BT Money Hacks: Retrenchment survival guide financial tips
Experiencing a layoff can be daunting, especially if you’re not financially prepared. While it’s undoubtedly stressful, there are actionable steps you can take to navigate this challenging period.
In the latest episode of Money Hacks, a podcast series by the Business Times, correspondent Howie Lim explores key financial tips for managing your finances post-retrenchment.
Expert guests Daphne Tan, head of business development at CMC Markets Singapore and Zac Ng, senior financial services director at PhillipCapital, delve into the critical aspects of handling personal finances during such times.
Understanding the drivers behind retrenchment
Tan explains that the current wave of retrenchments stems from business reorganisations, cost reductions and aligning with market realities. Whether it’s external demand weakening or companies adjusting their strategies - understanding these factors can provide valuable insight into the job market’s future.
Building an emergency fund is one of the most crucial steps in financial preparedness. Ng discusses the importance of having an emergency fund tailored to individual circumstances - whether it’s 3-6 months for young professionals or up to 12 months for those with more financial commitments. This segment highlights why an emergency fund is a must-have, especially during uncertain times.
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Long-term financial goals vs immediate needs
A significant portion of the discussion revolves around balancing long-term financial goals with short-term liquidity needs. Ng and Tan provide expert advice on maintaining investments and insurance policies even when retrenched, stressing the importance of not making hasty decisions that could impact one’s long-term financial health.
They also advocate for proactive financial planning with both experts agreeing that effective financial planning should start long before potential retrenchment. Through disciplined planning and regular portfolio reviews every 3-6 months, individuals can better prepare for unexpected financial setbacks. Ng talks about the ‘three-bucket’ approach which you can learn more about in the podcast.
Balance is key
Tan and Ng can provide listeners with nuanced perspectives and practical advice tailored to various financial situations. Their experience and insights into market trends, financial planning and investment strategies provide food for thought and a clear path to protecting your finances in the event of this unwanted but alarmingly new normal for professionals.
From understanding retrenchment drivers to creating an emergency fund and balancing long-term and short-term financial needs, listen now to the latest episode of Money Hacks.
For feedback or podcast ideas, you can reach out at btpodcasts@sph.com.sg. Stay informed and stay prepared!
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Daphne Tan, head of business development CMC Markets Singapore and Zac Ng, senior director of financial services, PhillipCapital
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice.
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