As the year comes to a close very soon, have you thought of what the financial crisis will bring about next year? Everyone keeps saying it’s not going to look bright next year and that we have not seen the worst that is yet to come. I’m sure you’ve also heard that we will start to feel the true effects of the global financial crisis sometime in the first quarter of next year.
So with all these warnings ahead, have you thought about your personal financial strategy for the years to come? Are you going to spend, save or invest?
While many heed the warnings and pledge to save for a difficult time ahead, some also hold opposite views that people should spend so that the economy holds up. And that is what the government is trying to do when they bring down the rate of contribution towards EPF from 11% to 8% from next year onwards. So, to save or to spend, it’s really your call based on your theory of how the economy can be sustained.
On the investment side, I believe many will still be going into the share market as the prices of blue chip counters chip away. They may not come down by very much, but it is still a savings in itself to buy low.
Personally, I will say that I am not going to spend extravagantly next year. Whatever I need, I will still spend. I will think a lot harder about big ticket items before whipping out that credit card. On my personal investments, I will still keep going at it, constantly monitoring the stock market for good bargains on good stocks. And for my future savings with the EPF, I’ve already submitted my form to say no thanks to lower contribution.
What are your plans for the year to come?
{ 5 comments… read them below or add one }
I think I will try to save up first. I still don’t have any emergency fund, you know. I put all my savings into shares.
So the first thing I want to do is to start that emergency fund, preferably 3 months my pay, and then invest the rest into shares. Acquire the blue chips!
Good idea to start saving up to 3 months pay as emergency fund. But then again with rising prices of things, maybe 6 months will be a safer bet for emergencies
6 months…too much ler…a bit hard =_=
Figuring out now what we are going to do with our finances is as important a decision as we will make not just for the coming year but for the coming decade. Preparing for the worst possible scenarios (if we’re not almost there already) is a good rule of thumb.
True it’s a bit hard, but not entirely impossible…but I do have a problem saving up to 6 months of pay myself. Haha. Easier said than done but still worth trying and trying…