in , , , ,

Bank Negara: 75% of Malaysians Don’t have Savings More Than RM1,000

Photo credit to Moneycrasher  | theedgemarket

According to the Bank Negara survey, 75% of Malaysians do not have saved more than RM1,000.

Credit : Moneylover

Puan Nor Fazleen Zakaria (General Manager, Operations Division) of The Credit Counselling and Debt Management Agency ( AKPK) told <Sunday Kosmo!>, a survey showed 2 out of 10 citizens do not have an emergency fund for more than 6 months.

Mainly because citizens lacking concept in financial planning, especially emergency fund.

Most of the people will only have short-term emergency funds whereby the end of the month when their salary is not out yet. They most likely will use it to advance some payments.

Credit : Moneycrasher

There are a few reasons where it causes us failed to do saving:

  • Lack of knowledge and skills in financial planning
  • The limited source of income
  • Inflation
  • Change in spending habits

Even RM50 has a different value comparing 10 years ago and now. E-commerce also changing our buying habits. People tend to spend more on the e-commerce platform .

Credit : Straits Times

Bank Negara survey also showed that 84% of citizens do not have sufficient emergency fund to cover 3 to 6 months expenses, in case of an emergency case like retrenchment.

According to Sin Chew, It’s advisable that if personal or household income is RM5,000. He/she/ they should have a emergency fund of RM15,000 to RM 30,000.

People, We should aim for an emergency fund of at least 3 to 6 months of our living expenses, including bills, debt payments, and everyday spendings, such as grocery bills, childcare costs, and transportation costs. Let’s prepare for the rainy days!

Info via Sin Chew