You’re Never Too Young To Start Planning Your Finances For Retirement

Malaysia’s population is getting older. It’s predicted that by 2030, five million Malaysians will be over 60 years of age, with this figure expected to increase to almost 10 million by 2050, according to The Star. One of the most important factors in old age is financial security. Yet, The Edge Markets reports that just 40% of the population are financially ready for retirement. Therefore, regardless of your age, now is the time to get on top of your finances and plan for a prosperous and comfortable retirement.

Know how much cash you’ll need

The Chief Executive of the Employees Provident Fund, Datuk Shahril Ridza Ridzuan, states that having RM228,000 saved by the age of 55 will allow individuals to draw RM1,000 a month up until the age of 75, which is the country’s average life expectancy. However, with the cost of living continuing to rise in Malaysia this may not be enough for some. The government has recently revealed that the minimum wage is to be increased to RM1,100 as of January next year, thus indicating that this is the minimum amount an individual requires in order to comfortably enjoy life in Malaysia.

Consider additional expenses 

Free Malaysia Today advises that when you head into retirement it’s wise to have more assets, such as your home, than expenses. However, as you age new expenses will arise, so it’s best to start thinking ahead. The Star reports that 77.6% of Malaysian senior citizens would prefer to age in place then move to alternative accommodation. When this is your desire in retirement, it’s important to consider the help and aids you’ll need in your own home. Factor in the cost of having a medical alert system to rely on if you fall or need urgent medical assistance. Additionally, you may also need to pay for adaptions to your property to make it feasible to stay living there. Therefore, make sure you have cash put aside to cover these expenses, too.

Get saving

Deputy Governor, Abdul Rasheed Ghaffour, of Bank Negara Malaysia says that more than 75% of Malaysians find it difficult to save RM1,000 for an emergency situation and that a greater emphasis on saving needs to be instilled into the population. When it comes to retirement, it’s never too early to start saving and you can never save too much. So whether you’re in your twenties or your fifties, you should take steps to save for your future. Look to make cutbacks on your expenses wherever you can. Simple things such as eating at home rather than dining out, working a couple hours overtime a week and dropping the temperature on your thermostat by one degree throughout the winter can make all the difference to your future finances.

It’s crucial that Malaysians take steps to plan for their retirement and their financial future. By taking the time to work out how much cash you’ll need during your senior years, planning your future expenses and saving small amounts in a variety of places, you’ll see your bank balance rise and future looking bright.

How Games Will Change The Way Your Kids Manage Their Money For Life

57% of Malaysian parents provide regular financial support to their adult children, according to ‘The Power of Protection: Facing the Future’ study. However, experts state that a child’s money habits are set by the time they are seven years old. This, therefore, highlights the need to teach kids about the importance of money from a young age. One of the most beneficial ways to instill vital money management skills in young children is to use enticing games which capture their imaginations.

Role-playing games

You can teach your child the importance of money through role-play games while they’re still a toddler. Set up a play cafe with a menu and food items, and switch between customer and waiter roles. By doing this, your child will learn the importance of choosing items within their budget. According to Totally Awesome, more than 50% of Malaysian children receive pocket money on a daily basis. Therefore, the skills learned from playing role-play games will show your offspring the value of this money and why it should be saved and not splurged.

Traditional games

Household debt in Malaysia is one of the highest throughout the whole of East Asia, reports The Star. Getting your kids to truly value money by playing traditional games will help to prevent them from falling into debt when they move into their own home. Monopoly is a classic board game which teaches kids about investing, saving, risk and bonuses. Pay Day is another classic which will help youngsters understand how expenses have to be considered when reviewing their cash. Additionally, it promotes the idea that you’re a winner when you save as much cash as possible.

Get online

Dungeons and Dragons is a great way to help a child get to grips with earning, saving and spending. They’ll learn the importance of weighing up the pros and cons of each of their purchases and the potential future outcome, which, in Dungeons and Dragons, could be life or death. There’s a whole host of online games, including shopping for pets, grocery shopping and filling up a piggy bank, all of which encourage children to get interactive and to think carefully about how they will afford the next item they desire.

With adult children heavily relying on their parents in order to financially get by and a high number of households in debt, every effort should be made to teach the next generation the significance of money. By playing a variety of enthralling games with your little ones, you’ll open their eyes to the world of money management, which is a key life skill.

Simple Tech Hacks to Improve Your Money Management

Mobile technology has revolutionized the way that people manage and spend money. With digital wallets allowing people to instantly access their checking account and various credit cards, it has never been easier to spend money. To some, that may appear as though technology is making money management more difficult. However, technology also offers useful tools for tracking your spending, improving your savings, and even investing in the go.

Install the Apps You Need to Track Your Spending

The bank that you use and the credit card companies you work with likely have their own proprietary apps. These applications can help you quickly check your balance and even shut down an account if a card has been compromised. Installing the apps that correspond to the banking institutions you work with on your smart device is a good idea.

You should also consider installing a budget or spending tracking app. These systems work by monitoring what you spend and helping you understand where you deviate from your budget. While digital payments make spending money quickly easier, digital tracking makes accountability that much simpler.

Monitor Savings and Investments 24/7

Some people think of savings accounts as a thing of the past, but there are many people who diligently put a portion of their weekly income into a savings or investment account. Even if you don’t have much wiggle room in your budget, it is possible to join the ranks of savers. There are actually apps that can help you save without putting any effort in.

Some programs may round up each transaction to the nearest dollar, depositing the change into a savings account. Others will automatically deduct a portion of your check when it reaches your bank and places it in a savings account. If you don’t have to take the step of transferring the money on your own, you may be more likely to accrue significant savings and leave the money in the account without withdrawing it.

If you already have excess liquid capital or savings, investing might be a good way to manage your financial situation and improve your income. There are now apps that let you invest on the go. Whether you want to trade commodities or stocks, there will be an app that can help you quickly address changes in the market by buying or selling different investments.

Technology can either help or hurt your household budget. It all depends on how you use it. Investigating and installing the right financial apps can help you make better budget and money management decisions.

What is DuitNow?

I received a message from Maybank2u that I was selected for pre-register for  DuitNow. At first, I thought that I will receive money from Maybank. Wow, I am so lucky today.

I was wrong. It’s actually a new way to send and receive money thru all bank in Malaysia.

What is DuitNow?

DuitNow is actually a  new real-time online fund transfer service that allows you to transfer funds to your recipient’s
DuitNow ID instead of their account number.  Basically, it just replaces your bank account number and makes payment easier.

You can register and transfer funds using DuitNow via Maybank2u and Maybank2u Biz. This is an industry-wide initiative among all banks to simplify funds transfers while maintaining a high level of security.

 What is DuitNow ID?

DuitNow ID is an identifier which will be used to register your account numbers and it can consist of any of
the below. You can register one DuitNow ID to one account e.g. your mobile number to your Savings
Account and your NRIC to your Current Account.

a) Mobile Number
c) Army or Police Number
d) Passport Number
e) Business Registration Number (for Maybank2u Biz account holders)

DuitNow ID is unique, hence can only be registered to one account, regardless of whether the
accounts are from the same bank or different banks. So you need different DuitNow ID for each account that you have.

At the moment, Savings Accounts and Current Accounts can be registered for DuitNow. You can choose which account that you want to register with DuitNow. You can change the account once the features are available via Maybank2u/ Maybank2u Biz or at any Maybank branch starting December onwards.

DuitNow for Foreigner

Yes, you may register in M2U provided you have an active Maybank2u login and username. DuitNow
registration can be performed using your international mobile number or the passport number that
you have registered with the bank.

You may also register at any Maybank branch.  You also can update your DuitNow mobile number via Maybank2u and your passport number at any Maybank branch.

Maximum Transfer for DuitNow

RM50,000 is the maximum standalone transfer via M2U. However, for M2U Biz, daily maximum
standalone transfer via M2U amount is RM 100,000.

Transaction Fees for DuitNow

Transfers up to RM5,000 are free while a charge of RM0.50 per transaction applies for transactions above
RM5,000. (RM0.50 charges applies for DuitNow transaction via M2U and M2U Biz)

Verification for DuitNow ID

Before confirming the transfer, it’s important that you check that the name belongs to the intended recipient. When you keyed in the DuitNow ID, the registered account holder’s name will be displayed.

Update your mobile number

If your mobile number in the bank’s system is outdated, you can update your mobile number at any of Maybank branches or via any Maybank ATM. The system will automatically de-register the outdated number and you can go to Maybank2u/ Maybank2u Biz to register your new mobile number on the next day.

You cannot ask a third person to register your mobile number to their account. No, Maybank will check the mobile number against the account holder’s details before allowing the registration.

Opt out from the DuitNow pre-registration

Yes, you may deregister for DuitNow from 8 Oct – 21 Oct 2018 using the steps below:

Step 1: Select here Deregister DuitNow
Step 2: Enter your Reference Number and your ID
Step 3: Verify your details. Select ‘Yes’ to opt out

DuitNow service is coming soon

DuitNow pre-registration applies to selected customers. For those who are selected, you will be notified via Maybank2u website Inbox and Maybank app push notification.

Source : DuitNow

Is there a future ahead for Bitcoin?

Earlier this year we saw Bitcoin hit the headlines by reaching an all-time high and then swiftly falling back down on the stock market. Since then, Bitcoin has faded into the background a little, with the future of the coin still remaining uncertain for most people.

Bitcoin was actually introduced in 2008 as a cryptocurrency. It posed as an attractive alternative to real currency as banks increasingly lose their trust against the UK population. Yet, as a typical trend on the stock market over-investment and media advertising caused bitcoin to quickly drop down in value.


What’s next for Bitcoin?

Whilst it seems that all has died down surrounding the bitcoin hype, there are still some investors that believe in the future of cryptocurrency. Yet, with it being an unknown and untested currency it remains unclear as to what the future holds. In fact, it seems that there is now more skepticism that the currency will ever achieve the ultimate goal of becoming the world’s leading currency.

The worth of currency

The truth is that a lot of countries in the world have currencies that aren’t actually worth the plastic or paper that they are written on. Bitcoin and other cryptocurrencies were supposed to bridge that gap and solve many problems. But regulators, investors, and the general public don’t seem ready for such technology.

The younger generation and the need for cash

Bitcoin took off because there was a lot of anger from younger generations about the way the banks operated. With the rising costs of living and not much movement on the increase in salaries, more and more people are looking for alternatives to increase their wealth.

In fact, as debts increase more and more people are looking at short-term loans. Consider Uncle Buck, a short-term loan company that can help to consolidate debts and helps get people back on the right track. Whilst a loan isn’t always ideal, compared to Bitcoin, these sites are regulated by the FCA, giving more confidence to those that need access to money without relying on credit cards and overdrafts with high interest.

Money management

In reality, relying on any one form of investment, loan or overdraft won’t make you rich instantly. It’s more important to manage your money and budget for your lifestyle. Investing in anything, not just cryptocurrency is a long-term game and can take years to master. Therefore, looking at Bitcoin as a way of making a quick buck is probably not the right way to go.

Instead, if you really think that cryptocurrency is the way forward, do your research, learn from current investors and start small. That way, you may be able to benefit if Bitcoin increases in value, but you can also move with the peaks and troughs in the best way that suits you.

Whilst the future of Bitcoin is unclear, there are still many people that believe it could be the way forward in terms of currency. Yet, it’s important that it’s seen as an investment and not a fast way to cash. For Bitcoin, it’s kind of a watch-this-space kind of situation.

One, that we hope will be profitable for the many that have invested in the coin.