Budget 2009

Budget 2009

No, I am not referring to the one for Singapore but more for myself.

In the face of this worsening global financial crisis, I am relieved to assert that there is no need for me to dip into my reserves. Furthermore, my job is recession proof and it is most unlikely that I will ever receive a pay cut in the near future.

Does that mean there is no cause for concern? My answer is a big, flat no. Though employed, it is not very comforting to know that I am seriously underpaid. In addition, transportation costs constitute a large financial burden for me. Even the price of hawker food has been rising despite the fall in fuel costs.

Even so, there are several measures which can be taken to minimize expenditure:

1) Stay in from Monday to Friday

Reduction in transportation costs from $60 to $12

2) Eat cookhouse food

Reduction in food expenses from $180 to $0

3) Outings

Reduction from $80 to $40

However, I cannot expect everyday to be the same and thus there will be some allowance for unexpected events, an amount of $50 will be set aside for such purposes. Any remaining amount will be spent on education through books and seminars.

Net expenditure per month: $52 - $102

The goal here is to contribute 90% of monthly salary into savings as compared to the current government scheme of approximately 20%. The only expenditure will be made on items of

1) absolute necessity, and

2) assets which will appreciate or generate passive income, namely investments in New York Stock Exchange (NYSE) or Singapore Exchange (SGX)