Life Blessings That Can Turn Into Curses and Hurt Your Finances
When it comes to personal finances, sometimes, things cannot go the way you had planned because life is full of uncertainties. Life can be unpredictable at times, which makes it scary. When you think that at one moment your finances will be well planned and then all over sudden you are pushed to the edge.
Sometimes you can get lucky in life and you are blessed with that dream promotion you have been seeking at your workplace, win a car in a lottery and even start a family, among other blessings. These blessings can instead hurt your finances if you are not well prepared. These pleasant surprises come with a cost that needs one to be prepared financially, and if you are not, they can be disastrous to your life.
Winning a car in a promotion
In Singapore, owning a car is very expensive because of the costs involved in ownership that can go beyond the purchase price. Several lucky draws are regularly run in Singapore where part of the grand prizes awarded to winners are cars. Considering how costly it is to own a car, a Singaporean will see winning a car as a valuable prize and a blessing.
However, on the surface, it may appear like a good deal to win a free car, but in the end, it is going to cost you. The only cost that your luck has saved you is the purchase price of the car because maintaining, and ownership of a car in Singapore costs even more. For instance, if you win a car, you will be required to pay for insurance, road tax, season parking even before you get to drive it back home. Equally, you have to fuel the car, contend with ERP charges as well dealing with maintenance costs.
This means you have to spend on things that you had not planned for, and that will impact your finances. For instance, on average one needs to pay up to $61, 000 in ten years, which is like $500 a month. You will need to spare at least $500 each month and if you don’t have such kind of money to spare from your budget that may turn out to be disastrous. To avoid such a scenario, you should plan your finances well and before you take part in that promotion, ask yourself if you need a car.
Getting a job promotion
Everyone wants to advance their career, and when you get promoted at work, it should be a huge blessing. A promotion comes with goodies such as a nicer title, higher pay, and even more authority and autonomy.
However, this blessing comes with more responsibilities, and it means you have to be responsible for your subordinate’s work. A promotion means you have to work extra hours because along with dealing with your work but also check others’ work and motivate your team.
With more work, you may have to deal with issues like lack of sleep, health problems, and even your mental status may suffer. This will add a burden to you in terms of healthcare costs or even expenses for hobbies to stay away from work. Despite getting a pay raise when you are promoted, you are likely to be emotionally and financially drained. It is, therefore, better to play your finances early before even that promotion comes to avoid going into uncertain financial situations.
Living longer past your life expectancy
With advances in medical sciences, people are now living longer, and this is good news. People get to spend more time with their loved ones and enjoy what this life has to offer. However, living beyond your life, expectancy comes with a lot of challenges, especially if you have not planned your finances properly. A study by the Economist Intelligence Unit in Singapore indicates that seniors are likely to struggle to afford life owing to the rising costs of essentials, especially if they live for 100 years. According to the report, the average life expectancy in Singapore is around 83.1, and it’s moving towards 100, and most seniors have to contend with serious health conditions.
However, with financial preparations early in life, it should not be scary. Consistently investing in schemes like CPF LIFE and CareShield Life that generates lifelong payout will help avoid falling into a financial disaster as you age. It is therefore important to plan your finances early and factor in your retirement and the prospect that you may live longer than expected. Also living a healthy lifestyle and going for frequent check-ups to detect health conditions will maximize your healthy years as well as minimize chances of financial strain.
Expecting a baby
When you or your wife becomes pregnant, expecting a baby that is the most amazing news anyone will want. However, from the moment you realize that you are expecting a child, you start incurring costs like visits to the gynecologist, planning for delivery of the baby and planning for the needs of the child. This can take a toll on your finances if you are not prepared.
However, schemes like Baby Bonuses, NTUC’s Good Start Bundle Child Development Account Grant will help you prepare for the cost of raising the baby.
Winning the lottery
Some people who have won a lottery have ended up squandering what they win and go back to living on a paycheque. Winning a jackpot is an amazing thing, but then at times, this may find an individual off guard without the necessary skills and attitude to manage the money. It is important to note that budgeting, financial discipline, and investing can help secure your future.
You need money management skills even for that one in a lifetime jackpot you have won lest you soon find yourself in financial disaster because of mismanagement.