How I Manage My Money As A Financial Planner [Value For Money Mindset]

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Let’s talk about my money management mentality as a financial planner which I’ve coined the Value for Money Mentality.

The Value for Money mentality is a money management mentality that acknowledges both the importance of living in the present and preparing for the future.

It is a mentality that ensures that we spend money in a way that ensures a comfortable living standard in the present while setting aside sufficient savings and resources for the future.

To do so, there are three core considerations that you need to have when making any financial decision:

1. what do you need to have to live a comfortable (not luxurious) lifestyle
   

2. what goes into the pricing of the things that you need to have and is it worth paying for it
   

3. if the things that you are paying for are not necessary, can you afford them and what is your opportunity cost for paying for it

Let’s use housing as an example,

If I were to compare 2 similar properties in the same area, I would not pay a 70% premium for the perceived status of a condo and internal facilities.

That said, practising the Value For Money mentality does not mean that you have to consciously limit yourself to a certain type of lifestyle. As long as you understand what you are paying for and you can afford it, by all means, go ahead.

The reason why I would not pay the 60-70% premium difference in my example is that that difference goes a long way in helping me achieve financial freedom earlier.

Read More: How Much You Need To Achieve Financial Freedom?

I feel that we owe it to ourselves to first achieve a basic level of financial freedom without compromising our daily lifestyle and standard of living.

Only after we have secured a passive stream of income to provide for our day-to-day necessities, then can we focus on upgrading and improving our standard of living which I will talk about in my future articles.

All of these can also be found in my eBook: “The Price Of Financial Freedom” which will provide you with a comprehensive guide to help you achieve financial freedom and live life on your terms in the shortest amount of time.

You can download a copy of it for free on my website:

If you do not know how to get started with your financial planning or if you do not have the time to manage your finances, you can consider engaging an Independent Financial Advisor who can help you make sense of the market, accelerate your progress and achieve financial freedom by 5 to 10 years earlier!

To find out more information about how you can benefit from my financial and insurance planning services, you can check out what I do on my website here:

Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).

Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)

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Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore