Consider these ten financial tips to help you make the most of your wealth and protect your investments.

Financial independence is a dream for most people around the world. From Kuala Lumpur to London, the thought of never worrying about employment, savings, mortgage payments and debt is something in the distance – not quite within grasp.

Nevertheless, there are ways to be financially savvy that everyone and anyone can consider. This post is dedicated to those things and lists the best financial goals you should be aiming for in 2020 and beyond.

1. Consider Cryptocurrency

Cryptocurrency may be unknown territory for a lot of people, but Bitcoin and its comrades are becoming more present in business. This is in part thanks to the materialisation of pending crypto regulations around the world. In Malaysia cryptocurrency has been embraced much friendlier than it has in other locations, making it a safer investment option for locals.

If you do decide to delve into crypto, there are two things to keep in mind. One is to choose a secure exchange that works for your needs and ambitions. The other is to equip yourself with one of the best electronic wallets. These crypto wallets are key to defending against attacks and one of the most reputable is from Luno, a company which was established in 2013.  Read more about the Luno Bitcoin Wallet and decide wisely!

2. Malaysian Tourism

The options are endless when it comes to investing in businesses. Malaysia is no different but one industry that is about to grow even more in Malaysia is the tourism industry. More westerners are swapping their fourteen nights in Spain for a trip to wander the Batu Caves or immerse themselves in the vibrancy of local Malaysian markets.

This presents an extraordinary investment opportunity for locals who want to provide a service to travellers and cash in on their experiences. Everyone can be a winner in the Malaysian tourism sector.

3. Have a Contingency Pot

Life is full of unexpected twists and turns. It was John Lennon who said that life is what happens when you are busy making other plans. That also means for the worst. You may only be 24 hours away from losing your job or needing to pay out a big expense.

The average time it takes someone to find a new job is eight months in the current economic market. That means your contingency pot should make you financially secure for around eight months in case the worst does occur.

4. Stock Investing

Some people invest in property but investing in stocks can be much less hassle. That is because stocks don’t have tenants. Yes, you could create a property portfolio, but stocks are a much easier ride to better wealth. Stocks are just like investing in crypto in that you need to carry out valuable research first – but that isn’t the only mistake you can make when investing in stocks.

There are many other pitfalls you can encounter when investing in stocks as a beginner, including a lack of a system and not learning from previous stock mistakes. Watch out for these before starting and prepare to be in it for the long haul to see a decent return.

5. Contribute to Your Retirement Fund

It can be hard to put money away today when today you also want that new car or are saving for a wedding. However, a retirement pot is absolutely a necessity for people who want to enjoy their later years. Not only should you have one but you should be committing to contributions regularly.

6. Clear As Much Debt As You Can Early (Sometimes!)

Some people like to hold on to the finances they have and swim in a little bit of debt to be able to hold on to their financial capital. That is not a bad idea depending on your circumstances. Ultimately how quickly you should pay off your debt is something to be determined on a case-by-case basis. You may want to think about:

  • Employment situation
  • Current savings
  • Age
  • Pending outgoings
  • Interest rate
  • Risk-reward ratio of being debt-free but with less money

Consider the positives and risks, and maybe choose to hire an advisor to give you a professional insight.

7. Openness and Honesty

For anyone in a serious relationship or a marriage, being open with your other half about finances is crucial. A transparent conversation will allow you both to assess your situation and consider things like investing in crypto, stocks or even tourism businesses.

Without these open conversations, the unknown can lead to poor judgments and financial mistakes. In the end, an honest conversation can save you a lot of money for many years.

8. Learn Financial Speak

Every day, a could-have-been investor retracts from their ambitions because they are scared off by financial terms and confusing discussions. The truth is those investments could have been fruitful if the individual took the time to understand financial lingo.

If you are serious about making money from the more niche areas of finance, it takes work – or everyone would be doing it. Thanks to the internet, Malaysians can access a plethora of resources to help them overcome tricky fiancé obstacles. Use these forums and sites to prepare for your investments.

9. Spend Wisely

One of the simplest ways to have more money is also to spend less. Yes, you do need to spend money to make money in a lot of situations, but not always. A materialistic culture has swept all corners of the globe, including Asia.

Saying you will stop the unnecessary purchases is one thing but actually stopping is another. Remember that open and honest conversation you are going to have with your partner? Include this topic within the discussion to create some accountability for your spending. You’ll soon have to answer to them and stop the overspending.

10. Get a Credit Card

Credit cards are one of the best ways to build your credit rating. If you don’t have one it may make it harder for you to secure money for other investments. It is one of those aforementioned moments where you do have to spend money to lend more money – to then make more money.

Diversification and Moderation!

Diversification is one of the flagship terms when discussing money and wise investments. Although diversification is advised, don’t take our list as ten boxes you need to tick off. That would be unrealistic; instead, aim to do what you can and see how your financial situation improves.