Will you be poorer in 2011?

7
Singapore's Trade and Industry Ministry forecasts:
- 2011 economic growth: 4% to 6%
- inflation forecast: 3% to 4%

[Source: Growth of 4-6% for 2011 with economic declines reversed]

Will you be getting at least a 4% pay rise?
Will your income from dividends, rental and other sources increase by 4%?
Will the value of your property and other investments increase by 4%?
If the answers are "No", you'll find yourself poorer at the end of 2011 than in 2010 because it would cost 3-4% more to buy the same thing.

In addition to increasing your income and value of your investments, you may want to try consuming less of the products and services that experience greater price hikes (e.g. walking to the market instead of driving to save petrol), switching to lower-priced alternatives (e.g. use mid-priced facial cleansers instead of expensive ones) or self-fulfilment (e.g. instead of paying the tailor to sew on a loose button, do it yourself).

7 comments:

Soft Release said...

I'll be RICHER.

Then I'll give you a treat of your choice.

David said...

Yu-Kym,

This side of the Pacific is still in recovery mode. Which is being compromised by the amatuer in the White House.

My raise was 1.2%, our home value is less than purchase price.

The hopeful note is our long term savings, which has returned more than 5% YTD.

Can you review how your 2011 is going to look like?

David

Without the aid of the divine, man cannot walk even an inch.

-- Chinese Proverb

Yu-Kym said...

Soft release, it's very nice of you to say that :)

David, the rising cost of housing is a key concern here. But for people (like my sister) who already own a place, the rising prices is good news. When I have a job, my income will be higher than last year. If I don't have a job, at least my expenditure will be much lower now because I don't pay rent and I get to cook my own food (cheaper than eating out). As for investments, I'm counting on stocks that pay high-dividends to keep pace with inflation.

Anonymous said...

Wahhh Yu-Kym,

you must be oh so lucky to have such a generous sister. You dont have to pay rent and you devote all your resources to improving your personal lot, cooking your own food, investing for your future etc

But I am surprised at you. I would think that you are not the blood sucking kind and ride on other ppl for free..even if the person is your sister. Wow.. you really got me awake about you! lol

silli cat

Yu-Kym said...

I'm very lucky to have a sister who is generous with me. We are generous with each other in many ways. It won't be appropriate for me to share my contribution here.

Anonymous said...

I think I can understand Yu-Kym why you may not want to share. Some things are best kept private if you so wish.

But I'm glad that you are generous with each other. That is very important. cheers to you both.

silli cat

Anonymous said...

Wahhh what a good budget report! Everyone will have more money in their pockets this year than ever before especially the less well off! To the thousands of dollars for the poorer folks.

For me, unless I buy a new car or a new house big budget items, all that my santa claus government gives me this year will significantly reduce the impact of inflation on my income.

Vote PAP! I am proud to be a silliporean!

silli cat