Due to the COVID-19 outbreak, the government has announced a movement control order (MCO) in order to curb the spread of the virus. Prior to the announcement, it seemed that Malaysians may have sensed that such news was coming and people already started to panic buy. For the couple of days during the MCO, the timelines of most social medias were filled with posts on panic buying.
Now that a new announcement of a 2-week extension to the MCO has been made, it can be expected that the panic buying frenzy will be happening again in these few couple of days.
Although many Malaysians are able to exercise their panic buying abilities, many more Malaysians are not able to do so as they are even struggling to afford for every day, basic grocery items. Truth hurts and unfortunately, the title of this article turns out to be more factual than just mere fiction.
How about we talk about an exceptionally basic topic. The ascent on the average cost of living in Malaysia. By one way or another, this subject doesn’t appear to blur away for clear reasons. The fact is, we are continually slapped with price tags or fees that consumes a pit in our wallets.
For quite a long time or even years now, Malaysians are loaded with this financial epidemic. So who is to be accused? What’s more, what is the solution? This is extremely a rhetorical question, right? Be that as it may, what’s not rhetoric are a few certainties and information relating to this phenomenon.
A study by Agensi Kaunseling Dan Pengurusan Kredit (AKPK) found that 18% of working Malaysian adults can’t make any savings over the most recent a half year. In the same report, it was featured that 28% of working adults expected to borrow money to purchase fundamental goods. That is proportionate to 3 out of 10 working Malaysians. These are altogether attributed to the staggering expenses of living particularly in primarily urban areas.
Another worrying factor is that most Malaysians still fall prey to scams and other financial frauds. A sign that clearly demonstrates that we are not fiscally proficient yet.
Betweeen January and September of 2019, an astounding 9,225 cases were reported with losses amounting to more than RM199 million. Sadly, this is an increase from 2018 where as of October in that year, 8,313 cases of victims of financial scams were accounted for.
These numbers should be alarming and this should be the exact reason why the country should invest more into financial literacy and its accessibility. The government and the people, both have to take the initiative to increase efforts in educating and learning keen approaches to deal with finances.
It is so vital for us to educate ourselves and to be educated financially as this is to guarantee that each penny we make is put in great use.
Here are some useful hints that you may consider embracing to spare that additional buck and enable you to spend on all the groceries you need!
1. Cut down on costs
Cutting your everyday expenditure can likewise have a massive impact. Identify areas with the most elevated month to month costs and try to lessen it. For instance, if most of your cash goes to petroleum, toll and vehicle maintenance maybe is better to use public transportation more regularly. Plus it spares you time too.
2. Create your passive income
One of the easiest approaches to do this is by increasing your passive income. Different from active income (which you usually earn through having a job or running a (beneficial) business), passive income generation ordinarily requires less time and effort. Passive income can include investments, particularly with low-to-mid risk instruments that let you influence on capital with minimal active input.
It may take some work, money, and upkeep, however in the event that you plant passive income seeds to suit your atmosphere (otherwise known as your own preferences and abilities), you can get a significant reap.
The more you save, the more returns you will get. Lower-risk financial instruments like fixed deposit will give you lower returns, yet they are by and large thought to be protected and are an effective tool to help save the value of your possibility reserves.
3. Adhere to a financial plan
Saving money on daily expenses is good, yet except if you have a strong financial plan, you will in any case face numerous months where you are overspending. Take some time to review your bills, financial plan for sudden bills and emergencies, and obviously, a financial plan for leisure as well.
Budgeting is only a basic method for you telling your money where you need it to go. Looking completely into your previous expenses from your bank or credit statements should give you a thought on where your money streams too. Likewise, it’s a great method to wake up!
You’ll need to make classes for each expense so as to set a limit for that classification, and furthermore list your income. Ensure your financial plan never surpasses your income — if it does, there may be a few things you’ll have to cut.
4. Spend it. Truly spend, however…
You can make the most out of your money by adopting strategies that enable you to spare while you spend. For instance, purchasing essential items such as rice and toiletries in bulk can spare you a little fortune.
Here’s a rundown on how you can spend your cash shrewdly:
1. Plan your buys ahead of time
2. Avoid impulse purchases.
3. Wait for sales and discounts
4. Review your regular spending for things to eliminate.
5. Identify things to reduce.
6. Start recording each buy you make.
7. List down places, things, or individuals that cause you to settle on poor spending
To be honest, there is no real end with regards to saving money. There are plenty of ways you could do as such. Be that as it may, what is important is the frame of mind to change.
So before you buy something, ask yourself these magic questions, “Do I really need it? And is it important?”