5 Things To Do Now That You’ve Got A Side Income In Malaysia
- By CompareHero.my
- September 9, 2020
If you are one of the many Malaysians who are involved in doing part-time jobs or gigs during this pandemic, what can you actually do with the side income you receive? Here are 5 best ways on how you can manage your side hustle money.
In the past few months, we talked a lot about surviving retrenchment and pay cuts. And there’s no wondering why – the pandemic has impacted businesses and industries all across the globe, and in Malaysia, a total of 12.7 million Malaysians were unemployed as of June 2020 according to The Edge Markets.
So we suggested a few ways for our readers to manoeuvre around this:
- 8 Side Jobs for Malaysians to Earn Extra Money During CMCO
- #NewNormal: What To Do Immediately After Getting Retrenched Post COVID-19
- #DigitalCareers: How To Switch Careers During A Pandemic
- Job Loss Amid CMCO: How To Bounce Back From Retrenchment
If you’ve managed to secure a second income – a side gig or a freelance business maybe – what do you do next? How can you get extra mileage from your side job? What to do with your side hustle money?
Contents
1. Keep track of your expenses, both money and time
We know, we know… bookkeeping is boring! Can’t you leave that in the office since your side job only concerns you and no one else?
Sure, you can. But without proper bookkeeping, you’re only going to complicate things for yourself in the future. You could be a delivery rider, an online tutor, an e-commerce seller, a freelance writer – whatever it is under the sun! Bookkeeping will benefit you in more ways than one.
As you spend time, effort, and (ironically enough) money to build your side hustle, you should always keep track of how much you’re investing in this. Not only does this help you gauge if your investment is worth the money you can get in return, but it also helps you have an overview of your current projects, payments, and everything else in between.
There are so many resources available to help you with this:
Or you could always go with the good ol’ Microsoft Excel/Google Spreadsheet, or an old school ledger book! (Err… but we wouldn’t recommend the second when the world is increasingly digital.)
2. Keep your receipts and invoices for tax season
Aha! Another reason for proper bookkeeping.
If you’re earning money on the side, you have to pay your taxes too. We know that it’s tempting to hide this additional income from the government, but doing so can lead you down a dangerous slope.
Did you know that hiding your income and skipping paying your taxes can get you into big trouble? According to the Income Tax Act 1967:
“Any person who makes default in furnishing a return in accordance with subsection 77(1) or 77A(1) in respect of any one year of assessment or in giving a notice in accordance with subsection 77(3) shall, if he does so without reasonable excuse, be guilty of an offence and shall, on conviction, be liable to a fine of not less than two hundred ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both.”
In English, it basically means…
… jail time!
Well, it could be. The penalty for this offense is a fine of RM200.00 to RM20,000.00 and/or imprisonment for a term not exceeding 6 months. Be an informed citizen by checking out all the other common tax offenses and their penalties at the Inland Revenue Board’s (LDHN) website here.
One other good reason to file your taxes is that it actually helps your credit score. It shows your income and profitability level, which can help banks favour you when you apply for loans.
So, yes. Get your bookkeeping done if you haven’t already, keep your receipts and invoices safe, and prepare for tax season!
3. Spend your time very wisely
Now, one very important way to manage your side hustle is by being really, really, really wise with your time management. Your full-time job would take up most of your time (unless it doesn’t, in which, lucky you), so it’s critical that you make every minute of your free time worthwhile.
Again, on that bookkeeping note… freelancers and agencies typically use a timesheet to help them track their time. This can help you a lot, because then you’ll be able to gauge and see if you’re spending too much time on this or that, and calculate back to see if a certain project is worth your time.
Time-tracking aside, you should also practice good time management skills when you’re working on your own free time. There’s a saying that you’re still being paid even if you waste time at work. But when it comes to wasting your own free time, you’re the only one at the losing end.
If you have a problem with procrastination, you need to fix this ASAP. The Pomodoro technique is one way to start:
- Using a timer, do your work for 20 minutes or for however long you want to work.
- Focus on one task during that time.
- After your timer beeps, take a 5-10 minute break.
- Rinse and repeat.
Your goal? To complete as many cycles as you can per day.
4. Commit to developing yourself
A lot of people think that they only need to upskill themselves in their day jobs. The truth is, upskilling in your side gigs is even more important, because unlike in an office where you have a team to help support you or carry the project, you’ve only got yourself to depend on. This means, you need to equip yourself with the right skills so that you can retain your clients instead of having them engage with you once and leave.
Being the boss of your own side gig means wearing different hats – you’re not just the executor, you’re also the business development manager, the marketing manager, the finance manager… you get the drift. So as you work on your own hustle, furnish yourself with the entrepreneurial skills you need to keep your business running.
Thankfully, there are plenty of online resources for self development to help you grow:
- Skillshare
- Udemy
- YouTube – all the free videos at your fingertips!
But it won’t mean a thing if you don’t put them into practice, so step up and make use of these resources and you’ll see how both you and your business can grow.
5. Consider turning your side gig into a full-time job
If your side hustle is profitable and sustainable, why not consider growing it into something bigger than what it currently is? But before you take that leap, here are six signs that you’re ready play in the major league, adapted from a list by Forbes writer Ryan Robinson in this article:
- You’re financially ready – You have some cash buffer in your bank to support you and your family for the coming months or years.
- Your personal work is gaining attention – You’re getting job offers for the side hustles you’ve been doing. You have a market that’s ready for you and your business.
- You’re a motivated self-starter – Because you will have yourself as the boss, manager, and employee, you need to be motivated and driven enough to push through this journey… especially when things get tough.
- You know your business basics – Like we mentioned previously, you will need to wear many hats. You need to know how businesses work so that you can sustain your work.
- You’ve mastered the art of self-promotion – As a real business, you must know how to sell your products/services. Without that, you won’t be able to get new clients, or worse, retain current customers.
- You’re missing out on new projects – It’s hard to take on more work when you’re juggling your day job and existing projects in your side hustle.
If you need a financial boost to grow your business, you can also consider getting a personal loan to kickstart your growth. Just remember that it would be an investment for your business, so be strategic with how you want to manage your cash flow so you make the right choices for your business.
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CIMB x Poptron #ExtraNotOrdinary Bazaar Empowers Over 100 Micro Brands Through COVID-19
- By CompareHero.my
- September 8, 2020
At first glance, you wouldn’t guess that Marini Ramlan, also known as Nini Marini, was donning an outfit similar to her art. Filled with intricate abstract and decorative elements, these artistic features were also translated onto her name cards.
View this post on Instagram
An artist, entrepreneur, and a self-taught painter based in Kuala Lumpur, she left her long-spanning career in media to pursue her passion to build her art business full-time in 2020.
Her visual aesthetic, she states, often varies between abstract and decorative, drawing inspiration from different aspects of nature such as flowers, trees, plants and surrounding textures.
Marini’s work includes elements of fashion illustration, textile pattern design, animation and craft (batik & weaving).
She explores art through various mediums, including translating original artwork onto different materials like ceramic, textile, metal and even artificial intelligence.
Today, on top of distributing her work on her own online platforms, her art can also be found on local startup Poptron, a newly-launched social-commerce platform featuring a wide-range of curated lifestyle brands. She cites their potential to scale as one of the reasons that attracted her to the platform.
“They approached me last year, and I know Brian (Lowe, the founder). And I liked his idea that Poptron will go Southeast Asia and into different areas. I like that things are curated, and are quite lifestyle-driven,” she told CompareHero.my. “I have my own platform, but for anyone in the business, you need to get yourself out there — to get in as many shops as possible. Having physical stores just doesn’t make sense anymore so you need to have physical online stores and I see Poptron as one of them.”
One of the biggest challenges that micro brands face, Marini said, include connecting to a ready-made audience, something she believes Poptron could help mitigate. “Working with a platform like Poptron allows you to tap into another community that I don’t have access to (like CIMB),” she added.
Marini also happens to be one of the many artists, makers and entrepreneurs who were part of the #ExtraNotOrdinary Bazaar, launched last Friday by CIMB Bank Berhad and Poptron at The Boulevard, Publika Shopping Gallery. The event will run until 10 September, 2020.
Contents
COVID-19 forces micro brands to digitize and pivot
Jinli Chan is the founder of Cocova whose mission is to serve cocoholics with all natural, high-quality single origin cocoa products. Their ingredients are free of artificial ingredients and are high in antioxidants.
The pandemic’s far-reaching social and economic effects not only impacted the country on a macro scale but also on a micro level. Some of the brands present at the launch told us that the biggest pivot they had to make to sustain their business was to adapt to digitalization and increase digital activities.
“During COVID-19, I started teaching people and my art classes online, and because of that I managed to get on Airbnb experiences,” Marini said. “I didn’t think it was appropriate to sell during the pandemic when everyone was struggling to cope (now I think it’s much better), so during that time, I took the opportunity to upskill myself and learn different methods of reaching out and marketing as well as teaching myself how to teach online.”
Nourish and Nibbs shares a space with BYOB Taman Desa. Located in a home setting at Jalan Desa Utama, they have a “gallery” space for all their homemade healthy snacks.
Similarly, Adelyn Loo (pictured), founder of vegan health snacks provider Nourish and Nibbs, also found herself using social media more often when promoting products.
Loo started unofficially selling her healthy snacks in 2015 which are marketed as great alternatives to conventional snacking, parties, gifts, meals among other things for health-conscious enthusiasts.
“We were blessed. Because we were involved in a number of active communities like churches and other events, but we were also using social media a lot,” she said. “Because we are home-based, our cost was kept to a minimum since we don’t have rent or a lot of other fixed costs like salaries etc. So we are actually able to see an increase in our sales,” she said.
Loo also introduced a new product offering to help cushion the sales of other products that were hindered by the lockdown. In this instance, her business started selling gift sets called Tender Loving Care on top of the usual party packs or event packs sold to families and companies for corporate events.
“During COVID-19, there were no longer parties or events. So we started selling gift sets and called it the Tender Loving Care. People call it care packs, we called it TLC packs for people to give their friends and family,” she said. “For Mother Day’s we saw an increase in people getting these packs for their moms because our products offer a healthier alternative.”
Like Marini, being on Poptron allows Nourish and Nibbs to get access to a larger niche market. “For small businesses like us, we get to tap into the larger mass market that we’ve not managed to tap into yet,” she said. “Our niche product gels well with them as they are quite particular about what kind of brands to support — local artisan products and we are 100% locally made. Our food is completely made at home.”
“This is our first time going on an e-commerce platform. Because our margin isn’t high, going on Poptron really helps businesses with very limited budgets and we can capitalize on the exposure that they are trying to get,” Loo said.
“Even if we don’t generate sales yet, exposure is a big return for small businesses like us — either in the form of increased followers (on social media) or increased inquiries — these are things that we know work though it may not be the same kind of tangible sales or monetary volume,” she added.
#ExtraNotOrdinary Bazaar supporting micro brands
Organized by CIMB in partnership with Poptron, the event aims to accelerate the growth of home-grown micro brands through Poptron’s newly-launched social commerce platform.
The CIMB and Poptron partnership embodies the #kitajagakita spirit by making the local micro brands featured by Poptron more compelling and accessible with promotions for shoppers.
On top of featuring a wide range of curated lifestyle brands available on Poptron’s platform — all of which pay tribute to the ingenuity of Malaysia’s local talent and unique local products — the platform also encourages cashless transactions by providing extra rewards via the newly launched CIMB e Credit Card.
The new card was established to address shifting customers needs, one that has become increasingly digital in this COVID-19 era by providing added value for online and contactless transactions without being limited to any e-commerce platform.
This rings especially true as research reveals that 73% of consumers will still prefer electronic payment solutions instead of cash after the COVID-19 situation is over according to the report “The New Normal” Pandemic Response and Business Continuity Tips.
The CIMB e Credit Card allows customers to fully maximize the value of all online shopping, e-wallet, auto-billing, and in-store contactless spending with up to 12 times bonus points in each transaction with no minimum spend.
Powered by Visa, customers can get extravagant rewards via e Credit Card Features Partners such as Lazada, Shopee & Taobao on CIMB eDay, which falls on the 10th of every month.
If you’re curious about the full card benefits, click here.
Zamaera looked stunning in Amanda Brown’s designer couture made out of 250 CIMB e Credit Cards. Sharifah Amani and her sister, Sharifah Aleysha, were also present during the launch event.
Other memorable highlights from the event included special appearances from Zamaera, KL’s rap sensation, event host Jenn Chia, a well-known YouTube personality as well as other personalities including Sharifah Amani. The Bazaar also featured interactive artistic acts and games, in addition to cultural performances courtesy of Yayasan Hasanah.
Samir Gupta, CEO, Group Consumer Banking of CIMB Group of the partnership, said that CIMB’s partnership with Poptron is based on their shared values and desire to accelerate the growth of local micro-enterprises.
“Poptron aims to make ethical and socially conscious micro brands accessible via its social e-commerce platform, which is perfectly aligned with our aim to promote cashless lifestyles,” he said.
In line with the country’s efforts to become a cashless society, CIMB is encouraging both customers and the public to embrace cashless payment methods in their daily spending, and can do so while enjoying great rewards with the CIMB e Credit Card.
“We also hope they will consider supporting the micro brands on Poptron as well as our #ExtraNotOrdinary Bazaar, and we look forward to finding even more ways to support local businesses in their recovery during these challenging times,” Samir added.
CIMB was represented by Pak Budiman Tanjung, Managing Director, Regional Head Consumer Products, Wealth & Preferred, CIMB Group. He and Lowe shared with the audience how both their support of local micro-businesses made the two organizations a “match made in heaven”.
Founded by Brian Johnson Lowe, Poptron brings brands from pop-up bazaars straight to consumers through its online platform. It also aims to bring more visibility to ethical, sustainable and socially responsible brands.
“Poptron is about nurturing a community that loves and appreciates emerging brands, beautiful products and the wonderful creators behind them. It’s such a heart-warming experience to hear their stories and understand the true passion and pride that goes into what they create,” Lowe said.
The inspiration behind Poptron, Lowe said, was when he realized one small problem — not being able to recall the names of the pop-up brands he would encounter.
“If you don’t remember the names of these brands, you can’t find them online easily. So this sparked this thing in me — I call it frustration — so I began to investigate this,” he said.
The name Poptron, he said, originates from “pop” for pop-up stores, “tr” from “trust” and “on” from “online” — when combined together, results in Poptron.
“I went back to the base of the story — finding really good brands that you can trust online. It’s one thing to find unique products that are sold online, it’s another thing to find products that are handmade and well-designed, with an emphasis on quality, and the founder of the actual brand is talking to you. It’s these stories behind the brands that are very fascinating for me,” he said.
Poptron recently launched its social commerce platform with a curated list of around 100 local micro and emerging brands spanning over seven categories.
Additionally, because it’s so closely curated and niche, Poptron allows users to pay via a single checkout — meaning shoppers can add items from different stores into one basket, another defining feature that sets it apart from other platforms.
Many of these micro brands were selected due to their ethical, responsible and socially conscious aspirations, with some being social enterprises that give back or provide skills training to underprivileged and marginalized communities.
Other brands include those that offer natural and eco-friendly products, or artisanal goods that showcase the beauty of our Malaysian heritage and local cultures.
“As a social e-commerce platform, we want to inspire meaningful lifestyles so that together, we encourage a society that can collectively amplify positive impact. No matter how small the contribution is, all of us are capable of making some difference in our lives and this is important to Poptron and our partner brands,” he added.
Throughout the bazaar period, Poptron and CIMB are offering a discount sitewide at Poptron.co until September 10, whereby CIMB e Credit Cardholders will enjoy 15% off plus 12 Bonus Points instead of the usual five times Bonus Points on normal days. Other CIMB debit, credit and prepaid cardholders get to enjoy 10% off.
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10 Examples of Poor Money Management (& What You Can Do About It)
- By CompareHero.my
- September 3, 2020
There are many challenges you have to face when it comes to money management. If you’re struggling to manage your finances, we’ve listed 10 examples of bad financial habits that you probably have and why you should totally get rid of it.
We’ve all experienced it in our lives. You look at your bank account and see that you still have some debt left from last year’s Christmas. It’s August, and yet you’re still trying to clear all of it. Just how did you get here?
Poor money management is pretty common everywhere you turn, despite being told over and over again on how to better take care of our finances. Sometimes, we all need a gentle reminder in our lives… so here’s 10 examples of poor money management and what you can do to remedy this:
Contents
- 10 examples of bad money management… and what you can do about it
- 1. Missing your bill payment due dates
- 2. Not comparing before you commit to something
- 3. Not saving money… not even a little bit
- 4. Only saving, and not investing wisely
- 5. Not keeping a budget
- 6. Spending more than you can afford
- 7. Borrowing money for questionable reasons
- 8. Pretending that debt doesn’t exist
- 9. Only paying the minimum
- 10. Never checking your credit report
10 examples of bad money management… and what you can do about it
1. Missing your bill payment due dates
Did you know that just by missing your bill payment due dates, you can actually get severely penalised? And it’s not just late fees – you can get penalised in the form of your credit score.
Paying your bills late can cause your credit score to tank, as credit scoring agencies – CTOS for example – factors in just how well of a borrower you are. It’s always good practice to pay your dues – water, electricity, phone, internet, and more – whenever the bill arrives.
Now, if you get your bills late, you may think that you can dispute that with the issuer. However, don’t keep your hopes up – just because it gets lost in the mail doesn’t mean that you can appeal for a penalty review. Always be proactive by searching out your bills and ensuring that they reach you on time.
Read also: What Happens If You Make Late Credit Card Payments
2. Not comparing before you commit to something
If you come across a good deal, it wouldn’t be a bad idea to compare with other sellers if they have something better. To add to that, you should also compare to see if there’s a better product or option somewhere else.
Likewise, when it comes to your personal finance, you should also always compare before you commit. Be it a new credit card, a personal loan, travel insurance, motor insurance, fixed deposits, or anything under the sun, it’s really important that you compare each company’s offerings and terms and see which is right for you and your requirements.
3. Not saving money… not even a little bit
You don’t need to save in the hundreds or thousands, if you’re saving even as little as RM10 a month, it’s still a considerably good habit to practice.
When it comes to saving money, it wouldn’t be a bad idea to have several goals. Have one for your emergency fund, another for your retirement, one for your children, and maybe a fun one as a treat for yourself.
It’s good to have a habit of saving, no matter how little, because it gets you in the mindset of preparing the unexpected.
4. Only saving, and not investing wisely
On our previous note about saving money, it’s also important that you consider investing your money too. Growing your money is important in helping you get extra mileage from your pot.
But to avoid poor financial management, it would be a good idea to first learn about the six questions you need to ask yourself before investing. There are also many ways you can invest your money, even in this current COVID-19 climate. We’ve previously spoken to experts with regards to investing in this pandemic – properties, cryptocurrencies, Islamic financing, general investments (and more to come!) – click on these links to learn more.
5. Not keeping a budget
Ugh, budgeting. It sounds boring, but it’s actually very necessary.
It’s important to keep track of your expenses so that you can control how much you earn and how much you spend. While you may think that your commitments (e.g. rent, hire purchase, bills) are only a small fraction of your salary, you’ll be surprised at just how easy it is to lose track of your spending.
6. Spending more than you can afford
They say money doesn’t buy you happiness, but we all know that it… kinda does. Those new Air Jordans cost a bit of money, but if you’ve dreamed of having it for the longest time, you know you’re gonna be really happy with them on your feet.
While it’s always a good idea to live your best life, it’s also important to prioritise what you actually need to instead of what you want. Being discriminate with your spending is a way of living your best life and avoiding poor financial management – incurring losses or accumulating debt over your desires will only leave you struggling to pay your bills.
Read also: 10 Ingenious Money Tips From Malaysian Dads
7. Borrowing money for questionable reasons
We all need some financing help once in a while. Most of us will resort to taking up loans to pay for our cars, houses, education, business… the list goes on. But if you’re taking up a personal loan to pay for stuff like a vacation, new furniture, a wedding, or even gambling, you may want to think twice.
Loans come with a monthly interest rate, which will mean that you will eventually have to pay for more than you initially borrowed. It’s best to save up for these expected spendings and only resort to using loans when you truly cannot afford to finance something large and necessary.
8. Pretending that debt doesn’t exist
If you have debt, it’s important that you always be on-the-ball by checking what you currently owe the bank. It’s tempting to close one eye and pretend they don’t exist – maybe you get anxiety when you see the figure – but it’s actually the worst habit that any borrower can ever develop.
9. Only paying the minimum
If you are using a credit card, you should always pay your owing in full. Paying just the minimum will help you avoid the late fee, but it will eventually bite you back in the back when you start getting charged an interest fee.
Credit card interest rates are notoriously high, and it will take you a very short time to double and even triple your debt if you don’t take any action. Not only is that because of a compounded rate, but because you will also get penalised with a higher interest rate (up to 18%) if you don’t repay your debt.
10. Never checking your credit report
Wait. How does this fall under money management? Well, granted they’re almost two separate things, but poor money management will eventually lead to a poor credit score. And when you have a poor credit score, you will not be able to get financing help for emergencies that may come your way. This may eventually lead you to a dangerous path as the only ones who may be able to help you are illegal money lenders.
Read also: The Ultimate Guide to Credit Scores
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What’s The Right Credit Card for You? A Guide According To Your Life Stages
- By CompareHero.my
- September 2, 2020
You can own a credit card as early as 18 years old, but what’s the best credit card for you at this age and as you get older? How many credit cards can you actually own? We divided the number of credit cards into four life stages as a guide for you to refer to. Read this article to find out.
If you’re always on the lookout for the latest credit card offer, you may wonder at some point: how many credit cards are considered one too many for a person? And is that very card the right one for you?
With many new offers being presented to you through, it may be tempting to apply for all of them to reap all the rewards. But to do that would be crazy and slightly irresponsible – though not an entirely impossible feat.
Take this one man from California, Walter Cavanagh, who owns a total of 1,497 cards, worth $1.7 million (RM7 million), making him the record holder as the person with the most cards.
For Cavanagh, you can’t never have too many cards. (Image source: LA Times via Getty Images)
But owning so many credit cards without understanding the different benefits, and your own financial capacity comes with some huge risks, like garnering a huge debt.
In the United States, the average American has 3.1 credit cards, according to the 2017 Experian State of Credit report. Unfortunately there aren’t similar studies that we can use as a benchmark in Malaysia.
But data from Bank Negara clearly shows that the use of credit cards has increased. Principal credit cards in circulation increased from 7.2 million in January 2015 to 9.1 million in January this year.
But beyond just referencing a benchmark, there are plenty of other factors to consider, because the question of how many cards to own doesn’t have a one-size-fits-all answer.
Instead, you’ll have to mull over your financial situation like spending habits, income, expenses, and the card features like rewards, annual fees etc. before deciding. Most importantly, one must factor in their life stage — a fresh grad vs. the office top dawg.
So though there’s no set answer on how many credit cards one should have, there are some general guidelines when it comes to applying for credit cards at different stages of one’s life.
Let’s break it down for you.
Contents
- Life stage: Young adults
- Life stage: Young families or in your early to mid-30s
- Life stage: Height of your career (early 40 to 50)
- Life stage: Retirement
- How many credit cards can I have in Malaysia?
- Is it good to have multiple credit cards?
- Pros and cons of having multiple credit cards
- Our take: It’s okay to have more than one card, but use with caution
Life stage: Young adults
Credit cards are useful beyond just paying for your shopping spree!
Financial position:
As a young adult who is scraping by on a college budget, you may sometimes need access to a large sum of cash, but unfortunately not be creditworthy for it (because of the absence of income). Or you could be fresh out of college and are starting your first job, still new to the world of credit and financial literacy.
For many, this is the stage where you experience two polarizing situations: free of financial commitments or stuck with a massive debt over your head.
This is also the stage where many young adults begin to become financially independent. Some others, however, still rely on their parents to chip in for college tuition or with other expenses as part of navigating the real world.
But most importantly, this is the stage where it’s best to build a solid credit profile for when you do eventually take out a loan to get a mortgage or buy a new car.
Bottom line is money is tight and young adults are still learning the ropes with credit, therefore, the safest type of card would be to stick to a supplementary card. This allows holders to learn about credit and slowly build more knowledge about it, all while spending within their means.
Recommendations:
One supplementary card would be helpful for college students who need convenient access to cash, especially if they are studying abroad or when travelling.
A supplementary card is an additional card that can be issued under the principal card holder when requested. The principal holder will shoulder the responsibility of payments and must assign the card to a family member, either a parent, a spouse or children aged 18 and above.
Unlike the typical credit card, a supplementary cardholder does not need to go through the stringent process of requirements, like an age minimum, profession or salary, to own a credit card because the supplementary card spending will be billed to the principal’s bill for payment.
However, the benefits and annual fees of a supplementary card are typically limited, and differ from the principal card.
On top of getting cash, sometimes a supplementary card also comes with travel and medical insurance, emergency assistance, as well as other benefits accessible only by credit card.
If you’re a fresh grad just venturing out into the working world, getting your own principal card may not be a bad idea either as it can build your credit and can also help you get used to a credit card.
Citi Simplicity+ Card
Good for: No Annual Payments
Some cards that we can recommend include the Citi Simplicity+ Card as it comes with zero annual fee and a minimum entry fee of an income of RM2,000 per month, suitable for those who are just entering the job market. But what makes it stand out is the cool gift if you apply through us. For a full list of cards with zero annual fees, click here.
Lazada Citi Platinum Card
Good for: Rewards/Offers
The Lazada Citi Platinum Card is also a good choice because of its cool partner benefits like up to RM500 off selected beauty products every month at Lazada, 8% off tours and sightseeing at Klook and a 30 minutes of complimentary Thai massage at Healthland. It requires a minimum annual income of only RM2,000 per month, and has a relatively cheap annual fee of RM100.
Maybank 2 Gold Card
Good for: Rewards/Offers, Cashback, No Annual Payments
Maybank 2 Gold Card is another good option because of its lifetime fee waiver for principal and supplementary cards and the ‘treatpoints’ or rewards for spending on education institutions, insurance providers, and utilities.
CIMB e-credit card
Good for: Rewards/Offers, Shopping
Maybank Grab Mastercard Platinum Credit Card
Good for: Rewards/Offers, Shopping & No Annual Payments
Other good options are the CIMB e-credit card and the Maybank Grab Mastercard Platinum Credit Card for their low entry fees and great rewards. Plus, they’re made for digitally-savvy users who spend through apps – and we know that totally fits you!
Life stage: Young families or in your early to mid-30s
Families who welcome another small one to the family will need to commit more finances into the family fund. Make the most of it by taking advantage of credit card benefits.
Financial position:
At this stage, you’re either just learning to juggle multiple financial commitments, like a mortgage, child care and multiple insurance, or have been doing so for a few years.
Your financial obligations are progressively increasing with the addition of new members or a huge change in lifestyle, eg. a new house, car etc. The circumstances of this stage sorta forces you to learn to stretch your Ringgit to ensure you can squeeze the most out of every Ringgit you spend.
Some may rely on credit to get through the month. A credit card may help reduce some fiscal burden through its cash back and rewards when making big purchases or when settling large expenses.
Many may also start planning for their child’s future, and getting a credit card that makes automatic deposits to a savings account would not only come in handy, but also help stay you on track of achieving a financial goal.
Recommendations:
At this stage, you could afford to mix and match between rewards and cashback cards. Though we would recommend sticking to a maximum of 2 cards.
Applying for cards with great rewards and cashback will be extremely helpful for those in this stage because of how you could stretch your Ringgit by taking advantage of the benefits to neutralize if not complement the different financial obligations that you might have racked up at this point.
Citi Cash Back Platinum Card
Good for: Cashback
A good cashback card would be Citi Cash Back Platinum Card which offers 10% cashback for dining, grocery, petrol and Grab spend. Other great benefits that come with the card include exclusive discounts for Citibank customers of up to 50% in Malaysia, affordable instalments with zero processing fees for purchases at any merchant RM50 and above, and convert bills into monthly instalments, among other benefits.If you’re interested to know the full list of benefits, click here.
Standard Chartered JustOne Platinum Mastercard®
Good for: Cashback
Our top best deal card that we highly recommended card is the Standard Chartered JustOne Platinum Mastercard®, which comes with a host of benefits like automatic balance conversion, exclusive offers for holders at over 4000 outlets in Malaysia and across Asia, ease of using the card via Samsung Pay, convert purchases RM500 and above into installment plans at low interest rates, balance transfer at low fixed interest rate of 5.99%, among other great benefits that can be checked here.
Life stage: Height of your career (early 40 to 50)
When you’re more established in your career, credit cards would be more useful beyond just wanting to stretch your Ringgit. This is the stage where you get to fully utilize all your benefits.
Financial position:
With a lot of hard work and luck, you might have finally secured that beautiful corner office.
For many, this is where you’re reaching your prime earning years – and credit cards, when used correctly and smartly, can actually help you make the most of them.
This is the stage where you’ll probably be the busiest you’ve ever been – closing off some serious business deals or finding yourself on the road more than ever for work. Additionally, you are more likely to have a clearer sense of your finances (we hope!).
This may also be the stage where you are earning enough, if not more, consistently to actually take that dream holiday. These are great opportunities to take advantage of with the use of credit cards.
Having around 3-4 cards wouldn’t be too bad of an idea as you would have the financial capacity to manage your finances and you could take up cards with more annual fees in exchange with greater benefits.
Recommendations:
Though COVID-19 has hampered any opportunities to travel abroad in the near future, it won’t harm to plan ahead of time.
Standard Chartered WorldMiles World Mastercard®
Good for: Travel
Citi PremierMiles Mastercard
Good for: Travel
We recommend Standard Chartered WorldMiles World Mastercard® and Citi PremierMiles Mastercard as both come with attractive air miles rewards and you get cool free gifts when you apply for it through our website. Click here to find out more.
This is the stage where you may want to explore the world or try new more luxurious hobbies. So getting a card with good air miles and rewards makes the most sense.
Citi Rewards Mastercard
Good for: Rewards/Offers
The Citi Rewards Mastercard comes with benefits like 24/7 worldwide concierge, VIP privileges at luxury hotels, and exclusive golf privileges, relevant to the retiree who is travelling or looking for an activity to fill in their spare time. As our health declines with age, this card also comes with healthcare privileges like 20% off executive screening packages and 15% off walk-in hospital room rates.
If you’re looking for cards with high balance transfer rates, take a look at one of the Citi cards, either the Citi Cash Back Platinum Card, Citi PremierMiles Mastercard, Citi Rewards Mastercard, or the Citi Simplicity+ Card as all come with a balance transfer rate of 10%. Another card with a good balance transfer rate of 7% is the HSBC Amanah MPower Visa Platinum Credit Card-i. This card also comes with good cashback and Islamic benefits.
But hold up. Before you do, it’s important to understand what is a balance transfer and if it’s for you. A balance transfer is an effective way to save money and reduce your credit card debt because it transfers high-interest debt from one or more credit cards to another card with a lower interest rate.
Clearing the debt off one card with another credit card seems like a crazy idea but it works. Another huge advantage to this is you can take advantage of a lower interest rate.
Plus, some banks even offer a 0% interest rate if you can pay off your debt within a short amount of time (e.g. 6-12 months)! But other terms may apply depending on the card issuer (e.g. paying a one-time fee of 3% on the balance transfer amount).
Related: 7 Strategies To Get Out Of Debt Fast During The COVID-19 Pandemic
Life stage: Retirement
Retirees tend to spend more time for themselves and pursuing new hobbies.
Financial position:
The so-called golden years, the final jigsaw to the puzzle stage, or the final countdown – call it whatever you like, this stage gets you closer to your final stage of life and really, the moment that many of us are building towards.
This is the stage where you get to focus completely on your own well-being after years of hustling and burning the midnight oil. If you’re lucky, you should also be completely free of debt.
You might finally have time to finally pursue a hobby that you really wanted to take up or that months-long trip around the world. Some would even consider starting that quaint cafe or bookstore that they’ve always wanted. But understandably not everyone could end up having a great life post retirement or at least the lifestyle they had dreamed of.
Unfortunately retirees are usually not allowed to apply for a credit card unless he or she continues to run a business. What more, many of the attractive cards would exclude retirees, not because of the age, but because of their higher risk.
Recommendations:
If you’re looking for a card for your retired parents, getting them a supplementary card would be the best recommendation as they get access to additional cash, and some perks, but wouldn’t have to be responsible for the payment. Though some supplementary cards share some similar perks and privileges as the principal card, not all do. As a retiree, it doesn’t mean the expenses stop rolling.
Without proof of income, applying for a credit card may be a challenge as not having EPF statements may make it harder for the bank to approve your card.
How many credit cards can I have in Malaysia?
From what we’ve explained above, there’s no set answer to this question. A person can have as many cards as their heart desires. However, getting a card comes with a new responsibility, paying off your debts and balance before its due. Not doing so comes with the risk of accumulating high debt.
So it’s really up to you, but we hope you take our points into account.
Is it good to have multiple credit cards?
We suggest you spin the question and consider this instead – how does it affect your credit score? Because having a good credit score is an essential component of your overall financial health.
The key takeaway to remember here is that having multiple credit cards won’t necessarily hurt a person’s credit score, because in some cases, it might do the opposite. But undeniably, if you carry more cards than you can handle or use them irresponsibly, your score could drop because of the debt you’ll accumulate.
If you need to understand credit score better, we recommend checking our piece here. Some other tips we remember if you have multiple cards is to keep your credit utilization ratio below 30% and keep track of payments.
Pros and cons of having multiple credit cards
Having multiple credit cards could be good for your credit score but it could also be damaging to it because every time you open a new line of credit your credit score takes a small hit. If you really want to, just make sure not to open two accounts within a short period of time.
While having one card is sufficient, having a backup card could come in handy, if you’re traveling or if your card gets stolen.
So ideally, everyone should have one card and another backup. To avoid accumulating big debts, practice more self-control.
Our take: It’s okay to have more than one card, but use with caution
All in all, we really don’t see any issue with having more than one card, especially when you hit the later stages of your life, 30s onwards.
As long as you know how to manage your debts and make your payments on time, having multiple cards could be beneficial.
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National Day 2020: How Did COVID-19 Affect Malaysians, And What Are Their Wishes? We Find Out!
- By CompareHero.my
- August 28, 2020
In conjunction with Merdeka Day 2020, we asked Malaysians how affected they are by the pandemic and what keeps them going to survive financially in this new normal. Find out their thoughts and hopes for our country below.
The recent COVID-19 pandemic has affected our economy and the livelihood of many Malaysians. With Malaysia’s 63rd year of independence fast approaching, we couldn’t help but wonder just how Malaysians are coping with the economic disruption caused by the pandemic.
To find out, we decided to roam the streets to get a better overall consensus:
All in all, we found out that the majority of Malaysians were affected by the COVID19 pandemic in one way or another, either through pay cuts, being laid-off, or not receiving enough customers for their business. Official statistics reveal that there were 826,100 unemployed in May, an increase of 6% from 778,800 in April.
And though the economy has shown some stability in recent months, it will take some time before the country’s economy fully recovers.
In the meantime, though things may look bleak in the months to come, we urge all Malaysians to remain steadfast and to persevere through the financial storm.
More than ever, Malaysians should learn to be financially savvy by keeping enough savings and spending within your means, among other things.
Malaysians, we are with you throughout this journey! Happy National Day, Malaysia!
If you’re curious about more financial tips, check out some of our articles.
