Comments on Singapore Inflation News November 2021
Singapore’s overall inflation rises to 3.2% year-on-year in October 2021.
This news has been quite startling for many of us. Singapore has not seen a 3+% year-on-year increase in living costs in almost a decade. Yet, a long term study of most developed countries tells us that such occurrences are predictable and expected.
In Singapore, two big drivers for increased costs now are higher energy and housing prices. Yes, the government is doing what it can to stabilise the situation but we must do our part in protecting our assets, our finances from losing purchasing power.
What can we do?
Spend wisely: Track your daily expenses and have a budget for every month. Avoid impulse and unnecessary purchases.
Make sure you’re adequately protected: The last thing we want in times of high costs are sudden large expenses that can derail the best of financial plans. It is a good idea to get a thorough review of your insurance portfolio to look for any gaps, leaks and wastes which can be plugged immediately.
Invest your idle monies: Know your key wealth numbers, do a proper self analysis, and create a robust investment plan of action. Asset classes like well-chosen equities, unit trusts, and some bonds do a marvellous job of beating inflation, and giving us handsome real returns.
Talk to me if you wish to know more about what you can do better in your unique circumstances.