Christopher Tan is the CEO of Providend, a fee-only independent financial advisory firm in Singapore. I came across one of his talks on insurance by chance, and his humorous style had me laughing out loud. He also shared his life story in an interview, describing how he transitioned from being a successful insurance broker to a fee-only financial advisor, and how he downgraded from living in a condo to an HDB flat with his family. Some of his views really inspired me:

• Plan your life goals first, then plan your finance towards that
• Live below your means
• Buy term life and health insurance, that’s it, then forget about insurance

❶ Plan your life, then plan your finances (Goal-based investing)

Investing and financial planning are not just about chasing monetary growth, but about planning for every important life milestone and the lifestyle you want to lead. The advantage of this mindset is twofold: first, it helps you maintain a long-term perspective and not be swayed by short-term volatility; second, it gives you a clearer sense of what “enough money” means, helping you understand the return and volatility needed to achieve your ideal life. This way, you avoid taking on excessive risks in pursuit of unnecessary additional gains — in simpler terms, you avoid greed. By achieving these two points, you’ve already outperformed most investors.

❷ Savings rate is the key to wealth

While increasing income is important, controlling expenses is the key. In the book The Psychology of Money, the author, in the final chapter, shares his own financial strategy (titled “My Confessions”). One point that stood out to me is that as he and his wife’s income increased, they didn’t upgrade their lifestyle. Instead, they continued to live frugally as they did in their younger years, which ensured their savings rate increased. Relationship between savings rate and time required to achieve financial freedom as:

❸ Insurance is part of financial planning, but don’t overuse it

Insurance is not a financial product, but it is a very important part of personal financial planning. Its purpose is to ensure that if something unexpected happens, you won’t be derailed from your financial goals. It’s important to differentiate between protection-oriented and investment-oriented insurance. Buy basic life and health insurance, that’s it, and invest the rest.

Reference：

• My Money | Questions You Should Ask Before Taking Up an Insurance Product by Christopher Tan, CEO of Providend
• When can I retire calculator by Networthify