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Some quick tips:
1) Set the course with a written financial plan and stick to it
2) Cut down on credit-spending
3) Establish an emergency fund
4) Save on a regular basis
5) Keep track on your income and expenses regularly
6) Buy only what you need
7) Resist impulse buying
8) Shop for cheaper alternatives, compare apples to apples
9) Invest smartly - be an informed investor
10) Do not put all your eggs in one basket
Monitor the progress of your overall plan. Clearly, you have to be very patient to
see the results especially if you are trying to recover from a slump. Healing takes
time. Learn from the lessons that got you into the debt crisis - identify the causes
so that the mistakes will not be repeated in the future.
Many of those who have experienced the recession in the mid-1980s have already tightened
their belts. Nevertheless, there are some who continue to live in their own world,
still splurging without a care.
Many especially the younger generation are so used to good living that it is understandably
hard for them to change their trendy lifestyles. Indeed, some are so ignorant that
they are even unaware of the current developments. Parents should take this opportunity
to prepare and educate them about the benefits of prudent spending. It is pointless
for them to save hard while their children continue with their spending-sprees. This
is your wake-up call.
Be aware of your spending habits. Realise the pitfalls of spending unnecessarily.
We are living in a different environment now. We are sitting at a downward cycle
characterized by rising interest rates and inflation, tighter money, falling stocks
and property prices.
The slumping stocks and Ringgit is expected to deliver its real impact on the economy
over the next few months. Malaysians should have faith in their economy, but it is
equally critical for them to be realistic in facing the present situation. Brace
yourself to face whatever that is coming in the future - the worst has yet to come.
We have taken some vital first steps. The Government has been urging the public to
spend prudently in view of the economic situation. The Government had itself delay
most of the countryís mega projects. The cabinet has also recently approved the setting
up of the National Economic Action Council (NEAC) to tackle the situation.
With luck, the storm will not last too long. Malaysia will likely emerge stronger
in the long-term after this round of crisis. We can then move on to the next phase
of the cycle and look forward to seeing the sunshine. Just remember after the pendulum
swings down it has to swing up again! Your job is to make sure you are still on when
it is coming up.
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