The rising cost of living and the removal of multiple subsidies in have presented a significant financial challenge for many individuals and households. In the current economic landscape, it is crucial to adopt a strategic approach to manage your finances effectively.
It is as important to be aware of the financial aid and tools that are available to you. As an advocate for financial security, Ouch! has put together some suggestions to help you navigate through financial challenges.
Negotiate your debt
If you have debts that are hard to manage, especially credit card debts, take proactive measures to negotiate with your creditors. Late payment fees and accumulated interest charges by credit cards would further drown you in a cruel financial cycle if your debt is not managed properly.
Contrary to popular belief, it is possible to talk to your creditors to find a viable repayment solution. Consider debt consolidation and see if it suits your financial situation. Alternatively, you can seek help from The Credit and Counselling and Debt Management Agency (AKPK) through their Debt Management Programme.
Take advantage of EPF Account 3’s flexibility
Earlier this year, Malaysia’s Employee Provident Funds (EPF) has introduced Akaun Fleksibel (Account 3) – designed to assist EPF members during their economic downturn. The introduction of this account enables EPF members to withdraw up to 10% of their EPF savings whenever the need arises.
However, it is important to remember to use the available funds carefully and strategically to avoid more financial downturns in the future. It is strongly advisable to not withdraw the available funds for non-urgent matters.
By 2030, Malaysia will experience an ageing population, with 15.3% of the population being 60 years old or older. You should not lose sight of preparing for your well-being in your old age. Your EPF funds should still be prioritised as a retirement fund and should be used sparingly until then.
Build financial resilience
Despite the financial pressures, make a concerted effort to save a portion of your income, even if it’s a small amount. No amount is too humble to begin with – it is more important to continue to work on your financial resilience. Make it a consistent habit.
This will help you to create a financial buffer to withstand any unexpected expenses or emergencies. Build an extra layer of protection for your loved ones by investing in takaful coverage that fits your budget. This way, your family’s wellbeing will still be taken care of in the tragedy of your absence.
Ouch!’s Pusara Pro provides life protection from just RM4.13/month and the takaful coverage can easily be purchased through our app. In fact, if you sign up now, you are eligible to gain a chance at winning our Carum dan Menang Challenge’s cash grand prize.
Cost-cutting measures
An obvious but not always simple solution is to take on cost-saving measures for your expenses to fit your existing personal or household budget. Review your subscriptions and unsubscribe from unnecessary ones.
Create a habit to reduce energy consumption – switch off your lights and fans when not in use, do not leave the water running unnecessarily while doing your bathroom routine. If public transportation is an option, opt for the monthly pass to reduce your expenses.
These are some of the measures that you can take immediately. Small changes can add up and help alleviate your financial strains.
Facing a financial downtown can be overwhelming and challenging. By adopting a proactive and strategic approach, you will be able to be better equipped to face the challenges of the rising cost of living.
But don’t forget to also seek support from your loved ones of financial advisors as they can help you further in overcoming a financial challenge. Ouch! will continue to advocate for financial security and hope these recommendations have been helpful in alleviating some of your financial concerns.
Find out more about Pusara Pro by clicking here or download the Ouch! Takaful mobile app from the Google Play Store or Apple App Store today.
Disclaimer:
The information in our blog articles and provided by our brand ambassadors/ KOLs is for general insights only and not legally binding. We strive for accuracy but cannot guarantee the information’s completeness or reliability. For legal matters, consult official documents or contact an authorised Ouch! representative.