Personal Finance
Surviving through lean times – Part 1
By Bully The Bear  •  November 9, 2008
By: La Papillion Possibly facing my first recession since I started work 5-6 yrs ago, I think it's a good time to figure out how to tide over this rough period. Fail to plan, plan to fail, they say. I think I need to think about 2 aspects of coping with the possible recession - How to save more and how to cope with it psychologically. But for this post, I'll just focus more on the savings part. Maybe more on the psychology part at a more opportune time. How I'm going to save more The golden rule applies : Savings = Income - Expenses To raise savings, I need to increase my income and decrease my expenses. As I've not been through a recession since I've started working, I do not yet know if my job is recession proof. Well, I do hope it is! What I intend to do is to market myself to the upper middle to upper class segment, for I deem them to be able to ride it out better than the average Singaporeans. In fact, I even plan to increase my rates. The good thing about my job is that I do not have to rely on any company, hence during recessionary times, I do not have to worry about being retrenched or suffer a pay cut. I believe that's a big relief factor for me, especially if I intend to take on more debts in the near term for housing and such. I guess it's a different mentality for me because for my job, security is never taken for granted. In fact, it's never secure. I have to fight my way to reach my previous pay every year. Haha, in a way, I'm having a recession every Nov to Jan period where I have to experience pay cut and no work :) To prevent credit crisis in my job (where people are unable to pay), I think my usual diversification strategy works. I take in around 30 streams of income, so if one fails, it will not hit me too hard. I work on a credit basis - meaning that I provide service and give credit for around a month before I get paid. Read more..
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By Bully The Bear
La papillion is french for butterfly. This blog chronicles my journey from an amateur in the stock market to where I am today. Have I turned into a beautiful butterfly? I don't know, but I think my metamorphosis is still on-going now :)
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