This is old article from TheMalayMailOnline about how working Malaysians ( I like to give word salaryman) are able to sustain themselves. In the news on Nov 26, 2016 the Malaysia’s central bank revealed that only 6 percent of salaryman in Malaysia are able to sustain for more than six months if they lose their jobs.
The result based on Financial Capability and Inclusion Study 2015, Bank Negara Malaysia (BNM) found the majority of the over 3,000 Malaysians surveyed do not have a proper budget plan or practise financial discipline to manage their spending and debt.
The survey found that debt levels are especially acute for Malaysians earning RM1,500 and below averaging at 14 times their annual income. This is worrying as more than 93 percent of the survey respondents earn a monthly wage of RM3,000 or less individually while 93 percent of the households earn RM5,000 or lower.
About 19 per cent of the respondents also said they felt they have too much debt, and only 26 per cent said they make full settlements of their credit card debts at the end of the month.
The survey also found that only 51 per cent of the respondents have a “rainy day” fund, while 76 per cent admitted to having difficulty to raise RM1,000 in emergency cash if needed.
I give my opinion based on the survey. I’m totally agree as most of us (including me) don’t have a proper budget and we don’t have emergency fund that is more than our 6 months income. It is worrying for most of us. Maybe I’m a bit lucky as I’m work as government servant but there’s no guarantee anymore as there’s possibility changing regulation if something happen in next election.
The important part is education for all of us. I’m also learning on how to saving at least 6 month income and try to reduce loan as soon as possible. Get another source of income and do some minimalist life.
We need to change our lifestyle as we don’t know what happen in the future. In short term, the economy won’t be better. Let’s improve our finance and getting a better life. In my part, I think I could save at least 6 month income next year and finish my car loan. I’m also learn to invest in some lower risk investment. It is one way for me to get a better financial. Other than that, my budget planning become smooth and I’ve keep discipline on it. It takes time but I found the benefit writing my own budget and follow it.
How about your? Do you have a proper budget? Don’t be that 6 percent but change yourself. Follow yourfinancialblog to get another info about finance.