Why Most Malaysians Stay "Average" with Their Money (And How You Can Break Free)

 

Introduction: Escaping the Average Money Trap

Walk into any mamak at night, and you’ll hear the same stories:

• “Gaji tak cukup…”

• “Kereta baru beli, installment mahal...”

• “Takde saving, susah nak kahwin…”

The truth?
Most Malaysians stay financially average not because of fate — but because of habits.

Today, we’ll break down why many people stay stuck, and more importantly, how you can break free and build real wealth.

The “Cashflow = Survival” Mentality

In Malaysia, many live paycheck to paycheck:

• Salary comes in.

• Expenses eat up 90%–100%.

• Maybe RM50–100 left by month-end.

This cycle feels normal because everyone else is doing it.
But normal ≠ good.

Reality Check:
If you save nothing today, you're borrowing from your future self.

Key Reasons Most Stay Average

✅ 1. No Budgeting Habit

"Tak cukup duit" is often because there’s no plan, not because income is too low.

✅ 2. Lifestyle Inflation

Every time income goes up, spending goes up faster. New car, new iPhone, bigger house.

✅ 3. Zero Investing

Savings die slowly under 2–3% bank interest, while inflation eats away purchasing power.

✅ 4. Fear of Taking (Smart) Risks

Many avoid investing, side hustles, or entrepreneurship due to fear.

✅ 5. Following the Crowd

Investing because "kawan suruh" or spending because "semua orang buat" leads to disaster.

How You Can Break Free

1. Build Emergency Fund First

• 6 months of expenses minimum.

• Tabung Haji, Maybank MAE, Touch n' Go Go+ for short-term.

2. Invest Systematically

• Start with unit trusts, robo-advisors like StashAway, REITs, EPF voluntary top-ups.

3. Increase Financial Literacy

• Read one finance book a month (start with The Psychology of Money).

• Follow reputable Malaysian finance blogs.

4. Mind Your Circle

• Spend time with people who talk about investments, businesses, growth — not just gossip.

5. Set Financial Goals

• RM100k savings by 30?

• Passive RM2,000 income monthly by 40?

Write it down, break it into steps, and track monthly progress.

Malaysian Real-Life Example

Average Joe

• RM5,000 salary

• RM4,800 expenses

• RM200 "savings"

• Net worth growth: almost none

Smart Sam

• RM5,000 salary

• RM2,500 expenses

• RM2,000 savings/investments monthly

• Net worth at RM100,000+ by 30 years old

Small differences in daily habits = Big differences in life outcomes.

Conclusion: Dare to Be Different

It’s easy to stay average — blame the government, inflation, bad bosses.

It’s harder but far more rewarding to be different — to take ownership, save aggressively, invest wisely, and focus on your own growth.

Because in 10 years, you'll either be someone complaining at the mamak table — or someone financially free ordering the roti tisu without checking the price.

Which one will you choose?

Why “Pay Yourself First” Is Still the Best Money Advice for 2025

 

Introduction: The Oldest Financial Rule Still Wins

"Pay yourself first."

You’ve probably heard it. Maybe even brushed it off.

But in a world of TikTok finance hacks and crypto memes, this one classic rule remains king — and it’s more relevant than ever in 2025.

Today, let’s understand what "paying yourself first" really means, why it works so effectively, and how Malaysians can apply it to build lasting wealth.

What Does It Mean to Pay Yourself First?

It means prioritizing your savings and investments before you spend on anything else.

When you receive your salary, the first action is saving a portion, investing a portion, and then living on the rest.

✅ Not the leftovers.
✅ Not "after all expenses are paid."
✅ Right at the start.

Example:
If you earn RM4,000 a month, immediately allocate:

• RM600 to savings/investments (15%)

• RM3,400 for bills, rent, groceries, lifestyle

No matter what happens that month, you have secured your financial future first.

Why It Works: The Psychological Power

• Automates Discipline
  You never "feel" the missing amount because you never had a chance to spend it.

• Builds Habitual Wealth
  Just like brushing your teeth, saving becomes automatic over time.

• Prevents Lifestyle Inflation
  You adapt your spending to what’s available after savings, not the other way around.

How Malaysians Can Apply Pay Yourself First

✅ 1. Automate Transfers
Set up auto-debits to savings/investment accounts (e.g., ASB, StashAway, Tabung Haji) right after salary day.

✅ 2. Start Small, Grow Big
If 20% feels overwhelming, start at 5% or 10%, then increase gradually.

✅ 3. Separate Accounts
Maintain separate "Spending" and "Saving" accounts to avoid temptation.

✅ 4. Prioritize Retirement Accounts
Max out EPF voluntary contributions or invest into PRS for additional tax relief.

✅ 5. Budget Backwards
Base your lifestyle budget after deducting savings — not before.

Malaysian-Specific Example

If you consistently save RM500/month into an account earning 5% returns:

Year	Total Savings (RM)
5	34,000
10	78,000
20	205,000

Small amounts, saved consistently, turn into big freedom over time.

Bonus Tip: Pay Yourself First Even with Side Income

If you’re freelancing, earning Shopee sales, or cash bonuses — apply the same rule:

• 20% to investments

• 10% to emergency savings

• Spend the rest guilt-free

This ensures every income stream grows your wealth, not just your expenses.

Conclusion: Secure Yourself First

The simple act of paying yourself first is a game-changer.

It’s not sexy. It’s not "viral." But it works — always.

In Malaysia’s ever-evolving financial landscape, the one who saves and invests consistently will always have the upper hand, regardless of salary size.

So next time your salary hits — remember: your future self comes first.

The Ideal Money Flow Through Different Life Stages (Malaysia Edition)

 

Introduction: Why Your Money Flow Needs to Evolve

Managing money isn’t just about saving every month — it’s about adjusting your financial strategies according to the phase of life you are in.

In Malaysia, where the cost of education, property, and healthcare keeps rising, managing cash flow wisely at each stage of life can make the difference between financial freedom and financial stress.

Today, let's walk through the three main life phases and see how you can optimize your money flow at each.

Phase A: Learning Phase (Age 0–24) — Build the Foundation

When you're young, you have one massive advantage: Time.

Even if you don't have a big income (or any income yet), you can still lay the groundwork for a healthy financial future.

Key Money Moves:

• Learn about personal finance early (budgeting, saving, compounding)

• Open a savings account early (banks like Maybank, CIMB offer youth accounts)

• Minimize student debt (apply for PTPTN wisely, consider scholarships)

• Start small side hustles to build skills and cash flow

Example:
Saving just RM100/month starting at age 18 into an ASB fund (6% annual return) grows to RM23,300 by age 30 — enough for a car down payment or emergency fund.

Tip:
Prioritize education over lifestyle. Every ringgit you don't waste today becomes leverage tomorrow.

Phase B: Accumulation Phase (Age 25–55) — Build Wealth

This is the longest and most crucial stage. It’s the time when you build your career, family, assets, and hopefully — investments.

Key Money Moves:

• Prioritize savings and investing. Target at least 20%–30% of your income.

• Start your EPF and PRS contributions early.

• Buy insurance (life and medical) — it’s cheaper and easier when you’re young.

• Plan major expenses carefully (property, marriage, kids’ education).

• Avoid lifestyle inflation. Just because your salary goes up doesn’t mean you need a new car every two years.

Malaysian Example:
A 30-year-old investing RM500 monthly into a REIT ETF averaging 5% return annually can build a RM400,000 fund by age 55 — enough for partial retirement.

Phase C: Preservation and Retirement Phase (Age 55 and Beyond) — Protect and Enjoy

Now, the goal shifts from growing wealth to preserving wealth and making it last.

Key Money Moves:

• Rebalance your portfolio to safer assets (government bonds, dividend stocks, REITs).

• Withdraw sustainably — the "4% Rule" suggests withdrawing 4% of your retirement assets yearly.

• Manage healthcare costs carefully.

• Consider part-time consulting or passive income projects if desired.

• Update your will and estate plans.

Tip:
Protect capital over chasing high returns. A RM500,000 fund lasting 20 years only needs RM25,000 withdrawals yearly.

Common Money Mistakes Across Stages

• Overspending in the 20s.

• Underinvesting in the 30s.

• Ignoring healthcare and estate planning in the 50s.

Each stage needs different strategies. Recognizing where you are today is the first step towards a better tomorrow.

Conclusion: Your Money Flow = Your Life Flow

Life is dynamic. So is money management.
The earlier you recognize your stage and apply the right strategies, the smoother your financial journey becomes.

Whether you're fresh out of college, mid-career, or enjoying your golden years — adjust, adapt, and stay proactive.

Because financial freedom is not a destination — it’s a lifelong journey.

The Real Meaning of Financial Freedom (And How Malaysians Can Achieve It)

Introduction: Freedom is More Than Money

When you hear the term "financial freedom," what comes to mind?
Lavish holidays? Fancy cars? Mansion living?

Maybe.
But at its heart, financial freedom simply means control over your time, energy, and choices—without constantly stressing about money.

In Malaysia, where living costs are rising and financial scams are rampant, understanding and pursuing true financial freedom is now more important than ever.

The Common Myths About Financial Freedom

Before we talk about building it, let’s clear some air.

✅ Myth #1: You Need to Be a Millionaire

Reality: You just need enough to cover your living expenses sustainably.

✅ Myth #2: It’s Only for Rich Kids

Reality: Anyone—regardless of background—can build financial freedom with planning and discipline.

✅ Myth #3: You Need to Retire Early

Reality: It’s about choice, not retirement. Financial freedom gives you the option to work or not, but it doesn’t force you to stop working.

The 5 Stages of Financial Freedom

1. Financial Stability
   ➔ You cover basic expenses without stress (bills, food, transport).

2. Debt Freedom
   ➔ You clear all bad debts (credit cards, personal loans).

3. Financial Security
   ➔ Passive income from dividends, rental, etc. covers essential expenses.

4. Financial Independence
   ➔ Passive income covers lifestyle expenses like vacations, hobbies.

5. Financial Abundance
   ➔ You have more than enough to support yourself and others (philanthropy, legacy planning).

How Much Do You Need in Malaysia?

Here’s a simple estimation:

Lifestyle	Monthly Expenses (RM)	Target Retirement Fund (5% Yield)
Basic	2,000	480,000
Comfortable	5,000	1,200,000
Luxurious	10,000	2,400,000

(Assuming a 5% net withdrawal rate from investments like REITs, EPF dividends, or balanced portfolios)

Practical Steps Malaysians Can Take

✅ 1. Build Emergency Savings First

• 6 months' living expenses in Tabung Haji, ASNB, or high-interest savings accounts.

✅ 2. Maximize Your EPF and PRS Contributions

• Aim for 30%–40% savings rate if possible.

• Consider voluntary top-ups to EPF for 6%–6.5% returns.

✅ 3. Invest for Passive Income

• M-REITs for dividend income (~5–6% yield).

• StashAway for diversified ETF exposure.

• ASNB fixed funds for low-risk growth.

✅ 4. Control Lifestyle Inflation

• Just because you earn more doesn't mean you need a new car every 5 years.

✅ 5. Increase Your Income

• Freelancing (Fiverr, Upwork)

• Part-time e-commerce (Shopee, Etsy)

• Monetize skills: copywriting, tutoring, digital marketing.

✅ 6. Protect Your Wealth

• Life insurance

• Critical illness coverage

• Basic estate planning (simple will)

Psychological Traps to Watch Out For

Even if you save and invest wisely, mindset matters.

Beware of:

• Keeping up with peers' lifestyles ("Everyone's buying a Mercedes, so should I")

• Overspending on weddings, houses, vacations

• Falling for get-rich-quick scams (unlicensed "forex", crypto promises)

Freedom is about discipline, not reckless spending.

Example Malaysian Case Studies

Case A (Success Story):

• Started saving 30% of salary from age 25

• Invested mainly in REITs and EPF

• Reached financial independence by 45

Case B (Struggler):

• High salary (RM12,000/month)

• No savings discipline, heavy car loans, lavish lifestyle

• Financial stress at 40 despite good income

Moral of the story?
Financial freedom is about habits, not income size.

Conclusion: Your Freedom, Your Rules

Financial freedom doesn’t mean living without working—it means working on your terms.
It’s waking up on Monday morning because you want to, not because you have to.

In Malaysia, where inflation is creeping higher and traditional job security is weakening, achieving financial independence is no longer optional—it’s essential.

Start small.
Stay patient.
And remember, every ringgit you save today buys you freedom tomorrow. 

Why Credit Cards Are NOT Evil (If You Use Them the Right Way)

 

Credit Cards Are Just Tools

In Malaysia, credit cards get a bad name:

• “Hutang kad kredit banyak!”

• “Jangan pegang kad kredit, bahaya!”

But the truth is, credit cards are NOT evil — misuse is.

Used wisely, credit cards become powerful tools:

• Protecting cashflow

• Building credit history

• Earning cashback and rewards

• Tracking expenses better

Let’s dive deep into how Malaysians can master credit cards safely.

Myths About Credit Cards

✅ Myth #1: Credit Cards = Debt

Reality: Only if you spend money you don’t have.

✅ Myth #2: Debit Cards Are Always Safer

Reality: Credit cards offer better fraud protection.

✅ Myth #3: It’s Hard to Control Spending

Reality: Only if you lack discipline. Otherwise, auto-payments and setting limits work.

Benefits of Using Credit Cards (Wisely)

✅ Cashback Savings
E.g., Certain credit cards offers certain percentage of cashback on groceries and petrol.

✅ Reward Points
Points can be exchanged for vouchers, free flights, or even cashback.

✅ 0% Installment Plans
For large purchases (e.g., laptops, furniture), 6 or 12 months 0% plans can help cashflow — but only if needed wisely.

✅ Emergency Buffer
Medical bill, car breakdown? Credit cards provide immediate funds (repay immediately after).

✅ Credit Score Building
On-time repayments = better chances for car loans, home loans later.

How to Use Credit Cards Responsibly

✅ 1. Always Pay Full Amount Every Month
Never carry forward a balance. Avoid the high 15%–18% interest rates.

✅ 2. Use Credit Card Like Debit Card
If you don’t have the money, don’t spend it. Simple rule.

✅ 3. Limit to 1–2 Cards Maximum
Easier to track, harder to overspend.

✅ 4. Set Spending Limits
Use apps like Touch n' Go eWallet, MAE app, or even the bank’s app to control spending.

✅ 5. Focus on Cashback or Points That Fit Your Lifestyle

• Grocery spender? Cashback cards.

• Frequent traveler? Air miles cards.

Malaysian-Specific Good Cards (Examples)

• Public Bank Quantum Mastercard: 5% cashback on dining, online spending

• Maybank 2 Cards Gold: 5x TreatsPoints on weekend spend

• Hong Leong Wise Card: 8% cashback for selected categories

(Disclaimer: This is not a recommendation — just sharing options.)

Caution: What to Avoid

❌ Making only minimum payments
❌ Applying for too many cards at once (hurts credit score)
❌ Spending for points alone ("Oh look, free luggage if I spend RM5,000" — no thanks!)

Conclusion: Be the Master, Not the Victim

Credit cards are not your enemy.
Ignorance and impulse spending are.

Learn the rules. Use cards to your advantage. Enjoy cashback, rewards, and a strong financial reputation — without falling into debt traps.

Because the real “evil” is not understanding how money works — not the card itself.

How to Calculate How Rich You Really Are (And Why It’s Not Just About Income)

 

Introduction: Income vs Wealth — Don't Be Fooled

Many people equate a high salary with wealth.

But in truth, wealth isn’t how much you earn—it’s how long you can survive without working.

This idea is simple, but life-changing once you internalize it.

Let's explore why calculating your true wealth matters more than boasting about your monthly paycheck.

Defining True Wealth: It's About Time, Not Salary

Wealth = How long you can maintain your current lifestyle if you stop working today.

If your expenses are RM5,000 per month and your savings are RM100,000, your wealth is roughly 20 months.

Meanwhile, someone earning RM20,000 per month but spending RM19,500 monthly has only a few weeks’ worth of true wealth if they lose their job.

This perspective shifts how you manage money—from chasing high incomes to building durable assets.

How to Calculate Your Real Wealth (Step-by-Step)

Step 1: Calculate Your Net Worth

• Assets: Cash, investments, property (current value)

• Liabilities: Debts like car loans, mortgages, PTPTN loans

Net Worth = Total Assets – Total Liabilities

Step 2: Calculate Monthly Expenses

• Housing

• Utilities

• Food

• Transportation

• Lifestyle

Step 3: Divide Net Worth by Monthly Expenses

This will give you the number of months you can survive without income.

Examples

Person	Monthly Income (RM)	Monthly Expenses (RM)	Net Worth (RM)	Months of Survival
A (Doctor)	15,000	14,000	30,000	~2 months
B (Accountant)	5,000	2,000	100,000	~50 months
C (Blogger)	3,500	1,500	80,000	~53 months

Notice that Person C is wealthier in real terms than Person A, even though Person A earns 4x more!

Conclusion: Focus on Building Wealth, Not Chasing Salaries

Ultimately, the goal is not just earning a lot—it's owning your time.

Financial freedom begins when your passive income and savings cover your living expenses, freeing you from dependency on active income.

Let’s start measuring wealth properly from now onward!

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!

Financial Lessons from Warren Buffett: How Malaysians Can Apply Them

Warren Buffett, the "Oracle of Omaha," is one of the most successful investors of all time. With a net worth exceeding $100 billion, his investment philosophy is widely studied and admired. But what makes Buffett truly remarkable isn’t just his wealth—it’s the simplicity and timelessness of his financial wisdom.

Many of Buffett’s principles can be applied not only by stock market investors but also by everyday Malaysians looking to build financial security. Whether you’re saving for retirement, investing in stocks, or just managing personal finances, Buffett’s strategies offer valuable guidance.

Let’s explore some of his key financial lessons and how they can be adapted to the Malaysian context.

1. Spend Wisely and Live Below Your Means

Buffett’s Lesson:

Despite being a billionaire, Buffett still lives in the same house he bought in 1958 for $31,500. He avoids unnecessary luxury and focuses on value rather than prestige.

How Malaysians Can Apply This:

Many Malaysians fall into the trap of lifestyle inflation—spending more as their income increases. From upgrading cars to buying luxury items on credit, these choices can strain long-term financial health.

To apply Buffett’s principle:

• Stick to a budget and track your expenses.
• Avoid unnecessary debt—credit cards and personal loans should be used responsibly.
• Don’t overspend on a car. Cars in Malaysia are expensive, and taking a long-term loan for a depreciating asset isn’t ideal. Consider second-hand cars or more affordable options.

2. Invest for the Long Term

Buffett’s Lesson:

Buffett believes in buying great companies and holding them forever. He avoids short-term speculation and market timing.

How Malaysians Can Apply This:

• If you invest in stocks, focus on fundamentally strong companies with consistent earnings and a history of paying dividends.
• Consider Exchange Traded Funds (ETFs) if you’re not confident in stock picking.
• Avoid frequent buying and selling—long-term investing benefits from compounding returns.

A good example is Public Bank Berhad (PBBANK)—one of Malaysia’s most stable and well-managed banks. Those who invested in it many years ago and held onto their shares have seen significant returns over time.

3. The Power of Compound Interest

Buffett’s Lesson:

Buffett famously said, "My wealth has come from a combination of living in America, some lucky genes, and compound interest."

How Malaysians Can Apply This:

• Start investing as early as possible to maximize compounding.
• If you’re saving for retirement, take advantage of EPF (Employees Provident Fund) and consider additional investments like PRS (Private Retirement Scheme).
• A simple example:
  • If you invest RM1,000 per month with an average return of 7% per year, in 30 years, you will have RM1.2 million—most of it from compound growth!

4. Never Invest in Something You Don’t Understand

Buffett’s Lesson:

Buffett avoids complex investments and only invests in businesses he fully understands.

How Malaysians Can Apply This:

• Don’t invest in stocks, cryptocurrencies, or forex just because others are doing it. Always do your own research.
• If an investment sounds “too good to be true” (e.g., guaranteed high returns), it’s likely a scam.
• Many Malaysians have lost money in Ponzi schemes like JJ Poor to Rich (JJPTR). Buffett’s rule? Avoid what you don’t understand.

5. Keep Cash Reserves for Opportunities

Buffett’s Lesson:

Buffett always has billions in cash ready to take advantage of market downturns.

How Malaysians Can Apply This:

• Always maintain an emergency fund (at least 6 months of expenses).
• Keep some cash reserves so you can invest when opportunities arise (e.g., when stock markets dip).
• In 2020, during the pandemic, Malaysia’s stock market crashed, and many undervalued stocks became attractive. Those who had spare cash could buy at a discount and enjoy great returns later.

6. Focus on Increasing Your Income

Buffett’s Lesson:

Buffett believes in improving your skills and investing in yourself to increase earning potential.

How Malaysians Can Apply This:

• If you’re in a job, upskill and look for higher-paying opportunities.
• Consider starting a side hustle—online businesses, freelancing, or passive income sources.
• Malaysians can explore gig economy jobs like Grab, Shopee Live selling, content creation, or investing in rental properties.

7. Be Fearful When Others Are Greedy, and Greedy When Others Are Fearful

Buffett’s Lesson:

Buffett advises investing when markets are down and avoiding hype-driven speculation.

How Malaysians Can Apply This:

• During stock market downturns, don’t panic sell—consider buying instead.
• Avoid following trends blindly—during the Bitcoin hype of 2021, many bought at all-time highs and later suffered losses.
• Think long-term: Instead of chasing hot stocks, look for companies that can survive and grow over decades.

Final Thoughts

Warren Buffett’s principles are timeless and simple:
✔ Live below your means
✔ Invest in what you understand
✔ Take advantage of compounding
✔ Keep cash reserves
✔ Grow your income

By applying these lessons, Malaysians can build wealth steadily and achieve financial security.