What are some simple changes I can make to my life now in case I lose my job?

Hi,

You'll want to start by understanding your expenditure patterns. Definitely there will be some required expenditures in life, for example, food, but there is a big difference between the $2 chicken rice at the MRT station, and the $5 chicken rice at an air conditioned food court. Ask yourself where you have been spending on food, and if you really have to go lean, could you ease into that transition now rather than later so that it won't come as a shock should you lose your job?

Once you understand your expenditure patterns, distinguish what is really needed, versus what is wanted. Cutting out wants will likely improve your cashflow tremendously, and then you'll want to ensure that you save the extra cash in a high interest savings account to maximise it. Don't stop until you have 12 months of expenses set aside; in these uncertain economic climate, it could easily take many months to secure another job.

If we really strip down to the essentials, it may be painful, but one could potentially survive on as little as $500/mth, comprising of $100 for transport, $30 for your phone bill, and the rest goes to food at around $12/day or $360/mth. ($2 breakfast, $5 lunch and $5 dinner). If you return home to eat dinner, you would spend even lesser. (I have not included insurance expense, which is also necessary, but depends on your own coverage)

Back in 08/09 I was surviving on $300+ a month, which consisted of no breakfast, $3-$5 lunch, office brewed coffee, dinner at home, and walking 2 km everyday to a bus stop to board the bus to shave a few cents off the transport fare (which wasn't a good idea after I found out that my soles wore out far faster and I had to spend money replacing them instead). On top of that I had some leeway for the occasional dinner outside if I was doing overtime. So it can be done.

While saving up your emergency funds, consider looking at side hustles to create a second stream of income. Tuition is a popular option, although in the light of COVID, it is probably not viable. Consider free lance jobs if you have a skill set that can be tapped on, for example, the ones listed by Jimmy are good ideas for a start.

In time to come, after you survive the storm, start to create passive income sources for yourself. Creating alternate sources of income that do not require you to actively work for will be the key. These can take the form of bond coupons, stock dividends, and even ad revenue if you have a youtube channel where you share content.

Good luck!

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Next, be prepared and find out ways that you can earn an income, e.g. part-time job.

Thereafter, do away with all non-essential expenditure, e.g. subscription services like Netflix.

At the same time, enforce absolute discipline upon your current net cash flow - save all and do not spend more than required.

Finally, conduct regular reviews to ensure your finances stay in shape.

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