3. Take stock of your war chest
After re-doing your budget, you’ll get a clearer picture of how much you need to maintain a basic standard of living. The next step is to take stock of your how much money you actually have and how long it can last you according to your revised budget.
The money for your war chest comes from your savings, bonuses (such as severance pay, if you got retrenched), dividends, endowment cashback, personal loans and other easily accessible forms of cash.
You may include your credit cards in your war chest, but you must only use them for one specific feature – the 0% interest instalment payment. This converts a big-ticket purchase into a 12 or 24 month installment plan with 0% interest charges. Use this at eligible merchants to pay for costly essential items, such as laptop computers or a new aircon system, but be sure to make room in your budget for the instalment payments, lest you get slapped by penalty fees.
Taking stock of your war chest also gives you a timeline that tells you how long you have till things become unsustainable and you absolutely have to get your income back up. This can free you from anxiety and help you make the right moves for the next stage of your career.