You asked, we answered: The expert guide to achieving your money goals in 2025

With 2025 on the horizon, we’re making our resolutions for the new year. It’s a time for setting fresh intentions – not just for life, but also to attain stronger financial security and growth, to better fuel these goals. What do women want to achieve financially in the next 12 months, and how can they start on the right foot?

We’ve gathered some burning questions and asked experts for their advice to better inform your money goals in the new year.

*Answers have been shortened for clarity and brevity.

The Experts

• ANGELA TENG, head of editorial, The Simple Sum
• DAWN CHER, founder of SG Budget Babe
• KAREN TANG, certified financial planner and senior wealth management consultant licensed by the Monetary Authority of Singapore
• YONG HUI, financial practitioner and blogger at Yonghui.sg

Developing a healthier relationship with money

I am quite risk-averse because I have a scarcity mindset (which I’m unsure how to overcome), and I worry about needing money for emergencies. How can I start my investment journey? – Cherry Long, 40, writer

Angela Teng (AT): There are various investing tools out there to cater to different individuals and their risk appetite. You don’t have to be a risk-taker to invest.

For instance, there are Singapore government securities like the Singapore Savings Bonds (SSB) and Treasury Bills (T-bills) that give you good interest rates returns and a shorter lock-in of your money. For SSBs, you can redeem your money any time during emergencies. T-bills require a lock-in period of six or 12 months.

Parking your money in your Central Provident Fund account is another safe method to “invest” due to the higher interest rates returns. Although you will not be able to draw out the monies in the event of an emergency, the money set aside will be for your retirement use.

To prevent tapping your investments during emergencies, you can start building an emergency fund. This is cash set aside for unplanned expenses or financial emergencies, and is usually enough to cover at least six months of your living expenses.

Managing spending with cashbacks

What are the best credit card perks or membership programmes I should consider to maximise my spending and rewards? – Mindy Alfonso, 29, civil engineer

Dawn Cher (DC): There’s no such thing as “the best” credit card for everyone, because the right card for you depends on your spending habits and the merchants you frequent. The same applies to membership programmes. Start by reviewing what you spend on, how much you spend, and where. From there, you can narrow down your options to find the cards that best suit your needs.

Credit card rewards typically fall into three categories: miles, cashback or points. The type of perks you get depends on the rewards ecosystem of the card, and how you choose to redeem your points. 

For example, the best credit card for someone who regularly shops at Cold Storage might be the DBS Yuu Card. The Yuu ecosystem, however, is limited to participating merchants like Gojek, Cold Storage and Toast Box.

If you shop at Fairprice or Sheng Siong instead, the UOB Lady’s Card or Amaze by Instarem card paired with the Citi Rewards Card would be better options. Don’t forget to tap your membership card to earn Linkpoints at Fairprice supermarkets! Linkpoints can be redeemed for various rewards, including F&B vouchers, or used to offset grocery bills at Fairprice.

Future proofing your finances

How can I get my finances in order if I have a child unexpectedly? – Eunice Liew, 32, social media analyst

Karen Tang (KT): In Singapore, raising a child can involve significant costs, such as education, healthcare and enrichment activities. However, many parents feel that the emotional and personal rewards far outweigh these expenses.

Start by assessing your current budget to identify areas for savings. It is also helpful to create a separate fund for childcare-related expenses to ensure that you are prepared for medical bills, diapers and early education.

Consider tapping government subsidies and schemes like the Baby Bonus, Child Development Account (CDA), and tax relief programmes. You’ll also want to review your insurance coverage – make sure you have health, life and accident insurance for both you and your child.

Long-term planning is key. It is wise to start an education savings plan early, and seek financial advice if needed to manage investments or debt. Finally, don’t hesitate to lean on community resources – family, friends and government-supported childcare options can provide financial and emotional support.

I’m hoping to do a mid-career switch after completing my part-time degree. What should I be doing to plan for this financially? – Farah Aisyah, 30, accountant

Yong Hui (YH): It’s great that you’re planning ahead and taking steps to manage your concerns. A midcareer switch can be fulfilling, but it does require careful financial planning.

Here are some steps to help you plan ahead and ease your worries:

• Evaluate your current finances Take stock of your savings, investments and retirement funds.
• Build a buffer fund As career transitions often lead to a temporary reduction in income, aim to build an emergency fund that covers six to 12 months of living expenses. This buffer gives you peace of mind as you focus on your new path without the immediate pressure of earning.
• Start building passive income streams Since it may take time to stabilise your income after a career switch, developing passive income sources now will help cushion your future transition. Look into options like dividends from stocks, bond payouts, or retirement income plans. These can provide a steady flow of income that supports both your immediate needs and future retirement.

Planning for health-related expenses

I am reviewing my health insurance coverage. What are some policies I need to have? – Anaya Menon, 35, operations manager

Health insurance is critical for all, given Singapore’s high medical costs. Critical illness protection serves as your income replacement. Disability income insurance is also recommended, especially for DINKs (dual-income, no kids) and single women. Always get mortgage insurance as your mortgage loan is likely your biggest liability.

Do not opt out of Careshield Life (long-term care) because it provides the basis for you to further enhance your monthly disability income payouts.

At Early Life stages (20s-30s)

• For singles, health insurance, critical illness protection and long-term care coverage are essential.
• DINK couples should prioritise income protection and hospitalisation plans.
• Parents need to have in place health insurance for the entire family, and life insurance (death, disability, major illness) with higher coverage to secure the ongoing living expenses of their dependants as well as their own.
• Make it a priority to secure an education savings plan for each child. Some parents opt for a combination of strategies, balancing investment plans for growth and volatility with endowment plans for safety and assurance.

At Mid-Life (40s-50s)

• For singles, health insurance, critical illness protection and long-term care coverage remain essential.
• DINKs may consider increasing their disability income or long-term care payouts to secure financial independence in case of health issues.
• Parents should evaluate the children’s education funding goal and maintain solid health insurance.

Approaching retirement (60+)

• Life insurance coverage could be reduced unless there are dependants. Prioritise retirement savings plans and long-term care policies to cover medical and nursing expenses. As health insurance premiums will be in the four-figure zone, a common action taken is to downgrade the Integrated Shield plan (eg from private hospitals class A to Government hospitals class A).
• DINKs may need robust retirement annuities, while single women should focus on comprehensive health coverage and estate planning.

What is a ballpark estimate of how much I need to set aside to protect against some of the more common diseases in today’s era of high medical costs? – Zen Lo, 39, arts professional

KT: While medical expenses can vary widely based on the specific condition and the type of care needed, it is helpful to have an idea of the baseline.

Let’s take cancer for example. According to the Singapore Cancer Registry Annual Report 2022, the top three cancers striking women are breast cancer, colorectal and rectum cancer, and lung cancer.

• Early-stage cancer care cost: Average ranging from $9,000 (heavily subsidised in public hospitals) to $50,000 (private hospitals).
• Later-stage cancer care cost: Average $100,000 to $200,000 per year. That works out to be about $8,400 to $16,700 per month.

For reproductive health issues such as endometriosis and ovarian cysts, expenses could range from $10,000 to more than $30,000, depending on complexity and care duration. Given these numbers, it is advisable to set aside at least $100,000 as an emergency medical fund, supplemented with comprehensive healthcare insurance coverage (eg critical illness protection, health insurance, long-term care coverage).

Imagine if you were unable to work for three years – what would be the loss in income? If you’re earning $100,000 a year, that would add up to $300,000. In my opinion, critical illness coverage serves as an income replacement. Ensure that you have enough credit card limit available when checking out of the hospital. This is when having multiple credit cards can be very helpful.

The Integrated Shield Plan (a private medical insurance plan from private insurers that supplements your Medishield Life coverage) operates on a reimbursement basis, meaning you must pay upfront before being reimbursed by the insurer. If you are covered under your company’s plan and have access to cashless payment, then this may not be a concern.

Lastly, incorporating preventive measures – regular screenings, vaccinations, and healthy lifestyle choices – can reduce long-term medical costs. While it is impossible to predict exact expenses, early planning and balancing savings with insurance will help manage potential financial risks effectively.

Dealing with debt

How can I manage my debts better? I am worried about taking another loan as I fear the interest will snowball and I won’t be able to manage multiple loans. – Fern Yong, 45, sales manager

DC: It is not uncommon for Singaporeans to be servicing multiple loans at the same time, such as their mortgage loan and housing loan. One tip is to automate your loan repayments so that it gets deducted each month without you having to manually do it yourself.

There’s a difference between “good debt” and “bad debt”. The former is used to help you accumulate financial assets, such as your mortgage for a house that appreciates in value over time. Credit card debts fall into the “bad debt” category, as they have astoundingly high interest rates (often above 27 per cent per annum), where you also pay interest compounded on top of interest racked up.

If you have additional loans, such as a study, renovation or personal loan, and find it challenging to manage multiple loans simultaneously, here are two methods to help you clear them:

Focus on paying off the debt with the highest interest rate first. Once that is cleared, move on to the next highest interest rate, and continue in descending order until all debts are repaid.

Pay off loans based on their size. For example, start with the smallest outstanding loan first. Once that is fully paid off, move on to the next smallest loan, and continue this process until all loans are repaid.