https://www.crown.org/blog/ask-chuck-preparing-for-another-pandemic/
Moneysense
Some questions for thought
:
1.
How often do you take stock on your financial health?
Frequency :
Monthly, Annually, Long Term : Retirement
Tools :
Spreadsheet – monitor Surplus Vs gaps
*Income :
Dividend (fluctuates), salary (uncertainty in job market), CPF
Expenses:
Insurance, investments, tithes and offering, tax, travelling, education
funds
*Cost cutting :
What items can be reduced
*Risk Mitigation :
eg investment
Large ticket items :
cars, major appliance maintenance/repair
·
Planning = reduction in stress
·
Discipline
·
Level of details for visibility and planning
·
Health over wealth = reduction in health costs by keeping self healthy :
exercise, diet
2. What measures or criteria do you look into in short, mid and
long term view?
Similar to the (1).
Track. Plan. Review.
3.
How can we be better prepared for future unforeseen crisis
to mitigate financial threats using Covid as a wake-up call for both
spiritual, personal and business aspects?
Mindset Change :
resilience, flexibility
Personal
·
Reduction in expenses = less travelling less, eg expensive car parking
fees
·
Attire= less spending on expensive clothings
·
*Life uncertainty = life insurance, Hospitalisition insurance
·
eCommerce for grocery
·
Buy and Sell over pre-used items= Carousell, eBay etc
·
Unnecessary spending eg expensive meals, miscellaneous items,
socialising
·
Social responsibility
Business
·
Reduce unnecessary travelling
·
Employment vulnerability => alternative career/skills
·
*Self-generating income = entrepreneurship, Gig economy : freelancing,
eCommerce etc
·
Commercial real estate= reduce or increase? Transform to eCommerce; work
from home
·
Reduce reliance on government and corporation
Spiritual
·
Life’s vulnerability
·
Spiritual Preparedness and the Great Commission
·
ICT has allowed unstoppable spiritual fellowship and growth
·
Virtual worship and services for global outreach
·
Outreach through sharing : food, finances, lover/care, prayer
·
More personal time for QT
·
Reliance on God and prayer for protection
15 Aug Session
4.
May you share some role models who have
demonstrated good financial stewardship for our learning? What
have they done right or good advice given?
·
Renewal of COE of car instead of buying new one at this COVID
period.
·
How we spend our money affects our relationship with God.
·
Reasons behind luxury items. Seek God’s wisdom in usage of
resources.
·
Living within the means.
·
Reinvesting into money-generating sources
·
Learning points from Asian Financial Crisis 1997-1999
5.
Do you see living paycheck to paycheck a common
phenomenon in your environment? Are these by choice or by
circumstances? What are your thoughts?
Groups affected :
·
Sandwiched class.
·
COVID affects certain trades, so not by choice.
·
Lower class in chronic debts on necessities.
·
Some in chronic debts due to unwise spendings or due to
constraints.
·
Strain of single income family, those with young children
(Tuition) or older children (tertiary)
Thoughts
·
Regular salaried people took salaries for granted.
·
Review budgets
·
Cut back on wants
·
Savings
·
Get a more stable job
·
Even with duo income, save for rainy days.
·
With extra resources, we can help those in need.
6. It was suggested that we seek ways to increase our income
while decreasing our expenses. May you share your
experiences or advice to help knew another build our resource
knowledge?
Increase income :
·
Capital income Vs Labour income
·
eCommerce : competitive, time consuming
·
Providing Tuition Services : as side hustle
·
Change career : acquire new skills, change mindset
Reduce Expense :
·
Tuition : can be cut down by paying more attention in class, not
to fall into parenting guilt trap
7. Needs versus wants. How can we control our spending,
resisting temptations in our modern society where
materialism, social status and instant
gratification are real, especially with social media
influence?
Needs : Survival, for livelihood, productivity
Wants : Can live without or can step down quality
Accountability Partner : parents, Spouse
·
Time as opportunity costs and trade off against relationship,
health etc
·
Seek balance
·
Use a system to track expenses to analyse Wants/Needs
·
Set savings targets – retirement, upgrading etc
·
Discipline to keep to tight budget
·
Need not keep up to latest gadgets or trends
·
Keep long term view (retirement plans)
·
Avoid self-justification on spending (excessive self-pampering
vs needs)
·
Avoid addiction of spiral spending
·
Reduce social media time to reduce temptations
·
Prayer (There is no temptation that God cannot help us overcome)
19 Sep Session
8. Sticking to a budget can be challenging due to so many
demands. Any good tips on the physical and psychological aspects
to share?
With budgeting, it will then enable savings.
Challenges in budgeting
·
Not keeping of accounts of spending
·
Insufficient funds to start with
·
Complacency of sufficiency at current state
·
Habitual poor spending habits
·
Lack discipline : eg being lenient in shifting saving targets to
following month
·
Unforeseen expenditure (eg economic situation, government
policies, health issues, education funds)
Budget Tips
·
Keep account of spending
·
Using Giro is another way to track
·
Lock up the money to reduce accessibility
·
Save with a purpose, towards a target
·
Forced Savings and use leftover funds for spending
·
Forward planning
·
Use past budget and expenditure and adjust accordingly
·
Categorise and prioritise the various types of expenditure :
education fund, essential needs, insurance, tithes etc
·
Budgeting
Guarding the psychology of spending for budgeting
·
(Pure) Justification for spending
·
Deliberate planning
·
Avoid complacency
·
Avoid temptation/addiction : social media; eCommerce; window
shopping
·
Letting go of less essential possessions to cash out to mitigate
passive income streams (cars, shares etc)
·
Be flexible
·
Expect the unexpected (illness, emergency needs, job, economic
downturn, pandemics)
·
Creative sources of income
9. Health care is costly. How can we be better prepared
realistically from both physical and financial aspects?
Health
·
Eldershield, Medishield (Enhanced)
·
Lasting Power Attorney/Advanced Medical Directive
Prevention
·
Natural, Self-sustaining food sources
·
Suitable Exercises : right gears, for right age type, duration,
warm up
·
Eye care : sunglasses, computer usage, cataract scan
·
Healthcare : yearly comprehensive health check
·
Correct body posture : use ergonomically design products
10. Emergency funds are critical. What kind of emergency
spendings do you foresee? What avenues have you put in place to
cater for them?
Emergency Funds
·
Short Term
·
Long Term (job loss period – 6-12-24 mths?)
Emergency costs
·
Healthcare
·
Economy : job loss
·
Pandemic
·
Home items and repair
Avenue
·
Multiple income streams
·
Insurance
·
Savings-budgeting-cash flow management
·
Common pooled fund
Increase Income – Reduce Cost – Mitigate Risks
Remark :
Potential topics identified for Future Sessions are denoted with *.
*Income :
How to generate passive income with more controllable revenue
*Cost cutting :
What are some of our large cost items? How can we trim costs?
*Risk Mitigation :
How can we mitigate financial risks in investments, business etc?
*Retirement funds : How to build a healthy retirement nest?
Please feel free to suggest.
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