Sufficient ready capital is essential when you start a business. It is not enough to simply have sufficient financing; knowledge and planning are required to manage your business well. These qualities ensure that entrepreneurs like you can avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or under-borrowing the money you need. In fact, financing is the key success factor of a business.

Click here for more information on financing your business.

	Healthcare
	Retirement
	Housing

 

 

As a self-employed person, ensuring that your business succeeds and its continuity is probably your top most priority. However, you also need to take care of your personal finances.

With increasing healthcare cost, it is important that your healthcare needs are taken care of. Hence, if your annual net trade income is more than $6,000 you need to contribute to Medisave. Click here for more information on income reporting.

Your contributions to your Medisave Account can help you build up savings for your healthcare needs. Medisave can be used to pay for your own or your dependants' hospitalisation expenses. It can also be used for certain outpatient treatments like chemotherapy and radiotherapy treatments.

You can also use your Medisave savings to pay the premiums for MediShield or Medisave-approved private insurance plans. These are catastrophic medical insurance schemes for you and your dependants. They help to meet the high medical costs of prolonged or serious illnesses. For older CPF members, there is ElderShield, an affordable severe disability insurance scheme that provides insurance coverage to those who require long-term care.

For more information on how you can provide for your healthcare needs, click here.

Unlike employees, self-employed persons do not enjoy medical benefits provided by employers. Therefore, it is especially important for self-employed persons like you to contribute regularly to Medisave while you are still working. Don't leave yourself out of of the Medisave scheme and face the harsh reality of huge medical expenses in unexpected circumstances.

 

For more information on Medisave contributions for the self-employed, click here.

To calculate your Medisave contributions payable, click here.

 

To check your Medisave liabilities, click here 

You will also earn interest on your Medisave contributions. Click here for information on the CPF interest rates.

 

From 1 July 2006, all CPF contributions in excess of the Medisave Contribution Ceiling will be transferred from the Medisave Account to the Special Account for members aged below 55, and to the Retirement Account for members aged 55 and above, who do not meet the CPF Minimum Sum. For those who have set aside the full CPF Minimum Sum, the excess CPF contribution will be transferred from the Medisave Account to the Ordinary Account.

Besides saving for medical needs, you can also make voluntary contributions to all three CPF Accounts (Ordinary, Special and Medisave Account) to save for your retirement. Such voluntary CPF contributions will be apportioned to the three CPF Accounts according to the prevailing rates. Click here for more information on the apportionment of CPF contributions among the three accounts.

However, your CPF contributions (including voluntary contributions) made in 2006 will be limited to the mandatory contributions or prevailing voluntary contribution limit whichever is higher. This limit is applicable to all Singaporean and SPR employees, as well as the self-employed and non-employed. Click here for more information on the voluntary contribution limit.

 

To grow your CPF savings faster, you can transfer your Ordinary Account savings to your Special Account to enjoy the higher interest rate. Do note, however, that the transfer is not reversible. Click here for information on the CPF interest rates, or click here for more information on transferring your Ordinary Account savings to your Special Account. You can also try the Ordinary Account - Special Account Interest Calculator to estimate the interest you would earn in the two accounts.

You can withdraw your CPF savings when you turn 55, after setting aside your CPF Minimum Sum. Your CPF Minimum Sum can be used to buy life annuity from a participating insurance company, placed as a deposit with a participating bank or left in your Retirement Account with the CPF Board. If you had bought a life annuity, you will receive the monthly income for life. If you leave your CPF Minimum Sum with a participating bank or with CPF Board, you will receive the monthly income until your CPF Minimum Sum is exhausted. You can start receiving your monthly payouts from your Minimum Sum from age 62. If you can afford to postpone the monthly payments to a later age instead of 62, you can make your Minimum Sum last longer.

To estimate your retirement savings, click here to try the CPF Retirement Planner.

For more information on CPF for retirement, click here.

Your Ordinary Account savings can be used to buy a home under the CPF housing schemes. You can buy an HDB flat under the Public Housing Scheme, or a private property under the Residential Properties Scheme. Your CPF savings can be used for full or part payment of the property, and to service the monthly housing payments. If you buy a flat under the Public Housing Scheme, you will need to be insured under the Home Protection Scheme.

Click here for more information on the use of CPF savings for housing.