in those stocks. Of course, there's always a 151 00:07:22,734 --> 00:07:24,975 Speaker 2: risk that your money could go down if the company 152 00:07:24,975 --> 00:07:26,964 Speaker 2: does not do well, but that's where the art of 153 00:07:26,964 --> 00:07:30,654 Speaker 2: selecting and making sure that you invest in the right stocks, 154 00:07:30,725 --> 00:07:33,255 Speaker 2: the right companies are at play. You also have to 155 00:07:33,255 --> 00:07:35,415 Speaker 2: diversify your risk a little bit, so that's the whole 156 00:07:35,415 --> 00:07:37,734 Speaker 2: conversation there. But the other thing also is I feel 157 00:07:37,734 --> 00:07:40,855 Speaker 2: in today's times, there has been a lot more options 158 00:07:40,855 --> 00:07:42,703 Speaker 2: for side hustles that don't take up so much time 159 00:07:42,704 --> 00:07:45,334 Speaker 2: and energy as well other than investing. So for instance, 160 00:07:45,375 --> 00:07:47,695 Speaker 2: in the past you had to be an influencer with 161 00:07:47,695 --> 00:07:49,334 Speaker 2: a following to do affiliate marketing. 162 00:07:49,459 --> 00:07:51,640 Speaker 2: That's right. Today, and I've just talked about this very 163 00:07:51,640 --> 00:07:54,489 Speaker 2: aggressively in the last few months, there are affiliate marketing 164 00:07:54,489 --> 00:07:56,359 Speaker 2: options to people who do not really have a following. 165 00:07:56,470 --> 00:08:00,170 Speaker 2: I noticed that I started seeing that on Instagram and TikTok. 166 00:08:00,250 --> 00:08:03,690 Speaker 2: I'm like, who are these people? And I realized, wait 167 00:08:03,690 --> 00:08:05,959 Speaker 2: a minute, this is a way that they're earning money 168 00:08:05,959 --> 00:08:10,040 Speaker 2: while doing basically everyday things. And the thing is that 169 00:08:10,040 --> 00:08:13,239 Speaker 2: these platforms have only just launched these features recently. It 170 00:08:13,239 --> 00:08:16,170 Speaker 2: used to be gated to only those who were, but 171 00:08:16,170 --> 00:08:18,089 Speaker 2: now the everyday person can do it. 172 00:08:18,364 --> 00:08:21,554 Speaker 2: There's also UGC content. I know people who create user 173 00:08:21,554 --> 00:08:24,005 Speaker 2: generated content for brands and they do it for a 174 00:08:24,005 --> 00:08:26,375 Speaker 2: nominal fee, even though you don't have a following, you 175 00:08:26,375 --> 00:08:29,084 Speaker 2: still can earn from that. But of course, if having 176 00:08:29,084 --> 00:08:30,954 Speaker 2: said that, all of that is still too much time 177 00:08:30,954 --> 00:08:33,994 Speaker 2: and energy, then the other option, especially for someone like you, 178 00:08:34,125 --> 00:08:37,284 Speaker 2: would be to increase on your career and you can 179 00:08:37,284 --> 00:08:41,244 Speaker 2: bargain and negotiate for a higher salary while proving to 180 00:08:41,244 --> 00:08:44,434 Speaker 2: your employer that you have indeed added more value and 181 00:08:44,434 --> 00:08:46,674 Speaker 2: it will be their loss if they lose you. 182 00:08:46,890 --> 00:08:49,598 Speaker 2: Yeah see time for me to make an appointment with 183 00:08:49,599 --> 00:08:53,319 Speaker 2: my boss. What about putting, you know, a big lump 184 00:08:53,320 --> 00:08:56,400 Speaker 2: sum of money that I've saved aside. What can I 185 00:08:56,400 --> 00:08:59,260 Speaker 2: do with that? So instead of a side hustle per se, 186 00:08:59,359 --> 00:09:03,520 Speaker 2: could I perhaps put something somewhere and leave it alone 187 00:09:03,520 --> 00:09:06,559 Speaker 2: and let it grow passively, which is what I do 188 00:09:06,559 --> 00:09:08,799 Speaker 2: in dividend stocks, right? But at the same time, so 189 00:09:08,799 --> 00:09:11,359 Speaker 2: there are different options. There is fixed income and there 190 00:09:11,359 --> 00:09:14,640 Speaker 2: is equities. OK, fixed income includes really safe options like 191 00:09:14,640 --> 00:09:15,520 Speaker 2: your fixed deficits. 192 00:09:16,075 --> 00:09:19,864 Speaker 2: your endowments and basically anything that gives you a guarantee 193 00:09:20,195 --> 00:09:22,594 Speaker 2: with an exchange for you. It could even include bonds, 194 00:09:22,674 --> 00:09:24,455 Speaker 2: although bonds are a bit iffy there because you have 195 00:09:24,455 --> 00:09:27,195 Speaker 2: to pick the right ones. That's right. Even the local 196 00:09:27,195 --> 00:09:29,155 Speaker 2: banks give you a fixed deposit that could give you 197 00:09:29,155 --> 00:09:32,843 Speaker 2: a decent 2% or even 3% in exchange for a lockup. 198 00:09:33,234 --> 00:09:35,474 Speaker 2: So that's one way, right? Or endowments by the insurers, 199 00:09:35,554 --> 00:09:37,585 Speaker 2: if you lock up for a longer period of time, 200 00:09:37,715 --> 00:09:40,434 Speaker 2: you could also get those kinds of returns. But at 201 00:09:40,434 --> 00:09:43,195 Speaker 2: the other side of the picture, if you don't want 202 00:09:43,195 --> 00:09:44,234 Speaker 2: to lock up your money. 203 00:09:44,320 --> 00:09:46,840 Speaker 2: Yeah, then you have to take on more risk. Yes, 204 00:09:47,190 --> 00:09:51,510 Speaker 2: investment risk, more liquidity equals more risk. Exactly. OK, that's 205 00:09:51,510 --> 00:09:53,830 Speaker 2: a really clear picture of what we can do, the 206 00:09:53,830 --> 00:09:58,309 Speaker 2: various options that we can take. Now, what's usually a 207 00:09:58,309 --> 00:10:01,750 Speaker 2: financial habit that, you know, all of us typically at 208 00:10:01,750 --> 00:10:03,580 Speaker 2: the start of the year, OK, I'm going to do 209 00:10:03,580 --> 00:10:06,189 Speaker 2: this and it's going to be successful and then 3 210 00:10:06,190 --> 00:10:09,140 Speaker 2: months later, you check in on them and they're like, 211 00:10:09,390 --> 00:10:11,909 Speaker 2: so how's that new habit going? Oh no, it's a 212 00:10:11,909 --> 00:10:12,859 Speaker 2: massive failure. 213 00:10:14,169 --> 00:10:18,289 Speaker 2: In your observation, what's been that one habit that people, well, 214 00:10:18,369 --> 00:10:21,130 Speaker 2: don't hope to fail, but they eventually do fail to 215 00:10:21,130 --> 00:10:24,770 Speaker 2: start investing? Oh, when it comes to money habits, it's 216 00:10:24,770 --> 00:10:27,159 Speaker 2: always to start investing. I've lost count of the number 217 00:10:27,159 --> 00:10:29,289 Speaker 2: of times or the number of DMs I've gotten from 218 00:10:29,289 --> 00:10:32,090 Speaker 2: readers who say that I want to learn investing, but 219 00:10:32,090 --> 00:10:34,289 Speaker 2: I don't know how. I promise I'll learn it. They 220 00:10:34,289 --> 00:10:36,130 Speaker 2: read books or they go for courses and I always 221 00:10:36,130 --> 00:10:38,210 Speaker 2: point my readers to different options. 222 00:10:38,296 --> 00:10:42,206 Speaker 2: Free options. Here's your options, including like what I'm free, free, right? 223 00:10:42,307 --> 00:10:44,795 Speaker 2: You just need the time to go through that. Otherwise, 224 00:10:44,807 --> 00:10:47,486 Speaker 2: if you want shortcuts, crash course, that like workshops and 225 00:10:47,486 --> 00:10:49,405 Speaker 2: crash courses that you can go for, or if you 226 00:10:49,405 --> 00:10:51,286 Speaker 2: want super detailed and you don't mind paying more money 227 00:10:51,285 --> 00:10:54,006 Speaker 2: for physical, there's of course trainers in Singapore who could 228 00:10:54,006 --> 00:10:56,016 Speaker 2: do that for you for a couple of thousands as well. 229 00:10:56,206 --> 00:10:59,205 Speaker 2: But some of them, interestingly, even if they take that 230 00:10:59,206 --> 00:11:02,726 Speaker 2: first step to learn, right, the act of implementing it is. 231 00:11:02,883 --> 00:11:05,004 Speaker 2: missing because I would then ask them, and I like 232 00:11:05,004 --> 00:11:07,643 Speaker 2: to ask my students because I run those free workshops 233 00:11:07,643 --> 00:11:09,843 Speaker 2: or crash course at a very affordable fee for just 234 00:11:09,843 --> 00:11:11,924 Speaker 2: a couple of $100 right? And I like to check 235 00:11:11,924 --> 00:11:14,124 Speaker 2: in on them to ask. So guys, how many of 236 00:11:14,124 --> 00:11:16,804 Speaker 2: you have started investing this year? A lot of them 237 00:11:16,804 --> 00:11:20,213 Speaker 2: have said, so I've completed the lessons, but I haven't 238 00:11:20,213 --> 00:11:23,403 Speaker 2: yet started. It's that inertia, it's that fear, and then 239 00:11:23,403 --> 00:11:25,323 Speaker 2: I would ask what can we do to, you know, 240 00:11:25,443 --> 00:11:27,283 Speaker 2: help you overcome that. But 241 00:11:27,330 --> 00:11:29,401 Speaker 2: At the same time, there's also very little that we 242 00:11:29,401 --> 00:11:32,390 Speaker 2: can do. The person has to be the one. Of course. 243 00:11:32,559 --> 00:11:35,361 Speaker 2: And I'm curious about that like what is it in 244 00:11:35,361 --> 00:11:38,950 Speaker 2: the inertia to make that first step? Is it fear? 245 00:11:39,000 --> 00:11:43,000 Speaker 2: Is it uncertainty? Is it just risk averse? I think 246 00:11:43,000 --> 00:11:45,241 Speaker 2: it could be all of that and more. Sometimes it's 247 00:11:45,241 --> 00:11:48,160 Speaker 2: really the fact that it's just inertia, right? If you 248 00:11:48,160 --> 00:11:51,120 Speaker 2: want to, for instance, a common New Year's resolution is 249 00:11:51,120 --> 00:11:51,681 Speaker 2: to get fit. 250 00:11:52,200 --> 00:11:54,809 Speaker 2: But it's a lot of inertia to get off the couch, 251 00:11:54,929 --> 00:11:57,570 Speaker 2: not Netflix, and go for a run, right? So in 252 00:11:57,570 --> 00:11:59,929 Speaker 2: the same vein, a lot of people, it's just easier 253 00:11:59,929 --> 00:12:02,489 Speaker 2: to leave the money in the bank or just pass 254 00:12:02,489 --> 00:12:04,770 Speaker 2: it over to the insurance agent to manage or pass 255 00:12:04,770 --> 00:12:06,570 Speaker 2: it over to the banker, so you don't have to 256 00:12:06,570 --> 00:12:09,569 Speaker 2: get involved yourself. But the truth is it's not that hard. 257 00:12:09,650 --> 00:12:11,719 Speaker 2: I think the bigger problem is a lot of people 258 00:12:11,719 --> 00:12:15,250 Speaker 2: overcomplicate things. Today it only takes a couple of seconds 259 00:12:15,250 --> 00:12:18,090 Speaker 2: to open up a brokerage account because of pass, right? 260 00:12:18,130 --> 00:12:20,799 Speaker 2: And then when you're in a brokerage account, if you want. 261 00:12:20,859 --> 00:12:24,169 Speaker 2: Something super simple. They are like exchange traded funds that 262 00:12:24,169 --> 00:12:26,750 Speaker 2: track the index, the market index. So as long as 263 00:12:26,750 --> 00:12:30,690 Speaker 2: you invest in relatively safer markets or less volatile markets, 264 00:12:30,849 --> 00:12:34,440 Speaker 2: you'll still be relatively OK. But at the same time, 265 00:12:34,570 --> 00:12:36,330 Speaker 2: people don't really do that. Or even if we look 266 00:12:36,330 --> 00:12:39,380 Speaker 2: at guaranteed options, OK. I remember not too long ago 267 00:12:39,380 --> 00:12:42,929 Speaker 2: when I talked about how use bank savings accounts, versus 268 00:12:42,929 --> 00:12:46,580 Speaker 2: normal bank savings account. How many people actually make the switch? Yeah. 269 00:12:46,770 --> 00:12:48,848 Speaker 2: It's one thing to do the research, it's one thing 270 00:12:48,849 --> 00:12:49,530 Speaker 2: to be excited. 271 00:12:49,770 --> 00:12:51,809 Speaker 2: About it and then you don't do anything about it, 272 00:12:51,849 --> 00:12:54,848 Speaker 2: then you're not going to earn anything from it, are you? OK, 273 00:12:55,049 --> 00:12:57,010 Speaker 2: I felt that one. I felt that one. It's the 274 00:12:57,010 --> 00:12:59,250 Speaker 2: time of the year where we take stock of things, 275 00:12:59,369 --> 00:13:03,469 Speaker 2: where we are in our financial portfolios and plans. When 276 00:13:03,469 --> 00:13:07,619 Speaker 2: we review these plans, what's the most important thing to 277 00:13:07,619 --> 00:13:11,059 Speaker 2: look at whether you're on track. So I always feel, 278 00:13:11,090 --> 00:13:14,130 Speaker 2: and everyone's goal is going to be different. If for instance, 279 00:13:14,169 --> 00:13:16,869 Speaker 2: you have been spending more and you feel guilty about that, 280 00:13:16,929 --> 00:13:17,640 Speaker 2: that's me. 281 00:13:18,460 --> 00:13:20,489 Speaker 2: Action plan would be to cut back on the spending 282 00:13:20,489 --> 00:13:23,710 Speaker 2: or earn more. So you can spend without that guilt, right? 283 00:13:23,719 --> 00:13:26,640 Speaker 2: And for instance, if you feel that you are underinsured 284 00:13:26,640 --> 00:13:29,369 Speaker 2: and you really want to get to it before anything 285 00:13:29,369 --> 00:13:32,848 Speaker 2: happens on your health or at the insurance site, then 286 00:13:32,849 --> 00:13:35,270 Speaker 2: get to it. It's not that hard to just book 287 00:13:35,270 --> 00:13:37,979 Speaker 2: and insurance agents are going to be very happy to 288 00:13:37,979 --> 00:13:40,900 Speaker 2: just here at your house in your convenience to help 289 00:13:40,900 --> 00:13:43,159 Speaker 2: you get that set up. But what if we don't 290 00:13:43,159 --> 00:13:46,169 Speaker 2: have the time to, you know, shop around, compare prices, 291 00:13:46,289 --> 00:13:47,219 Speaker 2: see if we need to 292 00:13:47,400 --> 00:13:50,380 Speaker 2: You know, change insurer and stuff like that. I mean, 293 00:13:50,479 --> 00:13:53,099 Speaker 2: are there, is it OK to just sit there and 294 00:13:53,599 --> 00:13:56,209 Speaker 2: Be OK and stick with what we have. I love 295 00:13:56,210 --> 00:13:59,090 Speaker 2: that you're asking this question because I always feel that 296 00:13:59,090 --> 00:14:02,450 Speaker 2: time is always just an excuse. We can always make 297 00:14:02,450 --> 00:14:04,289 Speaker 2: more time. It's not that we don't have time. It's 298 00:14:04,289 --> 00:14:06,929 Speaker 2: just not a priority, right? So if it's not a priority, 299 00:14:06,969 --> 00:14:09,289 Speaker 2: then what are our options? Well, it's OK to just 300 00:14:09,289 --> 00:14:12,570 Speaker 2: let it sit. If you are OK with the trade-offs 301 00:14:12,570 --> 00:14:15,809 Speaker 2: and the potential consequences, or if you find out that 302 00:14:15,809 --> 00:14:19,690 Speaker 2: your current plans are pretty still pretty good, exactly. If 303 00:14:19,690 --> 00:14:20,409 Speaker 2: it ain't broke, don't fix it. 304 00:14:20,538 --> 00:14:22,737 Speaker 2: Right. Exactly. And I feel that when it comes to reviewing, 305 00:14:22,838 --> 00:14:24,737 Speaker 2: people don't have to stress out so much about having 306 00:14:24,737 --> 00:14:28,687 Speaker 2: to review their insurance portfolio so often. Yeah. I always 307 00:14:28,687 --> 00:14:30,778 Speaker 2: say just do it when your life milestone changes. So 308 00:14:30,778 --> 00:14:32,867 Speaker 2: if nothing changes this year, you didn't buy a new property, 309 00:14:32,937 --> 00:14:35,218 Speaker 2: you didn't have a new kid, you didn't have a 310 00:14:35,218 --> 00:14:38,507 Speaker 2: new dependent or lost a dependent, then maybe you don't 311 00:14:38,507 --> 00:14:40,297 Speaker 2: really have to review it. Wait for the next life 312 00:14:40,297 --> 00:14:43,157 Speaker 2: milestone and then do it then. But more importantly is 313 00:14:43,158 --> 00:14:45,857 Speaker 2: that when you act on this and you review, are 314 00:14:45,857 --> 00:14:47,668 Speaker 2: you meeting your goals? Because if you 315 00:14:47,716 --> 00:14:49,906 Speaker 2: You're not, every year is a great chance to make 316 00:14:49,906 --> 00:14:52,945 Speaker 2: sure that we recalibrate and get back on track because 317 00:14:52,945 --> 00:14:55,265 Speaker 2: otherwise we'll all be talking about how I want to 318 00:14:55,265 --> 00:14:58,145 Speaker 2: retire at this age with this amount of money or 319 00:14:58,145 --> 00:15:01,505 Speaker 2: this passive income or having this amount of interest or 320 00:15:01,505 --> 00:15:04,346 Speaker 2: use or dividends, but you never get there because you 321 00:15:04,346 --> 00:15:08,145 Speaker 2: never built it despite having the last 1015, 2030 years 322 00:15:08,145 --> 00:15:10,546 Speaker 2: to do so. Yeah, indeed, indeed. And I think this 323 00:15:10,546 --> 00:15:13,286 Speaker 2: is one of those biggest tips like if you know, 324 00:15:13,515 --> 00:15:14,866 Speaker 2: reviewing shouldn't be so. 325 00:15:14,924 --> 00:15:16,994 Speaker 2: most stressful and I think that the tip here that 326 00:15:16,994 --> 00:15:19,713 Speaker 2: I really like is, you know, do your review at 327 00:15:19,713 --> 00:15:22,794 Speaker 2: the major milestones in your life because that's when things 328 00:15:22,794 --> 00:15:25,513 Speaker 2: really change and you need to take stock of what's happening. 329 00:15:25,633 --> 00:15:27,953 Speaker 2: I'll also give my template for the annual reviews that 330 00:15:27,953 --> 00:15:30,234 Speaker 2: I do for myself. All I look at is how 331 00:15:30,234 --> 00:15:32,674 Speaker 2: much did I earn, how much did I save. So 332 00:15:32,674 --> 00:15:34,393 Speaker 2: I don't look at how much I spend anymore. I 333 00:15:34,393 --> 00:15:36,273 Speaker 2: used to, but now I look at how much I 334 00:15:36,273 --> 00:15:40,254 Speaker 2: save because it's the difference that makes all the more important, 335 00:15:40,473 --> 00:15:42,033 Speaker 2: and it's how much you saved in proportion. 336 00:15:42,132 --> 00:15:44,471 Speaker 2: To what you earn. Exactly. And then the last thing 337 00:15:44,471 --> 00:15:46,841 Speaker 2: I look at is my protection. So if nothing changes 338 00:15:46,841 --> 00:15:48,591 Speaker 2: in my life milestones, I'm not going to review that. 339 00:15:48,601 --> 00:15:50,841 Speaker 2: This year, I'm not reviewing that at all. And the 340 00:15:50,841 --> 00:15:53,322 Speaker 2: final one, so just 4 buckets, right, it's investing. I'll 341 00:15:53,322 --> 00:15:55,642 Speaker 2: look at my investment performance on the whole to see 342 00:15:55,642 --> 00:15:58,601 Speaker 2: if there's anything I can improve and most importantly, how 343 00:15:58,601 --> 00:16:00,960 Speaker 2: did I fare against the markets. Right? So just just 344 00:16:00,961 --> 00:16:03,322 Speaker 2: 4 things and I think that should be a 30 345 00:16:03,322 --> 00:16:05,882 Speaker 2: minute exercise at the most. Dawn, it's been great. Thanks 346 00:16:05,882 --> 00:16:07,562 Speaker 2: very much for coming on the Money Talks podcast again. 347 00:16:07,622 --> 00:16:08,651 Speaker 2: Thanks for having me. 348 00:16:09,340 --> 00:16:13,450 Speaker 2: Hope you've gained some insights into how to be better 349 00:16:13,450 --> 00:16:16,929 Speaker 2: money-wise in 2025. If you've got any comments or questions, 350 00:16:17,090 --> 00:16:20,090 Speaker 2: feel free to drop us a message. Money Talks is 351 00:16:20,090 --> 00:16:24,359 Speaker 2: available on Apple Podcasts, Spotify and YouTube Music as well. 352 00:16:24,570 --> 00:16:26,770 Speaker 2: Do leave us a rating. We're gonna give credits to 353 00:16:26,770 --> 00:16:30,130 Speaker 2: the team as well. Christina, Robert, Tiffany Ag, Junaini Johari, 354 00:16:30,369 --> 00:16:34,090 Speaker 2: Joanne Chan, Hanida Amin, Saya Wyn, and Chris De Leon. 355 00:16:34,250 --> 00:16:36,400 Speaker 2: I'm Andrea Heng. Thanks for listening to Money Talks.