TR EMERITUS

Singapore’s core inflation rate has been around 5.5% in recent months, close to the highest in the last 14 years. MAS predicted that core inflation would remain around 5% through the first quarter of 2023.

In addition, it indicated that core inflation would be 3.5% to 4.5% in the rest of 2023 and that overall inflation would be 5.5% to 6.5%. Furthermore, the government predicted that GDP growth would slow to between 0.5% to 2.5% this year, down from 3.6% in 2022.

In February of this year, Singapore lifted all COVID-19 restrictions in anticipation of a return to pre-pandemic levels in the tourism industry by 2024. Singaporeans are still waiting to see any benefits as far as rising inflation rates globally are concerned. In the meantime, individuals can take certain steps to protect themselves from bearing the full brunt of inflation.

Here are some steps to implement to cushion yourself against high inflation.

1. Keep an eye on your spending and savings

When costs rise, sticking to a set budget might be difficult. It is essential to keep tabs on your expenditures. Consequently, you can cut some expenses or look for less expensive options online – limit your online purchases and always watch your online gaming such as at Everygame Poker.

Additionally, make an effort to boost your savings. The greater your savings, the larger your savings cushion will be. Remember that the healthcare industry is not immune to the effects of inflation, yet inflation makes it difficult to deal with a financial emergency like a medical one. Fortunately, you can rely on your savings to bail you out.

2. Get rid of unnecessary expenses

Consider your regular weekly and monthly expenses and see if you can reduce any, as mentioned in the previous point. Do you pay for a monthly service you don’t use, like a video streaming or music subscription, a beauty box, or a gym membership you never use?

Do you have a maid or a yard service that you hire to help you out? Until the price of these services drops, you may want to consider performing them on your own. Bring lunch from home rather than buying one if you have a job outside the house. Saving a little bit of money here and there might add up to a significant sum in the long run.

3. Put your money into high-yield investments

Equity mutual funds, stocks, and other high-yield investments can sometimes provide returns higher than inflation. These may be useful in protecting your purchasing power from inflation. However, remember that the majority of these investments are risky.

Consequently, before making a choice, it is crucial to determine how much risk you are willing to take. Investing in high-yield investments over the long term can help you reduce risk. A diversified portfolio comprising both high-risk and low-risk options helps to strike a good balance between taking on too much risk and earning too little while keeping up with inflation.

4. Lower your energy costs at home

The costs of utilities like electricity, water, and heating or cooling can quickly add up. You can cut your energy bill by as much as a quarter by making simple adjustments to your household’s energy habits.

You can do things like;

• Fixing drafty doors and windows.
• Adjusting the temperature in the summer and winter.
• Switching to LED light bulbs instead of incandescent ones.
• Buying energy-efficient appliances
• Taking shorter showers.
• Washing clothes in cold water.
• Repairing dripping faucets and ducts.

5. Understand the forces driving different assets

Cyclical stocks in the banking, manufacturing, and industrial sectors are highly attractive among foreign equities and commodities.

Refrain from letting past correlations fool you; learn what influences various investments. There may be a negative correlation between Treasuries and stocks, but both fall in value as inflation rises.

6. Continue putting money away for the future

Although it is more challenging than ever to make ends meet in the current economic environment, it is still crucial to put money aside for your future so that you can invest in yourself. Experts recommend keeping three to six months’ worth of expenses in an emergency fund in case of things like job loss, illness, or expensive home repairs.

Create a rainy-day fund immediately if you haven’t already done so. Your savings will grow substantially over time, even if you can only put away a tidy sum each month.

So, what can the citizens of Singapore anticipate in the near future?

Have you recently gone grocery shopping expecting to spend your regular amount, only to find that you had to spend more than usual? That’s inflation in a nutshell right there.

While you might be having a tough time keeping up with the rising expense of living, remember that you’re not isolated. Additionally, by putting in extra effort, you’ll be making sure that you don’t feel as much of a pinch.

You can always visit the government website to check the current interest rates and also keep up with how strong the Singapore dollar is. Ultimately, don’t let speculations of a recession instill fear or cause you to resort to survival mode tactics. As long as you spend your money intentionally, your dollar will do more for you, even in the current state of affairs.

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