financial problems Archives

Everyone experiences a certain degree of money woes. The differences depend on how we deal with each financial issue. On that note, here are just three of the most common ones that we may all face at some points in our lives.

#1: ADJUSTING TO THE POSTNATAL BUDGET

Congratulations to you and your spouse! You just added life to the thriving population of Singapore. The next challenges at hand are the costs that come with it. Raising children, as expensive as it is, causes multiple changes to your household budget. New categories include medical costs, newborn clothes, and insurance contributions.

The significant cost of delivering the baby (about S$10,000) is just the beginning! Tackle each day with ease by knowing how much you will be spending in the next couple of months. You need to repeatedly feed, clothe, and nurture your children for at least 21 years. Preparing a financial checklist will help you fulfill your expected costs.

#2: EARNING AN INSUFFICIENT SALARY

Whether you want to believe it or not, there is a particular cohort that is at risk of earning insufficient salary. This is none other than the elderly working-class women. The 2014 Labour Force Survey highlighted that more than 7 in 10 participants (i.e., 100,000 Singaporean women aged 60 and above) made less than S$2,000 per month.

Lower earnings adversely affects one’s retirement adequacy as the country operates on the salary-based pension system. These seniors are still working because they need the money and they did not have enough money saved.

Image Credits: pixabay.com

There are two ways to deal with this financial situation. First, you may negotiate a pay raise. If you do not ask then you will not get it. Employers know that they play a part in ensuring that older workers return to the workforce with decent wages.

Secondly, you may get another job on the side. With our access to modern tools, you can make extra money by creating an online business. Free websites such as Carousell and Tictail enables you to showcase your products.

#3: RISING ABOVE UNEMPLOYMENT

Unemployment is a worldwide phenomenon. The economy continues to narrow down jobs at an alarming rate. This means that you need to get in line with about a hundred of job seekers for the same post. A good place to start making connections is LinkedIn (i.e., a professional networking site). Moreover, you may ask your family and friends if they can recommend you to work for their companies. Do not be shy!

Absorb the words of Nancy Collamer, creator of Layoffsurvivalguide.com.

“You need to figure out what it is that you want to do and are most qualified to do, then identify employers and companies where there appears to be some level of growth or opportunity and identify ways to network your way into the company.”

Image Credits: pixabay.com

Sources: 1, 2, & 3

It is alright to help your relative out of a one-time financial jam. However, if this person relies on you on a regular basis, his or her actions are indicative of financial abuse. Stand your ground by setting clear boundaries.

ACCEPT YOUR EMOTIONS

Honesty plays a crucial part in establishing financial boundaries. Begin by identifying the family members who frequently ask you for money. Examine how you really feel about their requests. There are several emotions that you can experience such as frustration and guilt. These emotions can overshadow your judgment of the situation.

Image Credits: pixabay.com

Regardless of what happened in the past, it is time to make a stand for the future of your finances. Do so by addressing your own negative and positive emotions first.

CONVEY YOUR FINANCIAL PHILOSOPHY

When understanding your financial philosophy, include your personality and lifestyle. Communicate this said philosophy when the dependent relative borrows money. Are you a person who values helping others in ways that do not involve money? As long as you bring your relatives back on their feet, I respect your decision.

Discussing your monetary views is uncomfortable. But, it is something that you must work on. You may take the subtle route by saying: “I wish I could help, but my finances are not allowing me to do that at the moment.” To take the direct route, say: “No! I do not believe in wasting my hard-earned money on that.”

LEARN TO BE A FAIR NEGOTIATOR

Let me send a wake-up call to you! Avoid feeling pressured to signing a contract or loaning cash just because the other party is your relative. Whether there are two or more people involved in the decision, negotiating is important if all the parties are to succeed.

Highlight what you are willing and not willing to do with your finances. While these people may have good intentions, you need to be fair to yourself and your finances.

PUT EVERYTHING IN WRITING

Cultivate a habit of having your financial agreements in writing. Protect yourself against legal issues by getting your deals, offers, and other financial agreements in writing. People who respect you and your financial boundaries will not have a problem with this.

Image Credits: pixabay.com

When family members are involved, money is usually tangled with issues. It is up to you to deal with these issues by setting clear boundaries. Feel free to share the positive and negative ways that money has been used in your family.

Sources: 1 & 2

Overcoming These 3 Common Money Issues

Setting Financial Boundaries With Dependent Relatives

Search the site