This Man Shares Good Tips On How You Can Manage Your Moratorium Money
Tips for those who are still clueless on how to handle their money.
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The Malaysian government has announced the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) worth RM150 billion to help Malaysians who who are still under the Movement Control Order: Phase 1 of the National Rehabilitation Plan.
PEMULIH aims to provide comprehensive assistance to the people with three main areas, namely:
Various types of assistance are offered through the Agenda Prihatin Rakyat, including; Bantuan Prihatin Rakyat or BPR, Covid-19 Special Assistance (BKC), Income Loss Assistance, Food Basket Assistance, and more.
In fact, like MCO 1.0 last year – Moratoriums for loan repayment deferment is also back for six months.
It will be given to all individual borrowers, whether from the B40, M40 or T20 group, and micro-entrepreneurs.
Applications will start opening on July 7, 2021.
What to do with the moratorium money?
Facebook user, Azizul Azli Ahmad, has shared a few tips of you can do with the moratorium money that you will receive later.
And for those who may not be very good at the whole money management thing, it’s a pretty interesting insight, especially during a time when the world is hit by a pandemic and having a bit of extra cash doesn’t hurt.
Here’s what he has to share:
First: Make an Emergency Fund savings. If we have a debt/loan of RM1,200 x 6 months every month that’s around RM7,200 in emergency savings.
This savings is for emergency expenses only. It is also for the purchase of basic necessities if it’s not enough. If you still have some salary left, use that salary money. Don’t use emergency funds to buy anything you need. Use only in emergencies!
New car rims are not an emergency!
Second: Can pay off the Credit card debt. If we have credit card debt up to RM4,000. Use this Moratorium money to settle this debt in stages.
Why a credit card? That’s because the interest rates that credit cards charge are very high. Between 12-15% of the rate. The longer the debt sticks with us the worse our finances will be.
Third: Take back the gold leased in Ah-Rahnu. The rate charged by Ah-Rahnu is usually 7.85% for a period of 6 months. If a year it becomes 15.7% which is a very high rate. Better to take it and keep it back in our house.
Fourth: If we have all the emergency funds, a stable salary, a good company, then try to settle whichever debt you can afford and the smallest first.
Let’s say we have a personal financing debt of RM3,000. So it is better to settle one of the 4 debts we have. This is called the snow ball effect. Settle the lowest remaining debt.
Fifth: Invest back, for people who know how to invest only but its not for newcomers to try. Use this money to invest. Make sure you know what you’re doing before investing, don’t just take anybody’s word and invest blindly
If this is your first investment, “I follow this investment sifoo. Pay only RM3000 to buy a house ”. Well forget about it, this is not the time.
In every cloud there’s a silver lining.
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