Singapore’s Ministry of Trade and Industry has reported a weaker GDP growth rate in 2023. Aside from the aftereffects of the COVID-19 pandemic, the nation is also feeling the effects of the Russia-Ukraine war and rising inflation. The government has implemented measures to support the economy. This includes a $5.6 billion support package.
Faced with these global economic uncertainties, it is crucial to come up with healthy coping strategies. Financial mastery is one of the best practical first steps in enhancing your chances of surviving and thriving despite these turbulent times. This article will help you explore ways you can navigate these challenges with flexibility, adaptability, and resilience.
First step: Making sense of the status quo
Now that we are all knee-deep in the economic troubles brought about by wars, political upheavals, climate change concerns, rising global temperatures, and shocking cost of living, the first thing to do is to find a safe space to reflect on what is happening around us. Make sure you are getting your information from reliable and reputable sources. Keep track of financial and economic trends. Reading the news, and not just scrolling endlessly on social media, would help you gather information to make well-informed and wise decisions.
You can use this information when deciding on what to invest in, on whether you need to shift careers or you need another job to support your financial goals. Take the time to regularly evaluate your financial situation. Are you meeting your savings and investment goals? Are you relying on instant money lenders to put food on your table after using up all your income to pay the bills? Consider looking for a financial advisor who can guide you and help you align your goals with the current economic climate.
Second step: Be on top of your finances
Track down your monthly expenses using easy-to-use mobile applications or using the pen-and-paper approach. It’s important to know where every cent you make goes. Identify where you can cut back without sacrificing essential needs, mental sanity, and happiness.
By knowing your financial behavior, you can create a responsive plan to maintain financial stability even in unexpected situations. Once you understand that you need to rely on yourself to continue to survive in increasingly trying times, you will be motivated to set aside money for an emergency fund. You can also try to redirect any surplus towards building an emergency fund, providing a financial safety net that can tide you over in times of crisis. It’d also help to share these simple steps with friends – because financial resilience is a journey best taken together.
If you have debts, start prioritizing the payment of high-interest debts first. This will help you free up funds you can use for savings and investments. However, be careful in investing your money. Make sure to research and learn about the financial products you are planning to invest in. It should match your risk tolerance and your available funds. Keep in mind that the market is volatile.
Third step: Future-proof your career
Singapore’s job market has reached an unprecedented growth of 2.9% above pre-pandemic levels. While this is good news, the current global state of affairs can easily result in drastic changes in the job market. The only way to prepare for uncertainty is to improve one’s skills and acquire a new set of skills.
Start with identifying your interests and passions. Usually, you are good at things you enjoy. Do you have a hobby that you can turn into a small business? Perhaps you enjoy knitting and other arts and crafts. Or maybe you’re good at writing or photography. It does not have to be complicated. In fact, the key to looking for additional income streams is to discover things you are good at and genuinely enjoy doing.
Another way to future-proof your career is through continuous learning. This will help you keep your skill level cutting edge and set you apart from your peers. Look for free online courses. Be open to learning new things. Your interest in learning a new language can be the start of a freelance career in translation. Shift your perspective by treating challenges as opportunities and you will be amazed at how this can affect your personal happiness.
Fourth Step: Learn healthy stress management
It’s easy to get overwhelmed with all the negative things happening all around us. Sometimes, watching the news can be stressful in itself. If you need to take a break from watching the news or using social media, do not hesitate to do so. A few days away from negativity can do wonders for your mental health. You will come back feeling refreshed and ready to face new challenges.
You might also want to consider simple exercises to cope with stress. You do not need to splurge online and impulsively buy things just to relax. Running and yoga are easy activities you can try. Practice mindfulness and journaling to address anxious thoughts about the future.
Conclusion
We live in stressful times. That’s why it’s important to be kind to yourself. Take the time to step back and reflect on what you are doing with your life. Are you simply reacting to things as they happen or are you proactively looking for ways that will help you survive and thrive even during trying times?
Empower yourself by shifting your mindset from a state of anxiety and worries to a state of curiosity and openness to change. After all, the only constant thing in life is change. Might as well practice riding out the waves of this ongoing economic crisis, discover your unique gifts and talents, and find ways on how you can financially do better through them.
