9 Most Common Reasons Malaysians Are Broke In 2017

According to reports, Malaysia’s spending appetite is poor, with the year-to-year growth of retail sales in the last quarter of 2016 at 0.3%. This is 1% down when you consider the last quarter of 2015 was at 1.3%.

To top that off, many businesses are closing down this year, including banks and big name brands. These are all signs that Malaysians are tightening their belts and as a result, the businesses are struggling to make ends meet.

However, there are still many Malaysians who are unwittingly wasting their money.

To begin, please allow this humble Malaysian to share with you some truth bombs. Because no matter how hard we try, there’s always something that is draining our money. At the end of the month, we are still left to wallow with little to no remnants of our income.

So here are the top 9 things Malaysians wasted their money on in 2017:

Truth bomb #1: Smartphones and gadgets

Try as we might, Malaysians can never resist the call to buy new technology. According to market researcher GfK, we spent RM6.8 billion on smartphones from March 2016 to February 2017.

Well, this can be seen as a waste if you’re buying smartphones you can’t afford or changing your phone when it is still in good working condition. The article was pretty positive in the outlook of Malaysians buying more in the future, but considering the number of Malaysians struggling financially, this is a dangerous tightrope to be on. Let’s just hope this boon doesn’t get any special treatment. *cough*more tax*cough*

How to avoid wasting your money on smartphones? Don’t change your phone just because there is a newer model launched. Think about the longevity of your gadget when you are making your purchase and make the most out of it before you decide to switch.

Truth bomb #2: Online shopping

Physical shops may be closing down, but it looks like online shopping is here to stay to cater to our need for convenience. With more people owning smartphones, there’s been a 38% growth in online spending in the first six months of last year, with Gen-Y spending 1.4 times more than other age groups.

The trend is rising so much that it’s putting some youth into debt and at risk of bankruptcy. Out of all the respondents in the Asian Institute of Finance (AIF) study, 37% has sought financial advice from a professional planner and 26% with a financial adviser.

“I can’t help it! It’s so easy to buy something and the offers are too good to resist!” we cry (because I feel that pain too). But let’s face it, online shopping was specially created to make it easier for you to spend with just a tap or a click. Even if the offer is good with promises of over 80% discounts, cashbacks and points, if you don’t have the money you’re bound to overspend. So Malaysians, think twice before you tap on the checkout button.

This leads to the next point…

Truth bomb #3: Credit card interest

With a 26% rise in credit card spending among 26 to 35 years old based on data from United Overseas Bank (UOB), credit card usage is definitely a concern for many Malaysians. To make matters worse, according to the AIF report, 70% of those holding credit card balances usually pay the minimum monthly payment and 45% sometimes don’t pay on time!

If you think online shopping is a waste of money, you are doubly guilty if you are also late on your credit card payments!

This is how credit card interest can throw a wrench into your finances. If you have a balance of RM3,000 on your card, and you are only paying the minimum payment of RM150 in the first month, it will take you four years and four months to clear your debt. And at the end of that period, you would have paid a whopping RM825 in interest!

To combat this one, you need to know that a credit card is a payment tool for convenience, not a tool for you to spend money that you do not have. If you are unable to pay it with cash, don’t buy it at all.

Truth bomb #4: Investment scams

You read about this happening in the news almost all the time. From MLM and investment schemes with a promising email offering you riches for a small fee, to scaring you into thinking your bank account is in trouble –  scammers are doing all they can to get your money. The scary part? It’s actually working.

Based on this report, the VenusFX forex investment scam resulted in an RM80 million loss for 23,259 people, the JJPTR spelled a RM1.7 billion loss for all of its members. Topping it all off is an April 29 news report where Bukit Aman Commercial Crime Investigation Department said the number of cases of investment scams in Malaysia has grown to an “alarming” RM379.1 million lost nationwide from 1,883 scams between 2015 and April 2017!

So what can we do to stop this? The best we can do is to keep an eye out for anything that sounds too good to be true and don’t let people manipulate your fear and emotions! It’s a tough time finance-wise, but that doesn’t mean you should invest your money without proper research. You can check Bank Negara Malaysia’s Consumer Alert & Updates page and download a list of blacklisted companies, call your bank with their official number for verification on a possible scam and lastly, there is no such thing as guaranteed returns!

Truth bomb #5: Summonses

Within five days of launching the Automated Enforcement System (AES) and traffic offence demerit system (Kejara) this year, the Road Transport Department (JPJ) had issued 13,096 traffic summonses; 11,556 for speeding and 1,540 for beating the red light. With summonses for speeding and beating the red light costing RM300 per summons, that’s RM3.9 million in summonses owed in just five days!

But most of us wouldn’t think of it much because we usually avoid paying summonses for as long as possible. For DBKL alone, there’s a total of RM5.2 million unpaid compound notices since 2007!

You may be as lucky as this guy who managed to escape paying summonses for 10 years, but now that he has been caught he needs to cough up RM5,000. So eventually you will have to face paying up at some point, especially if you want to renew your car’s road tax. So do your best to avoid making traffic offences, or if unfortunately, you did get a ticket, pay it early or take advantage of early bird discount of up to 50%! But by avoiding getting a summons in the first place, you may even score lower premiums for your car insurance, thanks to the latest detarrification!

Truth bomb #6: Buying a car

Yes, buying a car is a waste. But not in every case, but if you are buying a car that is outside of your affordability and without proper planning, it will totally drain your finances!

Malaysia ranked second in the list of most expensive places to buy a car, where the excise duty imposed on cars ranges from 65% to 105%, on top of the 6% Goods and Services Tax (GST).

Despite the high tax and other cost factors such as car insurance, maintenance costs and more, it’s incredibly easy to get a car loan which is making almost 30,000 Malaysians bankrupt today! This is because many don’t have a good grasp of their own finances and buy cars that are beyond their means – which is the fast track to bankruptcy.

Advice? Don’t buy beyond your means. This applies to everything but especially for a car. If you can get away without owning a vehicle, the better off you are. A car is a depreciating asset and if it doesn’t contribute to your earning power, there is not much point to owning one.

Depending on where you go (especially if you’re going to Kuala Lumpur) you’re better off taking public transport. With the newly opened MRT fully operational and there being a 50% discount until August 31 2017, it’s definitely a cheaper option to look into.

Truth bomb #7: Subscriptions

Bills are the worst, I feel you. They’re the number one reason your salary is gone within the first week of getting your pay. Things like electric bill and water bill cannot be helped as it is a necessity, but let’s look at the other bills, such as your broadband, online subscriptions and gym memberships.

For example, you’re paying over RM200 per month for a 30Mbps or 50Mbps broadband, but you’re barely at home, you don’t download much and only use it for streaming. Did you know you can get a broadband subscription that’s more affordable for your usage?

Do your research and you may find a better broadband subscription to reduce wastage in terms of unused broadband and your money! Same thing with mobile subscriptions, they’re charging you for loads of calls and SMSes but minimal data, when you need more on that? Find out if you can get a better deal for the type of plan that you want.

Not using those online subscriptions like Spotify or Netflix much? Been skipping the gym a lot and can’t keep up? It may be time to stop such services before you see more of your money gone down the drain.

Truth bomb #8: Late fees

There are many possible reasons you could have missed your payments. You could have been traveling and forgot about your due date. You may also be procrastinating your payment because you can’t bear to part with your hard-earned money.

However, late payments when it comes to your home loan, personal loan or car loan can spell a disaster to your finances. You will get an extra 1% to 8% p.a. on the instalment amount in arrears. For example, let’s say you missed your home financing payment by 30 days and you pay a monthly instalment of RM2,784.44. This means:

RM2,784.44 (monthly payment) x 30/365 x late interest (3.9%[Base Rate]+6.35% [Penalty Interest]) = RM23.48

Doesn’t seem much? But the more you defer your payment, the bigger your arrears and the more you will have to pay back. If you fail to regularise the arrears by the end of the 60 days, the bank reserves the right to revise the interest rate accordingly.

To add on to all of this? You’re getting a bad credit report, which will affect your future loan applications. You can find out more about late fees and their repercussions in one of our articles.

To stop this from happening, look into setting up an auto-billing for your account. This will ensure that your payments will always be made no matter what, and it will save you a lot more money by cutting down the hassle of making the payments in the first place.

Truth bomb #9: Food

This is a basic necessity so how is this a waste? Can you imagine living a life without food, glorious food? Definitely not! But alas, with the rising cost of food items, with some going as high as 50% more this year, it’s easy to overspend on this necessity.

In fact, Malaysians are spending about 31.2% of their disposable income on food and food away from home, yet food wastage is at an all-time high with a wastage of 15,000 tonnes of food per day. With buffets being offered on special occasion, and eating out a boon for those who don’t want to cook, lack of planning will see you wasting more money. Add on the extra GST and service charge, and you’re seeing yourself spending 16% more when you eat out!

The solution? Plan your meals according to your budget. Cooking at home saves you RM2,700 of wasted food per year. Need to eat out? Opt for cheaper options, and if you’re lucky find ones without the extra tax. If you’re going to eat at a buffet, take only what you need and leave little to no wastage. You may think you’re eating your money’s worth by taking more than you can chew, but really you’re just seeing money being thrown away as well.

If you are constantly dining out, it makes sense to get the right dining credit card or loyalty cards to shave as much off as possible from your dining bills.

Can we stop wasting money?

Despite there being solutions for each of the points being presented, there’s no denying it isn’t easy to practise them all. Who’s going to spend time worrying over things like these? That money’s gone and it ain’t coming back!

Though we still have a long way to go to getting our finances right, Malaysians have been doing pretty well in saving their money. So this list can be served as a reminder that there’s still work to be done! When spending, don’t just follow your heart!

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How to Send Money Overseas for Cheap

Need to send money to family and friends overseas? Check out the most cost-friendly and convenient ways to make international fund transfers.

If you’re sending money overseas often enough, you’ll definitely want to know how to do it as cheaply, easily and securely as possible. Here’s your guide to the available transfers services available right now

1. Western Union

Since it’s a well known brand that many trust and recognize, there’s less apprehension using it to send money, especially large sums overseas. However, in most instances you’ll need to find an agent location, so it may not be as convenient as other services. You may have the option of making an online transfer via Maybank - Western Union Money Transfer Service (or other participating banks) but you will need to have an online account with the bank first.

One of the benefits of sending money via Western Union whether through an agent or online is that your recipient may be able to collect the money almost immediately. You can also track your transactions and provide many options for recipients to collect the cash (e.g. direct bank-in to their accounts, via mobile wallets or self-collection at agents’ office).

The transfer fee range varies by country and amount of transfer which can be as little as RM9 to as much as over RM450 (for transfers above RM8,600 sent to countries in the Americas, Europe and Africa).

2. SuperRemit

This option caters especially for transfers to China, the Philippines and Indonesia. You can send money in real-time and the beneficiary of the funds will not have to pay extra for retrieval. In fact, money will be transferred directly into their account.

Furthermore, those sending money via SuperRemit pays only a flat rate of RM10, RM15 and RM25 for transfers to Indonesia, the Philippines and China, respectively. Note though, there are limits on how much each customer can send per day. To China, the limit is USD3,000, to Indonesia; RM50,000 and the Philippines; PHP100,000. Thus, if you need to send larger amounts, you may have to space out your transfers or look for other options.

You’ll have to do this over-the-counter at Hong Leong Bank branches though as no online transfer option exists at present. This is certainly one of the cheapest options, but the drawback is that you can only use it for these three countries.

3. MoneyGram

With this online transfer service you can send money to over 200 countries and what’s really helpful is that you can estimate your fees before sending. This will help you compare between agents before you send. Moreover, the service is transparent regarding fees and exchange rates. You also have the option to send money directly to a bank account, mobile wallet or to the nearest agent for your recipient to pick up (depending on transfer destination).

However, do note that you’ll have to make payment in cash at an agent’s location, thus there is a convenience factor to think about. Still, you should know that the recipient will have access to the funds you’ve sent within minutes (subject to operating hours and regulations).

4. Opening a Foreign Branch Bank Account

Opening another account with the same bank within different regions will make it easier for you to transfer funds between accounts at a much cheaper rate and save more on exchange rates as well. HSBC Global Transfer and Global View and Citibank offer such a service where premier-level accounts may enjoy waived transfer fees (between accounts).

However, this would only work if you plan to send money repeatedly to one destination only. For instance, if your child or relative is stationed in the UK, you may use a UK bank account to send money to them. The recipient will not have to pay any fund retrieval fees and you can send them money anytime when you activate your online banking facility.

5. Foreign Telegraphic Transfers

Sending money through a bank via foreign telegraphic transfers is the most common method and depending on the destination of your transfers, can be a convenient option for one-time transfers. Banks charge a service fee of RM10.60 (including GST) plus a transaction fee that varies by country and bank as well as intermediary bank fees (typically in US Dollars). It’s not the cheapest option per se, but you will typically enjoy lower conversion rates. You can do it over the counter and via online bank accounts. What’s good about telegraphic transfers is that it is one of the fastest ways to send money overseas, so you can choose this option during emergencies.

Whatever you do, just don’t put actual cash money in an envelope and send it via snail mail!

For some of these transfer options, you may need your own bank account or online account.

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Fulfil Your Financial Goals With The Right Insurance Plan

Protecting your most important assets is an important step in creating a solid personal financial plan. The right insurance policies will go a long way towards helping you safeguard your earning power, your possessions and your loved ones. Adequate insurance coverage not only protects, but it also creates the incentive for you to save your way in fulfilling your financial dreams.

Retirement

Retirement years are called the golden years of one’s life. The idea of leaving the workforce and travelling the world or spending more time with your family might sound like heaven-on-earth, but there is a lot to prepare for financially.

Preparing for a happy and peaceful retirement is a lifelong process. After all the hectic years of earning to fulfill the needs of your family and yourself, retirement should be the time when you can finally settle down and enjoy the fruits of your labour. However, your dream retirement is only feasible if you have been smart during the working years.

A retirement annuity provides you with a stream of income during your retirement years. Generally, a retiree needs at least 60% of their last drawn salary to maintain their standard of living pre-retirement.

The key to planning for your retirement through an annuity plan is to buy the plan that best suits your needs.

It is advisable to start saving as early as possible during your working years to build enough funds to provide you with a worthwhile income when you retire.

Child education

The cost of higher education is increasing each year. Parents may find this cost a strain on their finances. That is why it is important to start planning for your child’s education as early as possible. The earlier you begin, the more time you will have to allow your money to grow.

The child education policy is a part of the life insurance product, but specially designed as a savings tool to provide an amount of money to pay for your child’s higher education expenses, when the time comes.

The best option would be to opt for a payor benefit rider. The education policy will also provide assurance that, in the event of your untimely demise, the child will have access to the funds to help finance his or her studies.

When choosing a policy, always:

1. Consider how much money you want to set aside for your child’s education

The first step in determining the amount of coverage you need for your child education plan is to have a goal in mind. The following are some of the factors you may need to consider in determining the level of coverage:

Working through these factors will help you figure out the expected costs. Since the education costs will be incurred in the future, you need to factor in inflation. Once you have included inflation, you may end up with an amount you know you can’t afford. However, by wisely putting your money to work, the returns can be accumulated over the years to help cover the costs.

2. Ensure that the premium is affordable

The policy you purchase depends on your objectives and your risk tolerance. Before you buy a policy, ensure that it is based on your needs and financial capacity.

3. Do not pay for unnecessary coverage

Education policies sometimes offer the ability to add insurance coverage like medical insurance or critical illness coverage. Be careful about adding too much insurance coverage as the costs will affect your savings.

Invest in your child’s education, and that will go a long way in enabling them to have a bright future and be successful in whatever they venture into.

Insurance policies come in a wide variety of coverage and boast many different features, benefits and prices. Make sure the policies that you purchase are adequate for your needs. Shop diligently, read the fine prints and talk to the agent to be certain that you understand the coverage, cost and terms and conditions.

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Stop Being A Spectator Of Your Investment!

Investment Guide: Be An Investor, Not A Spectator

Learning how to become an investor is a critical step to financial freedom. But when you’re unsure of something, it’s easier to watch from the sidelines.

For example, variations of this phrase are uttered by people everywhere every day: “I think a correction is coming, so I’m staying out of the market for now.”

But there are (at least) two things wrong with this statement…

First: Yes, there definitely is a correction coming. But there’s a good chance you’ll be wrong about when markets are going to fall (unless, like a stopped clock, you happen to be coincidentally correct). Even investing legend Jim Rogers admits he made mistakes trying to time the market. And sometimes markets give you a bloody nose with a quick 5% or 10% slip, but then find their footing again. For most investors, trying to time the market is usually an expensive effort that’s doomed to fail.

Second: You’ll lose out far more by not being at least partly invested than you will with misguided, emotion-fuelled attempts to time the market. That’s because stock market returns are extremely concentrated. Blink, and you’ll miss an entire generation of gains. That’s why “I think a correction is coming, so I’m staying out of the market for now” are words that can carry enormous opportunity cost.

So if you want to learn how to become an investor – and not a spectator – take note:

Here’s what happens when you miss the best weeks …

We looked at the weekly performance of the FTSE Bursa Malaysia Index over the past 15 years. Then we looked at how performance over that period would change if an investor was not invested during weeks when the market performed best.

Since June 2002, the FTSE Bursa Malaysia Index has had 790 trading weeks. Over that time period, it’s returned 275.3% (in U.S. dollar terms, including dividends), for an average annual return of 9.1%.

The table below shows what would have happened to that performance if an investor missed some of the best-performing weeks of the index. The single best five-day period for the index since June 2002 was the week ending October 9, 2015, when it rose 12.5%. If you had been invested for the other 789 weeks since June 2002, but missed that one specific week, your overall returns over the entire period would have fallen from 275.3% to 233.7%. Your average annual return over the 15-year period would have declined nearly a percentage point, to 8.3%.

Bursa Malaysia Index – Missing the Best Weeks (since June 2002)

	Accumulated Return	Avg. Annual Return
All weeks (790 weeks)	275.3%	9.1%
Missing the best week	233.7%	8.3%
Missing the best 3 weeks	189.4%	7.3%
Missing the best 5 weeks	155.8%	6.4%
Missing the best 10 weeks	92.0%	4.4%
Missing the best 20 weeks	15.2%	1.0%

Source: Bloomberg
www.stansberrychurchouse.com

That’s just the start, though. If you had missed the best-performing three weeks of the 15-year period, your total return would have fallen by 85.9 percentage points to 189.4%. Missed the best 10 weeks? You’d have made only 92% during the period, for an average annual return of just 4.4%. And missed the best 20 weeks? You would have only made an average annual return of 1% over the 15-year period.

The magic of compounding

The key here is that by missing out on relatively few weeks of great performance, you don’t just miss out on the returns of those great weeks. Your portfolio misses out on the magic of compounding. (If you really want to learn how to become an investor make sure you read up on compounding interest).

The return you didn’t earn that super week was not available to earn you an additional return in the following weeks and years that you were investing – because you didn’t make anything in that critical week.

That’s why the total return at the end of the period, 233.7%, would be so much less than the 275.3% return you’d have made if you’d been invested during the best-performing week of the index.

What can you do?

So is the answer to stay invested all the time? No. No matter how long your time horizon, the periodic serious corrections in stock markets will – like missing out on the good weeks – destroy your performance.

But you can exercise smart risk management by watching your stop loss levels carefully. Yes, you might miss out on some of the best weeks. But by missing out on a bigger correction, you’ll have done your returns a far bigger favour.

What else can you do? You can be in the market but still have a cash cushion. As written before, cash is the best hedge. It’s cheap and it represents potential… there’s nothing worse than seeing great investment opportunities and not having the cash to invest in them. Plus, when markets drop, the purchasing power of cash rises.

So don’t pull out of the market altogether because you’re worried that there might be a correction. If you want to learn to become an investor – and not a spectator – make smart use of trailing stops… and keep some cash in the bank for rainy days.

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Are Men Better At Managing Money Than Women?

Do men and women really have a different approach to money? We talked to 5 couples across different age groups and different stages in their lives to find out.

Researchers at UCLA School of Nursing found that men and women are wired differently  while another study found that males have better motor abilities whereas females have better memory and social cognition skills. Okay, so the gender’s brains are wired differently. But the question is, does one gender manage money better? Here are insights from the 5 couples we talked to on money management and how they overcome their different financial views for a lasting relationship.

Ismail and Atikah, both mid 20’s, engaged

Tell us your philosophy when it comes to managing money. What do you believe in?
I believe in saving in order to secure yourself and your family financially in the future.

How important is saving money to you, and why? 
It is important to secure enough savings for investments and also for future children’s education.

Do you have conflicting views of how you manage your money? How do you overcome them?
Not really, but we try to balance it out and remind each other to not spend on the unnecessary.

Before you married/while you’re dating, did you share your financial situation (debts and all) in complete honesty?
Yes and no. There are things that we share but I’d rather leave the petty ones out in order to maintain a healthy relationship.

Who do you think is better at managing money? 
My other half (Ismail) as he is better about this matter.

Zakri and Anisha, both mid 20’s, just married

Tell us your philosophy when it comes to managing money. What do you believe in?
My philosophy would be to never spend money which you don’t have.

How important is saving money to you, and why? 
Saving is really important to me, I’m very sure it is to everyone. It is very important to feel secured financially as we do not know what is coming our way in future. But managing your savings is not easy. One needs to at least learn and gain saving knowledge. Know the importance of saving, it would be much easier.

Do you have conflicting views of how you manage your money? How do you overcome them?
Fortunately both of us are on the same boat when managing our money. It makes it easier when our partner have the same financial views. However there are also times that we don’t agree on the same thing. That is when we will sit down and discuss on what’s right and wrong.

Before you married/while you’re dating, did you share your financial situation (debts and all) in complete honesty?
Yes. He knows my financial situation and I know his financial situation very well as we always share about it. We even know each other’s ATM pin number and also online banking password.

Who do you think is better at managing money? 
My husband is way better at managing money. This is because he is the type who would save and who would think about the future (financially). Sometimes I spend money without thinking(impulse buying).

What’s the key to a successful financially stable marriage/relationship in your opinion?
Both must try to be on the same page on financial views, I know it is not easy but try to understand each other’s financial views. If there’s any disagreement, sit down and talk about it and discuss. This is because sometimes one is not in the right state of mind to think properly due to stress.

Khairul and Afiqah, both mid 20’s, married with 1 child

Can you share some of your rules when managing your household budget?
Our rules when it comes to household budget is to only spend money to buy things that are necessary, spend money according to my affordability and that remaining money after paying off loan and purchase of necessities goes to savings.

How important is saving money to you, and why? 
It’s very important because it serves as emergency fund as well as savings for the future.

Do you have conflicting views of how you manage your money? How do you overcome them?
Yes. We overcome the difference in views by discussing the rationale and logic for the best method, most often reaching conclusion after small arguments over each other’s views.

Who do you think is better at managing money? 
I think wives are better at managing money. They constantly worry even about the future, even event which are yet to occur.

Couple A: both in 30’s, married with 1 child

Can you share some of your rules when managing your household budget?The main rule we go by is never hold any outstanding bills. Every month we put money aside to settle ALL the bills. After money for bills and savings are set aside, whatever is left is our disposable cash, in this way we can relax a bit and lighten that lingering weight over our heads.

How important is saving money to you, and why? 
For me and my wife, it’s pretty important. We are risk averse people. So we do keep cash aside for emergencies. However, after having our son, it’s not as much as we used to save. But because we already had a nest egg, there is enough there to cover most emergencies and of course pay for holidays (that’s kind of important). Anyways, my properties are a type of savings, not as liquefiable but it’s something.

Do you have conflicting views of how you manage your money? How do you overcome them?
Yes, but normally we just talk it out. If it turns out to be a want and also is somewhat of a need then normally its fine. If not, we just put it off until we have some extra money and then figure it out from there.

Before you married or while you’re dating, did you share your financial situation (debts and all) in complete honesty?
Sort of. If we questioned each other, we would each give honest answers. But it’s not like we’d blurt out “I have a student loan! I have a home loan!” But we knew each other’s salaries and would sort of keep each other in check from impulse buying a lot of nonsense.

Who do you think is better at managing money? 
I guess my wife is better at it as she’s more cautious, so she takes the initiative to sit us down, talk about our expenses and all those things. I’m better at numbers, so we have this whole excel thing I mapped out so we can manage ourselves better.

What advice would you give newly married couples?
For to-be married couples, I will say don’t waste money on a lavish wedding. It’s a day or two in your life and you will probably be too busy to enjoy it. Put that money into a nice home which you will be spending your time together in. For newly married couples, although it’s fun to live in the present, also think about where you want to be in the future.

Couple B: both in 30’s, married with 3 children

W= wife
H= husband

Tell us your philosophy when it comes to managing money. What do you believe in?
W: I believe when it comes to income it’s not how much you earn but what you do with it or how you manage it that matters. If you earn a lot but spend it all in a month then it’s not better than earning a lot less but saving most of it. It’s really important to understand delayed gratification and making money work for you.

H: What she said.

Can you share some of your rules when managing your household budget?
W: We use the envelope system where we have different categories of expenses like groceries, eating out, etc. And we set aside money monthly in each envelope for that expense. The rest is saved or invested. If there’s no money left in the envelope say for restaurants than we don’t eat out.

How important is saving money to you, and why? 
W: It’s super important but should also be balanced. Living frugally is natural to me and I want my money to last especially as I’m unemployed. We have to think of our children’s needs and education as well as the future.
H: Important for a rainy day and also for our children’s school fees.

Do you have conflicting views of how you manage your money? How do you overcome them?
No. we are on the same page when it comes to money management. And we make important money decisions together.

Who do you think is better at managing money? 
Both are good at it. Both believe in delayed gratification and support each other towards that goal.
Note: couple A and B choose to remain anonymous

What’s the key to a successful financially stable marriage in your opinion?
Be honest with each other and trust each other. Cooperate and hash things out if you don’t agree. There’s got to be some compromise. For example, when deciding on buying a car, talk about pros and cons

The couples we talked to also shared their financial priorities and their main financial worries:

Top Financial Priorities	Top Financial Worries
Financial independence	Debt
Savings	Cost of living
Retirement	Not having enough for retirement

“ These days, when we give out budget forms during our program and tell couples to fill it up together, the wives will take the budget form and fill it out. So now it’s changing, it’s the wives that is doing all the planning.”  Nor Akmar Yaakub, Head of Financial Education, Credit Counselling and Debt Management Agency (AKPK)

So Who Is Better With Money?

We found that all of the couples we talked to discuss money management with their partner. If any financial conflicts arise they resolve it together. Most couples also ranked savings as very important.

Interestingly, 2 out the 5 couples stated that wives are better at managing money, while 2 couples said their male partner is better with money. So there’s no clear line as to who manage money better from our findings, although our sample is limited. But what we can gather is that when both genders combine their strength, it can help to improve a couple’s financial situation.

“It makes it easier when our partner have the same financial views.” – Anisha

But even if you don’t share the same views on money with your partner, all is not lost. As the study mentioned earlier have showed, men and women are wired differently so differences of view is not surprising. What’s important is to come to a decision together.

“We overcome the difference in [financial] views by discussing the rationale and logic for the best method” – Afiqah

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