‘Tis the season of sharing scary tall tales. When it comes to managing your personal finances, there are all these myths that people fear or look out for. Here are some of the most popular myths about managing your personal finances and the truth behind it:

Myth 1: Financial planning is not for me

The New Savvy - Finance - Myths

Reality: It doesn’t matter how much money you earn or is in your savings. Whether you’re a college student or a successful entrepreneur, managing your finances should be a priority. Financial planning allows you to discover how to spend, save and invest your money the best way possible.

Understanding how money works (whether cash or credit) secures your future and that of your family. 

Myth 2: Save tax through an insurance policy

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Reality: Typically, most working adults only do their tax planning at the end of the year. This is due to the fact that they have to save tax and show their investment proofs to their employers.

Many individuals invest in life insurance products. However, contrary to popular belief, this is the worst way to save tax. You are just wasting your money in something that you might not even require; a safety net of some sorts. Thus, it is advisable to reevaluate your financial plan to manage your finances better. 

Myth 3: Investing in equity is too risky

Reality: Although guaranteed products seem less of a risk, always remember high risk equals high returns. Instead of gravitating automatically to fixed income products that guarantee returns, keep in mind that you still have to factor in inflation and tax that may result in negative returns.

Taking a chance with calculated risks such as equities can not only potentially give you higher returns but also a means to diversify your investment portfolio. 

Myth 4: You don’t need a financial planner

The New Savvy - Finance - Myths 1Reality: If you are unsure how to start managing your finances, you can search online or even take courses and workshops which will give you plentiful insight.

Still, you should consider hiring a professional. If you are easily scared about numbers and money talk, investing in a financial planner to handle your finances can benefit you better.

Some advantages of having a professional overlooking your finances are that they can advise you on how to save and invest your money as well as understand the different financial products available in the market.

Myth 5: You need to be a math whiz to be good at personal finance

Being good in Mathematics and making spreadsheets, does not equate to being good at managing personal finances.

If you are barely passing Mathematics throughout your education or are in a job that does not require the calculation of numbers, this does not exempt you from managing your personal finances. It is not rocket science, personal finance is mostly making sure that you are financially healthy and not spending more than what you are capable of earning.  

Yes, terms such as inflation and compound interest can scare a person away. But if you actually take a breather, and take it one market at a time, you will realise that managing your personal finances doesn’t have to be scary and can actually be enjoyable.


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Founder @ The New Savvy
Anna Haotanto is the Advisor (former CEO) of The New Savvy. She is currently the COO of ABZD Capital and the CMO of Gourmet Food Holdings, an investment firm focusing on opportunities in the global F&B industry. She is part of the founding committee of the Singapore FinTech Association and heads the Women In FinTech and Partnership Committee. Anna is the President of the Singapore Management University Women Alumni. Anna invests and sits on the board of a few startups. Anna is also part of the Singapore Chinese Chamber of Commerce & Industry Career Women’s Group executive committee. Anna’s story is featured on Millionaire Minds on Channel NewsAsia. She hosts TV shows and events, namely for Channel NewsAsia’s “The Millennial Investor” and “Challenge Tomorrow”, a FinTech documentary. Anna was awarded “Her Times Youth Award” at the Rising50 Women Empowerment Gala, organised by the Indonesian Embassy of Singapore. The award was presented by His Excellency Ngurah Swajaya. She was also awarded Founder of the Year for ASEAN Rice Bowl Startup Awards. She was also awarded the Women Empowerment Award by the Asian Business & Social Forum. Anna has been awarded LinkedIn Power Profiles for founders (2018, 2017), Tatler Gen T, The Peak’s Trailblazers under 40 and a nominee for the Women of The Future award by Aviva


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