Part 6/8:
Ensure CPF (Central Provident Fund) balances have sufficient buffers—ideally covering at least one year of mortgage payments—if utilizing CPF for housing costs.
If cash flow is tight, explore options like converting insurance premiums to monthly payments to ease financial pressure.
Managing Retrenchment Benefits and Windfall Funds
When retrenchment benefits are received, it’s advisable to keep the payout untouched until emotional stability is restored. Once stabilized, funds can be allocated prudently:
Keep savings in low-risk accounts or fixed deposits for security.
Use surplus funds for investments or paying down debts.
If a new job is secured, consider investing the retrenchment payout for future growth or even treating oneself occasionally.