The 25-basis-point hike in the OPR to 3% last week will certainly raise your cost in servicing your loans.
“While money is an essential aspect of our lives, our financial situation can affect our emotional and mental well-being in various ways. If our personal finances are healthy and well-managed, generally we feel better and have peace of mind,’’ said Uno Advisers licensed financial planner Kimberly Law.
Financial stress is when you cannot meet your current financial obligations and are worried about your current and future financial state.Anyone can be in this position at some point of their lives. But it does not mean they cannot come out of the situation. Prioritise repaying high interest debts first and consider restructuring them with your bank or reducing the annual percentage rate, is a suggestion by thefuturizts, a social media content site that promotes financial literacy with over 116,000 followers.
Therefore, it is important to be aware of our financial situation so that we can identify problems that are affecting our finances directly and indirectly and tackle it before it goes out of control. The main focus is to have good cash flow, which means your income exceeds expenses, while bad cash flow is when your expenses are higher than your income.