Saving for raining days

It is wise to restructure our money and investment during this financial crisis period.


We have gathered some idea from different advices and outline as follows:


First we should set up a monthly as well as yearly budget and map out our planned expenses on a month by month basis. We can then confidently start to plan putting fund away into saving.

Income and expense budget become important during this crisis time. You should monitor every month on your income as well as expense so that you are sure of your bottom line that no deficit would appear in your budget. Beside, you are able to cut expense on those unnecessary items through the budget.

For younger people, you should take a long term view and be active in deciding how your saving is invested. You may put 60% of your saving in term deposits and another 40% into shares or property. When the economy is good, you may change your plan to invest more in shares or property and lesser in cash.

For investing in shares, you have to be patience in waiting for the good time to buying the shares (you may not be smart enough to buy it at the bottom but at least not far away from the bottom) and leave it for long term appreciation. You may apply "Dollars Cost Averaging" method (you may refer to our previous post on this method) to buy share in order to average the cost of shares purchased. Dividend yield is also one of the consideration.

For property investment, the capital commitment is great. So you may have to draw out another plan to project your income in order to have enough fund to service the mortgage loan. The plan should be conservative to project your income either from your salary, the rental income or other sources of income.