5 Ways to Manage Your Finances after Losing A Job

By Nurul Khairiah Mohamed Yusof

Losing a job during these tough times seems like an inevitable situation for many people. So, what can you do for your finances if you are let go?

Earlier this month, Bank Negara Malaysia (BNM) Asisstant Governer, Marzunisham Omar in a virtual press conference said, Malaysia’s unemployment rate is expected to shoot up to 4% this year, from 3.3% in 2019.

“We expect the labour market to be considerably weaker and the unemployment rate to increase to about 4% in 2020″

At the same time, on the global level, the International Labor Organization estimates that nearly 25 million workers will lose their jobs, with loss of incomes of approximately US$3.4 trillion (RM14.8 trillion).

If you suspect a layoff is imminent or you already experiencing it, it’s important to prepare. Losing a job is scary and stressful, but you can mitigate the damage by taking as much control of the situation as possible now.

1. Slash your budget.

Your first step should be to examine your expenses and look for any non-essential spending you can cut right now.

Work with a bare-bones budget and establish the expenses you need to live and focus on cutting spending. Obviously, you have to keep the lights on and feed your family but you should aim to pause any discretionary spending.

“You need to figure out how long you can go if your job is cut back or terminated. Then you can make decisions accordingly,” said Ande Frazier, a certified financial planner and CEO of MyWorth.

She suggested pausing gym memberships, canceling streaming services not in everyday use, pausing transportation costs (such as train passes), stopping auto refills or subscriptions, and cutting down on shopping for things you don’t absolutely need.

And don’t feel bad if you need to slow down on your savings goals for the time being. Making sure you can cover your basic living expenses should be a priorities over saving up for your holidays.

2. Prioritize your bills

So once your budget is pared down, take a look at the expenses you have left and decide which ones are most important to continue paying if money gets tight.

“Food and housing expenses are essential to cover if you have limited funds, so prioritize allocating your funds to those expenses first and foremost,” said Brittney Castro, the in-house certified financial planner for Mint and Turbo, and founder and CEO of Financially Wise Inc.

Next, Castro said you should call your service providers (cell phone, internet, cable, etc.) and find out what sort of options you have to reduce or pause your payments temporarily.

“Beyond that, you want to protect your credit for the future, so try to keep credit expenses low, and pay your minimum debt payments so you don’t default,” Castro said.

3. Deal with your debt.

Speaking of debt, this is an area of your budget where you may be able to find temporary relief.

“If you are currently facing or anticipating a reduced income during this time, as a first step you should reach out to your lenders, providers and landlord to preemptively discuss temporary payment relief options,” said Adrian Nazari, founder and CEO of Credit Sesame.

This means that you have the option to delay paying these bills without a negative impact on your credit score or losing service, and allowing you to prioritize paying for necessities like groceries and pharmaceuticals. Be sure to explain that you’re facing financial hardship due to income loss.

Even if you aren’t able to pause payments or get penalties waived, there are a few options for at least reducing the monthly bill.

If you’re carrying credit card debt but have a decent credit score, look for a balance transfer deal. In order to attract new customers, credit card companies will offer 0% interest for around 12 to 18 months if you transfer your balance over from a competitor. Though there is usually a fee involved ― around 3% to 5% of the balance ― it’s usually worth it to avoid accruing interest for a year or more. During this time, your payments will go 100% toward the principal, allowing you to pay it off faster.

4. Start networking like crazy.

Job hunting landscape are rapidly changing. Not only are there fewer jobs available as businesses continue to shutter, you’re now competing against all the other workers who’ve recently been let go or furloughed. Not to mention, in-person networking and interviews aren’t a possibility.

That’s why now is a good time to get ahead on your job search and reach out to some of your trusted contacts to let them know you may be making a career change soon, according to Christy Noel, a career expert and author of “Your Personal Career Coach: Real-World Experiences for Early Career Success.” This allows you to line up references you’ll need as you begin interviewing for new positions.

Plus, it alerts your network that you might be job hunting soon, so they’ll keep you top of mind as they come across open positions.

However, Noel warned against hitting up your connections for jobs right away.

“Reach out to say ‘hi,’ send articles that may be of interest, comment on their LinkedIn posts . Get back in touch so you can reach out to them and they’ll be receptive when the time is right,” she said.

If you are someone who believes strongly in financial planning, perhaps a career in Financial Advisory is your calling.

5. Find a side hustle or ramp up the one you have.

The working world is changing in the face of technological update and becoming more competitive, it may be some time before you’re able to secure full-time income again.

“One of the best ways to prepare for losing your job is to start a side-gig that allows you to replace the income that you may soon lose due to an impending job loss,” said Roy Morrison, digital marketing and growth strategist for Meaningful Profits.

Though it’s unlikely that your side gig will replace your full income in the beginning, it’s a great way to beef up your emergency fund. And over time, it might be able to replace your current income or even surpass it. It is very risky to depend on a single source of income, as it can vanish any day.

Morrison said. “For that reason, I believe working on a side gig to develop a second source of income is the best way to prepare for potentially losing your job. It will give you some peace of mind knowing you have options.”

Conclusion

Losing job is not a child’s play and require us to reassess our personal finance goals and prioritizing our necessities. Look at this as an opportunity to focus on your family well-being and nurturing yourself.

But, you can always make a preparation ahead of the possible recession because believe it or not, you are not alone in this battle.

What other tips do you think can be beneficial when face with unemployment? Share with us in the comments section below.

Syarikat PKS Perlu Bertindak Segera

Diterjemahkan daripada kenyataan oleh Pengarah Urusan Wealth Vantage Advisory, Rafiq Hidayat Mohd Ramli baru-baru ini.

“Dalam kadar sekarang, Persatuan Perusahaan Kecil dan Sederhana (PKS) Malaysia menjangkakan kira-kira 200,000 hingga 300,000 atau 30% daripada IKS, akan jatuh muflis dalam masa setahun”

Saya agak terkejut kerana adanya Persatuan PKS di Malaysia. Siapa yang menyertainya? dan apakah langkah untuk menyertainya? Apakah antara kelebihan jika menjadi ahlinya?

30% daripada syarikat PKS akan jatuh bangkrap sehingga tahun depan? Tidak mustahil sebenarnya.

Kategori Syarikat PKS

Syarikat-syarikat PKS semasa Perintah Kawalan Pergerakan (PKP) ini sebenarnya boleh dibahagikan kepada tiga kategori:

1. Syarikat yang menyaksikan pendapatan mereka bertambah kerana perniagaan yang menyediakan produk yang menjadi permintaan daripada pelanggan pada masa ini.

2. Syarikat yang tidak melihat sebarang perubahan dengan hasil pendapatan mereka atau hanya berkurang sedikit sahaja kerana perniagaan mereka yang termasuk dalam kategori penting (essential) tetapi tidak seperti dalam kategori pertama dan mungkin telah melakukan perubahan terhadap punca pendapatan perniagaan.

3. Syarikat yang semakin berkurang pendapatannya atau tiada langsung kerana perniagaan yang berada dalam sektor yang tidak dikategorikan sebagai penting dan tiada sebarang perubahan dibuat terhadap model perniagannya- walaupun terdapat segelintir daripadanya yang agak mustahil untuk menukar model perniagaannya misalnya sektor pembinaan, perhotelan dsb.

Adakah ini bermaksud, 30% daripada syarikat PKS yang akan muflis adalah mereka dalam kategori ketiga? Ia satu persoalan yang boleh direnungkan.

“Tetapi peliknya, subsidi upah daripada kerajaan bernilai RM13.8 bilion tidak begitu popular dengan perniagaan PKS”

Sehingga kini, kira-kira 500,000 syarikat PKS berdaftar dengan Pertubuhan Keselamatan Sosial (PERKESO) yang menguruskan permintaan subsidi tersebut bermula 9 April lalu tetapi sejak 24 April lalu, hanya 228,797 majikan sahaja yang memohon.

Kita andaikan kesemua permohonan tersebut diluluskan, pembayaran subsidi selama tiga bulan itu hanya bernilai RM5.9 bilion atau kira-kira 43% daripada jumlah keseluruhan bantuan yang disediakan oleh kerajaan.

“Ia amat jauh daripada anggaran kerajaan bahawa seramai 4.8 juta pekerja akan menerima manfaat daripada subsidi tersebut” katanya.

Tidak Ramai yang Memohon

Melalui Pakej Stimulus Ekonomi, salah satu daripada perkara yang ditekankan adalah pemberian subsidi kepada PKS yang diuruskan oleh PERKESO.

Tetapi, kurang daripada 50% sahaja yang memohon subsidi tersebut.

Presiden Persatuan PKS, Datuk Michael Kang berkata, kebanyakan majikan ragu-ragu untuk memohon subsidi berkenaan yang memerlukan mereka mengekalkan pekerja untuk sekurang-kurang selama enam bulan (tiga bulan dengan subsidi upah dan tiga bulan seterusnya) tanpa sebarang cuti tidak bergaji serta mengekalkan gaji sedia ada.

Faktor utama yang menyebabkan lebih daripada 50% tidak berdaftar dengan program subsidi tersebut adalah syarikat PKS sendiri masih ragu-ragu untuk mengambilnya.

Saya mempunyai anggapan bahawa usahawan adalah golongan yang berdaya tahan. Sebelum ini, usahawan sering berkongsi cerita mereka, bagaimana mereka membina perniagaan dan sebagainya.

Ketika saya menghantar kereta untuk dibaiki baru-baru ini, mekanik yang membaikinya memberitahu,

“Boss, masa sekarang, kita mau hidup saja. Apa yang boleh buat, pinjam ka, subsidi ka, semua kita buat. Kalau kita hidup, nanti boleh naik balik,” ujarnya.

Inilah yang saya maksudkan sebagai seorang usahawan. Apa sahaja tindakan berpotensi yang boleh memberikan kamu masa yang lebih untuk mencari solusi bagi masa depan adalah sangat berharga.

Tujuan subsidi atau bantuan kewangan yang diberikan kerajaan bagi memberikan usahawan ruang bernafas untuk MASA KINI, sementara kerajaan dan diri sendiri mengenal pasti cara terbaik untuk membaiki situasi sekarang.

Jika kamu hanya tahu untuk mengadu tetapi tidak mengambil sebarang tindakan, berhenti menyalahkan pihak lain apabila perniagaan tidak dapat bertahan. Pekerja yang kamu buang disebabkan tiada sebarang tindakan diambil, adakah mereka akan menunggu kamu untuk membina semula perniagaan kamu?

Tidak, mereka juga ada masalah sendiri untuk difikirkan. Mereka akan memilih majikan lain yang sanggup menggajikan mereka. Majikan tersebut akan mendapat tenaga kerja mahir yang tidak perlu dilatih, dan jika strategi mereka berkesan, majikan tersebut mampu meningkatkan keberkesanan penyampaian perkhidmatan terhadap pengguna.

Kesimpulan

Bagaimana dengan pelanggan kamu? Adakah mereka akan terus menyokong kamu? Menunggu untuk kamu bangkit? Jawapannya seperti di atas. Mereka akan mencari pembekal lain, mungkin pembekal yang sama menggaji bekas pekerja kamu. Keperluan mereka masih perlu dipenuhi.

Jadi berhenti berfikir bahawa dunia kamu berakhir dan mula bertindak untuk membaiki situasi sekarang kerana jika tidak, kamu akan hilang lebih daripada syarikat sendiri.

Adakah kamu adalah pemilik perniagaan yang termasuk dalam kategori PKS? Jika ya, kongsi dengan kami bagaimana kamu menghadapi tempoh yang serba mencabar ini.

5 Ways to Earn Extra Income While Staying at Home

By Nurul Khairiah Mohamed Yusof

Seven weeks into the Movement Control Order (MCO) have brought several businesses grinding to a halt. But now, you can earn extra income while staying safe at home.

The fourth phase of the movement control order (MCO) has brought up concerns surrounding people’s livelihoods. Some are losing their jobs, companies are losing money, and many businesses are on the brink of shuttering their doors.

Although government assistance has been granted to some, many Malaysians must still strive to gain alternative income sources. Most of them are having difficulty surviving day to day, and for those with families the effort of having to meet the needs of extra people makes the whole situation harder and stressful.

According to Bank Negara Malaysia (BNM), Malaysia’s unemployment rate is expected to rise up to 4% this year compared to 3.3% from last year.

“In comparison, during the global financial crisis, our unemployment rate was at 3.7% in 2009, while during the Asian financial crisis in 1998, the unemployment rate was at 3.2%,” said BNM assistant governor, Marzunisham Omar.

With this in mind, we want to provide with you some ways to earn extra income with a side hustle, utilizing your internet connection to increase your cash flow.

 #1. Sell home-cooked meals

Now, here’s a job that’s a little bit offline while relying on being online for success. If your cooking receives so many compliments and people around you love it, why not venture into selling homemade meals from home?

With technology, it is easy to market your product. You can utilize social media to promote your baked goods or scrumptious meals. Just by using your phone’s camera and simple copywriting, you can provide a good advertisement for your business.

Get acquainted with an app like Lazada (Google Play/App Store) that allows you to sell your home-cooked meals on their platform. Several Facebook groups (just search online bazaar) also provide platforms for sellers to promote their products especially during this Ramadan’s month, when more people looking for a variety of food to break their fast.

Be aware that per our Ministry of Health’s guidelines, even food handlers for online platforms are subject to requirements and regulations. For the safety of your customers and for your legal safety, do follow these requirements and regulations.

#2. Online Tutoring

The Internet is the key during this MCO and with all schools closed, parents will need all the help they can get. If you are already a teacher then online tutoring or teaching is not new to you, but for all of you walking encyclopedias who love guiding others, this should be an opportunity to hop on. 

With the help of technology, there are no longer physical boundaries to where you can teach and learn. Tutoring is different than an online course because it is one-on-one teaching and there is an interaction between the tutor and the student.

Check out Champion Tutor, My private tutor, and Part-Time Tutor Malaysia, or if you have friends who are already in the industry don’t be afraid to reach out. The rates start at RM10 to RM150 per hour depending on qualifications and experience.

There is usually a high demand for language learning. While we are all asked to stay at home, online tutoring for language learning is becoming ever more popular. Being an online tutor allows you to make money from home easily. Put your bilingual or multilingual skills to use.

#3. Embrace Online Selling

With people more and more willing to shop online – there’s no reason you can’t make some healthy side money from selling items online too.

It also works great as a side business as you don’t need to physically be at a store and have better chances of engagement from consumers almost 24/7. You don’t even need to have a supply of brand new merchandised freshly manufactured, instead you can also go into selling used items. Chances are that there are always people interested to buy your preloved books or embroidery products.

With selling sites like Mudah.my, Lelong, Carousell, and Shopee – you don’t even need any website know-how to get started. Just upload a photo of your goods and handle customer queries on the go. Don’t forget to include your contact information to make it easier for your potential customers to reach you.

#4. Freelance Translator or Proofreader

We’re Malaysians, right? So, that means we’re either bilingual or multilingual. As the world continues to integrate, there will always be a demand for translators. 

Although there are many different automatic translation programs nowadays, there is still a market for translators. Many translating companies online are looking for freelancers to help with the translation tasks. If you are fluent in another language, you can make money from home by picking up these tasks.

Keep a lookout for work on Favser or Upwork. The hourly rate for translators starts around RM30 to RM40. 

#5. Freelance Writing

If you like writing, you may consider making some extra money from home by creating online content. Content writing especially makes up about 40% of marketing, so this line of work is high in demand and we don’t see it decreasing anytime soon.

Find opportunities at Content Writer or Favser. The market price at the moment for writers is RM0.60 to RM0.70 per word or RM150 to RM400 or more depending on the content that you’ll have to write.

The writing tasks can be for websites, blogs, magazines, etc. And you can be writing product descriptions, press releases, blog posts, and more. It is a good way to make some money while practicing your writing skills. You may even start a freelance writing career in the future with the help of these writing experiences.

Conclusion

Earning extra income can be a good way for you to increase your cash flow and allowed you to save more. It might not be easy to prevail especially when you are forced to take unpaid leave or being sacked from the previous job, but when there is a will, there is a way. You can come out of this stronger and earn new experiences along the way.

What other ways do you think will be good to earn extra income? Share with us in the comments section below.