According to RinggitPlus’ 2021 Financial Literacy Survey, 57% of Malaysians below the age of 35 are unable to survive beyond three months on savings alone, 45% spend exactly or more than what they earn and 55% have yet to begin retirement planning. Despite the increased awareness and resources to help with money management, many Malaysians find it difficult to attain financial freedom.
In light of this, HSBC Malaysia has introduced the three-part HSBC Limited Series Wealth Webinars that aims to educate Malaysians and share valuable insight into proper financial wellbeing. Part 1, titled ‘Get Financially Fit’ was hosted today by RinggitPlus Senior Financial Planner, Roshan Kanesan which saw industry experts Foong Ken Voon, Head of Wealth Development at HSBC Malaysia, Suraya Zainudin, Founder and Editor of Ringgit Oh Ringgit and Raymond Tan, Founder and Editor of Black Belt Millionaire exchange thoughts, experiences and nuggets of advice pertaining to personal finance.
Ken, Head of Wealth Development at HSBC Malaysia shared, “We recognise the challenges that Malaysians face when it comes to attaining financial freedom and as a financial institution, it is our responsibility to guide them through this process. Aside from our usual services, we are always looking at ways to help Malaysians build their wealth and lead more financially resilient and sustainable lifestyles. On that note, we have kickstarted the HSBC Limited Series Wealth Webinars as an avenue for industry experts to share their thoughts, and a platform for listeners to gain firsthand knowledge on how to better grow their wealth.”
Some key takeaways from the webinar include martial artist turned investor, Raymond Tan sharing that it is crucial to start investing as early as possible to build a positive habit and that starting with a small amount is fine, so long as it’s consistent. Meanwhile, author and financial planner Suraya Zainudin added that Malaysians should look out for the near-complete digitisation of almost all types of financial products and services in the coming years, not just for online banking, but also lending, investing, purchasing insurance products and more. Ken on the other hand presented HSBC’s own financial fitness guide to help Malaysians start their path towards becoming financially fit.
The guide starts with a series of questions regarding lifestyle, commitments, emergency funds, future planning and basic financial knowledge that act as thought starters for Malaysians to identify their financial personality. Second part of the guide zeroed in on cashflow assessment to help Malaysians better understand their financial commitments and the funds required to upkeep and eventually upgrade their lifestyle. Ken ended his presentation with some practical advice on recommended budgeting apps along with suggested avenues for saving, including time deposits and EPF Self Contribution.
Steps to Achieve Financial Fitness
1 Getting to know YOU – Determining if you are financially fit begins with understanding your ideal lifestyle, financial knowledge and habits. Ask the questions below to gain insights on what drives certain decisions and how to plan your financial journey.
- How much do you think you will need to afford a comfortable lifestyle?
- Have you planned for any expected changes in your living expenses?
- Do you prefer up-front payment or instalment?
- How do you pay off your debts?
- Do you have at least 6-months of basic living expenses set aside as savings in your account?
- If you have children, how do you/will you fund their education?
- Do you currently save for retirement?
- Do you invest? If no, are you planning to start?
- What is your credit score? How do you think you can improve it?
In the past 12 months, have you had your risk tolerance level assessed or updated?
2. Assessing your cashflow – Determining if current cashflow is sufficient to sustain your ideal lifestyle (now and into retirement) is an important part of assessing your financial health. Plot out cash inflows versus cash outflows to establish your cashflow health ratio. Take note of:
- Modes of income (active and passive)
- Living expenses
- Healthcare
- Loans and credit card bills
- Investments
3. Planning for financial fitness – Preparing for financial freedom and a worry-free future requires us to reduce the gap. Consider different approaches, some short-term solutions that we can adopt immediately and long-term solutions that require planning with your certified financial planner or personal banker.
- Short term solutions – align budgeting habits and initiate a savings plan
- Long term solutions – Learn about the different investment options to make your money work harder
With the aim of cultivating a nation of wealth builders, HSBC looks to create a platform to further the discussion on how Malaysians can achieve financial freedom through efficient money management and investing early.
To find out more about the valuable insights shared in part one of three webinars set to take place in 2022, stay tuned to HSBC Malaysia’s Facebook page where Malaysians can catch the recording of ‘Get Financially Fit’ in April. There, you can also be informed of Parts 2, titled “Investment Essentials” and 3, titled “Building your Wealth Portfolio” when they are open for registration, as they will explore fundamentals of investing as well as ways to build wealth.
