Asked on 09 Jun 2020
Any advice on how self-employed people can get through months with lower income yet the same fraction going into CPF
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.
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.
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
Lower your income tax
Protect you from creditors
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!
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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