Worst Times may be Looming: How to Plan, Prepare, and Protect Yourself
- Algyn Teo
- 2 days ago
- 5 min read
Let's face it, things in Singapore have never been more expensive and no sign is more obvious than the price of 1 plate of chicken rice. Singapore Retail Prices: Chicken Rice (Per Plate) | Economic Indicators | CEIC
And it's looking like things are going to get a whole worse with some major countries on the brink. The signs are everywhere, growth is slowing, household bills are rising, and economists are warning that there is a chance that Singapore could slip into a technical recession in the coming months.
Links:
Government leaders have reassured citizens that help is on the way, with subsidies and temporary relief measures to ease the pain. But let’s be honest: while these help in the short term, most families know deep down that the next downturn will test our financial resilience like never before.
So the real question is: how can you prepare now, before things get worse? This guide is not about waiting for relief or buying toto and hoping for the best. It’s about taking some simple, actionable steps soon to protect yourself, your family, and your finances, in case the sky falls on everyone.
1. Cut Unnecessary Fixed Costs First
When recessions hit, the biggest danger is not food prices or one-off splurges, it’s your fixed costs. Rent, utilities, insurance, and car loans can drain you month after month.
Housing: If you rent, consider negotiating with your landlord early or exploring more affordable units. If you own, review your mortgage terms, some banks allow refinancing with lower rates or longer tenures to ease cash flow.
Utilities & meaningless subscriptions: Track every recurring bill. Cancel streaming services you barely use, downgrade mobile plans, and cut unnecessary memberships. Small changes add up quickly when income is tight.
2. Try to Build a Cash Buffer
A recession often means retrenchments, delayed bonuses, or pay cuts. That makes cash flow king. Aim to keep at least six months of expenses in liquid savings, not tied up in stocks or risky assets.
If you don’t have that yet, start small. Divert even 5–10% of your monthly salary into a separate account that you will never, ever, ever, never touch, no matter what. Think of it as your personal “emergency shield".
3. Diversify Income Streams
One salary is no longer enough insurance. The gig economy has made side hustles more accessible than ever.
Freelance work (copywriting, design, tutoring, delivery driving).
Online reselling (Shopee, Carousell, eBay).
Passive income options like dividend stocks or REITs (only if you can afford to stay invested long-term).
The point isn’t to get rich overnight, it’s to have multiple small streams that can add up and give you security if your main income disappears. Start thinking NOW about what you can actually do, and plan ahead realistically.
4. Protect Against Inflation
Food and essentials are unlikely to get cheaper even if the economy slows. That means you’ll need to shop smarter and across borders if you need to.
Explore supermarkets in Johor Bahru or discount chains in Singapore.
Buy in bulk for non-perishables when promotions run.
Switch from branded goods to house brands, they are often produced in the same factories.
The mindset shift is simply this: don’t pay for “labels,” pay for utility.
5. Strengthen Your Skills
The recession will expose weak links in the job market. Companies will cut staff they see as replaceable, and this is happening already. If you haven’t upgraded your skills recently, now is the time.
Look at digital tools in your industry such as AI, data analytics, automation.
Take low-cost online certifications (Coursera, LinkedIn Learning).
Expand soft skills like communication and leadership, which are harder to automate.
When the job market shrinks, those who adapt quickest stay employable.
Links:
6. Plan for Mental Resilience
Financial stress can break households as much as empty wallets. Set routines that help maintain balance: daily exercise, home-cooked meals, and honest conversations about money with your family.
You should learn to recognize early signs of burnout or depression, because ignoring them will only make coping harder and lead to unnecessary tensions within your family.
7. Use Malaysia as a Safety Valve - the most Important Tip
For Singaporeans, one unique advantage is right across the Causeway. Johor Bahru offers cheaper groceries, dining, and lifestyle options.
Even weekend trips to shop and stock up can help stretch your dollar significantly. With tools like digital wallets like Touch N Go and cross-border payment apps like Wise, you can spend easily without carrying stacks of cash or getting unfavorable rates at the moneychangers.
JB won’t solve all your problems, but it can surely give some families breathing space during a financial squeeze.
Final Word
While recessions are part of the cycle, and they do happen regularly, you have to realize that it's not the end of the world. It's true that you cannot control when or how bad the next one gets, if it comes, but you can control your own readiness and how you can deal with it.
Lowering your fixed costs, building cash buffers, diversifying income, and leveraging cross-border opportunities can help greatly. Most importantly, try to keep your mindset focused on solutions, not fear.
When the economy finally turns, those who prepared will not only survive, they’ll be in the best position to thrive. Good luck.
A Simple Survival Checklist for You
1. Cut Fixed Costs First
Negotiate rent / refinance mortgage
Cancel unused subscriptions
Downgrade mobile & utility plans
2. Build a Cash Buffer
Target 6 months’ expenses in savings
Start with 5–10% of salary each month
3. Diversify Income Streams
Freelance gigs (tutoring, design, delivery) or anything else you're good at
Online reselling (Carousell, Shopee)
Long-term dividend stocks or REITs (if you can afford it)
4. Protect Against Inflation
Shop in JB or discount chains
Buy in bulk during promos
Switch to house brands
5. Strengthen Your Skills
Learn AI, digital tools, data analytics
Take affordable online certifications
Build leadership & communication skills
6. Plan for Mental Resilience
Exercise & cook at home
Open family discussions about money
Watch out for stress & burnout signs
7. Use JB as Your Safety Valve
Cheaper groceries, meals & essentials
Stock up during weekend trips
Use digital wallets for hassle-free spending (Wise, Touch N Go)
Comments