A Personal Reflection on Covid-19

I recently read a couple of articles/posts here and here detailing how some high income earners have been badly hit by Covid-19 and the subsequent retrenchment/organisational restructuring. My well wishes goes out to those who were interviewed in the TODAY article as well as anyone who maybe facing the crunch now during this pandemic. 

It is unfortunate that the aviation and travel industry are so badly hit during a black swan event, such as Covid-19. Travel restrictions have really put a dent in demand with SIA even having more than 80% of its fleet in idle at one point of time. When the demand for one's skills/expertise is reduced, it is inevitable that the organisation/business will have to restructure in order to stay viable.

This situation has really put into perspective the importance of having an emergency fund and keeping expenses manageable. One of the pilots that TODAY interviewed was earning above $14,000 but was struggling to make ends meet when there was a company-wide pay cut to $6,000. To a middle-income earner like myself, I could not comprehend their struggles initially. However, it is always important to take on the lens of those affected. Imagine yourself earning that much, it is easy to feel that you can take on the world and whatever expenses you deem fit. One may start chasing status symbols like luxury cars and goods and you might want to experience the best there is to offer. The constant need to look good and appear like you are doing well will eventually take a toll on the individual and his/her resources.

The simple solution is really to limit one's expenses and not make social affirmation one's priority. Everyone is on their own journey and there are not hard and fast rules on how someone should/should not spend their money. But contingencies should always be in place such as emergency funds, a equity portfolio and upgrading/diversifying of skills. However, situational and cultural factors are not so easy to overcome. 

I am grateful that I have had the chance to take courses throughout this period to expand my horizons and diversify my skillset. I am always looking out for courses that might be interesting and to learn something new maybe even from a different industry.

That's it for my tiny reflection. Share with me your thoughts on how one can overcome such situations and what you have done to future-proof your skills.

SG FI Dad, out.