It’s challenging to stay on top of your finances – even more so when you’re dealing with the rising living costs and the economic impact of the COVID-19 pandemic.
According to Malaysian Financial Health Survey 2021 from 2,139 Malaysians, many of them are doing their best to practice good financial habits. 👍
In fact, 88% are tracking their finances, while 86% are saving and/or investing every month.
It's a good sign, considering that around 3/4 respondents said that they have been financially affected by the pandemic.
But the pandemic and high cost of living have made it hard for Malaysians to practice good financial habits, especially when it comes to saving for emergencies, financial protection, retirement readiness and legacy planning.
Protection
Every coin has 2 sides. Staying at home during pandemic means more savings💰 than usual. One should at least save more in bank for emergency funds, if not investing for any financial goals.
However, improving your financial protection could have positive effects on other areas of your financial well-being.
Closing the gaps between your finance & protection can support your efforts in building up your emergency and retirement savings as you won’t need to dip into these savings in the event of emergencies such as loss of income due to a serious illness unless you have sufficient insurance.
Protecting your hard-earned savings is another step you can look at in case of medical emergencies.
Even though Malaysians are doing a good job of saving, they may need more financial buffer.
Huh?? What do you mean?🤔
👇👇👇
Emergency Funds
The EPF recommends setting aside at least 6-months salary as emergency fund. Because, survey finds that only 50% of Malaysians can only survive 3 months while 12% cannot survive even 1 month❗
Estate Planning
6 out of 10 have not planned how their assets will be distributed to their love ones / other parties upon their death.
This is another reason why Malaysia's undistributed assets is as much as RM700 billion now. 😫
Do you know that 90% of the death due to Covid-19 doesn't have even a simple Will to distribute their assets?
Low Financial Literacy
1 out of 3 experienced the following issues:
Don't know how to start investing
Don't know if their family can live comfortably after their death
Don't know if they have adequate insurance coverage
1 out of 10 thinks that assets distribution is too complicated or don't know how to start.
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(Source: iMoney)
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