Dear readers, I read a recent report that more young Singaporeans are incurring higher debts. Three reasons behind the higher debts as outlined in the report were:
- Borrowings when interest rates were lower
- Unemployment and hence need to borrow more
- Reduced savings and hence need to borrow more
I believe Singaporeans must prepare for the eventualities of financial uncertainties. Here are the three things that I recommend all Singaporeans to do right now.
First, continue to save if not save even more. Savings is really one of the themes of SG Stocks Savings as without Savings, there is no investments to begin with. Save so that in the eventuality of anything unforeseen to one’s livelihoods, there could be monies to tide over the challenging period.
Second, continue to upskill and learn. Learning and upskilling is something that the government readily and always talk about. And it is really essential for one to be equipped with more than one skill so that when one door closes, one door could open for the job candidate with a repertorie of skills.
Third, invest wisely. If recession is coming, it is inevitable that stocks markets will not do well. In recession, cash is liquidity and liquidity is King. It is not wise to have a large portion of one’s portfolio stuck during recession in losing investment positions. Some investors may consider to liquidate some of their portfolio now to prepare for the uncertain times ahead. For the more ambitious investors, a warchest could be prepared as a stand-by to invest at the most opportune times when markets fall.
The above are just three things that Singaporeans could do right now to prepare for any financial uncertainties Remember have a positive attitude and be Grateful (another of the themes here on SG Stocks Investing) always!