Amidst all the uncertainty Covid-19 has brought along, it’s hard to predict the state of our economy and the outcome of our consistent battle against it. These difficult times could very well continue into early 2021 and beyond. Hence, we should prepare ourselves financially, now more than ever.
Review Your Portfolio
It is a tough year for everyone. We are all experiencing changes we have never seen before. Mandatory working from home (if possible), shops closing down, retrenchments. Regardless of whether you are the lucky few who still has a job, it is pertinent that you evaluate your risk tolerance and rebalance your portfolio if needed because your needs might have changed given the current climate.
Trim Unnecessary Spending
Rewind back to last year, you might have been able to treat yourself to a nicer meal, or buy an overpriced cold brew coffee. Now, with more time on hand, we can finally set time aside for the things we said we'll do when we have the time, such as:
cancelling magazine subscriptions
changing mobile provider
changing electricity provider
cancelling club memberships
cooking instead of getting takeouts
selling used/new items you haven't touched in years
While you're at it, resist all the online shopping!
Note to self: Even if there's 10.10 or 11.11 sale, it doesn't mean you have to make a purchase!
Refinance Your Home Loan
The American Federal Reserve lowers interest rates when the economy goes bad, and this will in turn affect the Singapore Interbank Offered Rate (SIBOR). With interest rates being low now due to the effects of Covid-19 on the economy and bond markets, you should consider refinancing. A reduction in the interest of even 0.2% can translate into significant savings over the life of your loan.
Hope you have a clearer idea on how you can financially protect yourself amidst the current economic climate!
Feel free to use our Mortgage Calculator to compare the different loan packages offered by the banks at a glance!
Or, you could always find out more about our Mortgage Calculator here!