Searching for a new source of income is typically neither easy nor quick. Here are some ways to stretch your ringgit while you search for work. (Artikel asal dalam Bahasa Malaysia)

The on-going pandemic has and continues to wreak havoc on the livelihoods of many. According to SOCSO, between January 2021 and March 2021, more than 18,000 Malaysians have lost their jobs. That’s a shocking number!

If you have lost your job and are in the process of finding a new one, money management is extremely important to ensure you and your household can carry on paying for your basic needs.

#1. Re-assess Your Current Financial Situation

While you are under pressure, this may seem like a waste of time, but the opposite is true. It is extremely important that you take stock of your current financial situation.

To do this, you just need to gather all the data related to your money you have with financial instituitions, including:

  • Savings account balance
  • Investments and other assets you can cash out
  • Debt (e.g. loans, credit card bills)

It would also be good to run through your assets and belongings to note which could be sold or rented out to generate more income if needed.

Knowing these numbers will help you better process the next steps.

#2. Plan Your New Budget

Take stock of your recent household expenditure and estimate how much you require to realistically carry on each month. This includes utility bills, home rental, food expenses, and others.

Whenever there is a significant change to your income or expenses, it is time to update your budget. More details on fleshing out your budget is available in our article for budget-setting for couples/household.

Knowing your current finances (from #1) and knowing your projected monthly expenses can help you identify how many months you can live on your current money.

#3. Consider a Side Hustle

If your job-hunt is likely to take long, it’s time to expend your resources on some side income. A little extra can make a big difference during a financial crunch.

Start with small things that you know you can handle. Check out popular freelance marketplaces to see whether you have the skills that are in demand.

This is not a time to be modest about your abilities, instead be brave and take up jobs you think you can fulfill. On the flip side, it is also not a time to wear your pride on your sleeve either. Taking up humble jobs may help you pay next month’s bills.

#4. Cut Out Unnecessary Expenditure

Where once upon a time you could afford to de-stress by indulging in brand-name coffee stops and entertainment-related subscription services, those are things you need to consciously remove from your life temporarily.

Be more particular about how you spend your every sen in order to stretch your ringgit further. It helps if you are self-disciplined with an expense-tracking app. Any excess money you do have is advisable to be saved for now.

This doesn’t mean you have to be miserably all doom and gloom. Hard times are only temporary. You’ll soon be able to return to a lifestyle you enjoy once you can better afford to do so, but that time is not yet here.

#5. Use Cash Instead of Credit

Studies have shown that using a credit card increases your willingness to purchase something by 83% compared to if you were to rely on cash. In fact, the mere presence of a credit card symbol increases the probability of spending by 10%.

See how our minds have been brainwashed?

All things considered, stretching your ringgit by avoiding credit card usage is simple and easy to adopt. Credit cards are something you should only rely on when you can afford to pay off high-interest rates, and this is not at all suitable when you are in between jobs.

“Forcing” yourself to use cash is not a hardship. If you do think it is, you might need to address either credit card addiction or debt management.

#6. Embrace a Do-It-Yourself Mindset

It saves a lot of cost to DIY a lot of things. Whether it is cooking, growing vegetables, or fixing home fixtures, expending your own effort saves you money although it may impact your time and the quality.

To make sure the time and quality cost isn’t too heavy, nowadays there are countless tutorials available online to carry out pretty much any DIY task. Doing your homework will help you DIY quicker and with less errors.

However with that said, some DIY work may require equipment you don’t currently own (e.g. power tools) and would cost a pretty penny to buy. If this is the case, consider borrowing or renting. You can ask friends, family, and neighbors.

Conclusion

Being in between jobs is a financially tough spot as you don’t know how long it takes before you land your next job. With careful planning and careful money management, you can help stretch your ringgit a little further.

 

What other useful tips do you have for those who are currently in between jobs?

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