Money is without a doubt one of the most essential things in our lives, but even with so much interaction between people and money, people are still facing issues with money. In this article, we are going to be talking about the different types of money problems that Singaporeans face and how to deal with them.
Competitive market
There is no denying that the internet has created a whole new phenomenon of outsourced work that is forcing people to start upgrading their value in order for companies to even consider hiring them. With the influx of cheap blue-collared wages, people in this environment will have a hard time competing with their foreign counterparts. And while Singapore moves towards the road of automation, companies are starting to downsize while either overworking their employees or by using computers/machines to do their work for them. The matter of the fact is, its getting harder and harder to find stable jobs, and the problem gets bigger for those with a lower education. My advice for you is to constantly upgrade yourself either by getting your certificates or by learning different kinds of working skills that will give you a leg up in the rat race.
Retirement and inflation issues
Retirement is not as simple as it used to be and many people are finding themselves low on retirement funds due to the rising costs of living in Singapore. As spoken in the previous articles, the inflation rate in Singapore is about 5% over the past 5 years, while banks usually give you about a 0.05% interest rate. This means that your money is losing value when its in the bank. The best way to deal with this is to have a robust investment portfolio that allows you to live comfortably now while still being prepared fore retirement. The rule of spending less and living under your means do not apply to us anymore. It would be wise to look into other types of financial instruments to ensure that you maximise the value of your dollar.
Medical costs
This is one of the biggest concerns that the older generation are facing. The cost of insurance might be something most people might want to do without, but the need to be protected and avoid the incredibly high medical bills is huge, so the best thing to do is get coverage that is at least good enough to cover for all basic medical expenses. Not being insured is a very dangerous gamble in the long term.
The cost of transportation
This is also becoming a huge problem in Singapore and the truth is that even public transportation is expensive, so it feels like you are stuck between a rock and a hard place. The cost of purchasing a vehicle and insurance for it can be extremely high and for some people.
Conclusion
Ultimately, everyone wants to achieve Financial Independence, but with the rising costs of everything in Singapore, it might be difficult for the average Singaporean to afford retirement.The more you learn to adapt to these common money issues, the more chances of achieving financial success you will have in the long run.
Competitive market
There is no denying that the internet has created a whole new phenomenon of outsourced work that is forcing people to start upgrading their value in order for companies to even consider hiring them. With the influx of cheap blue-collared wages, people in this environment will have a hard time competing with their foreign counterparts. And while Singapore moves towards the road of automation, companies are starting to downsize while either overworking their employees or by using computers/machines to do their work for them. The matter of the fact is, its getting harder and harder to find stable jobs, and the problem gets bigger for those with a lower education. My advice for you is to constantly upgrade yourself either by getting your certificates or by learning different kinds of working skills that will give you a leg up in the rat race.
Retirement and inflation issues
Retirement is not as simple as it used to be and many people are finding themselves low on retirement funds due to the rising costs of living in Singapore. As spoken in the previous articles, the inflation rate in Singapore is about 5% over the past 5 years, while banks usually give you about a 0.05% interest rate. This means that your money is losing value when its in the bank. The best way to deal with this is to have a robust investment portfolio that allows you to live comfortably now while still being prepared fore retirement. The rule of spending less and living under your means do not apply to us anymore. It would be wise to look into other types of financial instruments to ensure that you maximise the value of your dollar.
Medical costs
This is one of the biggest concerns that the older generation are facing. The cost of insurance might be something most people might want to do without, but the need to be protected and avoid the incredibly high medical bills is huge, so the best thing to do is get coverage that is at least good enough to cover for all basic medical expenses. Not being insured is a very dangerous gamble in the long term.
The cost of transportation
This is also becoming a huge problem in Singapore and the truth is that even public transportation is expensive, so it feels like you are stuck between a rock and a hard place. The cost of purchasing a vehicle and insurance for it can be extremely high and for some people.
Conclusion
Ultimately, everyone wants to achieve Financial Independence, but with the rising costs of everything in Singapore, it might be difficult for the average Singaporean to afford retirement.The more you learn to adapt to these common money issues, the more chances of achieving financial success you will have in the long run.