Budgeting, saving, investing, and putting your money in the right places will put you on the road to wealth. Planning before spending your money is always a wise practise, and knowing exactly where your money goes gives you peace of mind. Good budgeting can also keep debts in check, like when you need to pay off a loan from a private money lender in Singapore.
But if your goal is 100% financial certainty, you may be hard pressed to achieve it. In fact, it is impossible and will only cause a lot of stress if you keep trying to get there. Why? Here are three factors to consider.
The economy constantly changes
If one thing is certain, it’s that the economy will always change. That applies to both the Singaporean economy and, on a larger scale, the world economy. While it’s possible to project where the economy is headed, it is impossible to predict those outcomes with perfect accuracy.
Industry trends, business outlook, and the value of money are always dynamic. Today, the economy may favour you, but next year, it may not. With that, you can never be 100% sure of what your financial situation will be.
You can never fully predict what will happen to your career
As businesses and industries change, so will your career. Take a look at what happened in 2023 – artificial intelligence grew to fame at an unprecedented pace. You have things like ChatGPT, Bard, and many others disrupting the entire technology industry.
The most striking effect of widespread AI use is job loss. Now, AI can be used to do the things people used to do, such as writing, drawing, and even programming. And AI can do these things for far cheaper than the cost of hiring people. Because of this, more and more companies chose to lay off team members and replace them with AI tools.
The advent of AI has sent shockwaves through the entire world. Millions of people lost their jobs in almost the blink of an eye.
Not to promote fearmongering, but this is the reality of the world today. Your career may not be around forever. You need to prepare in case you lose your main source of income because of industry changes beyond your control.
Financially challenging emergencies can happen at any time
These circumstances hit much closer to home than the economy and industry. Imagine what will happen if one of your parents begins to suffer from a debilitating medical condition like cancer. Surely the hospital bills and medications will add up to overwhelming amounts of money. This is money you may not have at the moment. Even if you do, it will set you back significantly.
Moreover, there is no way to know the exact date and time these emergencies will happen. Illness, injuries, and accidents can happen at any time, even when you least expect them to. For this reason, it pays to be prepared with an emergency fund just in case.
Conclusion
Reaching 100% certainty regarding your finances is an impossible task. There will always be things beyond your control that can affect you financially. What you can do, though, is to prepare for any possible event that will challenge your finances. This way, you will worry less and live life on better terms.
