Wednesday 15 July 2020

Seeing my Cash Balance Build up - More People are Saving

Since the circuit breaker started in April till now, I have seen my cash balance build up faster than it has usually. With my main expenses on food and transport having a great reduction as we work from home and no dine-in, I managed to save a lot more.

So for June and July, I have purchased some stocks like OCBC, Tesla and a small portion of the STI ETF (ES3). Will have a more in-depth update in my July 2020 portfolio update coming month end.

I think for now, it is nice to see my cash balance slowly build up because previously my family was planning a trip in August to Japan and I knew that the trip will require a substantial amount from me. With the trip being shelved aside due to the situation, the amount that I put aside can now be saved up.  

This situation really brought about the awareness of saving for rainy days as many people realised how vulnerable their jobs are and that having an emergency fund is essential.

I saw this infographics poster from Straits Times showing that the pandemic has changed general spending habits and more are focused on different ways to save money as 53% actively researched for ways to save money. Information was gathered through a SingSaver survey.

33% are committed to building and expanding their emergency funds and 33% also created additional streams of income.

Read more: My 3 sources of income at 25 years old

Saving and being frugal is good but to be too frugal could give negative outcomes if you do not spend on quality items. To be so obsessed with saving can make you not make the right decisions for example, to save money, some might skip the doctor's visit or buy a replacement item at a cheaper price. These actions may save you some money in the short term but in the long term could make you spend more.

It is good that more people are more aware of their expenses and finances. With uncertainties ahead of us in the ever-changing world, having good saving habits can provide us with a peace of mind. Stay safe and well!

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