The Care and Support Package will provide support to Singaporeans who may be concerned about coping with their household expenses during this period. All adult Singaporeans may receive $300 or $600, depending on your income. Before you spend it to celebrate the start of Phase 2, here are 4 ways you can put the money to better use which will benefit you greatly in the future.

#1 Save
Someone who starts to save for their retirement early doesn’t have to save as much as someone who starts saving later in life. The sooner you start saving, the better off you will be in the future. Compound interest is a force you want on your side in the quest to retire well.

If you put $300 monthly into a savings account with a 4% interest rate that compounds annually, you’ll have $19,498.76 instead of $18,000 in 5 years!

#2 Pay Off Your Debts
Paying off debt is the secret to financial success. Carrying a lot of debt really weighs down your credit rating. Should we use the extra cash to pay off that pile of debt we've accumulated, or is it more advantageous to put the money to work in investments that will build a nest egg?

TIP: If you can earn a higher return on your investments than the interest on your debt, you should invest. On the other hand, if you're carrying high-interest debt such as credit card debt, it may make more sense to pay off your balance.

#3 Invest
You don’t need to have a lot of money to start investing. Start by thinking about the level of risk you are comfortable with, taking into account the major milestones in your life (Eg. pursuing your Masters, starting a family, starting a business, etc.)

Exchange-traded fund (ETF) is a great option for those who want to start small as it requires no minimum investment. The advantages of an ETF are lower costs, instant diversification, liquidity, tax efficiency, sector investing, the ability to purchase in small amounts, and the availability of a wide variety of alternatives, and even exotic, investments.

Find out the benefits of investing in ETFs, and how they fit in an investment portfolio:

#4 Upgrade Yourself
During uncertain economic times, the last thing you want is to get laid off. One way you can stay relevant is by constantly upgrading your skills.

Online platforms such as YouTube, Coursera, Udacity & edX offer videos and courses on a variety of subjects from reputable institutes around the world.

The top 5 most in-demand hard skills are Blockchain, Cloud Computing, Analytical Reasoning, Artificial Intelligence, and UX Design.

Click here to find out how you can increase your chances of getting a job even in this uncertain economy.

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