Covid19 - many individuals are still scrambling to regain their footings. People lost their jobs and small businesses forced to shutter. Day-to-day living expenses piled up and government stimulus packages do not effect every citizen including my family. Dedek did not lost his job but forced to take unpaid leave. Along and Kak Chek were still on payroll but not necessary enough.
Dedek was fortunate to be able to eye the business opportunities. After experiencing the skimming of his income from no allowances to furlough of 25%, he started a small business selling layered cakes. He survived and managed to sustain the pandemic ordeal.
Pandemic has been a scary wake-up call about how life can be overturned with very little warning. It created a tale of 2 economies - those who were able to save and those who struggled to meet end meets. Now it's time to rethink and revisit our saving and spending.
My recommendation:-
- Start to build-up Emergency Saving Fund or replenish your existing saving. The old-age Rule of Thumb was to have 6-12 month of expenses saved in the event that you lost your job still applies.
- Create Financial plan such as having Cash Flow Projection- Knowing your income against your spending will help you to think many time before spending.
- Need to have budget, however small may be - When you know where your money is going its easier to isolate NEEDS and WANTs and shift more towards NECESSITIES.
- Reduce spending on Luxury goods like toys, and expensive items
- Address your debt issue - look for finance advisor to advise you to solve your liabilities.
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| Reduce frequency of eating out |
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| Avoid spending too much on luxury items |
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