1. Create a worst-case scenario
Create a worst-case cash flow forecast. Predict how bad it could be if you lost your job or if your business dropped in sales by about 50%.
2. Build up an Emergency fund
Prepare an emergency fund with enough money to cover at least 6 months of expenses.
3. Have a consistently rebalanced investment portfolio
This ensures that you lock the capital gain of certain asset classes when it is booming.
4. No matter what field of your profession, always strike to be the best
Always strive to be the best. Avoid becoming redundant or “fat” in your company. If you do not prove your worth, you will be the first to be led to the exit door during a recession.
5. Diversify your income source
Please beware if you are in a business that serves just 1-2 major customers. You will be at a great risk during a recession. For employees, work out some forms of alternative income besides the main employment.
6. Know your funding sources and manage the relationship properly
Another way to prepare yourself for a slowdown is to know your funding sources and manage the relationship properly. Remember, when funding sources tighten they do so selectively and this applies to their sources of business as well as the credits.
7. Learn to live on less than your income
You may see pay cuts in your job during an economic recession, so look now for ways to trim your budget as much as possible.
8. Last resort - compromise on your lifestyle
When everything doesn’t seem to work out for you, go for the last resort: try reducing your lifestyle dramatically. Sell that luxury car. Move to a smaller house. Cut down on expensive dining.
News: Survey: Malaysians not saving enough
Thursday February 19, 2009 (The Star Online)
By LEONG HUNG YEE
KUALA LUMPUR: Malaysians are not saving enough and they are not prepared to face a financial meltdown should they lose their job or be retrenched.
According to the latest findings from Citi’s Financial Quotient (Fin-Q) 2008 survey, only two in five (39%) Malaysians actually save and less than one-in-three (28%) make and stick to a monthly budget.
Citibank Bhd head of segment and marketing, retail bank Timothy Johnson said the results from Malaysia show an average Fin-Q score of 51 points out of a possible 100 points, with 54% of Malaysians scoring 50 points and below.
A majority of Malaysians reported in the survey saved up to 20% of their monthly income - excluding the 11% in the Employees’ Provident Fund - and 12% said they do not save anything at all.
In the event of a job loss but with continued regular expenses, one-in-five indicated their savings would last for only four weeks.
On average, Malaysians reported having 11 weeks of savings in reserve,
“Against the backdrop of the current challenging economic environment, these findings are quite worrying,” Johnson said in a briefing yesterday.
He said although the Fin-Q scores in seven of the 11 subject areas have shown improvement, it was not.
“We believe that a lot more needs to be done to ensure Malaysians are truly financially savvy as the detailed survey results revealed that there is still room for improvement,” he added.
The Citi Fin-Q survey comprised 500 online interviews of 40 questions each, rolled out to determine the level of understanding among Malaysians about their personal finances and financial practices. The survey was conducted from Oct 15 -30.
Johnson said more Malaysians were taking an interest in their finances and the recent economic crisis had made saving for emergencies an important element for them.
According to the survey, 56% are somewhat better off now than they were a year ago. Nevertheless, 37% were worried about their financial future. While 86% of Malaysians attempt to follow a budget, less than one-in-three (28) actually stick to the budget.
The Fin-Q also revealed that 30% Malaysians indicated they would “know exactly” and 60% have a “good idea” what to do if they were given six months salary to invest. There was also a 6% increase in the number of Malaysians who have a formal retirement plan and 56% are confident or somewhat confident that their savings will lead to a comfortable life in retirement.
Asked how much would be needed for retirement, Johnson said it was very subjective. He said the answer required thorough thinking and planing as the amount of money you need in retirement had a direct correlation to the style of living you wish to have.
“If you want to retire in Bahamas, you will need a bigger amount compared to living in a house in suburban area,” he said, adding that to gauge the figure, one should look at the current expenses and estimate how they might at retirement.
Johnson also pointed out a fascinating finding in the survey. He said 35% Malaysians believed that money can buy happiness.
He said the Fin-Q was a snapshot of our current level of financial literacy and what we all need to do to better control our finances. Malaysians needed to be disciplined and have good financial management to ensure enough savings, he said.
“I believe Malaysians should provide additional focus on developing and enhancing their level of financial literacy, more so given the current challenging environment.”
By LEONG HUNG YEE
KUALA LUMPUR: Malaysians are not saving enough and they are not prepared to face a financial meltdown should they lose their job or be retrenched.
According to the latest findings from Citi’s Financial Quotient (Fin-Q) 2008 survey, only two in five (39%) Malaysians actually save and less than one-in-three (28%) make and stick to a monthly budget.
Citibank Bhd head of segment and marketing, retail bank Timothy Johnson said the results from Malaysia show an average Fin-Q score of 51 points out of a possible 100 points, with 54% of Malaysians scoring 50 points and below.
A majority of Malaysians reported in the survey saved up to 20% of their monthly income - excluding the 11% in the Employees’ Provident Fund - and 12% said they do not save anything at all.
In the event of a job loss but with continued regular expenses, one-in-five indicated their savings would last for only four weeks.
On average, Malaysians reported having 11 weeks of savings in reserve,
“Against the backdrop of the current challenging economic environment, these findings are quite worrying,” Johnson said in a briefing yesterday.
He said although the Fin-Q scores in seven of the 11 subject areas have shown improvement, it was not.
“We believe that a lot more needs to be done to ensure Malaysians are truly financially savvy as the detailed survey results revealed that there is still room for improvement,” he added.
The Citi Fin-Q survey comprised 500 online interviews of 40 questions each, rolled out to determine the level of understanding among Malaysians about their personal finances and financial practices. The survey was conducted from Oct 15 -30.
Johnson said more Malaysians were taking an interest in their finances and the recent economic crisis had made saving for emergencies an important element for them.
According to the survey, 56% are somewhat better off now than they were a year ago. Nevertheless, 37% were worried about their financial future. While 86% of Malaysians attempt to follow a budget, less than one-in-three (28) actually stick to the budget.
The Fin-Q also revealed that 30% Malaysians indicated they would “know exactly” and 60% have a “good idea” what to do if they were given six months salary to invest. There was also a 6% increase in the number of Malaysians who have a formal retirement plan and 56% are confident or somewhat confident that their savings will lead to a comfortable life in retirement.
Asked how much would be needed for retirement, Johnson said it was very subjective. He said the answer required thorough thinking and planing as the amount of money you need in retirement had a direct correlation to the style of living you wish to have.
“If you want to retire in Bahamas, you will need a bigger amount compared to living in a house in suburban area,” he said, adding that to gauge the figure, one should look at the current expenses and estimate how they might at retirement.
Johnson also pointed out a fascinating finding in the survey. He said 35% Malaysians believed that money can buy happiness.
He said the Fin-Q was a snapshot of our current level of financial literacy and what we all need to do to better control our finances. Malaysians needed to be disciplined and have good financial management to ensure enough savings, he said.
“I believe Malaysians should provide additional focus on developing and enhancing their level of financial literacy, more so given the current challenging environment.”
News: Malaysia passenger car sales to drop 15.5pc: Synovate
Thursday, February 12, 2009
Published: 2009/02/12 by Business Times
PASSENGER car sales in Malaysia is expected to drop by 15.5 per cent this year to 420,000 units from the 497,459 units in 2008, according to Synovate Motoresearch.
Synovate Motoresearch is part of the global market research company, Synovate.
Its vice president Dr Stephen Popiel said the downtrend was due to a higher unemployment rate and the ongoing global financial crisis.
“We cannot dismiss the present economic situation and tough challenges being faced by Malaysian consumers and also manufacturers.
“The ripple effect will continue to have an impact on local demand and consumer confidence,” he said at a media briefing on the outlook for the Malaysian automotive industry in Kuala Lumpur today.
However, he also said that the local automotive market was in a better shape, when compared to developed markets like the United States as Malaysia did not offer cash incentives to buyers.
According to Popiel, Proton and Perodua, are likely to perform well as buyers will consider the local brands during the economic slowdown.
Therefore, he highlighted, the local auto manufacturers must introduce new models or facelifts to stimulate demand while increasing their share in a shrinking market.
He also pointed out that commercial vehicle sales are likely to be stable due to demand by companies. However, the luxury segment,which is historically resilient to recession, is expected to see a downturn in sales.
A survey by Synovate Motoresearch also showed that 47 per cent of Malaysians think that the current state of the economy is weak but believe that it will improve soon.
Also, thirty-one per cent of affluent Malaysians claimed that they would buy a new car within the next 12 months.
Meanwhile, Synovate Motoresearch associate director, Ajay Bangia said the automotive market is looking forward to new models in the Multi-Purpose Vehicle (MPV) segment by local automakers.
“Currently, the MPV segment has a fairly smaller percentage for passenger cars, with 55,000 units having been sold last year. A couple of new introductions will stimulate sales,” he added. — Bernama
PASSENGER car sales in Malaysia is expected to drop by 15.5 per cent this year to 420,000 units from the 497,459 units in 2008, according to Synovate Motoresearch.
Synovate Motoresearch is part of the global market research company, Synovate.
Its vice president Dr Stephen Popiel said the downtrend was due to a higher unemployment rate and the ongoing global financial crisis.
“We cannot dismiss the present economic situation and tough challenges being faced by Malaysian consumers and also manufacturers.
However, he also said that the local automotive market was in a better shape, when compared to developed markets like the United States as Malaysia did not offer cash incentives to buyers.
According to Popiel, Proton and Perodua, are likely to perform well as buyers will consider the local brands during the economic slowdown.
Therefore, he highlighted, the local auto manufacturers must introduce new models or facelifts to stimulate demand while increasing their share in a shrinking market.
He also pointed out that commercial vehicle sales are likely to be stable due to demand by companies. However, the luxury segment,which is historically resilient to recession, is expected to see a downturn in sales.
A survey by Synovate Motoresearch also showed that 47 per cent of Malaysians think that the current state of the economy is weak but believe that it will improve soon.
Also, thirty-one per cent of affluent Malaysians claimed that they would buy a new car within the next 12 months.
Meanwhile, Synovate Motoresearch associate director, Ajay Bangia said the automotive market is looking forward to new models in the Multi-Purpose Vehicle (MPV) segment by local automakers.
“Currently, the MPV segment has a fairly smaller percentage for passenger cars, with 55,000 units having been sold last year. A couple of new introductions will stimulate sales,” he added. — Bernama
Consumer Fair 2009 is COMING..
Wednesday, February 11, 2009
Theme : Recession Revolution
Slogan : Get Smart, Spend Smart
Consumer Fair provides a platform for consumers to understand the consumerism world and also expose themselves in the ever changing business arena that is going on in the world of globalization today.
Our GOAL : To Educate Consumers
The Objectives of Consumer Fair 2009 include:
• To provide education about recession
• To prepare consumers toward recession
• To educate consumers on how to be a smart consumer during the recession
• To change the purchasing pattern of consumers through the Consumer Education Talk and Show
• To encourage consumers to purchase more local products
• To create a sense of appreciation among consumer towards local product
Slogan : Get Smart, Spend Smart
Consumer Fair provides a platform for consumers to understand the consumerism world and also expose themselves in the ever changing business arena that is going on in the world of globalization today.
Our GOAL : To Educate Consumers
The Objectives of Consumer Fair 2009 include:
• To provide education about recession
• To prepare consumers toward recession
• To educate consumers on how to be a smart consumer during the recession
• To change the purchasing pattern of consumers through the Consumer Education Talk and Show
• To encourage consumers to purchase more local products
• To create a sense of appreciation among consumer towards local product
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