Tiger Year: How to Turn Your Fortunes Around and Focus on Your Financial Goals for a Smooth Start

New Year is a time where many make New Resolutions for better health, finances and personal growth. During this Lunar New Year period, many Malaysians are hoping to usher in the Year of the Tiger with a roar. The new year celebrations are all about family and new beginnings, where the young and old come together to celebrate life and plan for better fortunes ahead.

Let’s take financial goals into our own hands and guide our paths to better financial health!

How Can We Be Courageous Like the Tiger In 2022?

Confidence comes with the right knowledge, and managing one’s finances is an important foundation. Experian Information Services (Malaysia), the Credit Reporting Agency, believes that like any new year resolution, everyone should make firm plans for their financial goals to successfully achieve them. This applies to Malaysians of all ages – from young adults to those married with kids and planning for retirement.

With this in mind, Experian shares its advice on how to make financially sound New Year Resolutions in collaboration with the Malaysian Literacy Survey 2021.

1. Set Money Goals

We’ve just entered a new year, with a new moon, and there is so much to achieve! But when it comes to money goals, the trick is to pick out one or two which truly matters to you. And focus on what you can to work towards those goals.

If you want to start saving or recovering from exhausted savings, start small and build it up across the year. This will give you more confidence and motivation when you see the fruits of your labour grow.

Facts:

The economic impact of COVID-19 affected most Malaysians in their ability to save.
21% could not save in 2021 vs 19% in 2020.
Malaysians are now actively building their emergency funds. 63% of Malaysians are saving money in 2021 after the 2020 survey noted that 27% realised the importance of having one.

Know Money Advice?

Be on top of your credit report so that you can:

Assess your debt and personal state of credit.
Create a plan to pay off or restructure loans.
Learn to build savings systematically.

2. Plan for Something This Year and Then Aim for Longer-Term Goals

Wishes and Goals are 2 different things:

● A wish is having a desire or hope to save more money.
● A goal is something that you have carefully planned, and calculated on how you can ensure it is realised by a certain time.

So, make a plan with short and long-term goals. Stay focused like a tiger on a hunt to make it happen.

Facts:

Heightened awareness on retirement planning, but the lackadaisical attitude remains.
RM54/per month EPF savings for average Malaysian retiree.
Many more Malaysians are realising that their EPF savings are not enough for retirement. This has likely been exacerbated by the various EPF withdrawal schemes in 2020 and 2021.

Know Money Advice?

Pay yourself first – always put aside something for yourself monthly, even if it’s a small amount.
Manage cash flow diligently.
Put aside money for savings and investments.
Learn and gain knowledge for financial management towards retirement.

3. Celebrate Milestones Along the Way

A tiger will stalk its prey patiently before pouncing in on its target to enjoy a good meal. Most of us have goals we target and most often than not, we only celebrate our milestones. For now, it’s important to celebrate small successes as well as major accomplishments.

Facts:

Malaysians’ personal finance habits have barely changed in the new normal.
50% of respondents cannot survive more than 3 months with their savings if they lose their jobs (vs 53% in 2020). Malaysians are spending more than what they earn.

Know Money Advice?

When you’re financially knowledgeable, you will understand how to allocate your income towards various goals such as ongoing expenses, savings, debt repayment and an emergency fund too. To Become Financially Literate, you will need to:

Start taking advantage of free resources i.e., track your spending patterns.
Find out whether the company you work for offers free financial counselling or financial wellness programmes.
Ask for help. Expert help is also always available from credit counselling agencies.

4. Overcome Obstacles and Never Give Up

Even the tiger will face obstacles – such as a herd of elephants – that it needs to find a way around. In life, it may be balancing your work and family life. Whatever your current situation, it may help to write down your obstacles and come up with a resolution plan.

Facts:

There has been a significant shift towards digital transactions and payments. More Malaysians are using multiple e-wallets, suggesting that there is a greater willingness to invest in digital assets.
This new normal has brought unprecedented efficiency and convenience, but it also has created an increase in payment-related frauds, which calls for more attention.

Know Money Advice?

The need to protect your Digital Identity and Data is crucial, especially for the young who are active users.
An identity theft monitoring tool will help Malaysian consumers track their digital identities that may have been compromised or sold on the dark web. Through this, consumers’ identities are kept safe and their finances protected.

5. Correct the Course when required

While working towards your financial goals, you may need to make adjustments along the way. The most important thing is to contribute whatever you can to your goals until you’re back on solid ground. So be agile as a tiger and flexible, as long as you stay true to your core principles and long-term aim.

Facts:

Out of 14.9 million total Malaysian workforces, youths make up 33% of the workforce in Malaysia.
They tend to have worse personal finance habits compared to the rest of the population.

Know Money Advice?

Financial literacy – Start them from a young age: It’s never too late, but it’s not too early either!

It is crucial for you to be more financially literate immediately so that you can get started on the right track with your financial New Year Resolutions.