• Food
  • Family
  • Beauty & Health
  • Style
  • Great Women
  • Events/Win
  • Domestic Diva Awards 2022
  • Food
    • Eating Out
    • Cooking Tips
    • Festive Food
    • Asian Recipes
    • Food
    • Celebrity Recipes
    • Dessert Recipes
    • Healthy Recipes
    • Quick & Easy Recipes
    • Western Recipes
  • Family
    • Family
    • Save Money
    • Parenting
    • Sex & Marriage
    • Travel
  • Beauty & Health
    • Beauty & Health
    • Skincare
    • Makeup
    • Hair
    • Awards
    • Diet & Nutrition
    • Fitness
    • Wellness
  • Style
  • Great Women
    • Career
    • Great Women of Our Time
    • Real Life
  • Entertainment
  • EVENTS/WIN
  • #SchoolForLife
  • Hair Awards
  • Great Escape
  • Explore Singapore
  • Also available at:
Privacy Menu
SPH Media

Copyright © 2023 SPH Media Limited. Co. Regn. No. 202120748H. All rights reserved.

  • Food
  • Family
  • Beauty & Health
  • Style
  • Great Women
  • Events/Win

Family

5 Ways To Keep Calm & Prepare Your Finances For The Economic Fallout Of Covid-19

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Save Money

5 Ways To Keep Calm & Prepare Your Finances For The Economic Fallout Of Covid-19

There’s no denying the global economic impact that Covid-19 has had on everyone. Here’s what you can do to ensure that you’re safe, financially in Singapore

March 23, 2020
prepare-economic-downturn-covid-19

Photo: 123RF

In a recent South China Morning Post report, analysts interviewed stated that a global economic recession is almost guaranteed in 2020 thanks to the worldwide Covid-19 pandemic. This comes as no surprise considering how the outbreak is making its way through Europe and the U.S.

Closer to home, foreign affairs minister Vivian Balakrishnan recently mentioned in his CNBC interview that the economic effects from the outbreak may last for at least a year.

As news of the economic downturn continues to spread across the world, it can be depressing and often times, might trigger anxiety in some. If you’re concerned and thinking of what you can do to get yourself and your family through this pandemic, here are some tips.

READ NEXT

How To Explain Covid-19 To Kids, According To Joanne Peh

Covid-19: 7 Hygiene Habits To Practise To Keep Your Home Virus-Free

Covid-19 Health Tips For Pregnant Women, Babies And Kids

https://www.womensweekly.com.sg/gallery/family/save-money/prepare-finances-recession-covid-19/
5 Ways To Keep Calm & Prepare Your Finances For The Economic Fallout Of Covid-19
1. Build Up An Emergency Fund
image

A fundamental aspect of managing one’s personal finances is creating a budget. Regardless of your financial circumstances, it is important to save at least some money each month for an emergency savings fund. For many, this will require assessing spending habits and cutting out some unnecessary expenditures.

Typically, experts recommend accruing three to six months of living expenses worth of savings. This way, if you have a significant unexpected expense such as a medical procedure—or worse—temporarily lose your job, you’ll have money to tide you over until you get back on your feet.

When it comes to choosing a bank account for your savings, it is important to note that not all accounts are created equal. For example, the best savings accounts have interest rates that are two to three times higher than those of other accounts. Therefore, if you are looking to earn the most that you possibly can from your savings, it’s worth comparing the best rates currently available.

It is also important to keep in mind that your emergency fund should be a separate category of savings than your other savings (e.g. retirement, home purchase). To avoid future disappointment, it is important to keep these funds separate in your mind.

Read Next

Covid-19 Derailed Your Family Trip? 10 Smart Ways To Use Your Travel Fund

Unsplash
2. Get Debt In Order
image

If you currently have outstanding debts, such as a personal loan or credit card debt, it is best to pay down your balance before you find yourself in a pinch. Even committing to slowly repaying the debt is better than letting it continue to accrue interest.

For example, credit cards typically charge approximately 25 per cent p.a. on average, so it is crucial to reduce your monthly rollover balance before you have any added financial pressures.

Debt consolidation plans can be a good way to consolidate your outstanding debt, all with a better interest rate. If you’ve got debt which you could repay within a year, you might be better off with a balance transfer loan, a similar product which typically offers interest-free periods of up to 12 months.

Read Next

Avoid Credit Card Debt With These Simple Rules

Unsplash
3. When it comes to retirement investments, think long-term
image

It can be scary to watch your portfolio’s value fall significantly during times of market unrest. However, unless you are planning to retire very soon, there is no reason to panic.

Historically, while periods of volatility are not uncommon, stock markets have traditionally shown strong growth in the long-term.

This is especially relevant for those that invest in funds with retirement target dates. If you are the type to invest in individual stocks and bonds on your own, it is important to maintain some level of diversification in order to blunt the impact of a crash.

Read Next

Want To Start Investing? A Financial Expert Shares How To Start

ValueChampion
4. Pick Up A Side Hustle
image

If you’re already on top of your budget, savings and investments, and want to take some other action, you might want to consider picking up a side hustle. Perhaps you have a car and some free time, and would make a good part-time driver.

Or maybe you have highly sought after skills such as web design or copy-editing and could earn an extra buck on sites like Upwork, Freelancer or Guru. Regardless of your specific skills and experience, you might be able to earn some extra money and peace of mind while markets remain volatile.

Read Next

Side Hustlers: Meet 3 Women Who Have More Than One Job

Unsplash
5. Have A Plan And Stay Calm
image

The bad news about a stock market crash or a recession is that your personal finances could take a hit. The good news is that if you are prepared, you will be better able to sustain an economic downturn.

Creating or re-assessing your personal budget is a great place to start. Once you’ve got a handle on your spending, reducing your debt and optimising your investing strategies are good things to address.

Regardless of what actions you deem most important for your personal finances, it is best to stay calm and protect your future finances by acting with prudence.

Read Next

10 Best Discount Stores In Singapore For Budget Shopping

12 Best Budget Stores In Singapore To Buy Toiletries For Cheap

10 Cheap And Fast Economy Rice Dishes You Can Cook At Home

Text: William Hoffman/Value Champion

Pexels
  • TAGS:
  • corona virus
  • coronavirus
  • covid-19
  • money
  • money saving
  • smart money
  • virus
SHARE THIS ON

What’s Hot

Save Money

10 Things To Know About Giving And Recei...

Save Money

The Best 12.12 Sales You Can't Ignore

Save Money

Best Deals On CNY Drinks And Snacks: Sto...

Save Money

10 Supermarket House Brands With High-Qu...

Save Money

This Is The Average Cost Of Having A Bab...

Save Money

Home Essential Deals To Buy Befo...

Save Money

These Are The 3 Best Credit Cards For Wo...

Save Money

Buying Preloved Saved Me Thousands Of Do...

Save Money

Host A Fun Chinese New Year Gathering Wi...

Save Money

5 Regrets Singaporean Have Had About The...

Save Money

Why It's Important Financially To Make P...

Save Money

Can You Retire With $6,000 In Monthly Ex...

Editor’s Picks
  • Save Money 10 Things To Know About Giving And Receiving Ang Bao This CNY
  • Save Money The Best 12.12 Sales You Can't Ignore
  • Beauty & Health 8 Best Alternatives To The Dyson Hair Dryer
  • Beauty & Health 10 Best Budget Beauty Deals To Shop Now
  • Save Money Best Deals On CNY Drinks And Snacks: Stock Up Now
  • Save Money 10 Supermarket House Brands With High-Quality Items Worth Buying
Don't Miss Out Ever Again!
Tips & tricks to stay sane + win invites to our events!

By signing up, you indicate that you have read and agreed with our Privacy Statement
Footer Menu
  • About Us
  • Contact
  • Conditions of Access
  • PDPA
  • Privacy Policy
?>">
SPH Magazine

Copyright © 2023 SPH Media Limited. Co. Regn. No. 202120748H. All rights reserved.