I am a 30 year old self-employed and I haven't been earning much the past 2 months. With CPF, I am afraid I have even lesser to spend on my monthly expenses. What should I do? - Seedly
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Anonymous

Asked on 09 Jun 2020

I am a 30 year old self-employed and I haven't been earning much the past 2 months. With CPF, I am afraid I have even lesser to spend on my monthly expenses. What should I do?

Any advice on how self-employed people can get through months with lower income yet the same fraction going into CPF

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Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 14 Jun 2020

The solution is simple, make more money. You may have to take on 2 jobs, 3 jobs if necessary, rent out your flat etc. I think in Singapore, if you are willing to work hard and to exercise care and wisdom in how you spend your money it is very possible to make a very decent living.

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ūüĎć
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Hi Anon,

I am a 30 year old self-employed too. It is challenging to give specific advice without knowing the details of your current situation, but here is a short answer:

Consider reviewing the priorities of your finances/expenses/goals in light of your new situation, and allocate your income to achieve your priorities accordingly.

Be on the lookout for other tools/options that may allow you to achieve your priorities more efficiently.

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Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered on 10 Jun 2020

I think its really hard for self-employed people to utilise CPF carefully, especially with the variability of your income.

The main benefits of Voluntary CPF contribution for self employed is that it helps to

  1. Lower your income tax

  2. Protect you from creditors

  3. Earn higher interest

All of these may not be helpful if you are facing income challenges.

Tough times don't last! hope you will be better off soon!

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Boon Peng
Boon Peng
Level 6. Master
Answered on 09 Jun 2020

Hello! You might want to take at a closer look of your expenditure. If possible, cut down on non essential expenses like netflix, spotify etc. At the same time, you might want to spend the extra hours upgrading your skillset, and hopefully this can translate to sales when the economy opens up.

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