Many people have lost their jobs. In the US, in SG, probably many in other countries as well.
And yet, I do wonder... is life really so hard? That the loss of a job spells disaster?
I mean... I've always thought, just live a normal life, live within your means. Generally everything works out. Even if you lose your job. You're supposed to have savings and reserves.
I suppose the key word is planning.
Plan for the worst, expect the best.
Ok I know I've been pretty privileged. I did pretty well in my studies, got into Uni, landed a cushy job.
Yet I wonder, could someone else who did not start out with the same privileges as me, could this person live a pretty good life and also be secure during critical periods in their life?
I'm not talking about retiring early. I'm just thinking... is life really so hard? Such that when issues crop up, people have no choice but to get help or sink?
The thing is... with a household income of around $7k, I believe it is highly possible to live a pretty good life with kids. As long as the family has planned their finances properly.
Don't overextend their housing loan, buy an affordable HDB.
Don't go on expensive trips, or sacrifice many small trips and save for many years to go for a more expensive trip.
Don't buy a car. Unless you can afford it.
Pay off the housing loan as soon as possible.
Buy adequate insurance coverage.
SAVE MONTHLY!
All these seems so easy and so normal to me. And yet, so many people don't do that. Somehow, there are many people who don't have much ready cash on hand.
When they get their pay, they spend it quickly, they change phones regularly, buy the latest toys, small things here and there, and before the next payday, they have run out of money.
Sounds impossible? But it's happening all the time.
Even in the US, people are paid weekly or once per fortnight. Cos... they can't hold on to their cash. They just spend it. Also, tax is deducted from their paycheck. They get 70% of their pay every week, and only at the end of the year, when they file their taxes, then they get their tax rebates for the tax that they have overpaid. Cos when it's time to pay tax, most people don't have the money to pay, so the Government works with employers to deduct the tax and the employee gets paid the remaining.
This way of living where people don't hang on to money easily, also seems very common in SG and other parts of the world.
WHY?
Most (most, not all) people in SG have enough to eat, a place to stay, clothes and school.
But instead of saving for a rainy day, they spend.
I mean, IF someone is from a low income family, all the more they need to plan right? But yet they don't. Most of the time, they get comfortable where they are and don't strive to reach the next level of security.
Even a middle income family would easily be spending how much they earn, without saving for a rainy day. It's not rare to hear stories of middle income families, or so they thought, ending up in a bad situation when the parent loses their job, or falls ill. Resulting in a downward spiral of their situation until they end up struggling to make ends meet.
And even a high income family could be straddled in debt, housing debt, car debt, renovation debt, etc.
Such that a loss of job, or an critical illness in the family would be catastrophic.
In SG, I would think the question isn't "Can it be done?", but rather, "Do you want to do it?"
Remember, I'm not talking about early retirement. I'm just talking about overall financial security and living a fairly good life, even if this person works and spends fairly normally and retires at 60+. Which is what most people do.
Now... Of course there are MANY Singaporeans who are doing just that... Living a simple normal life.
Of course right? If not, then there would be many homeless on the streets.
The very fact that many people have a place to stay and food to eat, etc. Is indicative that most people are living pretty well day to day.
HOWEVER, the main problem comes when things happen. Like now, when many jobs are lost. Or when a family member falls ill and they don't have insurance coverage.
These things are highly preventable.
Being financially secure, isn't just about having enough money to spend during the good days. Being financially secure also means having the ability to tide through bad periods, or down times.
Living a fairly stable, financially secure life, with a comfortable retirement without having to rely on their kids... That's extremely achievable in Singapore.
Just work in a good enough job, NOT A DEAD END JOB. If the person can't get a good enough job, then, well, upgrade until they can. Like a receptionist earning $1,200... is hardly a job to get financial stability in the long run. Or a security guard. I mean, ok these are respectable jobs. I don't look down on them, someone's gotta do them. But really, these jobs aren't going to get this person to the next level in life. If they are looking to get at least a bit of security and stability, these just aren't the jobs for it.
Save hard, even if this person doesn't invest, they could buy a long term endowment plan, which probably gives them around 3% return over 25-30 years.
Get properly insured. Hospitalization care and/or other forms of life insurance.
Furthermore, if this person has a "good enough" job, their job will probably be able to take care of them medically AND many good companies don't fire so easily, depending on the type of work.
Get an affordable place to stay. Don't over extend the housing debt.
LIVE WITHIN THEIR MEANS!!!
The thing is, there are many people just "getting by" and not planning for the future, and yet... it's not that hard to do something about. It's really whether they want to or not.
Now before people start screaming, "Oh there are people in this situation, or that situation, etc..."
Yes I understand there are people stuck in situations where they start off on a bad foot. Parents are sick, or owing loan sharks money etc... Yes, there are people who are stuck.
BUT, there are people who AREN'T stuck. They just don't want to do anything about their situation, they are comfortable with their life, their dead end job, day to day, things are "OK", and during normal days, they don't make an effort to try to get ahead. Such that when it "rains", like now, and when people are losing their jobs, they aren't ready for the "storm".
The thing is... Living a fairly good life isn't really all that hard. It just takes some planning and doing.
<<PREVIOUS POST // NEXT POST>>
Did you like this post? If so, could you "blanjah" me 1/4 cup of my morning coffee pls.
You may also consider subscribing to receive the articles in your email, link in the column on the right.