From Poverty to Prosperity: 5 Life-Changing Financial Habits for a Better Future

Growing up in a poor household can feel like a never-ending cycle. Limited opportunities, financial struggles, and a lack of guidance often make it seem impossible to escape. However, history has proven that many individuals have broken free from poverty through mindset shifts, skill-building, and disciplined financial habits.

If you’re struggling financially or come from a low-income background, here are five practical steps that can change your story. These aren’t just theories, they are real strategies used by successful individuals worldwide.

1. Learn a Skill That Pays

One of the most effective ways to escape financial struggles is to learn a high-income skill. Unlike traditional education, skill-building doesn’t always require a university degree, you can learn from experienced professionals, online courses, or hands-on practice.

Why Learning a Skill Matters:

✅ It gives you a competitive edge in the job market.
✅ You can monetize your skill through freelancing or business.
✅ It allows you to increase your earning potential over time.

Top Skills to Learn in 2025:

• Digital Marketing (SEO, social media, content marketing)

• Software Development & AI (Coding, machine learning)

• Graphic Design & Video Editing

• Sales & Negotiation Skills

• Personal Finance & Investing

📌 Tip: If you don’t know where to start, consider platforms like Udemy, Coursera, or YouTube tutorials to learn valuable skills for free or at a low cost.

2. Master Financial Literacy

Money is not just about earning—it’s about managing, growing, and investing it wisely. Sadly, most schools don’t teach financial literacy, leaving many people clueless about wealth-building.

What You Need to Learn About Money:

📌 Budgeting & Saving: Learn how to control your expenses and save at least 20% of your income.
📌 Investing Wisely: Understand assets like stocks, ETFs, real estate, and crypto to make your money grow.
📌 The Power of Compound Interest: Even small investments today can lead to massive wealth over time.

Example: If you invest RM500 per month in a diversified stock portfolio earning 7% annually:

• In 10 years → RM86,000

• In 20 years → RM247,000

• In 30 years → RM566,000

📌 Tip: Read books like The Psychology of Money by Morgan Housel or Rich Dad Poor Dad by Robert Kiyosaki to understand wealth-building better.

3. Study Wealthy & Successful People

If you want to succeed financially, observe and learn from people who have already done it. Wealthy individuals often share common habits, mindsets, and strategies that set them apart.

Key Lessons from Successful People:

✅ They focus on long-term investments rather than quick money.
✅ They practice discipline and delayed gratification.
✅ They keep expanding their knowledge and networks.
✅ They understand the value of multiple income streams.

How to Learn from the Rich:

📌 Read autobiographies & finance books from successful entrepreneurs.
📌 Listen to business & investing podcasts
📌 Follow financial experts on YouTube & social media.

📌 Tip: Follow successful Malaysian entrepreneurs to learn from their journey.

4. Embrace Failures & Rejections

Most successful people have failed multiple times before making it big. The difference is that they kept going despite the failures.

Why Failure is Essential for Growth:

✅ It teaches you valuable lessons.
✅ It builds mental resilience.
✅ It helps you adapt and improve over time.

Real-Life Example:

Jack Ma, the founder of Alibaba, was rejected from Harvard 10 times, failed to get a job at KFC, and faced countless rejections before building his multi-billion-dollar empire.

📌 Tip: Don’t fear rejection—apply for that job, start that business, or pitch your idea. If you don’t try, you’ll never know what’s possible.

5. Make Sacrifices & Stay Disciplined

Financial success doesn’t come overnight. It requires daily sacrifices and consistent effort.

Habits That Can Change Your Life:

✅ Wake up early and work on your goals.
✅ Limit unnecessary spending (cut impulse buys, dining out, etc.).
✅ Invest in self-improvement (courses, books, networking).
✅ Build passive income streams (investments, side hustles).

Short-Term Sacrifices for Long-Term Success:

❌ Skipping weekend entertainment → ✅ Learning a new skill.
❌ Spending RM500 on gadgets → ✅ Investing RM500 in stocks.
❌ Watching Netflix all day → ✅ Reading books that build knowledge.

📌 Tip: Successful people don’t chase short-term pleasure. They delay gratification to build long-term wealth.

Final Thoughts: The Power of Taking Action

Escaping poverty or financial struggle is possible for anyone—but it starts with action. Don’t just read about success—take steps today to transform your financial future.

🔹 Learn a high-income skill.
🔹 Educate yourself on financial literacy.
🔹 Study and follow wealthy individuals.
🔹 Don’t fear failure—keep pushing forward.
🔹 Make sacrifices and stay disciplined.

If you implement even one of these strategies, you’ll be on a completely different financial path in the next few years.

🚀 Your future depends on the actions you take today. Start now!

10 Effective Strategies to Save Money on Everyday Expenses

 Introduction

Saving money isn’t just about cutting back—it’s about making smart financial choices that help stretch your ringgit further. With rising costs of living, Malaysians (and people worldwide) are constantly looking for ways to manage expenses without sacrificing quality of life. Here are 10 practical strategies to help you save money on everyday expenses, from grocery shopping to utility bills.

1. Track Your Expenses and Create a Budget

One of the biggest reasons people struggle to save money is that they don’t know where their money is going. Start by tracking every ringgit spent for a month. Categorize your expenses into:

✔️ Essentials (rent, groceries, utilities)
✔️ Wants (dining out, shopping)
✔️ Savings and investments

Once you have a clear picture, use the 50/30/20 rule as a guide:

• 50% on needs
• 30% on wants
• 20% on savings/investments

2. Use Cashback and Rewards Programs

If you use a credit card, take advantage of cashback and rewards programs. Many Malaysian banks offer cashback on groceries, petrol, and even online shopping. Popular e-wallets like Touch ‘n Go, Boost, and GrabPay also offer cashback deals and promotions.

👉 Tip: Pay off your credit card balance in full each month to avoid interest charges!

3. Plan Your Grocery Shopping

Groceries can take up a huge portion of your budget if you’re not careful. Here’s how to save money on groceries:
✔️ Plan meals for the week and create a shopping list
✔️ Compare prices between supermarkets (MyGroser, HappyFresh, and Jaya Grocer have apps for price checks)
✔️ Buy in bulk for non-perishable items
✔️ Avoid shopping when hungry—impulse purchases add up!

4. Cut Down on Utility Bills

Utility bills, especially electricity and water, can be optimized with small lifestyle changes:
✔️ Use energy-efficient appliances
✔️ Turn off lights and unplug devices when not in use
✔️ Switch to LED bulbs (they use up to 75% less energy than traditional bulbs)
✔️ Use a fan instead of air conditioning when possible

5. Reduce Transportation Costs

Instead of driving everywhere, consider:
✔️ Carpooling or using ride-sharing apps when possible
✔️ Taking public transportation (MRT, LRT, or buses) to save fuel costs
✔️ Cycling or walking for short distances

If you must drive, keep your car in good condition to improve fuel efficiency—proper tire pressure and regular maintenance can help reduce fuel consumption!

6. Cook at Home More Often

Eating out frequently can drain your budget fast. Cooking at home saves a significant amount of money, and you can even prepare meal preps to save time.

👉 Tip: Try making homemade kopi or teh tarik instead of spending RM10+ on coffee outside!

7. Negotiate Bills and Subscriptions

Many people overpay for things like internet plans, mobile data, and streaming services. Here’s how to cut down:
✔️ Call your service provider to negotiate a better deal
✔️ Consider downgrading to a cheaper plan if you don’t use all the features
✔️ Cancel unused subscriptions (Netflix, Spotify, gym memberships)

8. Buy Second-Hand or Wait for Sales

Not everything needs to be brand new! You can find quality second-hand clothes, electronics, and even furniture online. Check out:
✔️ Carousell (for second-hand gadgets, clothes, and more)
✔️ Facebook Marketplace (for great deals on furniture and household items)

Alternatively, wait for major sales like 11.11, Black Friday, and Malaysia Day Sales to get the best discounts.

9. DIY and Learn Basic Repairs

Instead of hiring someone for every minor repair, try learning some DIY skills:
✔️ Sew minor clothing tears instead of replacing them
✔️ Fix small plumbing issues (YouTube has great tutorials!)
✔️ Wash and maintain your car yourself instead of sending it to the car wash every week

A little DIY knowledge can save hundreds of ringgit every year!

10. Automate Savings and Invest Wisely

Lastly, set up an automatic transfer to your savings or investment account every month. This ensures that you save before spending.

In Malaysia, platforms like StashAway, Wahed Invest, and Rakuten Trade make it easier to invest with small amounts. Even if you start with just RM100 a month, compounding returns will help grow your money over time.

Final Thoughts
Saving money doesn’t mean giving up everything you love—it’s about making smarter financial decisions. By implementing these strategies, you’ll find that you can still enjoy life while securing a stable financial future.

EPF Declares 6.3% Dividend for 2024: What It Means for Malaysians

 The Employees Provident Fund (EPF) has just announced a 6.3% dividend payout for 2024, marking a significant moment for millions of Malaysians who rely on their EPF savings for retirement security. This announcement has sparked discussions across the country—how does this rate compare to previous years? What does it mean for your long-term financial planning? And, perhaps most importantly, how can you maximize your EPF savings for a better retirement?

In this article, we’ll break down what the 6.3% EPF dividend means, how it compares to other investment options, and the steps you can take to optimize your retirement savings in Malaysia.

Understanding the 6.3% EPF Dividend

EPF is one of Malaysia’s most crucial retirement savings vehicles, ensuring financial security for employees upon retirement. Each year, EPF announces a dividend payout based on its investment returns.

The 6.3% dividend for 2024 applies to both conventional and shariah-compliant accounts, making it an equal opportunity for all EPF members. Compared to previous years, this rate is considered strong, outperforming many fixed deposits and savings accounts in Malaysia.

Let’s take a look at how EPF dividends have performed over the past few years:

Year	EPF Conventional (%)	EPF Shariah (%)
2024	6.3%	6.3%
2023	5.5%	5.35%
2022	6.1%	5.65%
2021	5.45%	5.0%
2020	5.0%	4.9%

As you can see, EPF dividends tend to fluctuate depending on economic conditions and market performance. The 6.3% return this year is one of the strongest in recent history, signaling a positive rebound from past lower years.

How Does EPF Compare to Other Investments?

Many Malaysians are now wondering—is EPF still a good place to grow your money compared to other investment options? Let’s compare it to common alternatives:

Investment Type	Annual Return (%)	Risk Level	Liquidity
EPF (2024 Dividend)	6.3%	Low	Restricted (Until Retirement)
Fixed Deposits	~3.5%	Low	High
Stocks (Malaysia Market Average)	5-8%	Medium-High	High
REITs	5-7%	Medium	High
Mutual Funds	4-10%	Medium	Medium

EPF remains one of the most stable investment options due to its lower risk and consistent annual returns. Unlike stocks or unit trusts, which are subject to market volatility, EPF provides a steady and guaranteed growth of retirement savings.

Maximizing Your EPF for Retirement

To take full advantage of EPF’s strong performance, consider these strategies:

1. Maintain Consistent Contributions

• Your employer already contributes to EPF on your behalf, but you can make voluntary top-ups to accelerate your savings.
• By adding extra funds, you’ll benefit from compounding interest over time, significantly growing your retirement fund.

2. Keep Your Money in EPF for the Long Term

• Many Malaysians consider early withdrawals from EPF for housing or education, but leaving your savings untouched ensures higher growth.
• The longer your money stays invested, the higher your returns due to compounding.

3. Consider Simpanan Shariah if You Prefer Ethical Investments

• Simpanan Shariah follows Islamic investment principles, avoiding industries such as gambling and alcohol.
• Despite past years showing slightly lower returns than conventional EPF, this year’s equal 6.3% rate makes it an attractive option.

EPF’s Role in Your Retirement Planning

How much should you have in EPF for a comfortable retirement? The minimum recommended savings by EPF is RM240,000 by age 55. However, financial planners suggest that a more realistic goal should be RM500,000 or more, depending on your desired lifestyle.

Let’s see how EPF savings can grow over time:

Starting Savings (MYR)	Annual Return (%)	Years	Projected Savings (MYR)
RM50,000	6.3%	10	RM89,542
RM100,000	6.3%	20	RM339,850
RM200,000	6.3%	30	RM1,281,082

As you can see, the power of compounding plays a significant role in building wealth through EPF. The more you contribute and the longer you keep your money invested, the bigger your retirement fund will be.

Should You Rely Solely on EPF?

While EPF provides solid returns, it’s always wise to diversify your retirement portfolio. Here’s what you can do:

1. Invest in Additional Retirement Funds

• Consider Amanah Saham (ASB) or Private Retirement Schemes (PRS) to complement your EPF.
• These additional savings help you hedge against inflation.

2. Generate Passive Income

• Investing in dividend stocks, rental properties, or REITs can provide extra income during retirement.
• Passive income ensures financial security beyond EPF payouts.

3. Be Mindful of Inflation

• Inflation erodes purchasing power, meaning RM1 million today might not have the same value in 20-30 years.
• Always recalculate your retirement goals to factor in rising costs.

Final Thoughts: Is EPF Still Worth It?

With a 6.3% dividend rate, EPF remains one of the best retirement savings options in Malaysia. It provides consistent returns, long-term security, and compounding growth, making it a key pillar of financial planning.

While it’s essential to diversify your investments, EPF should remain a core component of your retirement strategy. By making smart financial decisions today, you’ll ensure a more comfortable and secure retirement tomorrow.

MRTA vs. MLTA: Which Mortgage Insurance is Right for You?

When buying a home in Malaysia, selecting the right mortgage insurance is crucial. Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA) serve different purposes and understanding these can save you money while ensuring financial security.

What Is MRTA?

• Purpose: Pays off the remaining home loan balance in case of death or total permanent disability.
• Cost: One-time premium, usually cheaper.
• Cash Value: None; covers only the loan amount.
• Who Should Consider: Individuals without dependents or those seeking a lower-cost option.

What Is MLTA?

• Purpose: Provides coverage and builds cash value, which can be withdrawn or borrowed.
• Cost: Higher premiums paid annually.
• Cash Value: Offers savings and investment elements.
• Who Should Consider: Families or those looking for flexible financial protection.

Comparison Table

Features	MRTA	MLTA
Premium Type	One-time	Annual
Coverage	Loan balance	Full sum insured
Cash Value	None	Savings/investment potential
Flexibility	Low	High

Example Scenario

Example 1: MRTA Costs

Ali buys a RM500,000 house with a 30-year loan. The MRTA premium costs RM8,000 upfront. If Ali passes away at Year 20 with RM200,000 remaining on the loan, MRTA fully covers the outstanding amount. Ali's family receives the property debt-free but no additional funds.

Example 2: MLTA Costs

John buys a RM500,000 house with the same loan tenure. He opts for an MLTA costing RM2,500/year. By Year 20, John’s MLTA accumulates a cash value of RM100,000. If John passes away, his family gets RM200,000 (outstanding loan balance) and an additional RM100,000 in cash.

Features	MRTA	MLTA
Cost (30 Years)	RM8,000 (One-time)	RM75,000 (RM2,500/year)
Coverage	Loan Balance	Loan + Cash Value

Disclaimer

These calculations are illustrative. Actual premiums and cash values depend on your age, health, and chosen policy terms.

Key Takeaways

• MRTA suits borrowers seeking low-cost coverage.
• MLTA provides flexibility and additional financial benefits, but at a higher cost.

Choosing between MRTA and MLTA ultimately depends on your unique financial situation and long-term goals. While MRTA offers simplicity and affordability, MLTA could provide added peace of mind with its broader coverage and potential investment benefits. It’s important to research and compare different policies, talk to insurance advisors, and consider factors such as your loan amount, term, and personal needs before making a decision. Take your time to make an informed choice that aligns with your financial future!

Understanding Malaysia's EPF: A Key Pillar for Your Retirement Savings

Malaysia's EPF (Employees Provident Fund) is a cornerstone of financial security for many Malaysians, aimed at building a solid retirement nest egg. Established to help employees save for retirement, the EPF has grown into a vital component of financial planning in Malaysia.

What is EPF?

The Employees Provident Fund (EPF) is a mandatory savings scheme designed to help Malaysian employees build a secure nest egg for their retirement. Both employees and employers contribute monthly, with the savings managed and invested by the EPF to generate returns. It’s widely regarded as one of the safest investment options in Malaysia due to its consistent performance.

Historical Performance

EPF has consistently delivered competitive dividends, making it a popular choice for retirement savings. Despite global economic uncertainties, the EPF has maintained a commendable track record. In 2023, the EPF declared a 5.5% dividend for conventional accounts, slightly higher than the previous year's 5.35%. Over the past decade, the average dividend rate has been around 5.9%, showcasing its consistent performance even during challenging economic times.

One little-known fact is that the EPF is mandated to pay a minimum dividend rate of 2.5%, even in years of underperformance. This safety net ensures that members' savings continue to grow, albeit at a modest rate, regardless of economic conditions.

The New EPF Account Structure: A Game-Changer?

In May 2024, EPF will officially roll out a new three-account system, which aims to provide more flexibility for members. This new structure is designed to offer better options for short-term withdrawals while still prioritizing long-term retirement savings.

Here's a breakdown of the updated EPF account allocation:

1. Akaun Persaraan (Account 1) - 75% of contributions:
   • Strictly for retirement. Withdrawals are generally restricted until age 55.
2. Akaun Sejahtera (Account 2) - 15% of contributions:
   • Can be used for housing loans, medical expenses, and education.
3. Akaun Fleksibel (New Account 3) - 10% of contributions:
   • Offers the flexibility to withdraw funds at any time, with no specific conditions. This is particularly useful for members needing immediate access to cash for emergencies or short-term needs.

This new structure is seen as an innovative solution to cater to members' diverse financial needs while still promoting retirement savings. The introduction of Account 3 provides a lifeline for those facing unexpected expenses without compromising their long-term financial goals.

What You Need to Know About Account 3

• Flexible Withdrawals: Members can withdraw from Account 3 anytime, with a minimum withdrawal amount of RM50. Applications can be made via the KWSP i-Akaun app or at any EPF branch.
• One-Time Transfer Option: From May to August 2024, members have the option to transfer funds from Akaun Sejahtera (Account 2) to Akaun Fleksibel (Account 3) if they wish to boost their flexible savings balance.
• Dividend Consistency: EPF has confirmed that dividends for all three accounts will remain the same, ensuring that your savings in Account 3 continue to grow, albeit with more accessible liquidity.

Final Thoughts

The new EPF structure offers a significant advantage by providing members with greater flexibility while safeguarding their retirement savings. It’s crucial, however, to approach the newfound flexibility with caution. While Account 3 allows easy access to your funds, it’s important to balance short-term withdrawals with your long-term financial goals. Proper financial planning can help ensure that you’re not only prepared for today’s needs but also secure for your retirement years.