In today's society, the pressure to keep up with the Joneses can be overwhelming, especially when it comes to finances. The recent panel discussion hosted by The Straits Times InvestMe campaign highlights the importance of financial literacy and the dangers of comparing one's financial situation to others. Alfred Chia, CEO of SingCapital, emphasizes that social media has distorted our perception of what constitutes 'enough' money. For instance, the assumption that those who can travel to Europe for holidays have more money than those who go to nearby destinations like Kuala Lumpur is misleading. Chia also points out the financial reality that people need to save a lot more if they want to spend $5,000 a month after retirement. He advises Singaporeans to consider topping up their Central Provident Fund Retirement Account, as CPF LIFE can help shoulder part of their retirement burden. Those who can top up to the enhanced retirement sum of $440,800 in 2026 can expect a monthly payout of about $3,400 from 65 onwards. Chia believes that 'enough' is highly personal and suggests that individuals work out their desired lifestyle and then calculate the necessary numbers. David Teo, a senior consultant psychiatrist, agrees that money is a personal matter and that there is no magic number to determine how much is enough. He also emphasizes the importance of basic insurance coverage, an emergency fund equivalent to three to six months of expenses, and adopting the 4-3-2-1 approach to managing finances. Teo warns against the constant desire for more, as it can erode happiness and lead to financial insecurity. In his closing remarks, Tan Ooi Boon, the ST Invest editor, reminds attendees that the best investment in life is in oneself. He encourages individuals to focus on their salary or business profits as the real investment returns, as these are the things that actually make people rich. The InvestMe website offers practical tips to help subscribers plan their finances better, and the next financial literacy course will explore smart money management tips. Subscribers can attend the event at the SPH Media auditorium on September 17 or join the session online.
