{"id":11395,"date":"2024-08-22T14:30:09","date_gmt":"2024-08-22T06:30:09","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=11395"},"modified":"2024-09-10T17:05:40","modified_gmt":"2024-09-10T09:05:40","slug":"make-this-merdeka-day-a-day-of-financial-independence","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/make-this-merdeka-day-a-day-of-financial-independence","title":{"rendered":"Make This Merdeka Your First Day Towards Financial Independence"},"content":{"rendered":"
Each national day, Malaysians would rejoice and celebrate our country\u2019s independence from colonisation (for the 67th<\/sup> time this year).<\/p>\n However, as the last firework sizzles and the last cheer of \u201cMerdeka!\u201d fades, each of us would go back to our lives, facing the same financial problems \u2013 be it clearing our credit card debt, or struggling to buy our first home.<\/p>\n But it doesn’t have to be this way every year. Here are some lessons that will help you celebrate the next Independence Day, truly independent.<\/p>\n Most people have the habit of living from one paycheck to the next. It is not only bad for your finances, but also makes peace of mind an elusive goal.<\/p>\n As most fail to draw a budget or cut back on their expenses, living beyond one\u2019s means becomes a habit that is very tough to break. Tough but not impossible.<\/p>\n First, find out if you are earning enough<\/a>. Compare your monthly expenses with your monthly net salary. If the calculations reflect a deficit, then be proactive about it. Find ways to raise your salary\u00a0or find ways to earn additional side income<\/a>.<\/p>\n Having passive income is sometimes a necessity in order for us to achieve financial stability.<\/p>\n The two most dreaded words for us when it comes to personal finances would most probably be debt management. These two words that sound so simple, can be hard to achieve.<\/p>\n Sometimes debts can just get the better of you, no matter how hard you strive to be organised and avoid defaulting or being late in your payments. After all, it is very hard to realise your other financial goals with huge debts hanging over your shoulders.<\/p>\n To get your debts back on track, go back to basics. List down your debts, and choose to either clear your debts using the avalanche (highest interest rate first), snowball (lowest amount first), or snowflake (pay whatever you can) methods. There are different ways to help you manage different debts. For high interest debts like credit card, don\u2019t leave the debts to snowball into a monster.\u00a0 You can consolidate your debts<\/a> before it overwhelms you.<\/p>\n Everyone has financial goals \u2013 be it buying your dream car, or early retirement. However, there are some general financial goals that everyone should work towards.<\/p>\n Most people don\u2019t think about retirement while they are young and climbing up the corporate ladder. It seems too far away, and does not require immediate attention. Later, they regret their ignorance and wish they planned for their retirement at their prime age.<\/p>\n In order for us to save adequately for a comfortable retirement (two-third of our last income), we need to save one-third of our current income, as early as possible. The earlier we start, the less we need to put away for retirement each month and the more we can accumulate.<\/p>\n Don\u2019t let these excuses stop you from starting your retirement planning<\/a>.<\/p>\n Being financially stable means having enough financial buffer to weather most financial disasters. If you are at the risk of depleting your saving when your car breaks down, you are far from being stable.<\/p>\n It will be tough to depend on your monthly salary to grow your funds, but there are various investments we can take advantage of to give our money a boost and also to protect it from the rising inflation.<\/p>\n Start small (with just RM1,000)<\/a> or invest a big sum \u2013 both ways<\/a> work if you want to invest.<\/p>\n<\/span>1. Earn more<\/b><\/span><\/h2>\n
<\/span>2. Manage your debt<\/b><\/span><\/h2>\n
<\/span>3. Have financial goals and work towards them<\/b><\/span><\/h2>\n
<\/span>4. Grow your wealth<\/b><\/span><\/h2>\n