In times of uncertainties, what can you do to recession-proof your finances?
With genAI and robots integrating into our lives, look to upscale and upgrade yourself, so that you don’t have to worry about being replaced or obsolete. As cliche as it is, you are your best investment.
Reduce your debts and pay off the high interest debts. Restructure and refinance your loans to lower interest, especially your mortgage loan.
With rising cost of living, relook into your expenses and savings ratio. Maintain your savings ratio and exercise prudence.
In times of uncertainties, it is important that you are adequately covered. Protect your finances against unexpected medical expenses, and ensure your income protection coverage adequately covers your current living expenses. Take stock of your hospital coverage, critical illness and death coverage. Also, ensure your liabilities are adequately covered as well.
History has shown us repeatedly that market will always recover. Timing in the market is the key to successful profitable investing. Create structured dollar cost averaging strategy to invest in the market systematically. Diversify your portfolio across sectors and countries to balance the downside risk. Filter out of the noise and trust the process. Profitable investing is boring.
It’s always good to take stock of your finances regardless of times. By being discipline about your money management, you are creating financial stability for yourself, which your future self will thank yourself today.
