Updated: Jul 22, 2018
Dubbed the most expensive place to live in for the 5th year running, there is little doubt that being broke in Singapore sucks.
No, we are not simply referring to how everything here is expensive, or how government aid is only made available to you when you have nothing left in your bank account and is well, desperate.
The worst thing about running out of money is the fact that you tend to make bad decisions that will potentially aggravate matters for you many years down the road. Following are some mistakes that you should refrain from making, even when the going gets tough.
Not Making Plans For Your Health
When you are struggling to make ends meet, seeing a doctor will be the last thing on your mind, unless you absolutely have to. If your work benefits does not include medical compensation, it is understandable that you prefer to self medicate, unless it was a matter of life or death. Let’s face it, anything that is not an emergency qualifies as minor when you are running on a tight budget.
However, that said, in the event that you get hospitalised, the medical costs may add up to a rather significant amount and if you avoided getting insurance previously just to save cost, you might face difficulty paying off the bills. While you can save on the minor things, do not scrimp on insurance as you never know what will happen to you in the future.
Though you can rely on your MediSave to pay for it, chances are it might not be enough, depending on the treatments you are getting. While our robust healthcare system has various subsidies or schemes to help make the payment of the medical bill more affordable, you should still consider other options such as private medical insurance.
Not Willing to Make A Calculated Risk
No matter how little you earn, if you can save, you can invest. Speak to a financial advisor to find out how else you can better grow your wealth, even if it is just a small amount, everyone got to start somewhere. It is better to start small than to not start at all, thanks to the magic of compound interest. Consult your financial advisor, inform them your comfort/risk level and let them propose a solution for you. Saving and investing is not as difficult as you think it is.
It is important that you avoid making these mistakes even when life is a struggle. When the going gets tough, the tough gets going.