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Almost half don't have enough savings for an emergency.

Wednesday, November 30, 2022

The Straits Times has an article titled "Close to half of Singaporeans don't have enough savings to tide through an emergency."

Although I know that there are people who do not believe in having an emergency fund and although I know that many do not have an emergency fund or a big enough emergency fund, this is still pretty mind boggling.

If the article is true, one in two Singaporeans are at risk of crashing hard financially in an emergency.

I know there are some "investment gurus" who tell people that there is no need for an emergency fund and that we can always borrow money from the banks.

I think these "gurus" are simply evil.

They shouldn't going around peddling such dangerous ideas which might work for them but not for ordinary people.

They should know that everyone's circumstances are different or maybe they know but they simply don't care.

Why do I say that?

Banks are fair weather friends.

Banks would lend money to people who already have money.

When we are really in distress and have nothing of value, try borrowing money from the banks and see what they say.

When we really need to borrow money, we are probably scrapping the bottom of the barrel.

There is most probably nothing left but despair which is worth nothing.

These "gurus" peddling such ideas could be financially well off and could easily borrow money from the banks (but I don't see why they would since they probably make so much money from selling their courses already.)

If their students are in distress and if no one is going to lend them money, will these "gurus" step in to help?

Seriously, no one cares about our money more than we do.

We genuinely care about our financial health or at least we should care.

No one else does.

What about AK?

Does AK care?

Today's weather is quite good hor?

Things might look OK now in Singapore but there is no way of knowing how long this will last.

Things could take a turn for the worse and it could happen quite quickly.

Don't be overly optimistic.

Having an emergency fund is not being overly pessimistic.

Having an emergency fund and an adequate one is being pragmatic.

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The Dreamzola Traveller said...

Well, I got a friend who always have less than 1k in his bank account. Spend as much as he earned, many liabilities----car loan, house loan, credit cards....Frankly speaking, I donno how he could live with all those dangerous bombs hanging around him.

Sandra said...

I can't agree more! I also believe the 6 months emergency buffer recommended by financial advisors may not be sufficient, taking into consideration changed times whereby one may take longer than 6 months to find a job...

AK71 said...


Only $1K left in my bank account and you will see me taking PR status in the hospital along Buangkok Green.

Just reading about your friend's situation gave me an anxiety attack! O_o

If we are not rich, don't act rich!

AK71 said...

Hi Sandra,

I also say.

Emergency fund to cover 6 months expenses where got enough?

Not even 6 months worth of salary but 6 months worth of expenses!

Financial advisors bochap.

They just follow textbook given to them can already.

How much should we have in our emergency fund?

Sandra said...


Kevin said...

Hi AK, evil gurus also include those who tell people to leverage up to buy dividend-paying shares and bitcoin

AK71 said...

Hi Kevin,

Alamak, you know what's worse than telling people to leverage up to buy dividend paying stocks?

Telling people to leverage up to buy businesses which are leveraged.

Leverage on leverage!

So exciting!

What's worse than that?

Telling people to leverage up to buy businesses promising high growth.

These businesses are burning cash and cannot even pay dividends!

You know what's worse than telling people to leverage up to buy Bitcoin?

Telling people to leverage up to buy Luna Terra and than stake with Hodlnaut, Genesis, BlockFi and FTX to earn unbelievably high returns.

So many sad stories.

Cry until no tears left.

Very tragic.

Aiyoh, so many examples evil gurus.

Doctor Evil's livelihood is at risk.

Very cham lor.

Even Doctor Evil gets disrupted by new technology!

That's the biggest tragedy!

No one cares more about our money than we do.

Don't ever borrow money to invest or speculate with.

Why take such risk with what we need for what we don't need?

Peace of mind for investors.

SN said...

Hi AK,

Do you advise placing majority of emergency savings in fixed deposits and/or SSB? as both can be easily withdrawn, so they are quite liquid.

With high interest rates now, both FD and SSB offer significantly higher interest than regular savings account.

Most FDs offered by banks allow for deposits to be withdrawn before maturity without a penalty, apart from forfeiting the FD interest, and paying the regular interest of 0.05% instead.

SSB can be withdrawn anytime as well but the funds will only be received at the end of the month, while FD withdrawals usually will be received within a few working days.

Unlike FD, SSB pays accrued interest and can be withdrawn in multiples of $500, while most FDs only allow for the entire deposit to be withdrawn. Also, SSB lasts for 10 years while most FDs are usually capped at 18 months. so will locking in the high interest rates now in SSB be more worthwhile than the short tenors for FDs?

SSB seems to be generally more attractive than FD, and as a result, most recent allocations have been capped at less than $15k each.

With the cap in the monthly SSB allocation, is it advisable to maximise the monthly SSB allocation, before placing any remaining cash in FD?

(e.g. plan to deposit $20k in SSB/FD this month. if SSB is capped at $12k for this month, place $12k in SSB and the remaining $8k in FD)

AK71 said...

Hi SN,

My reply to your comment became a blog:
Park emergency fund in fixed deposits or SSBs?

Gambatte! :)

AK71 said...

My investment program costs $5K and AK is like Xiaxue:

Bad AK! Bad AK! ;p

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