THE television goes on the fritz. The car engine stops functioning well. The prices of your daily household items go up. Your kid fall sick and earns himself a trip to the clinic.
These are a few of things that could go wrong during the course of the year. Recovering from any of these will set you back about RM100 to RM500, which means you have to fork out your hard earned savings, and in most occasions, you start to feel the pinch of the skyrocketing living expenses and blame yourself for not saving enough.
Last Monday, it was reported that more than 30 to 40 per cent of Malaysians do not have enough money in savings to cover the cost of unplanned expenses in which it is believed that this worrying situation will affect us, considering the weak economic situation.
Commenting on this matter, Federation of Malaysian Consumer Associations (FOMCA) Deputy President Mohd Yusof Abdul Rahman said a recent study has found that most Malaysians are not financially ready to cover short-term expenses in the event of losing their jobs.
"Based on our survey, it is revealed that 30 to 40 percent of Malaysians do not have sufficient savings for emergency situations as well as retirement. Speaking of which, it is of utmost importance we should manage our finance wisely in order to prevent things from getting worse,” he was quoted as saying.
His alarming observation comes on the heels of earlier findings contained in the Malaysia Human Development Report prepared by the United Nations Development Programme (UNDP).
Mohd Yusof urges Malaysians to save for a period of at least three to six months. When we got our monthly pay, we should allocate five to 10 percent of our income to savings. Meanwhile, he also urged the Government to intervene to ensure that the traders do not hike up the price of goods indiscriminately.
“The price hike in household items will eventually add more financial burden to the people. Therefore, the authorities concerned should reconsider and defer the proposal for price hike in tolls, bus fares and public transport, among others,” he stressed.