Financial literacy teaches you to be money-savvy, financial discipline teaches you resilience and a good licensed financial planner navigates you through all economic cycles towards your life goals. Master your personal finances today and live the life you want.

Linnet Lee, Initiator of SmartFinance.my

To start 2021 right, focus on these few things:

1. Make sure your emergency fund is able to cover at least 6 months of your expenses.
2. Make sure you are well-insured in line with your current income and commitments.
3. Make sure you allocate at least 10% of your income for investment – the more the better.
4. Track your income and expenses every month.
5. Start developing new income sources! No job is forever secure these days!

Lastly, don’t compare your financial progress with anyone else – craft and pace your own financial journey! Little progress daily makes up for a significant step in a year!

Chin Yi Xuan of NoMoneyLah

Last year we saw the 3rd worst ever correction in the market & crazily, it was also a very good year for most investors. And, just like how MCO 2.0 doesn’t faze us as dah biasa #wfh, let us take what we have learnt & apply it well in 2021:

– To be resilient with a well-thought out personal finance & investment plan.
– To be adaptive with proper asset allocation, diversification, DCA & rebalancing.
– To avoid greed & FOMO whether it’s in the latest hot stock or fund or crypto.
– To be focused & present in our noisy multi-tasking always connected world.
– To treasure & be thankful for the increased time we can spend with loved ones.

Let us not merely survive but look to simplify & thrive in our personal finances & investing!

Stev Yong, Founder of MyPF

*DCA: Dollar Cost Averaging: investing a regular fixed amount at regular intervals (e.g. monthly) no matter the price.

Here are 5 tips for those who are in the middle-income group. This is based on the current situation regardless of whether you are employed or doing your own business:

1. Prepare for the worst, hope for the best financially.
2. If you have managed well in 2020, stick to this budget in 2021.
3. When you have saved enough in your emergency fund (EF), start an investment opportunity fund (IOF) as part of your expenses to grow your wealth.
4. If your finances are going south terribly, stabilize your emotions through Befrienders, talk to your bank(s) and run to AKPK for financial help. Their services are free, no free money though.
5. Regardless of economic situation, be disciplined, disciplined, and disciplined with your finances, stick to your budget. It is worth it.

Ismitz Matthew De Alwis, President of the Financial Planning Association of Malaysia (FPAM)

It is important to analyze your 2020 incomes & expenses to help you with better financial planning for 2021. If you haven’t been tracking your cash flow already, it is best for you to start now to understand the trend of your financials. I recommend using an Excel Sheet or any free expenses tracker app out there. Happy tracking!

Raymond Tan of The Black Belt Millionaire

Our experience in 2020 shows to everyone the importance of managing your finances properly.

One of the most important part of our personal finances is to ensure that we have sufficient emergency funding to last us at least for 6 months and 1 year of operational costs for businesses. We can see those that had emergency funding were able to weather the storm better compared to those that didn’t.

Therefore, one thing that you should be focusing on in 2021, if you haven’t done so, is to ensure that you can build up your emergency savings so that you would be better equipped for future uncertainties.

Rafiq Hidayat, Managing Director of Wealth Vantage Advisory

Learning from 2020, I personally feel that building an emergency buffer fund to cover 6-12 months of normal expenses is the most important thing. Not only does it provide peace of mind in all this uncertainty, but it protects us should we lose our jobs or get pay cuts, which many of us have faced over the last year.

An emergency buffer fund has also helped me feel more secure and less anxious with my investments because I’m not worried I’ll have to liquidate them and interrupt the power of long term compounding, or sell at a loss, should something unexpected happen.

However it’s important to remember that building a buffer fund will take time, be patient and don’t give up. Personally I’ve found it to be an invaluable part of my personal finances, I hope you do too.

Roshan Kanesan, Radio Broadcaster and Personal Finance Nerd

2021 is not going to be easy. Covid, MCO, Emergency, and it’s just January right now. So, whilst we can hope for the best, we’ve got to plan for the worst.

Hold emergency cash funds for 6 months expenses at least, else 9 months’s worth if you can. If you don’t have this, make saving up for this your first priority.

And, if you’re having problems making ends meet, get help. Speak to a licensed financial planner.

As to investments, I’m staying invested in 2021, but I’m going to take some money off the table. Just in case.

Malek Ali, Founder of BFM 89.9 and Fi Life

I want to urge you to think “long term”. That’s the most critical mindset shift required if you wish to see sustainable wealth-building. You will make a few significant decisions this year. Promise to yourself that whenever it comes to making these calls, spend more time contemplating. Use the time to think ahead 3-10 years down the road.

For instance, in your career, take on significant enough tasks to impact your performance for years to come. You will grow, making those uncomfortable tasks become your core competence, which certainly increases your income.

In investment, acquire assets that will produce fruitful yield for years, instead of speculating on short-term hot trends. For example, do more research on stocks and build up a watch list of superb businesses. When the price is right, put your capital to use.

Then every year, you can keep building on what you’ve accomplished, resulting in more profit and income even when you work less.

KC Lau of KCLau.com

2020 was huge for investors, those with savings, and the correct mindset would’ve definitely been able to capitalise on the opportunities. With vaccines and conditions stabilising in 2021, it will be interesting to see if markets will be slower this year.

My tip for 2021 and for the rest of your life, is to save. Get those emergency funds set up, save more. And, invest the rest over the long term. Of course, when an opportunity presents itself, you invest like hell. Remember to always look to the future and keep a long-term view when investing. That erratic movement you see in a year actually smoothens over 10 years.

Lee Han-Ming aka Leigh of Dividend Magic

The world has seen promising progress in the development of Covid-19 vaccines. We are also seeing a step up in antitrust measures against big technology firms in the US and China. This means pandemic winners may no longer perform as well as 2020 while beaten down sectors of the stock markets could see a reversal in fortunes. “Diversification” is one of the most effective ways for investors to prepare for such a complex rotation in markets.

Freddy Lim, CIO and Co-founder of StashAway

Let’s look at 4 important things for 2021.

#1 Median age for Malaysia is just 29. Look at all the new products for babies and you get some idea about importance of demographics in investment. This also means that the need for types of homes will keep changing too.

#2 Migration and urbanization will continue. Graduates from smaller towns will move to major cities for their career and later, live there. They will need a place to stay. They could buy their own or they could rent.

#3 Inflation will continue to move prices upwards. Labor cost, material cost, land cost, and everything else related to property development could only rise. A property is a great hedge against all these rising costs.

Last but not least, there’s no such thing as the best type of investment. Learn, diversify and continue pivoting based on trends. 2021 will be another year with lots of opportunity. Be aware of them and all the best.

Charles Tan, Founder of Kopi & Property

“Don’t put off till tomorrow what you can do today.”

My tip is to start investing early especially since there are, now, a number of digital investment products that offer long-term investing options with low entry requirements.

While investing early may have its challenges especially for soon-to-be-graduates or young working adults with limited income, my advice would be to start small. Start with a digital stock trading journey, watch for fundamentally strong small to mid-cap shares and (if possible) allocate RM100 – RM200 into
your investing pot. And don’t forget to diversify diversify diversify!

Remember you have a long road ahead of you. Invest with a more long-term view instead of a short one. Your future self will thank you.

P.S.: The most popular investment product for Japanese millennials are mutual funds (yes, not stocks) because you can start investing as low as ¥100 (RM4)!

Kazumasa Mise, CEO RakutenTrade

Just as we enter this new year full of hope a couple weeks back, we now find ourselves pegged back with this pandemic’s ever-increasing reach and damage. The lesson that we must learn from this now is that Covid-19 will not be going away anytime soon, and that “bad times” are here for at least this year or more.

However, just as it’s now very difficult for travel, hospitality, and retail-facing businesses, there are also other industries who are thriving right now. The onus is on our own selves to adapt and evolve to these times by embracing digital innovation and technological solutions.

Therefore, my tips for this year would be to embrace this new digital era whether by investing in technology or adapting your business or career to have a strong tech inclination to face this new world era that we find ourselves living in!

Naysan Munusamy, Co-founder of MoneyMatch

In the wake of the pandemic, life as we know it has shifted, pushing our lives to a new normal. In a major way, this has resulted in the acceleration of digitalisation, as physical distancing measures become prevalent amongst communities. In the context of financial services too, this has led to significant uptake of digital financing solutions such as P2P financing.

Further, the unprecedented turbulence has encouraged everyone to take a closer look at their financial wellbeing. I believe the pandemic has shown the importance of having a well-diversified portfolio, as increased correlation across traditional asset classes such as stocks and bonds calls for a greater need for diversification. Digital investing such as P2P investment, offers a variety of investment notes that can cater to different risk appetites.

Finally, 2021 is the year to drive financial literacy. A strong grasp on financial literacy can be life-changing, impacting everything and everyone, from planning for education or retirement, to new investors looking for new asset classes to diversify their investments.

Wong Kah Meng, CEO & Co-founder of Funding Societies Malaysia

In 2021, Comparehero.my aims to continue empowering Malaysians to extract the best values of your financial products during challenging times via our comparison platform. We also advise to look into the importance of credit score in the grand scheme of financial wellness as it can have a domino effect on other aspects of life; whether it’s qualifying for a mortgage, applying for a credit card or a personal loan. While it is important to build up your savings for rainy days, owning diversified financial products and a healthy credit score opens doors to other financial aids when needed.

Benny Chee, Country Manager of CompareHero

After the doom and gloom of 2020, I expect the economy to recover in 2021. Be it a bear or a bull market, we should always focus on the basic things to ensure our financial health wellbeing. That means having the right protection, sufficient savings, and stay invested by using the Dollar Cost Averaging technique.

Perhaps it is time to pick up some new skills that can turn into cash. Or, pursue some side hustle for an additional income stream.

As we all know ‘history will repeat itself’. Just have to look at the previous market crashes in 1998 and 2008. Look out for bargain properties or stocks, so make sure you have some cash reserves and be ready to pull the trigger when the right investment comes along.

Finally, equip ourselves with knowledge and surround ourselves with the right circle of friends. Here’s to an exciting year ahead!

Eza Ezamie, COO of Majalah Labur

2021 is the year for us to put our financial realizations from 2020 into action. 2020 has enlightened us to be more wary of our financial state and moved many of us to figure out different ways to save, grow and earn more money, regardless of the situation – and it’s one thing we strive to do through Mr Money TV Channel every day.

In 2021, we hope more Malaysians,
1. Research and know what’s happening in the market, industry, country and globally – because not knowing enough will lessen profit opportunities and knowledge.
2. Be open to different platforms and channels to grow their money, and picking the one that fits them best.
3. Never stop learning – read books, listen to podcasts, watch videos and understand what the conversations surrounding the stock market and general investing are, as well as the current trends, events and happenings.

Peter Yong of Mr Money TV

Assuming and Knowing are 2 different things. Most people assume they have their financials in order. The only time you’ll truly find out, is when things go wrong. It’s better to know and make your wealth work better for you.

JJ Fernandez, Radio Announcer & Broadcaster on Radiooh.com

In addition to the other amazing answers in this list, and in the spirit of wellness, I’d like to add on self-compassion. You WILL stumble and make mistakes throughout your financial journey – that’s okay.

Forgive yourself for every expense you forgot to track, for every impulse purchase you made at a moment of weakness, for every time you entered the market at the wrong time and made a loss.

No one makes perfect decisions 100% of the time. And if someone tells you they do, they are either not sharing their losses, or their luck will run out eventually, because luck isn’t a financial plan!

Suraya Zainudin of Ringgit Oh Ringgit

My top financial wellness tip for 2021 is to be as intentional with your money as possible.

Money is a tool that can bring great meaning to your life, but spend it wrongly and it will lead to ruin.

A good exercise to do is to look at where you’re spending most of your money (apart from necessities like housing and food), and consider if that’s really what you want to focus on in life.

Like all money questions, there’s no universal correct answer for everyone. But the more focused you are on the right things FOR YOU, the better your life will be.

Aaron Tang, Founder of mr-stingy

Financial stress and pressure is at an all-time high. It is best handled with the help and guidance of professional support that:

(a) creates a safe space to express our issues, challenges and motivations,
(b) helps to define bite-sized steps that are easy, with regular reviews and feedback,
(c) be there for us when we hit inevitable setbacks and failures, and help find alternative paths.

Azran Osman-Rani, CEO and Co-Founder of Naluri

I have learned that when it comes to our finances, it’s important to keep the balance between caring for our future selves as well as our current selves.

When my paycheck comes in, yes, I make it a point to transfer out at least 20% of my pay for savings and investments. But I also transfer out a fixed amount for splurging (guilt-free spending) each month. This way I don’t have to completely give up the things I enjoy, I just allocate for them instead.

Suyin Ong of suyinvests

Financial wellness can’t be isolated from general wellness. It boils down to what we want in life. And that boils down to a sense of happiness and contentment.

Julian Ng, Co-founder & Chief Financial Guy at Akru