What Actually Happens When You Go To AKPK For Help?
- By CompareHero.my
- December 22, 2021
Debt can be overwhelming and sometimes people borrow more money than they can afford to pay back. If you’re in this sort of financial predicament, consider getting assistance from Agensi Kaunselling dan Pengurusan Kredit (AKPK) or the Credit Counselling and Debt Management Agency. Read this article to find out more about their services.
Edited and updated by Anis Shakirah binti Mohd Muslimin
This article was first published in August 2019 and has been updated for freshness, accuracy and comprehensiveness.
Though it is easy to fall into debt, it’s not as easy – and can be extremely difficult – to get out of it. And if you don’t act fast, your debt may snowball into something larger and more serious.
But the reality is you can’t really avoid debt either; unfortunately in our society, debt is part of life – it helps us buy a house, a car, and even an education. Though living without debt is almost impossible, it is beneficial to know how to better manage your debt.
So find comfort in knowing that you are not alone when it comes to managing debt or even having debt piling up against you. In fact, you don’t have to struggle alone.
Many Malaysians may not know this but AKPK can help you better manage your debt. They are a good resource for those who are straddled with debt and are worried about not being unable to pay it off, especially with the end of the blanket moratorium. AKPK could also help rebuild your credit and offer financial advice for free!
To help us understand the services provided at AKPK, CompareHero.my spoke to Nirmala Supramaniam, Head of Module Unit Development at AKPK for better insights.
Contents
- What is AKPK?
- How well are Malaysians managing their debt?
- How can AKPK help you?
- What kinds of COVID-19 specific support does AKPK provide?
- What is the dedicated Agensi Kaunseling dan Pengurusan Kredit (AKPK) Micro-Enterprise Help Desk?
- Reasons for joining the Debt Management Programme
- Debt Management Programme participation breakdown
- Financial Counselling
- Financial Education
- How To Get Help
What is AKPK?
Known as Agensi Kaunselling dan Pengurusan Kredit (AKPK) or the Credit Counselling and Debt Management Agency, it was established by Bank Negara Malaysia (BNM) in 2006 as part of a Consumer Protection Framework under BNM’s 10-year Financial Sector Master Plan.
“AKPK helps individuals take control of their financial situation and gain peace of mind that comes from the wise use of credit,” Nirmala Supramaniam, Head of Module Unit Development at AKPK, told CompareHero.my.
The three main services that AKPK provides include:
- Financial education on the responsible use of money and credit management skills.
- Counselling and advice on financial management.
- Debt management programme to assist consumers to regain financial control.
“One of the latest schemes that we are assisting with is the Small Debt Resolution Scheme (SDRS), starting 1 September. This is something new to us this year,” she said. “Overall, AKPK has two main roles: one to aid households and the other to aid businesses.”
How well are Malaysians managing their debt?
Statistics from the Malaysian Department of Insolvency show that over 84,000 individuals have been declared bankrupt between 2015 and 2019. Uncontrolled credit card usage and excessive borrowings dragged these thousands of Malaysians, many of whom are married, into bankruptcy. The main causes of bankruptcy were personal loans (32.07%), hire purchase (21.53%), housing loans (12.57%), business loan (10.15%) and credit card (10%).
According to AKPK’s Financial Behaviour and State of Financial Well-being of Malaysian Working Adults survey in 2018, half of Malaysians admitted to having difficulties raising RM1,000 for emergencies. One in five working adults said they did not save in the past six months and almost three out of 10 individuals had to borrow money to buy basic needs.
Related: Know The Difference Between Good Debt and Bad Debt
From a demographic standpoint, according to AKPK chief executive officer Azaddin Ngah Tasir in a 2018 report, people aged between 30-50 years old – 85% of whom earn less than RM5,000 a month – are part of AKPK’s Debt Management programme. They are also among those who have serious debt problems.
But we wanted to point out that financial tools like personal loans and credit cards can be more useful than detrimental; they could also help build your credit – when used wisely and in moderation.
For example, when you dine out, rather than paying cash, you can get a 50% discount when you use a credit card. The key is to take advantage of the promotions offered and pay the amount due on time.
How can AKPK help you?
Besides being known for their Debt Management Programme (DMP), AKPK also provides financial education and financial counselling sessions to Malaysians. All of these services are available for FREE to individuals.
“We offer financial counselling, in particular to those experiencing high debt problems or facing financial issues because of debt. They will meet our counsellor, and if they are suitable, we will put them in our Debt Management Programme – where we will negotiate with the financier to get a restructured repayment plan which is affordable for the borrower,” Nirmala said.
“The other part of AKPK is our education and awareness efforts. We also want to educate people and create awareness on certain topics, ranging from things like why you should manage your finances to what you should be looking at before taking up a loan and what you should know when you first start working etc.,” she said.
AKPK provides education and awareness on different stages of a person’s life: post-education, employment and pre-retirement through workshops, training and online modules. Some topics will also be narrowed down to certain groups like women, for instance, Nirmala said.
Most recently, AKPK was tasked to take up the management of Small Debt Resolution Scheme (SDRS), which was established to provide assistance to small and medium enterprises (SMEs) facing business financing difficulties with financial institutions through the restructuring or rescheduling of existing financing with Bank Negara-regulated financial institutions.
“We apply the same method from our Debt Management Programme to SDRS where we will help businesses negotiate with banks,” she said. “We will still support businesses that have ceased operations, but they must have some form of income because it still requires businesses to pay. We are currently working on educational and awareness programmes for SMEs too.”
Eligibility for SME are as follows:
- Malaysian-owned companies (at least 51%) in all economic sectors.
- Meet the SME definition criteria:
- Number of full-time employees not exceeding 200; or
- Annual sales turnover, not more than RM50 million
- SME facing financial difficulties with financing from financial institutions.
- Applicable for business-related financing only.
What kinds of COVID-19 specific support does AKPK provide?
Similar to other financial institutions, AKPK, Nirmala said, has been adopting the various loan repayment incentives offered by financial institutions since the beginning of the pandemic COVID-19 in March 2020. It began from the blanket moratorium to the latest enhancements to the Targeted Repayment Assistance (TRA) announced in the Budget 2021.
The TRA refers to assistance that offers a three-month deferment of monthly repayment or six-month reduction of monthly repayment by 50% subject to the terms and conditions. These enhancements are in addition to those previously announced assistance for those who have lost their jobs, and for individuals and SMEs (microenterprises) whose incomes have been affected by the pandemic.
Over the last few months, she said AKPK has been promoting repayment assistance plans, especially for the targeted groups. “We want to keep reminding people to take quick action – to analyse and look at their debt because we don’t believe borrowers should review their debts at the very last minute. We also don’t want people to misuse available funds because it’s a crucial time for financial management across the board,” she said.
Besides the moratorium and targeted repayment, AKPK has also helped identify clients in need of assistance by reaching out to those affected by the pandemic – people who are within their database – and offer repayment assistance packages, as needed, similar to what the banks are doing.
“When you go to the banks, it’s actually an individual solution, but some clients may have multiple loans and issues or, maybe, they are not affected but someone else in their household is affected. We tell them to come to AKPK because we look at their debt problems from a holistic point of view. We will look at it from all levels, not just from one part of it,” Nirmala said.
What is the dedicated Agensi Kaunseling dan Pengurusan Kredit (AKPK) Micro-Enterprise Help Desk?
Commonly referred to as Micro Help Desk, the newly-launched Micro-Enterprise Help Desk is part of Bank Negara’s initiative to assist micro-enterprises to request for repayment assistance.
Alongside contacting banks, micro-enterprises can now also request for repayment assistance on their business loans with the banks through the dedicated Micro Help Desk at AKPK.
The AKPK financial advisors will provide free advice on repayment assistance and facilitate microenterprises to submit repayment assistance requests to their respective banks.
Micro enterprises can visit AKPK’s dedicated Micro-Enterprise website at or contact AKPK Call Centre at 03 – 2616 7766 from 9am to 4pm, on Monday to Friday, to make an appointment with AKPK financial advisors.
Debt Management programme (DMP)
Under this programme, AKPK will develop a personalised debt repayment plan for individuals who are unable to manage their monthly repayments to banks.
“Clients usually come to us through our awareness programmes or through banks who will refer them to us. First, they will meet a counsellor, who will run through the size of debts they have and work on restructuring the client’s plans before proposing it back to the banks. If the banks approve, then we will move them into our programme where we will monitor them,” Nirmala said.
Individuals will have a one-to-one session with an AKPK officer where they will calculate their financial commitments and then proceed to work out a restructuring plan.
To further illustrate this, Nirmala shared an example:
“Let’s say a person has five credit cards and owes a total of RM50,000 – the first thing that he’ll have to do under AKPK’s programme is to terminate the cards. The cards will then be converted to a term loan, and the tenure will be extended and the monthly payment will be reduced to according to how much the person can afford, as well as based on the approval of the financial institution,” she said.
“The borrower will then be required to only do one payment through AKPK, who will distribute the payments accordingly. After that, we will monitor him to ensure he progresses well,” she added.
AKPK will negotiate with banks on behalf of borrowers, and upon agreement from both the borrower and the bank, a DMP confirmation letter will be issued by AKPK.
Basic requirements for you to enrol to the DMP programme are:
- The individual has not been declared bankrupt.
- Is not in an advanced stage of litigation with banks.
- Has sufficient net disposable income after meeting one’s expenses.
- Has debt not amounting to more than RM5 million.
Read more about the DMP here and to apply for this programme, first fill-up the online application form for the Debt Management programme.
Reasons for joining the Debt Management Programme
Among the common reasons that lead participants to this programme, according to AKPK, include poor financial planning (36.6%), struggling with the high cost of living (34.9%), failure or slowdown in business activities (12.3%), lost job, retrenched or experience a loss in breadwinner (8.9%), high medical expenses (5.9%) and others (1.4%).
Since its establishment, AKPK has counselled 1.1 million people, and cumulatively, enrolled about 330,000 Malaysians into AKPK’s Debt Management programme (DMP), Nirmala said. The DMP has helped 29,876 individuals settle their debts, totalling RM 1.34 billion.
While under the AKPK programme, all legal actions against the client will be deferred or abeyed (moral suasion), hence giving clients a peace of mind to complete and settle their debts, without being “harassed” by collection agencies, Nirmala said. She also stressed that should there be a default in repayment, the financial institutions will continue to recover their debts.
Debt Management Programme participation breakdown
According to AKPK, those aged between 30 to 40 years make up 130,616 or the bulk of their applicants, followed by those aged 40 to 50 years (89,808), 20 to 30 years (43,336) and 50 to 60 years (41,072). Those aged 60 and above make up the least of all the age groups, filling up only 10,799 or 3.4% of the entire participants in the programme.
When it comes to financial background, low-income earners (make less than RM24,000 annually), account for 105,156 or 33.3% of the total of 315,963 participants. This is followed by 65,602 participants who earn RM24,000 to RM36,000 and 50,888 participants who earn RM36,000 to RM48,000, annually respectively. Surprisingly, those in the second-highest income bracket, RM96,000 to RM120,000 contribute to 37,180 of the participants. Here is a list of other earners:
- RM48,000 to RM60,000 – 33,978 participants
- RM120,000 and above – 8,923 participants
- RM60,000 to RM72,000 – 8,115 participants
- RM72,000 to RM96,000 – 5,789 participants
Clients who go through the programme also get to take advantage of Social Synergy, a collaborative initiative between AKPK, SOCSO, MDEC and GIATMARA. “For example, let’s say someone lost his job and he comes to AKPK thinking of how to pay his debt, we will try to link him up to SOCSO to see if he has any benefits and vice versa. And it’s all because we have this network,” Nirmala said.
Financial Counselling
AKPK has seen a slight decrease in people seeking financial counselling this year. Since its inception in 2006, it has seen through more than 1.1 million in counselling cases, of which 330,788 people have opted for DMP.
Malaysians can receive counselling and advice on how to manage their debt from AKPK who will help them identify and clarify options that are available to improve their financial situation.
The counselling and advice sessions are on a one-to-one basis. Currently, we encourage tele-counselling once an individual registers via our customer’s portal. One can get advice on budgeting, credit related issues, and money management.
For a full flow of how to register for DMP.
Financial Education
In line with AKPK’s aim to improve the financial knowledge of Malaysians, they carry out consumer education programmes, workshops, seminars and roadshows. AKPK also provides financial education based on the different scenarios that people will face through different life stages.
Moving forward, AKPK is looking to focus on educating Gen Y’s and Gen Z’s to increase their financial literacy.
Check out AKPK’s learning centre where you can find financial information catering to varied target audiences such as fresh graduates, those starting a family, individuals preparing for retirement, and more. AKPK also publishes easy-to-read financial guide books in English, Malay, Mandarin, and Tamil to increase one’s financial literacy. The publications can be bought for a minimal fee at AKPK’s branches.
When it comes to the best personal finance practices, especially with COVID-19 still rampant across the globe, AKPK, Nirmala said, holds onto four tenets, which are:
1. Acknowledging the current issue
The first step, Nirmala said, is to acknowledge the fact that only you can change your fate.
“You can read and do so many things related to personal finance – but if you don’t know or determine that ‘why factor’ or have that personal drive, you won’t take it into action,” she said.
This is the step where you look at your finances and acknowledge what you have and what you want to achieve in life – focus on a goal. For example, if you never had savings, acknowledge that fact, and work towards improving it.
2. Analyzing the problem at hand
This is the stage where you list down your income and expenditure.
“This is your current cash flow. Analyze what you have and what you are gonna do with that money,” she said.
3. Acting correctly
This is the stage where you figure out what you can do in your current situation.
For example, if you need more savings, then it would be imperative that you try to save a bit more, Nirmala said.
Take the right action until it is manageable at a certain level, before moving to the next action of increasing or diversifying income, Nirmala said.
“Because you could end up losing any extra income you’re making if you don’t take the right actions, so you must take care of that first,” she said.
4. AKPK for advice
The last step to the four As is to go to AKPK for further advice.
How To Get Help
Due to the CMCO, however, the AKPK office has been limited to the public, but services are still available online. Borrowers just need to visit AKPK’s website www.akpk.org.my to book a date with AKPK’s counsellor.
AKPK has a total of 11 branches across Malaysia, to find the nearest to you click here or you can call the AKPK Infoline at 03-2616 7766.
(Please look out for AKPK’s Branches Operations updates during the pandemic).
Need more tips on how to settle your debts? Tap the link below to read the article!
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Want To Help #MalaysiaBanjir Victims? Here’s What You Can Do
- By CompareHero.my
- December 21, 2021
In the last few days, parts of Malaysia have been badly hit by severe floods. With rescue missions still ongoing, we know that it’s going to be a long road to recovery. Over 32,000 people have been moved to rescue centres in Selangor alone, and other states are reporting equally high numbers.
If you’ve been scrolling through social media wondering what you can do to help in these trying times, here’s how:
Contents
1. Join rescue missions
We’re now on day 4 since the floods began. But while water levels are receding and the rains seem to have come to a halt, many people are still trapped in their homes. With no access to electricity and phone services, they are even unable to let rescuers know where they are.
In addition to the military boats that have been sent to ferry people to safety in batches, there are also NGOs that have joined the rescue missions. If you’re physically able to go to these badly-hit areas and help, go ahead and sign up as a volunteer.
However, please only go with NGOs that are trained in working through natural disasters like this. If you decide to go on your own or with groups with inadequate experience, it can be highly dangerous.
2. Volunteer at relief/food distribution centres
If you’re unable to actually go out and rescue victims, another option is to help them settle in in relief centres. With tens of thousands now displaced in various shelters, there are a lot of arrangements to be made for victims.
Alternatively, you can help get warm meals to those who are in need of them. There are several locations that are currently preparing thousands of meals a day such as Gurdwara Sahib Petaling Jaya or The Port at Damansara. At the time of writing, volunteers are still needed to help cook and pack food. If you’d like to join in the efforts, just contact them to find out how you can be of assistance.
Besides these, you can also volunteer to clean houses that have been affected. For more ways on how you can help, check out this Instagram Guide put together by @shaherazahari.
3. Give monetary aid
Cash donations are always needed during a crisis like this, as they can be used to cover anything, from supplies needed for victims to repairing destroyed homes.
The most important thing when it comes to cash aid, however, is to direct them to the right places. Always go for legitimate and known organisations first before channeling your money elsewhere. This doesn’t mean that you can’t donate to individuals who are collecting funds. However, make sure that they’re able to provide receipts for how the cash is being used. Some organizations you can consider donating to can be found here.
4. Donate food, clothing & toiletries
As most flood victims would have lost many of their belongings, any donations of essential items are much appreciated. If you’d like to send food directly to relief centres, consider packing dry or canned food as they can be kept for longer. It would be advisable to send vegetarian items so that they can be consumed by Malaysians from various religious backgrounds.
As for clothing, please pack up clothes that are in decent condition only. Avoid clothes that are damaged and no longer wearable. You can send those to centres that upcycle old clothing such as Kloth Cares instead.
If you’re not sure of what essentials to pack, some things you can include are:
- soaps & shampoo
- sanitary napkins
- wet wipes
- diapers for both adults and babies
- candles & matches
- Paracetamol
- power bank
You can also make individual care packages with a bit of everything so that it can be distributed more easily.
5. Provide shelter & transportation
Got some extra space that’s unused at the moment? You can open your doors to some families for a few days. If you don’t know where you can offer your shelter, start by putting out announcements on social media.
Besides boats that are being used to transport victims, other much-needed vehicles at this point are 4x4s and 4WDs due to their wading depths. If you have one of these or know someone who does, feel free to offer to ferry not just people, but also their belongings and pets.
Don’t feel bad if you can’t do any of the above. There are still ways you can make a difference during this time, even if it has to be done virtually.
What’s kept us all in the loop regarding the floods is the information that’s been shared around—where to get help, which roads to avoid, where victims are still stranded, and so on. If you’ve been actively spreading the word on all of this, keep up the good work! A simple retweet or Instastory can go a long way.
At the same time, please ensure that the information you share is accurate and verified. The last thing you’d want, especially at a dire time like this, is for anyone’s efforts to go to waste.
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6 Best Places To Get Last-Minute Christmas Gifts In Malaysia
- By CompareHero.my
- December 20, 2021
If you clicked to read this article, you probably haven’t done your Christmas shopping yet. Life got so busy that you didn’t have time to get some things off Shopee? Struggling to think of what to get your loved ones in the first place?
Fret not! We’re here to help. Here’s a list we put together of places you can get last-minute Christmas with a whole lot of options.
1. Marks & Spencer
View this post on Instagram
Marks & Spencers is a popular British retailer that sells various products ranging from clothing to food to home appliances—you name it. They have a delivery service for online orders, however, their Christmas delivery is now closed.
Worry not, though, because there are 10 physical stores you can drop by to pick up some presents. You’ll be spoilt for choice in a sea of desserts and Christmas-themed goodies for people of all ages.
2. Harvey Norman
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Most people would appreciate a fancy new gadget as a gift—if not a phone, then at least a tablet or laptop. But giving good gifts doesn’t always need to come with breaking the bank.
At all 27 Harvey Norman stores across the country, you’ll find many affordable options. Want smaller but meaningful gifts? You can choose from their selection of cameras, watches, headphones and so on.
From 15th until 28th December 2021, there’s a clearance sale of up to 70% off. Alternatively, you can also enjoy their 12 Days to Christmas Sale which runs until 24th December 2021.
Related: 5 Must-Have Home Appliances That Save Time And Money
3. Starbucks
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Coffee and pastries aren’t the only thing Starbucks is known for. If you frequent any of their outlets, you’d know that they sell a lot of stylish merchandise too. Ranging from mugs to tumblers and even to tote bags, you’ll have a good amount of options to make your pick from.
For this Christmas season, they have partnered up with other brands and released limited-edition collections. At the time of writing, there are 8 different collections available, and you can find the full list here.
Want to let your giftee choose their own gift instead? You can walk into any Starbucks store and purchase a Starbucks card which works just like a gift card.
4. Bath & Body Works
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If the person you’re buying a gift for is into beauty, self-care, pretty scents and all of that, this is the place you need to be at. They usually have bundle deals and promotions during Christmas week, so it’s the best time to shop there.
Their products come in collections, and each one would have fragrance mists, bath gels, candles, lotions, and so on. Their current top offer for Christmas is a Buy 1 Free 1 Promo. Your gift might just arrive in time for Christmas if you decide to order online (there’s still 5 days left!) If you do decide to go down that route, you can enjoy free shipping for orders above RM180.
5. Kaison
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If you absolutely have no idea of what to get as a gift, Kaison is probably the first place you need to head to in this whole list. While everything else is known for certain products only, Kaison is more of a general store.
Want home decor items? You’ll find mini furniture, carpets, curtains and pillows here. Is your giftee into aesthetic things? Choose from rows of fairy lights, shiny trinkets and wall hangings. You can also pick up stationery, bags, phone and laptop equipment and so on.
You get the drill; there’s a lot you can take home with you. No time to wrap gifts? Pick up a gift wrapper and request a staff member to pack your purchase as a present.
Related: 8 Instagram Shops You Can Get Gorgeous Kitchenware From in Malaysia
6. Pulpy Garden
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If you want to give your loved one something more meaningful, long-lasting yet budget-friendly? Plants are a great idea! And some of them can be pretty-low maintenance too.
Pulpy Garden offers same-day delivery for live plants in Klang Valley. However, do note that this only applies to deliveries made before 2pm. Other deliveries will be made Monday through Saturday, from 10am to 6pm.
Up until 26th December 2021, you can enjoy their Black Friday Sale and get 15% off purchases. Just use this code: BFPG15.
Check out their list of houseplants for beginners here.
Want to shop and get rewards at the same time? Check out these credit cards that give you cashback and rewards for each purchase you make! Click the link below for more information.
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5 Polite Ways To Ask For Your Money Back
- By CompareHero.my
- December 17, 2021
There’s a saying that goes, “Lend only the amount of money you can afford to lose.” When you lend money to friends or family, you’re working under the assumption that they will pay you back promptly to preserve your relationship.
But that isn’t always the case, and as we all know, it can be awkward to repeatedly ask for your money back. You start talking to them more often, dropping subtle verbal hints, doing weird little gestures, and even gesticulating strongly with your wallet at times to indicate that “Hey, I need my money back”. It just doesn’t work, though.
If you’ve tried all those weird actions and still feel unsure about how to ask for your money back without affecting the relationship, why not try out the 5 methods below?
Contents
1. The polite reminder
Sometimes, people genuinely forget that they owe you something – not everyone is out to get your money. This is especially true if it’s a small amount like a couple of ringgit. A simple reminder to the borrower can work for you in these situations.
Be courteous and always use polite language when reminding someone about the debt they owe you. (even thought you really just want the money back). Just ask if they remember their debt and when they can pay it back. A good example sounds like this, “Hey, do you remember that I lent you money last month? Was wondering when you could give it back.”
Related:Difference Between Good Debt and Bad Debt
2. Ask for an update on what they used the money For
People borrow money for a specific purpose, and they usually let you know what this is when they make the request. If, for example, money was borrowed to pay for tuition, ask them how the school is going. This lets you ask for the money in a very passive way and can prompt them to remember their debt, it might even open up the conversation about when they might be able to pay it back.
Related: Costs Everyone Forgets to Budget For
3. Let them pay for the next round
If it’s a small debt, you can ask your friend to pay for your meal at the next gathering, and that this can be deducted from their debt to you. This works because you get some or all the amount paid back and it serves as a reminder that they owe you money. But of course, always be polite about it – it’s not nice to be very aggressive even if they owe you money.
Related: 3 Mistakes When Lending Money to Relatives
4. Ask them to help you out
You were able to help them out when they needed it, now’s their chance to return the favor. If you have needed the money back for something, ask them to help you out by paying you back the debt they owe. If you’re feeling slightly more generous than usual and don’t find the money necessary, then you could even ask them for a non-monetary favour in lieu of the money as well!
Related: 7 Tips for Borrowers of P2P Lending To Get That Money
5. Give them flexible terms
Offer to have the debt paid back in installment. This works because you’re giving the borrower flexible payment terms and you’re creating a timeline for when the debt will be completely paid off.
An unpaid debt between friends can strain relationships, after all, money is rather sensitive matter. Getting angry at someone who owes you money is a quick way to lose a friend and a lot of times, your relationship is worth more than the money owed.
Being left unpaid is a real possibility when you lend to friends or family, so only lend out an amount that you are comfortable never seeing again. But when it’s time to ask for your money back, asking for it politely helps you save the relationship.
Related: 5 Reasons Not To Lend Money to Your Friends
Want to avoid the awkward situation of asking a financial favor from your friends? You can do that by comparing the best personal loan in town and get the financial aid you need now at our personal loan comparison site!
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Planning Your Investments For 2022? Here’s What You Should Keep In Mind
- By CompareHero.my
- December 16, 2021
In case you didn’t realise: we’re just T-minus 16 days until 2022! If you’re bracing yourself for the new year, you probably already want to plan your finances for the next twelve months. We recently wrote an article on how you can plan for your 2022 expenses:
Related: 5 Tips To Budget and Plan For Your Expenses Better in 2022
In this piece, we’ll look at another hot finance topic: investments. Check out these simple tips you can follow to plan and get the most of your investments next year.
Contents
Look back at your investments in 2021
If you’ve already started investing this year, this one’s for you. Want to get the most out of your investments in 2022? One way to do that would be to reflect on your journey as an investor this year. After all, the saying ‘‘experience is the best teacher” exists for a reason.
Go through a list of what you invested in and think back on what worked for you and what didn’t. This way, you’ll know what you can do differently this year, and you can have better pointers on what to avoid.
Weeding out the things that you didn’t like also leaves you more room for trying out other types of investments. You’ll then get to reap the benefits of a more varied investment portfolio.
Know your risk appetite
All investments come with risk—some more than others. Generally, investments that bring in high returns also come with high risks. If you feel you’re not ready to take the plunge yet, feel free to play it safe. But if your goal is to bag bigger returns, it’s up to you to decide whether the risk is worth taking or not.
At the same time, it’s good to be flexible when it comes to dealing with investment risks. Be open to change and know that you won’t always get the same results for the same type of investment. Part of the investment journey is accepting that investments can be volatile, so be prepared to deal with some occasional lows.
But again, if you’re not ready to deal with huge risks just yet, stick with the safer investments. The beauty of investments is that there’s something for everyone, including those who want to stay low-key for a while.
Diversify your investments
Speaking of risks in investments, one way to lower it is through diversification. But what does that even mean?
In simple terms, you essentially distribute your risks by dabbling in various (diverse) investments. So instead of focusing on one investment that would be volatile/potentially high-risk, you have a portfolio of both low-risk and high-risk investments.
This is a smarter way to handle your investments, especially as the world recovers from an economic downturn from Covid-19. Investments will be all the more volatile when the economy isn’t great, so be more cautious of what you’re investing in during this period.
Related: Beginner’s Guide To Stock Investment In Malaysia
Get tips from the right sources
If you’re relatively new to the investing scene, you might be eager to get all the information you can. While that is great, be careful of where you source that information from. The harsh reality is that not everyone who proclaims to be a financial guru has as much knowledge as they claim to have.
Open social media, and you’ll see numerous ads by influencers recommending a certain investment app or account. While some of those may be genuine, there are others that do it just for likes and shares.
Before taking any advice, make sure that the person is well-experienced in the field and is giving you unbiased and true information. If they recommend any products, check the reviews before committing to anything.
For starters, you can check out these verified financial experts on YouTube by clicking on the button below:
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