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Embracing Creativity While Breaking Norms With Unconventional Methods

Posted on 23/05/202206/08/2026 by admin

Non fungible tokens or NFTs is a debatable subject having come into existence since 2014. However, marketing agency Jumix Sdn Bhd is determined to grab the bull by the horns and turn the buzz into more than just a fad with BeUtopia – a universe where characters called BeU live in.

“We believe that this approach (NFTs) will change how brands and businesses work in the future. First, we need to get brands familiar with the concept and then offer to help them from end to end in campaign launches,” said Sanz Teoh, Chief Executive Officer and Founder of Jumix.

Photo 1 Sanz Teoh Chief Executive Officer And Founder Of Jumix

Introducing the firm’s project BeU, Teoh explains that Jumix’s initiative is for anyone who feels misplaced in society for the sole reason of choosing to be different, or out of the norm. The BeU are inspired by Matryoshka dolls known for their representation of a mother carrying a child inside her.

“Prints on prints, inner-wear worn as outerwear, tattoos and piercings as a sign of expression rather than representation; this is why our NFTs are unconventional looking. Our community aims to include all walks of life, including the creative people but most importantly, we want to create a safe space where everyone can embrace their strengths and weaknesses and just be themselves in BeU,” he adds.

Citing many NFT campaigns that have failed because it was seen as fad, Jumix is committed to change this perception. Renowned brands like Adidas, NIKE, Gucci and FMCG brands are starting to invest in NFTs and the interest is expected to flourish.

Acknowledging possible resistance to the new marketing approach, Teoh said: “We cannot change the adaptation rate in Malaysia but we are looking at brands who no longer believe in fax machines, mobile phones with a physical keypad and opting for things that are digital because it is more sustainable, convenient and beneficial.”

An NFT is constructed with the same type of programming as cryptocurrency but it is a digital asset that represents objects like art, videos, music, or in-game items. Each NFT bears a digital signature or a unique identifying code. They exist on a blockchain – a public ledger that records transactions.

Globally, the use of NFTs is spiking, and in 2021 it developed into a US$40 billion market. Research hub Finder released a survey indicating that the Southeast Asian (SEA) market will take the limelight in 2022 as the region’s interest is growing and has the highest adoption rates, worldwide.

The online survey consisting a polling pool of 28,000 from 20 countries ranked the Philippines first with 32% ownership, while Thailand scored second with 27% and Malaysia (24%) at third position. The rankings prove that SEA may be driving the international NFT ownership for the near future.

Calling out to brands that are willing and ready to join the evolution of marketing with NFTs, Jumix commits itself to bridging the gaps and to help propel businesses and technology into the future to reap what it has to offer.

“We will not use the word guarantee for success in a campaign, especially in the world of marketing, but we want to help our clients greatly improve their chances at success without losing out on costs, time and manpower coupled with a big amount of risks.

“Jumix has had our own humble experience at this ourselves. Our NFT journey was not easy but when you know what you are doing, have done it yourself, had good data and evaluation of it, it will help reduce risks and increase the chances for success and that’s why Jumix should be the choice for brands who want to explore NFTs,” Teoh adds.

Some 10,000 BeU collectibles will be available for sale from mid-May, and hosted on the Polygon blockchain, where collectors can mint without paying for hefty gas fee (the transaction fee on blockchain). There will be different stages to the project, each to involve and engage with the community.

“Upon selling 2,000 collectibles (20%) we will organise a donation to a charity organisation that will be decided upon by our community. Upon reaching 40%, we will create an AR filter for our users then at 60% we will launch merchandise for the owners of BeU.

“At achieving 80% sales, we will create an actual 3D life-size doll for 30 of our BeU owners and upon reaching 100%, we are looking to create a game for our community. There are many other plans that we have in the pipeline but ultimately we want the people and our clients to know that Jumix is ready to help them grow from start to finish with NFTs,” Teoh adds.

About Jumix

Jumix is a creative marketing agency, focusing on branding, web design, and digital marketing. Jumix served clients from Malaysia, Singapore, Australia, United Kingdom, Japan, Taiwan, Hong Kong, United States, New Zealand and China.

What Are Initial Exchange Offerings (IEOs) And Should I Invest In Them?

Posted on 23/05/2022 by admin

Earlier this year in March, the Securities Commission of Malaysia (SC) announced the approval of two operators to conduct Initial Exchange Offerings (IEO). This is an exciting and consequential development because IEOs create a whole asset class for investors with new financial instruments.

Just as SC became the first to regulate equity crowd funding (ECF) in Southeast Asia in 2015,[1] IEOs are poised to launch our local capital markets into the digital asset age.

However, public interest seems subdued. The public is largely unaware of what IEO is, without much investor education or media attention out there. Some just think this is another ECF clone.

Or maybe the news got overshadowed by the digital banks announcement that came weeks later. Furthermore, since IEOs are digital assets which are similar to cryptocurrencies, there is a certain stigma to overcome.

This three-part article series aim to explain IEOs from the perspectives of (1) the investor who buys these assets, (2) the issuer who sells these assets, and (3) the operator who runs the platform that brings investors and issuers together. Hopefully this can simplify, in ordinary business language, some of the technical concepts related to IEO investments.

It also presents some of the challenges and limitations of IEO in its current state which smart investors like you may consider before coming onboard.

What Are Initial Exchange Offerings?

Basically put, these are privately issued assets in the form of digital tokens. Privately held businesses, which must be tech-related and can be of different maturity stages, can issue these tokens and sell to the investor public for the purpose of fundraising of up to RM100 million. This activity can be only performed through the IEO operators within a regulated setting.

You’d be surprised that the IEO name itself is somewhat misleading as there is no exchange involved. None of the digital asset exchanges (DAX) in Malaysia are allowed to place out IEOs. The commonly used name is Initial Coin Offering (ICO), but this has a negative connotation as it conjures memories of scams back in the day.

For ease of understanding, an IEO works like an Initial Public Offering (IPO) – where a company that wants to go public will issue and float its shares in the open market. In the context of an IEO, digital tokens are used instead of shares.

Wait, Digital Tokens Are Not Shares?

Our domestic law makes it very clear that digital tokens are neither shares (equity) nor debentures (debt).[2] It should also not be confused with unit trusts. In other words, please don’t expect to get payouts in the form of dividend or interest when you invest in these tokens. You also don’t get to have voting rights or attend annual general meetings like normal shareholders do.

Since this is not debt, you are generally not considered a creditor to the company that issued the tokens to you. And assuming that your tokens are not secured to assets of the company, you won’t know what your priority of repayment is if the company goes under. Therefore, it is important to ascertain the exact nature of your rights before you invest.

If digital tokens are not shares, what are they? That’s a good question.

They are prescribed as securities, which are defined in the Capital Markets and Services Act (CMSA) 2007 as shares, debentures or unit trusts, or “any right, option or interest in respect there of”. The latter sentence will presumably take on an expansive meaning depending on how creatively structured the tokens are.

One thing to remember: It is always sensible to approach and analyse these tokens like an investment contract. What underlying asset is your money going into, what is being represented and promised to you, and what are the downside risks including the worst-case scenario?

Are These Investment Products Legitimate?

Being legitimate is not necessarily the same as being legal. Digital tokens have the legitimacy as a regulated financial instrument, and they are handled by recognised market operators (RMO) with the oversight of SC. The legal certainty of it, however, is another matter.

Digital tokens are not legal tender, and each token offering is different based on its own set of facts. As and when disputes arise, they will have to be brought before the judicial courts to decide on the legal merits.

According to the landmark case Luno Pte Ltd & Another v Robert Ong Thien Cheng, it was decided (and affirmed on appeal) that digital assets like bitcoin can be used as consideration to seal a contract between parties. There is value attached to digital assets in the same way as value is attached to shares.[3]

Nevertheless, there are questions with respect to how digital tokens, which use ‘smart contract’ code, can effect legally binding signatures between two parties. It is also important to note that the rights in contract differ significantly from the rights in property which are more complex. Whether digital assets can represent legal and beneficial interests in real property have not been ascertained yet.

In fact, courts around the world are ruling on whether digital assets, in their intangible or incorporeal form, can be rightfully considered ‘property’. There is no legislation in Malaysia to recognise them as such. There is also an insufficient body of precedents here and in other Common Law jurisdictions to make a conclusion at this stage.

Ultimately it depends on the financial engineering of the tokens, for example, whether the tokens represent ownership of property assets, or are backed by them as collateral, or are merely claims. You will need to read the fine print carefully.

Who Are the Target Investors?

While retail investors can participate in these offerings, they are limited to RM2000 per issuer and a grand total of RM20,000 within a 12-month period. If Alice picks Company X, she can only invest a maximum of RM2000 in its tokens. If Alice has more cash to spare, she will have to spread it to other companies.

This way, Alice can limit her exposure to Company X and stop-loss at RM2000. But it also means she cannot meaningfully participate in the upside of Company X if its tokens eventually grow by leaps and bounds.

The objective of this regulatory limit is to protect ordinary folks like mom-and-pops from putting too much money on these investments which are intrinsically risky. On the other hand, accredited investors and those with high net worth have no such limits imposed on them.

Can I Sell and Trade Digital Tokens?

At this point, IEOs are offered only at the primary market level, that is, between the issuer and the end investor. There are no guidelines from SC to open up the secondary market yet for trading among investors.

In other words, Alice cannot transfer her tokens to Bob. Eventually this will be facilitated by the four registered digital asset exchanges (DAX), which will need to comply with the admission rules for listing IEO tokens.

Given that IEO platforms have not even started operating, and have been given nine months to prepare, you will not see the trading of tokens in the immediate future. Which means that investors will not have the options to exit freely in the open market yet.

In a sense, investing in an IEO can be less liquid than investing in a close-ended fund (CEF). There are no new tokens issued and no new investors onboarded once the offering closes. Investors can neither redeem their tokens from the issuer nor expect repurchase or buyback.

Even if the tokens are listed, there is also the question whether the secondary market and price discovery process will be vibrant enough to make it worth their while.

In the next two articles, we will dive into how tech businesses can capitalise on IEOs, the benefits compared to conventional funding strategies, and the potential problems. While IEOs can democratise venture capital (VC) investing for ordinary investors and change the way entrepreneurs raise funds, the Malaysian context is quite unique from global practice and needs to be taken into account.

About the Author

Edmund Yong is the managing partner of Celebrus Advisory and appointed by MDEC as part of its Talent Expert Network (formerly known as Digital Expert Panel) for blockchain technology. He is also the resident consultant for GLT Law, a multi-award-winning legal practice with specialisation in digital assets. All opinions expressed are the author’s own.

Resource:

[1] https://www.sc.com.my/resources/media/media-release/sc-introduces-regulatory-framework-to-facilitate-peer-to-peer-financing

[2] Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.

[3] Robert Ong Thien Cheng v Luno Pte & Another (Civil Appeal No. 12BNCVC-91-10-2018), Shah Alam High Court.

8 Healthy Financial Habits To Build Your Financial Freedom Fund

Posted on 20/05/2022 by admin

As our lives gradually regain some normalcy after years of restrictions, many businesses too are starting to get back on their feet and (hopefully) make up for lost time.

Most of us, whether salaried employees or business owners, were likely to have our income streams affected to a certain extent during the Movement Control Order (MCO) period of limited operation and closures.

At the same time, we are also concerned with the state of our financial situation especially if we have dependents, fixed commitments and stacks of bills to pay at the end of every month.

During trying times like these it is natural for us to imagine a future where we do not have to deal with the daily stress and pressure of depending on continuous monthly income just to ensure that household expenses are covered.

If only we could be free of financial burdens, then our lives could be better spent with our loved ones, sans the worries and sleepless nights thinking of bills and more bills.

Many may wonder how would it be remotely possible to one day achieve financial freedom when there are countless other pressing financial issues on the table that need to be dealt with, particularly in the aftermath of the MCO.

One thing is for sure; financial freedom is not an overnight transformation, neither is it going to happen by chance such as striking a winning lottery ticket.

We Will Bounce Back Stronger

It will take time and there are no guarantees that the process is going to be a bed of roses without sacrifices along the way. But with the right mindset and attitude, financial freedom is an attainable goal for more people than you would imagine.

However, before you attempt to dive headlong into it and say “Tell me the 5 things I need to do to achieve financial freedom”, I have to be upfront that there is no standard magical formula because financial freedom means different things to different people.

Therefore, you need to first understand what financial freedom means to YOU, then and only then can you chart your financial path towards that goal by implementing good long-term financial habits.

While financial freedom may have varied definitions for every individual, there are a few common ones that many of us share, such as:

1. Having sufficient assets or income to support your expenses and financial goals

2. Having assets that generate sufficient income to cover expenses

3. Not being dependent on active income generation

4. Doing what you love (for passion) rather than working for money

You may find that more than one definition of financial freedom relates to you which you wish to achieve, and that is perfectly fine as these goals are not mutually exclusive. Many individuals have a combination of financial freedom goals to aspire towards, sometimes at different stages in their lives.

Having identified what your financial freedom goals are, the next critical step is to determine your financial freedom number. This refers to your targeted financial freedom fund amount that you require in order to achieve your set goals.

Knowing what number is right for you and why it is so is important because the number is, by all accounts, a goal in itself and should be one that is specific, measurable, achievable, realistic and time-bound (SMART).

The way to go about determining your financial freedom number is by asking yourself these few questions:

a) What kind of retirement lifestyle do you aspire to have?

While typical idyllic responses tend to be “travel the world”, “play golf daily” or “look forward to grandchildren”, don’t forget the potential scenarios that are closer to home such as:

Any outstanding loan commitments? You may want to replace your executive sedan with a more fuel-efficient vehicle, so don’t forget to factor in a car loan if any.

Will your children have completed their university education by then and be able to start working? Best be prepared that fresh graduates may not be able to find a suitable job immediately and you may be required to help support them for a little while longer.

Any plans for home renovations or modifications to make it more senior friendly?

Additional health-related expenses that you may not be spending on now but are likely to do so in future, such as comprehensive medical check-ups or procedures that may crop up eventually like cataract operations or joint replacements.

b) What is the cost of that retirement lifestyle in today’s value?

c) What will it cost in the future, after factoring in inflation?

Once you have a financial freedom number with a big red bullseye painted on which may be cause for concern because as far as you are aware, all they money you currently have in your savings, EPF, insurance and retirement fund is not even close to that amount.

But you still have an advantage in terms of time which is why the sooner one determines his/her financial freedom goal, the better.

With more time ahead of you, funding your financial freedom is doable and the best part is that you will be in better control of how you want to achieve it. You will not have to subscribe to any “Secret tips for financial freedom” by a glorified money guru telling you to invest X amount in this, buy Y worth of that, etc.

A viable way to fund your financial freedom is by adopting the following 8 healthy financial habits and values that have been tried and tested:

#1. Automate your savings and invest in diversified investments instead of going for the ‘hot’ market investment ideas;

#2. Aim to increase your savings rate every year to correspond with your salary increment;

#3. Be mindful of personal lifestyle inflation where there is a tendency to upgrade your lifestyle at the expense of savings which should be the priority;

#4. Avoid falling for the herd mentality when societal and peer pressure influence your spending decisions. Financial matters are personal and should not be a reason to keep up with the Joneses due to fear of missing out;

#5. Pay attention to good debt vs bad debt when making investments to identify which has the potential to appreciate, for example taking a car loan vs an education loan to upgrade your skills;

#6. Diversify your income streams so that you do not become over reliant on any single source;

#7. Optimise your time well to maximise productivity. This means consider monetising your free time whilst in pursuit of your interest. For example, if you love to paint as a hobby, why not put your works of art up for sale?

#8. Leverage on the expertise of others. If you find yourself too busy or lacking sufficient technical know-how to manage your financial affairs, it is good to seek advice from the professionals. Just make sure that you select the right person to speak to, one who is knowledgeable, trustworthy and reliable.

The key to achieving your target financial freedom fund (which also translates into meeting your financial freedom goals) is to start by incorporating the right behavioural changes when it comes to making financial decisions. You will soon see that it is not an impossible dream to achieve that target number after all.

In fact, you may even discover that by consistently practicing these 8 healthy financial values in the long run, the finish line of your financial freedom marathon can be nearer than you think.

About the Author:

Felix Neoh CFP ^{CERT TM} is the Director of Financial Planning at Finwealth Management Sdn Bhd and is a certified member of FPAM. He can be contacted at enquiry@finwealth.com.my

We at Smart Investor and Finwealth is committed to help you better manage your financials. Get a free consultation from an expert by filling in your details here: https://www.smartinvestor.com.my/SIxFinwealth

What Happens To Your Body When You Stop Exercising?

Posted on 19/05/202206/08/2026 by admin

Exercise encourages your brain to work at optimum capacity by causing your nerve cells to multiply, strengthening their interconnections, and protecting them from damage. There are multiple mechanisms at play here, but some are becoming more understood than others.

The rejuvenating role of brain-derived neurotrophic factor (BDNF) is one of them. BDNF activates brain stem cells to convert into new neurons. It also triggers numerous other chemicals that promote neural health.

Promote Intelligence And Better Mood With Just 20 Minutes A Day

A number of neurotransmitters, such as endorphins, serotonin, dopamine, glutamate, and GABA, are also triggered by exercise. Some of these are well known for their role in mood control. Exercise, in fact, is one of the most effective prevention and treatment strategies for depression.

BDNF and endorphins are two of the primary factors triggered by exercise that help boost your mood, make you feel good, and sharpen your cognition. So, how much do you have to exercise in order to maintain a sunnier disposition and better memory long-term?

According to a 2012 study published in the journal Neuroscience, the ‘secret’ to increased productivity and happiness on any given day is a long-term investment in regular exercise. And a little each day appears to go further than a lot once or twice a week.

Here’s What Happens When You Stop Exercising

You probably expect that your muscle tone will take a beating once your workouts stop, but less expected changes will occur throughout your body. One of the first places to experience the repercussions may actually be your brain.

Research published in the journal Frontier in Aging Neuroscience revealed that endurance runners who skipped exercise for 10 days had reductions in blood flow to their brain’s hippocampus, which is a region associated with memories and emotions.

After about two weeks, meanwhile, your endurance may suffer, which means you may find yourself slightly more winded if you need to quickly climb a few flights of stairs. This is because of changes to your VO2 max (also known as maximal oxygen intake).

VO2 max is defined as the maximum volume of oxygen you can utilise in one minute of maximal or exhaustive exercise, and it’s used as a measure of endurance.

If your workouts take an even longer hiatus, you can expect increasingly noticeable changes to your body, both physically and aesthetically. You may start to notice your strength slipping after about two or four weeks with no activity. And after about six to eight weeks, you may start to gain weight.

There Are Times When You Should Skip A Workout

Skipping workouts generally isn’t recommended – unless you have one of these five valid reasons for not working out.

You’re sick – If you have a slight cold and you’re not overly tired, a quick workout can be beneficial in that it raises your body temperature and might help to fight off viruses;

You’re injured – Regular exercise can help you to prevent many injuries, however you’ll want to avoid exercising an injured area of your body. If you have a shoulder injury, you may still be able to work out your lower body (or vice versa), so long as you don’t aggravate the injured area. Avoid activities that cause pain and, if the injury is going to take a long time to heal, work with a physical therapist who can provide you with a safe exercise plan that promotes healing;

You’re exhausted – If you’ve had a poor night’s sleep, you may be better off sleeping in than getting up early for your morning workout. Like exercise, sleep is also essential for your health, and you generally don’t want to sacrifice one for the other. It’s difficult to catch up on sleep once you’re sleep-deprived, so make sleep a top priority. This isn’t an excuse to hit your snooze button daily, however;

You overdid it and you’re extremely sore – Delayed onset muscle soreness (DOMS), or the muscle soreness you’ve experienced one to two days after exercise, is caused by inflammation stemming from microscopic tears in your muscle fibres. DOMS is normal and is not typically a sign that you should skip a workout; or

You’re having a marathon day – We all have those days when our schedules are jam-packed. Trying to fit in a long workout on such a day may not be in the cards. It’s OK to skip your workout when you get too busy – once in a while. However, resist using this all-too-common excuse to not exercise too often. The truth is, most of us are quite busy, so you need to make exercise a priority.

Regular workouts will help you to stay focused, think clearer and get sick less often. So, what’s not to like? It does take time, commitment and hard work, which is why the exercise programmes that last will be those you find most enjoyable. The key word is ‘enjoy’.

The more you look forward to your workouts, the more likely you are to keep doing them. As an added bonus, most people feel great after they workout, which provides additional motivation to keep going. If you don’t feel good after your work out – for instance you feel exhausted instead of energised – this is a sign that you may be exercising too much and need to take more time for recovery.

About the Author

This article was brought to you by Dr Mercola, a New York Times bestselling author. For more helpful articles, please visit Mercola.com

Retiring Early Thanks to Financial Independence, Have You Heard Of The FIRE Movement?

Posted on 19/05/202206/08/2026 by admin

If you were to ask the average millennial about how early they would be able to retire, chances are you would get varied responses. However, it is unlikely that any of them would be aiming to retire before the age of 50.

That is where the concept of FIRE comes in.

What Is FIRE Movement?

It stands for “financial independence, retire early” and is a growing movement worldwide. In short, proponents of the movement aim to save a large portion of their income (up to 70% or even more!) and aggressively invest in order to hit a set number they feel comfortable with for retirement.

The aim is to hit this number far earlier than traditional work structures after which they become financially independent and can “retire” or pursue work or projects they are passionate about.

Proponents of this movement suggest the “4% rule” as a guideline – the goal is to accumulate 25 years’ worth of annual living expenses through various investments, and withdrawing 4% per annum, assuming it generates at least that much in passive income.

This is unlikely to diminish the portfolio, and individuals that have reached this level can be considered financially independent, with any form of employment or work now optional instead of necessary.

4 Varieties Of FIRE Movement

Fat FIRE: This allows individuals to live a more traditional or typical lifestyle, but also requires saving more than the average retirement investor. It usually allows for luxuries like fancy meals, holidays and gadgets depending on the amount saved up.

Lean FIRE: This model requires a strict commitment to follow a minimalist lifestyle with little expenditure and extreme savings. An individual can achieve this when they have saved and invested 25 times their annual expenses while also spending less than the average person.

Barista FIRE: This form refers to devotees that do not follow a set 9-to-5 job, but do work in some capacity on a part-time basis to cover necessary expenses that would otherwise have them tap into their retirement nest egg.

Coast FIRE: This can also apply to followers that have a part-time job, but who have already saved up enough to fund their retirement and living expenses (thanks to compounding investments), allowing them to “coast” towards retirement.

Julian Ng, co-founder and CEO of robo-advisor Akru, believes that the FIRE movement is intriguing and helps people think beyond the realm of what is considered financial normalcy.

“I thought it not only had interesting financial planning principles but also life angles,” he remarks, adding that FIRE devotees did not have to stick to the concept of only being able to retire when they are older.

Ng believes followers of this movement are tired of being stuck in the rat race and want to work towards other goals that offer fulfilment. Corporate highs to be replaced by personal pursuits and leisure. The latest gadgets and cars substituted with experiences and time with their loved ones.

“I think they plainly want a life. They want to spend time on things that matter like family, friends and their passions. They also value health and emotional wellbeing. In terms of bigger life philosophies, they figured out that they do not need to have caviar and business class all the way. They are a bit minimalist in that sense, although they are also financially very comfortable.”

Early Retirement?

According to Malaysian law, the minimum age of retirement of an employee in the private sector is 60 years of age. There have been calls to raise this number to 65, meaning that the average person could potentially work for over 40 years before calling it quits – hardly a tantalising prospect to most people.

Although following the FIRE movement potentially offers a way out for weary millennials, not everyone is specifically aiming for an early retirement.

“Personally, I’m aiming for the FI part of FIRE as I don’t plan to retire early,” says Leigh, the founder of popular investing blog Dividend Magic, who aims to have a passive income of RM36,000 a year, most of which is derived from various investment dividends.

“I lived a pretty frugal lifestyle even before learning of FIRE. These habits have been instilled in me since a young age and I have actually been telling myself to spend more often, but on things that genuinely bring me joy. And it will have to be happiness that lasts,” he adds.

This is a notion shared by Lee Sheung Un, communications officer of Affin Hwang Asset Management, who describes himself as a subscriber to a milder version of FIRE.

“Early retirement is not the end goal for me, but rather achieving financial independence,” he says.

“Personally, I aim to save at least 40% of my monthly income which is not quite close to the FIRE benchmark to save at least 70%. I am sure it is possible if I really tried, but I also like spending on my own comfort to save time and avoid stressing about the small things.”

To the average person, the idea of retiring early may sound good on paper, but it is not surprising that many FIRE devotees are not just looking to coast through the rest of their life. Rather, they are aiming for the freedom and time that financial independence unlocks to be able to pursue what fulfils them.

Achieving FIRE In Malaysia?

As a concept originating in the West, the burning question for many will be whether it is possible to achieve financial independence in Malaysia.

Suraya Zainuddin Ringgit Oh Ringgit personal insurance

“FIRE is not realistic for people living in countries with a wide wealth gap,” sighs Suraya Zainudin, the founder of personal finance website RinggitOhRinggit.com.

“Mathematically and statistically speaking, the structure simply does not allow the majority of people to reach their financial goals, even modest ones. Unfortunately, Malaysia is one of those countries.”

However, Leigh believes that FIRE is definitely possible but that it is not for everyone as it can be hard or too intensive to keep up with.

“We live in a world of spending and instant gratification. Getting a new phone, signing up for gym memberships all costs money. Not everyone is willing to grind all day and put a hold on spending. And a huge problem in Malaysia is that people are not investing,” he observes.

And while not everyone may be cut out for the FIRE movement, the philosophies and beliefs around it can help to cultivate a healthier understanding and relationship with money, as well as a way to escape traditional ways of thinking.

FIRE Movement: Theory And Reality

The points highlighted above shows how investment formulas are great in theory – but we know real life works out differently. Things start to fall apart when you are faced with unexpected expenses, for example.

What happens if you are suddenly responsible for another dependent – a child, or parent? Or if you lose your job or become incapacitated?

On the positive side, the financial dynamics might change because you inherit a windfall or enjoy a rapid increase in earnings. Any of these instances will alter the time it takes you to reach your desired retirement age.

Neil Walton, Head of Investment Solutions says: “We know the concept of FIRE has spurred some to consider downsizing, retiring, investing and changing their lives. But even for those who do not intend to do anything so radical, FIRE provides a useful blueprint for planning. Good investment will sit on a good financial plan, and that is inevitably about building investments over time to provide an income in the future.”

10 Common Financial Traps Millennials Fall Into

Posted on 18/05/202206/08/2026 by admin

Money doesn’t disappear overnight but often it’s the case of losing one dollar at a time. It may not seem like a big deal when you order a Mocha Frappuccino, have a dessert in a nice cafe or subscribing for a long-waited movie, but every little item adds up in the long run.

Being a millennial as well as a licensed financial planner, there are many financial traps I’ve also succumbed to, and now would like to remind myself (and you too) to stay away from.

1. Instagrammable Lifestyle

A cup of RM20 Coffee, a plate of RM30 Big Breakfast, a slice of RM20 cake, these are perfect elements to form a likeable photo, but these are also killing our bank accounts. When we chase a materialistic lifestyle, we might lose control of our finances.

2. Crazy Shopping When There Is A Sale

Looking for SALE is an easy job in this e-commerce era. You might wonder why buying things on sale is an issue? This is because no matter how great the bargain, if you purchased something you aren’t going to use, you’re just throwing away your money!

Ask yourself, “Do I really need this and will be using this frequently?” or “I’m just buying it because it’s on sale?”

3. Subscription Trap

The most common marketing strategy nowadays is to encourage consumers to sign up for a “free” trial. You only need to activate the trial by putting in your credit card details to enjoy the service.

The companies are hoping that people will forget to cancel, and then the monthly payments will just get charged to our account. And way too often, that’s exactly what happens. This happened to me before, and probably has to you as well.

The effective way to avoid this is to ask ourselves: do we truly need things like movie subscription, music services or fancy gym memberships that keep us paying for months? Reconsider to see if there are cheaper ways of doing the same thing and if the subscriptions are necessary for you.

4. Full Allocation Of Salary While Planning To ‘Save Later’

RM300 for the latest flagship handphone, RM100 for a mobile plan, RM200 for a gym membership, RM1,000 for the dream car… who says millennials don’t plan for their finances? We have our monthly salary “100% well-allocated” into different expenses. However, we might just be forgetful about one thing: Savings.

The more we earn, the more we save? Unfortunately, it’s usually not the case. The first time I received my salary, I told myself to save up at least 10% every month. One year passed, I was still saving the same amount even though my salary was up more than 10%. I thought it’s due to the market inflation, so I couldn’t save more.

In the end, I realised it’s due to my own “Lifestyle Inflation”.

5. Using Credit Cards For Daily Expenses

Don’t you feel it’s cool to just swipe a card/scan a code and get what you want? While we are living in an era where cashless payments are unavoidable, but the credit card is not our only choice.

When you use your credit cards to cover the shortfalls in your spending, you can eventually run up a huge amount of debt. Besides, people tend to spend more when they are paying with credit cards. Don’t forget, you still have your debit card!

6. Making Financial Choices Out Of FOMO

Another common trap I face is to make a financial decision out of the fear of missing out (FOMO). When we are afraid, we might not consider all of the options available, and might end up making a costly mistake. Besides, millennials tend to have peer pressure to take a big financial step, from buying a new car to purchasing a home to getting married or having a child.

Just stop! Take a deep breath and think whether you are ready for these moves. Rushing to accomplish these might not benefit you financially.

7. Simply Investing And Chasing Quick Gains

We are lucky as we have easy access to investment information compared to our parents. However, simply investing without knowledge, time and discipline can be a financial killer of our hard-earned money. I have seen some of my friends chase after quick huge gains from investments without paying attention to the risks involved.

It would be folly for us to buy a stock or a property and just pray that it would “go up” without careful analysis. If you have no time to do this, it’s advisable to engage experts to help you instead.

8. Thinking We Will Be Forever Young

Many young Malaysians don’t even think about retirement:

In our 20s, we think retirement is far away, YOLO!
In our 30s, we enter a different life stage, buying a house, getting married, etc, and often we lack funds to save for the future.
In our 40s, we need to provide more for the family, e.g. children’s education fund.

Commonly but sadly, people only recognise their retirement needs in their 50s, which is probably already too late. A warm reminder: the youngest millennials are already 24 years old now, and the eldest are already 39 years old.

Another major misconception many of us have is that we choose not to buy insurance in order to save money. But this isn’t a wise financial decision. What makes a millennial so confident to think we are risk-proof from medical conditions or personal accidents?

9. Travel Plans Are Done! How About Your Financial Plan?

financial planning getting it right — Image from icharts.net

Planning for travel is always in our top bucket list, but how about our own financial plan? We spend countless hours scrolling through social media feeds, spend thousands of ringgit on getting the latest gadgets, but setting aside two hours to engage with a professional on planning our finances is rarely in the plan.

We need this “financial waze” to lead us towards our financial goals in life. Without a financial plan, our financial future is unsecured as we are uncertain what is going on right now and where are we heading to.

10. We Don’t Ask For Help And Choose To Ignore

I don’t mean you should borrow money from your friends or relatives. However, most of us will be facing financial problems that we can’t handle well, for example budgeting problems or major financial decisions to make. Don’t try to adopt an “ostrich policy” and pray the problems would resolved by itself.

Many of us get trapped because we don’t pay much attention to our finances. Every month we receive our pay cheque, pay the bills, and then spend what’s left over (if there’s anything). I understand that money is a taboo subject and we feel ashamed when we’re struggling. But there is so much help out there! Tell someone you trust or talk to a licensed financial planner to let them guide you.

It is important to have an informed financial plan that can help us millennials achieve financial success. Remember, managing your finance is managing your life.

Starting by monitoring all the seemingly small expenses. Think carefully before adding new debt, keep in mind that being able to make a payment (swiping your credit card) isn’t the same as being able to afford the purchase. Don’t fulfill your current desire by sacrificing your future funds.

If you make saving a monthly priority and get the help from a licensed financial planner to work out your plan, you are more likely to enjoy life more abundantly.

If you’ve spent time to finish reading this, take charge of your life by taking charge of your finances now. Have your personalised financial plan today!

About the Author

Ocean Pon is a Licensed Financial Planner with Finwealth Management Sdn Bhd.

Are You The Real King And Queen Of Your Family’s Wealth Kingdom?

Posted on 17/05/202206/08/2026 by admin

As the head of your family and business venture, you are being looked up to as the leader of your family and also the companies you are managing. As a business leader, planning well for the future is something that is expected of you and your management team. As the head of your family, you are expected to exercise the same standard when you plan for your personal wealth transfer as well as your business succession.

When we talk about business estate planning, there is a popular Chinese saying that you may have heard before. It says that a family’s wealth will not last beyond three generations!

Interestingly, the Americans also have a similar expression, “Shirtsleeves to shirtsleeves in three generations”.

Backed By Research

Charts Graphs With Magnifying Glass Pencil Calculator

A ground-breaking study conducted by a wealth consultancy firm The Williams Group which involves 3,200 families over a 20-year period, found that 70% of the families tend to lose their fortune by the second generation, while nine in ten families lose it by the third generation!

The popular explanation behind this phenomenon is that, the first generation works hard to accumulate the wealth. The second generation while growing up, sees their parents’ struggles and have a good understanding of the value of sacrifice and hard work. They appreciate the frugal aspects of their lives growing up and will more likely hold on to their parents’ wealth.

However, the third generation do not appreciate the struggles and sacrifices of the previous generations. Therefore, they are more carefree and more likely to spend the wealth easily and may end up squandering the inherited wealth.

Learn From Example

Ingvar Kamprad Ai010101 PX000998 Ikea L — Credit Photo: Ikea

There is a shining example that comes to mind when we talk about planning for your business succession and holding on to your accumulated wealth to benefit the future generations. He is IKEA’s founder, Ingvar Kamprad. When this highly respected business leader died in 2018 at the age of 91, he was ranked No. 8 on the Bloomberg Billionaires Index.

This is thanks to his control of IKEA’s global retail empire that was valued at US$58.7 billion. Interestingly, his wealth will not be dissipated because of a carefully designed and well-thought through wealth preservation strategy that he had put in place to secure the longterm survival of the IKEA business empire.

According to a media report, most IKEA stores are owned by the Stichting Ingka Foundation, a Dutch entity with the purpose of
donating to charity and supporting innovation in design, according to its founding statute. Meanwhile IKEA’s trademarks, brand and concept were placed under the ultimate control of Vaduz, a Liechtenstein-based Interogo Foundation whose subsidiary, Inter
Ikea, is the global IKEA franchisor. “Interogo Foundation is managed by a Foundation Council, consisting of at least two members and a Supervisory Council, as a principle consisting of seven members.”

This was disclosed by Anders Bylund, Interogo’s head of communications. He was also quoted as saying, “The Kamprad family members in the supervisory councils have been and shall always be in minority.”

Meanwhile, Stichting Ingka Foundation, is only partly philanthropic. Its statutes allow for profits to be reinvested in the company, according to Per Heggenes, the chief executive of the IKEA Foundation.

This smartly designed strategy put in place by Kamprad was designed to ensure that IKEA, is not in the hands of his family members, and thus would long outlive its founder. Trust experts say that the set-up ensures IKEA’s business continuity by making it impossible for any individual, whether a manager or heir, to assume control after Kamprad’s death.

It Can Be Done

Asian Extended Family With Baby Toddler Posing Together Around Couch Home

You can also be the real king or queen of your family’s wealth kingdom just like Ingvar Kamprad, once you have come up with your very own comprehensive personal and business estate planning.

With an intelligently designed estate plan, your wealth can be fortified with a “legal castle” to shield your wealth from all creditors and vultures, as well as to avoid the probable ugly family feuds and disputes, which will tear up and destroy your family’s wealth kingdom. Your legal fort can be watertight against all types of claims and risks, including director’s or professional liabilities.

By utilising well established and advanced legal means and structures to hold the ownership of the bulk of your wealth, you will be able to perpetuate your family’s wealth kingdom, and escape the curse of family wealth being dissipated by the third generation!

You will also be able to protect the interest and well-beings of your beneficiaries and descendants. You get to enjoy serenity and inner peace knowing that when the time comes, your family’s wealth kingdom is intact and it serves the needs of your loved ones.

Let them thrive from the blessings of your wealth kingdom, rather than suffer from the curse of inadequate planning. Your descendants will come to admire and respect your vision and the decisiveness in getting a comprehensive family’s wealth
succession plan, just like the late Mr Ingvar Kamprad.

About the Author

Lee Khee Chuan holds a B.A. from National University of Singapore and a chartered financial consultant (ChFC), chartered life underwriter (CLU), CFP professional, and Fellow, Life Management Institute (FLMI) USA. He is also a licensed financial adviser representative with more than 25 years’ experience in estate planning. He shares a lot more valuable insights at www.estateplanningmalaysia.com

What Is Halal Investing And Why Is It Important?

Posted on 17/05/2022 by admin

Halal investing, in simple terms, means investing in permissible businesses according to the Islamic ethico-legal system or Shariah. There are two main screening levels for halal or Shariah-compliant investments.

Firstly, a business screening is undertaken to review a company’s business practices, products sold, and revenue sources. A company is prohibited from generating returns from the selling or producing of alcohol, pork, products, weaponry, gambling, adult entertainment, or riba (interest). Other considerations include the prohibition of hazard or uncertainty (gharar) such as speculation and the prohibition of investment in forbidden assets (haram).

Secondly, a financial screening is done to ensure that companies have better control on their business and excessive risk taking is avoided. The screening lays out three broad pre-defined ratios, as formulated by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards:

Conventional debt / Total market capitalization < 30%
(Cash + Interest-bearing deposits) / Total market capitalization < 30%
(Total interest + income from Shariah non-compliant activities) / Revenue < 5%

Investments are considered halal if a company passes both the business and financial screenings set out by AAOIFI or by the local Shariah body of scholars. In Malaysia, the Shariah Advisory Council of the Securities Commission Malaysia is the central authority responsible for determining the application of Shariah principles in the local Islamic capital markets.

Why Halal Investing Matter?

Asian Muslim Families Celebrate Eid Together While Enjoying Meal — Asian Muslim families celebrate Eid together while enjoying a meal

For Muslim investors, the option to invest in a halal manner enables them to generate wealth in line with their faith. The interpretation of Shariah law as applied to business activities is nuanced. Since different standards exists, Muslim investors rely on guidance from Islamic scholars to help in the determination if an investment is halal. This allows the Islamic finance industry to thrive as halal solutions are becoming increasingly available in the capital markets.

For non-Muslim investors, investing according to Islamic principles still offer many benefits. Halal investing brings a sense of responsibility on how investments generate returns by preserving a concern for ethics and values. It encourages a disciplined investment process that promotes in-depth research and monitoring to better understand the business.

The financial screening standards also facilitate a conservative approach that appeals to risk-averse investors without compromising on returns.

How To Invest In A Halal Manner?

In this age of digitalization, halal investing has been democratized by the emergence of many options such as digital brokers, online providers of unit trust funds and robo-advisory platforms. This means investors with little financial knowledge may still be able to participate in the Islamic capital markets and learn the ropes on investing from a younger age as the barrier to entry becomes lower each day.

The financial inclusion of the younger and underserved demographics is vital in ensuring that the overall economy continues to grow and remains sustainable.

What Is A Robo-Advisor And Why Should You Care?

Future Artificial Intelligence Robot Cyborg — Artificial intelligence AI research of robot and cyborg development for future of people living. Digital data mining and machine learning technology design for computer brain communication.

Robo-advisors are automated financial advisors. They are an online tool that assists investors in picking an optimal investment portfolio according to their risk tolerance profile. Typically, robo-advisors start by asking investors questions to understand their risk appetite and allocate investments based on certain algorithms.

Once investors agree to the investment allocation, they can start funding their account and the robo-advisors will purchase the underlying securities and manage their portfolio by rebalancing it periodically. Robo-advisors have emerged as favorites to younger demographics due to their low account minimums, low fees, digital-only service and overall, a more efficient and timesaving offering.

About Wahed Invest

Wahed Invest (“Wahed”) is one of Malaysia’s robo-advisors (or digital investment management company) that focuses on halal investing. Wahed was licensed by the Securities Commission Malaysia in August 2019 and launched in October 2019. Since then, Wahed has been offering Malaysians diversified Shariah-compliant investment portfolios that provide exposure to foreign and local equities (via exchange-traded funds or ETF), local Islamic fixed income (via sukuk funds) and gold (via ETF). Further information regarding Wahed’s services can be found at wahedinvest.com, and the Wahed Invest robo-advisory application can be downloaded from the iOS App Store or Google Play Store.

Benefitting From RCEP: While Growing Their Businesses, SMEs Should Look At Avenues For Future Growth

Posted on 13/05/202206/08/2026 by admin

SMEs should take advantage of the benefits and vast investment opportunities under the mega-trade agreement of the Regional Comprehensive Economic Partnership (RCEP).

This free trade agreement involves 15 countries – Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam. It is made up of 2.2 billion people and accounts for almost a third of global GDP.

Among Southeast Asian countries, Malaysia is expected to be the largest beneficiary of the China-backed RCEP in terms of export gains, with a projected increase of US$200 million. It is anticipated that RCEP may remove up to 90% to 93% of trade barriers, and together with lower preferential tariffs. SMEs trading in this new big, open market should gear up for more intense competition.

However, many SMEs are still not aware of RCEP, the world’s largest free trade agreement (FTA) which came into effect in Malaysia on March 18, 2022. Of the 3,000 members in the Small and Medium Enterprises Association (SAMENTA), more than 50% are aware but at different levels of understanding.

Yeoh Seng Hooi Honorary Gen Secretary Small And Medium Enterprises Association SAMENTA

“Many may have heard about RCEP but have not understood how they can improve market access and the harmonised rules to exploit the lower tariffs. “They should seek the help of the Ministry of International Trade and Industry (MITI) to build capacity with technical support from the more developed countries like Japan, China, South Korea and Australia,’’ said SAMENTA honorary national secretary Yeoh Seng Hooi.

Other advantages of RCEP include further liberalisation of trade, removal of non-trade barriers, increased trade facilitation, improved government procurement practices, e-commerce and others.

Ernst & Young Tax Consultants Sdn Bhd Malaysia Private Client Services Leader and Partner, Bernard Yap highlighted that SMEs should be provided with information on doing business in other countries and how they can build their businesses beyond
Malaysian borders.

Bernard Yap Malaysia Private Client Services Leader Ernst Young Tax Consultants Sdn Bhd

“This knowledge can help them avoid unwanted situations such as inadvertently misunderstanding the rules, which can negatively impact them from a business and reputational perspective,’’ said Yap.

Among them, SMEs should understand the concept of regional value content to benefit from the components or raw materials coming from RCEP countries that will fulfil the rules of origin; changes in tariff classification so that the products are considered originating products. Tariff reduction rates are different for each country; SMEs should check from the MITI website under RCEP, and study the schedule of tariff commitments for the countries they wish to export to.

Priorities To Consider

SMEs should review their existing or target markets, whether they are RCEP members, to utilise RCEP benefits. Next, they should evaluate whether the products imported or exported are listed in the RCEP agreement, are eligible for the benefits under their country of origin. SMEs should also look into their current resources to find out if they are able to meet the demand under RCEP.

To achieve economies of scale, as they are now catering to a larger market, they should review their manufacturing businesses and costs. Besides enjoying a larger sales market, the supply chain needs to be re-evaluated. New suppliers from RCEP countries and reduction in trade barriers, will potentially lead to lower production costs.

Tan Eng Yew Executive Director Deloitte Tax Services Sdn Bhd

“Post-pandemic, this mega-trade deal is a key enabler for Malaysia to revitalise domestic and international business activities, especially for SMEs that utilise the RCEP,’’ said Deloitte Tax Services Sdn Bhd executive director Tan Eng Yew.

However, he noted that lack of financing may be an obstacle to be a member of RCEP. A springboard for future growth In addition, SMEs should consider strategic industrial clusters that can serve as a springboard for future growth. Acquisitions, mergers or joint-ventures may be required to build the necessary mass and knowledge for international expansion.

SMEs can take advantage of the double deduction on interest expenses or loans taken to fund mergers and acquisitions, and the stamp duty exemptions on mergers and acquisitions instruments, said Yap.

Other strategies include having an R&D department to regularly assess market positioning, product differentiation and relative cost leadership, as well as investing in productivity improvement processes and automation. Digitalisation, artificial intelligence and machine learning can help businesses get ahead of the curve.

“This will help them to strategise, build capacity and access the supply chains of developed countries within RCEP, and ultimately improve their overall performance,’’ added Yap.

Areas Of Competition For SMEs

Countries such as South Korea, Japan and China are well-equipped with the latest technologies, enabling them to offer more advanced products to consumers. SMEs in Malaysia are arguably lagging behind their market competitors in technological capability and expertise, especially in the electronics and electrical (E&E) sector.

“This ultimately boosts the overall competitiveness of SMEs in those countries compared to SMEs in Malaysia, especially in the E&E sector,’’ said Yap.

SMEs in Malaysia would also have to compete with more advanced supply chain management, with countries such as Japan, South Korea, Singapore and China maximising their supply chains within RCEP. Having said that, SMEs can leverage on their strengths and collaboration with Japan, China and Australia to service their multinational customers in the ASEAN region. Still, RCEP offers them a chance to be more competitive with the tariff reductions.

“Otherwise, we would have been disadvantaged against Thailand and Vietnam which ratified earlier,’’ said Yeoh.

Both Thailand and Vietnam had ratified the RCEP in October last year. With the opening of markets, competition will come especially in terms of product and service quality, costs and efficiency.

SMEs would need to embrace new technologies and consider investing in simple digital platforms, online training infrastructure and automation, artificial intelligence and machine learning.

The workforce also needs to be upskilled. According to the Budget 2022, the government will provide upskilling and reskilling programs to help employees embrace technology advancement and increase digital adoption.

To develop future business leaders, several agencies have been tasked to impart business and leadership skills through on-the-job training, mentoring and entrepreneurship programs.

Enhancing Competitiveness

Despite various initiatives to help SMEs enhance their competitiveness, there is still room for improvement. Currently, initiatives to help SMEs are managed by various agencies, making it a challenge to evaluate the effectiveness of these funds/grants disbursed by the public sector.

Also lacking are clear guidelines and transparency of the application process, as well as clarity to the SME community on which agency they should approach. Ideally, a dedicated one-stop center will help to make all incentives, grants and funding easily accessible to SMEs. New initiatives and opportunities will be quickly and clearly communicated, while the streamlining of the
application process and guidelines for these initiatives will ensure efficiency and ease of monitoring.

“The one-stop center should have helplines and online channels which can be used to obtain advice and information,’’ proposed Yap.

To ensure that we are on the right track, there are still lot of preparations ahead to reap the full benefits of RCEP. With a healthy partnership between the private and public sectors, the growth and success of SMEs locally and regionally will require further strategic collaboration between them.

Many areas of co-operation listed under Article 14.3 of the Schedule of Tariff Commitments are beneficial to SMEs in ASEAN countries that are on board the RCEP.

“The issue is how fast and responsive our public agencies are in working with trade associations like SAMENTA to leverage on this co-operation,’’ said Yeoh.

For example, the exchange of experiences, best practices, adoption of technology and innovation or promotion of e-commerce, are areas that can benefit SMEs. Thailand and Vietnam already enjoyed first-mover advantage with the earlier ratification, Malaysia should accelerate its pace to plug into the opportunities offered by RCEP.

Understanding What We Can Control Will Help Boost Our Health

Posted on 12/05/202206/08/2026 by admin

The past few years saw many unprecedented events, including a sudden change of government and a total shift in how we work, live, and interact with each other. Some have helplessly seen their rice bowls snatched away, while others have suffered losses of loved ones to Covid-19.

Coupled with volatile stock markets, movement control orders, elections and re-elections, and working from home, it is safe to say that no one quite anticipated a year like this. While we are not sure when Covid-19 will be defeated, the one certainty is that if we are so wrapped up in our problems, we may be overlooking things in our life that we can control.

Here are three areas where you can take some purposeful steps to remind of who is ultimately in charge of your family’s “Return on Life”:

1. Your Mental Health

Woman With Hands Together Talking With Counselor

Diseases and health threats are nothing new, with people passing away daily even before Covid-19. The difference this time is it made us realise that none of us can control how long we have when it comes to life. In addition to very real health concerns this year, there has also been plenty of news of job cuts and losses, people going through financial struggles and more.

As we fight to keep hope, the news can be demoralising. With many spending more time on social media, it actually exposes us to news that may magnify our anxiety and bounces them back to us over and over again.

If you’re not working or checking on your friends, set some daily screen time limits. Unplugging before bed can be especially beneficial if your brain is still recovering from a full day of tweets and likes. Our electronic devices and apps are designed to attract our attention. When it’s time to sleep, there’s no better mute button than a good book and a warm cup of water.

It also helps a lot if we have someone to speak to regarding what’s bothering us. People tell me that it helped just knowing that there was someone on the other side listening to what they were sharing, as well as understanding the strong emotional undercurrent during the conversation. Having someone to talk to, I personally believe is very important to maintain balance in our mental wellbeing.

2. Your Physical Health

The pandemic and new norm has created a new breed of couch potatoes. Instead of binge-watching television or Netflix, we’re in danger of putting in unnecessary overtime, all the time. The boundary between your 9-5 identity and your real identity is becoming blurred, and it can be taxing for many people.

Working from home has disrupted many of the routines that kept us active even on days when we weren’t heading to the gym. Simple things like moving around the office or walking down to nearby shops for a coffee break don’t happen as much when you are parked at your laptop at home.

The physical barriers between home and work are a little blurry right now (bosses, this is real!) but you have more control over your schedule. Break up a long day of Zoom calls with ten minutes of simple exercise. When you clear your emails, take a long walk. And when it’s time to clock out for the day, turn off your computer, get up and get moving. Even if you have to convert your living room into a gym, just do it.

Separating yourself from your WFH routine will help you get the most out of your new exercise routine. For me, I make it a point to get down to the street and jog, even it means jogging in the basement carpark. I also took a deliberate approach on what I ate for breakfast, lunch and dinner.

3. Your Financial Health

Close Up Accountant Using Calculator While Examining Report

People who have never set a monthly budget are often surprised by what an empowering experience it can be. The most impactful adjustment you can make to your financial plan is to limit unnecessary spending and maximise savings while continuing to invest prudently, regardless of what’s happening in the markets or on the news. Even if it feels like the one thing we don’t have control of, it could not be further from the truth.

However, investing can make people anxious during moments of uncertainty, especially if retirement is near, or if they are used to low-risk products like fixed deposits. This is one of the reasons why we revisit the “Life Timeline” exercise with clients at least once a year.

A financial plan is only as good as your confidence in it. Since most plans are based on assumptions and what was correct at the time of planning, most financial plans may become obsolete as we move into future; we just don’t know how it could go wrong. That is why, regular check-ins and reviews of our plans are crucial to ensure we are on the right track.

One thing that is certain is that if we take a proactive approach to look at our financial matters and have an idea on how we want things to be managed, that will give us an advantage of being in control over our financial decisions. We are also able to better deal with shocks and surprises.

The Things We Can Control

Now let’s take a look at some of the things that we can control:

Setting aside money to prepare for future goals
Using credit cards to pay (and having the ability to make full payment of the outstanding sum when due)
Planning our income tax bill
Preparing a medical safety net for our family
Paying down our debts, especially bad debts
Withdrawing money from our EPF account 1 if the need arise
Finding out how we are doing with our money

Being in control of your financial health, enables more flexibility in terms of how to adapt when things go wrong, resulting in less stress and better mental wellbeing. Times like this offer the best opportunity to discuss how comfortable we are with market exposure, savings goals, debt, and spending.

The earlier we work to control these, the more we can feel excited about our plans and future.

About the Author

Kevin is a NextGen Money Mentor and founder of NextGen Independent Advisors. He works with people to transform their relationship with money and be brave in their pursuit to live a meaningful life with their money. He is a CFP professional, a certified member of Financial Planning Association Malaysia (FPAM). Kevin can be contacted at www.kevinneoh.my.