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Times are tough. The economy is in shambles. Some would even say we are entering the early stages of total economic collapse. Meanwhile, politicians and world leaders continue shuffling the deck chairs on the metaphorical HMS Titanic.
Despite the doom and gloom, there is a slice of society that seems immune to all of this chaos: The wealthy. Out of touch with reality, this privileged group continues to live their lives without a care for the rest of Malaysian society who are struggling to survive.
Speaking as a Malaysian who survived a pandemic and 2 recessions, and now lives paycheck to paycheck, I can’t help but roll my eyes when some of them explain, advise, and offer solutions for me. Here are 5 of these impractical and out of touch money-saving tips that you may have heard before:
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“Just learn how to budget lah!”
This advice is so obvious, does it really need to be said?
It’s not that we don’t know how to budget, but unless there is more income, there are only so many expenses you can cut before eliminating the most basic needs.
As an example, when you’re budgeting on RM15K a month, you can cut out a lot more than if you’re budgeting on RM3K.
If I had to sum this up in one sentence: This problem isn’t the lack of budgeting. The problem is the lack of money to budget.
2. “Eat out less, cook at home!”
The people who say this usually have the luxury of time to make things from scratch.
For the average individual, it’s not that we don’t know that cooking at home is cheaper. We buy convenience items simply because we just don’t have the time.
I work full-time, am a parent, and manage a household. After a long day, I just don’t have the time or energy to spend 3 hours cooking and cleaning up afterwards.
Meanwhile, the wealthy hire people to cook, clean, and do the laundry, which is all the things we must do ourselves. They don’t even take their own advice when it comes to saving money!
3. “Buy a house instead of paying rent!”
Those who have the money can indeed afford to buy property as investments or for rental. What they fail to understand is that most of us don’t make enough money to put down a downpayment.
If we can’t even get the money together for a downpayment, what makes you think that the bank will give us a mortgage? The answer I got was, “Just ask your parents for help.”
Eh, hello. If my parents could give me the money, they would have bought their home already!
4. “Make your money work for you!”
When you ask the rich how to do this, they always start with “leverage compound interest,” followed by the mathematically-driven example below:
“If you start with RM10,000, you get a 10% return of RM1000, compared to 3% from fixed deposits.”
What the rich don’t understand is that the vast majority of Malaysians don’t have RM10,000 to play the stock market with!
Try talking to any investment broker or investing house and the majority will require at least RM10,000 before they will even consider managing your money or investments seriously.
5. “Get a degree and apply for a high-paying job!”
Image via EducationMalaysia
If the problem is a lack of earning potential, the solution seems obvious: Quit your dead-end job and look for a better one. They say “Education and knowledge are the pathways to success,” so just re-skill and apply for work in a different industry. Right?
While I agree that education is essential, so is considering the cost of an education. A local 3-year degree costs between RM40,000 to RM70,000. Others, like medicine, take 5 years and cost over RM100,000.
There are those who can afford to graduate with two degrees, and get their PhD’s, but most of us aren’t that lucky. To graduate, most Malaysians have to take out a loan, apply for PTPTN, max out their EPF, or get a scholarship simply to survive during their university days.
Not everyone can be a millionaire. Does that mean not everyone should be able to afford basic living standards?
Image via 9gag
I’m not advising people to go ahead and do the opposite of this advice. I’m saying that we’re already doing it, and things still aren’t getting any better.
The Malaysian reality is that the average Malaysian has few savings left, especially after COVID-19, and most of us are now living paycheck to paycheck.
In Selangor, if that paycheck is RM1500, it’s not enough for the most basic of living needs: A home, food, and to be able to save for medical emergencies or unemployment. Let’s not talk about retiring or living comfortably.
The state of the Malaysian economy and long-depressed wages means everyone needs to have a second job and a side hustle. When I’m not writing for IRL, I also do Grab, GoGet, and PetsBacker.
The long story short is that those working minimum wage jobs should be able to afford the basic necessities. It doesn’t matter if they can’t cook at home, stick to a budget, or apply for higher-paying jobs. It matters because without them, the world would grind to a halt. When there’s nobody left to do the cleaning, are the rich going to do it?
Do you know anyone who loves giving “helpful” financial advice?
Share this article with them!
Drop us an email at hello@inreallife.my and you may be featured on In Real Life Malaysia!
For more stories like this, read: How Long Does It Take To Save RM50,000 in Klang Valley?
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