6 Signs That You Are Being Underpaid
- By CompareHero.my
- June 24, 2021
Let’s be honest, we all need money. Whenever you don’t feel like getting out of bed, just remember that you still need to pay the bills and that will send a shock down your spine.
Sure, you might get satisfaction out of the challenge and accomplishment from your job and work with amazing co-workers, but that still does not beat receiving the paycheck at the end of the month. Let me ask you: “Would you still be at your job if you didn’t get paid?” The majority will say a resounding ‘no’.
Well, in that case, why not make our paycheck as big as we possibly can? Everybody wants to be fairly compensated, regardless of the work, but how do we know if we’re not? Bear in mind that money is not the end-all as there are different types of benefits with different companies. But, here are the six signs you might be underpaid.
Related: 5 Financial Mistakes Most Employees Make When Starting A New Job
Contents
1. Increase in responsibility but not in salary
Almost every time when your responsibilities increase, your salary should too. Think about it; when you first got hired, the salary was based on the responsibilities that were expected of you. So now that the responsibilities have changed, shouldn’t there at least be a conversation about how it affects your compensation?
Always review your salary before taking on additional responsibilities to ensure your salary remains competitive. Negotiate a raise. Don’t overwork and be underpaid. Also, ask some of your peers in the same industry once in a while, wages may fluctuate depending on the supply and demand of the profession.
2. You haven’t received a raise in a long time
In an ideal place where there is less turbulence and global crisis like the COVID-19 in the market, you should expect to receive a bump in your salary about every year. This is not only for the efforts you’ve put in over the year but also to keep up with inflation.
But as we all know, the world is not always as generous as we hoped it would be and it may be quite difficult for some cultures to strike up the conversation. So give it roughly two years. If your manager values your presence and the work that you’ve done, they’ll do what’s right to keep you with the company.
3. Others with similar responsibilities get paid more
This may require you to do a little research, whether on the Internet or by asking your colleagues. In Malaysia, despite it being frowned upon when we ask about salaries, it doesn’t change the fact that it’s a good practice for transparency. The more secrecy there is about your compensation, the more employers can take advantage of.
Sites like LinkedIn, Glassdoor, Indeed, or Payscale have most of the information you need. With just a few clicks, you’ll know whether your compensation is on par with the market rate.
4. High turnover rates
There are only a few main reasons why people quit a job and one of them is to escape bad pay. With the Internet on our side, it’s not that hard to know how much a job is worth. Once someone has got that information and if they have the power to make a change, they’re going to take it. That means switching over to another company that values them.
A high turnover rate means that more employees find better opportunities elsewhere than vice versa. Remember, whether it’s you or your work bestie, money is a huge factor in our jobs.
5. You’re constantly getting headhunted
You are underpaid if you keep receiving calls from recruiters or headhunters that can pay more than what you’re earning now. Recruiters are people who work extremely closely with companies and job seekers. It makes sense to take their benchmark of salary as it will roughly represent how much your job is worth.
To top it off, if you’re constantly getting headhunted, it simply means that your speciality is in high demand now. That is a tremendously powerful negotiating tool because if the company is desperate for someone with your skills, they will one-up your other offers. And all this is only going to benefit you.
6. You did not negotiate your initial salary
Chances are that when the company first give you the initial offer, it’s below the amount they’re willing to spend. It’s something like “Let’s see if he/she is willing to accept this pay.”
In most cases, companies want to save as much as possible. So if you didn’t negotiate your salary at first, that means you actually deserve much more than that. But first, ask for it.
Plus, now that you’ve gained some experience and have your time invested, you would have become an asset to the company. Prepare your case well, you deserve it.
Constantly review your salary just to keep yourself updated with the industry standard. Don’t lose the opportunity for something better just because it’s hard to strike up the conversation.
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Top 5 Common Mistakes New Business Owners Make
- By CompareHero.my
- June 23, 2021
Any entrepreneur who has started a new business knows that it is anything but easy. While you might feel extremely motivated to see the changes your business can make in the world, there are also a lot of struggles along the way. Entrepreneurial ventures are fraught with mistakes, missed opportunities, and even mishaps.
Related: Best Small Business Opportunities in 2021
Though it’s inevitable, understanding and preparing for potential risks can ease your worry and help you avoid some of the costly mistakes. Most new businesses are prone to the same kind of mistakes and it could range from small fixable mistakes to digging a financial pit that leaves you in financial pain for years to come.
With that in mind, here are the 5 most common mistakes that new business owners make.
Contents
1. Not understanding your ideal customer
The very first question you should ask yourself is: “Why does my business exist?” And the second one is: “What problem does my business solve?”
A common startup mistake is that business owners don’t take enough time to understand the market or survey industry needs. For example, although software-based businesses are in high demand now, there is no way to know if you’re on track unless you get feedback from existing or prospective customers.
The harsh truth in the business world is that if somebody is already doing what you plan to do and can do it better than you, it will be more than tough for your business to turn a profit.
2. Having the wrong idea about marketing
The two mindsets that new entrepreneurs have are “You have to spend money to make money” or “I’ll spend the bare minimum until my business makes money. While this is understandable, as generating cash flow, in the beginning, will take priority over anything else, but if any of these two mindsets are taken to the extreme, it can be harmful.
Marketing is a must, even if your product is revolutionary. Think of it as the bridge between your ideal customer and your business, without it, both of you are just never going to make the exchange.
In reality, most startups need to invest heavily in marketing to differentiate themselves. Just make sure that your product lives up to the expectations of your buyers.
3. Thinking it’s a way to make quick money
Getting into entrepreneurship for the money is almost never going to work out. In fact, it’s going to take years until you see significant cash flow. Starting a business because of the pandemic and MCO without any plans is not a way to generate income. Even with a well-thought-out plan, you might still fail.
Your business plan is the foundation of your small business. It’s a blueprint and a map for you to follow when things get rough and a structure for your operations. And when the time comes, this business plan will help you get investment funding to exponentially expand your business. Not only that, but it can also be a guide when you’re looking to hire new employees.
Pro tip: Start with the end goal, then break down the steps needed to get there. That’s your business plan.
4. Doing everything all at once
You’re driven, you’re motivated, you’re enthusiastic, and you’re willing to put in the hours. That’s all great but it will lead you down a problematic path if you go at it all solo. We’re all merely humans, there’s only so much we could do before we get tired.
There is no doubt that running a business is hard work. However, research has shown that without proper relaxation and winding down, there will be an opposite effect where you’ll become less productive.
Don’t sit there for hours, you’re not there just to warm the seats. Look to be productive instead. Take care of your health and think long term. Otherwise, delegate the tasks or hire freelancers to help you with them.
5. Tax liabilities
There is a saying in our society: “There are two things in life you cannot escape from — Death and taxes.”
You may have bristled upon some taxes being taken from your paycheck at a full-time job, but that is relatively simple. Business taxes are much more tedious. You might even get caught up in the day-to-day management of the taxes and you cannot not do it. Pushing it to every April is not a good idea as you might struggle to compile all the transactions you’ve made.
Taxes are the responsibility of every company. So do things right from the start and develop a process for it. Hire the right professional for the job if you have to because the cost of not having it done properly is much greater than the cost of hiring a professional accountant.
Remember that business plan you have? Use that to estimate how much taxes you need to pay.
Living the dream of owning a business that you’re passionate about is still very real and attainable. Just make sure that none of these mistakes hinder you from a successful business.
Related: 5 Practical Tips For Building Up Your Savings To Launch Your Small Business
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How to Cut Down Expenses While Living in a Big City
- By CompareHero.my
- June 22, 2021
Living in a big city is cool. It’s often where the best entertainment options, the highest paying jobs, the financial district, and some of the best colleges and universities are. And a complementary perk is that you can find almost anything at any hour of the day.
But that does come with a cost. A hefty financial cost as land and space in a concrete jungle labels luxury. Living in a big city usually means that your cost of living is rather high. And despite your higher income, you might still find it hard to cover your costs.
The good news is that although it may not be as easy as Hollywood made it seem in many sitcoms, there are some creative ways to cut back on expenses. Try these four practical ways to cut down your expenses and allow yourself some “wiggle room”.
Contents
1. Cut down on the big categories
A lot has been said about cutting down the smaller expenses such as subscriptions, clothing, and shopping habits. They’re important, but what often gets overlooked is the much heavier spending categories. Your fixed costs — rent, transportation, and food. Consistently trimming just a little every month on these areas will allow your money to go much farther.
Get a roommate
If your rent is absurdly high, get somebody else to split this cost with. You’re not alone in not wanting to pay such high rent. Avoid moving into a cheaper but sketchier area of the city (they often exist) as nothing is more important than your health or safety. No financial savings is worth that risk.
Find someone you can trust and get along with to stay with. You also don’t want the problem of not being able to collect money from them each month. If it’s okay with the both of you, you can even rent out your couch from time to time and use that money to pay for the rent.
Related: 5 Ways To Make Extra Money By Renting Out Unused Space
Use public transportation
This way, you don’t pay insurance or road taxes, which can be another set of burden. Our LRTs, MRTs, and Monorails cover a lot of ground and what’s better is that it avoids the dreadful traffic every morning and evening. On top of that, you’ll also get to skip looking and paying for parking, which is a huge headache in itself.
Going car-free is ultimately a good lifestyle choice in a city. You get some exercise after a long day of sitting while saving a few hundred at the same time.
Related: #BreakingItDown – The True Total Cost Of Car Ownership In Malaysia
Make your own meals
Wherever you are in a major city, you’re going to smell good food. Especially in Kuala Lumpur. And that makes it even more tempting to eat out. But the truth is that restaurants charge a premium for their services and making your own meals can save you a lot of money.
Pack your lunch before going to work, reduce or eliminate eating out or getting takeout and buy lasting items in bulk when they’re on sale (cookies or canned food).
2. Substitute expensive entertainment
Living in a city means that there are always going to be interesting and fun events, such as a concert or a carnival going on. The catch is that these events are usually really costly. So much so that one night out can cut a deep rut in your bank account.
On the other side of this, is free entertainment. Every big city has free things to do. Make Google your best friend for finding things to do in a city. Try to minimise hanging out with your extremely rich friends who always go shopping and only go to expensive places. If all else fails, just go home, there is no shame in that.
3. Negotiate
Never be afraid to ask. If you don’t voice out, the other party may never know that you’re struggling. Don’t be afraid to ask questions if it could get you a better deal and save you money.
A good place to start is your landlord. Landlords are humans as well and can usually understand the working class. Who knows, they might even lower your rent for a few months just to help you out while you find another way to cope.
Not just your accommodation, but also in restaurants or when you’re shopping.
Just ask; it really doesn’t hurt.
4. Shop with intention
It’s really easy to get swept up with wanting the latest gadget. Even more so if you choose to walk around the advert-painted heart of a city.
Before making any purchases, write your wishlist down and wait for at least a few weeks before deciding. It makes sure that you really want the item and silences what marketers put in your mind. If you get good at this, it can even help you cut your food expenses, plan your meals and eliminate the impulse buyer in you.
Take it one step at a time, you’ll be surprised at how much of a difference these tiny changes make.
Related: 6 Ways To Stop Impulse Shopping
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How to Raise Financially Responsible Children
- By CompareHero.my
- June 21, 2021
Every parent wants only the best for their kids. Be it getting the best education of all, having a safe place to live, or making sure that they aren’t hungry. These are great goals to strive for, but let’s not forget about financial success. After all, money is and will be what we use to exchange goods.
Before moving on, by financial success, we’re talking about being financially independent and responsible enough to one day pass on this knowledge to their children. Most schools don’t teach children how to manage their finances properly, hence this responsibility falls on the shoulders of parents.
With that being said, as parents, accept this challenge with gusto and view it as an opportunity to teach them the lessons we had to learn the hard way. Give them the gift that will benefit them for a lifetime. Here’s how.
Contents
1. Talk about money
Teaching children about money and financial responsibility starts at an early age. In fact, as early as you can so that your kids don’t have to unlearn any bad habits.
It doesn’t mean that we should pass some of the stress on to our kids but you have to at least chat about how to budget, saving for retirement and how to pay the bills. Help them understand that money is hard to come by and easy to flow away. That there is a cost of living.
It seems oversimplified, but that’s what finance is about — simplifying. The real value of money is how much freedom do you have to do what you want, not how many items you can collect.
2. Talk about family finances
This is taking the next step after talking about money. Let your children into your discussion, regardless if they can contribute or not. Not including them in your conversations about money only leads them to draw their own conclusions, which may not be accurate.
Be open about what your family can afford and cannot. Talk about how you’re planning your family budget, as well as some goals to achieve. Above all, discuss college expenses long before they even think about it.
That way, by being transparent and showing all aspects, your children will see the struggle and sacrifices along the way. This will inherently teach them about the value of money.
3. Involve your children in decision making
Children learn the concept of money from their environment. That means the decisions of their parents, both big and small. Involving your children in financial decisions simply means showing them you recognise the price and the value. And the concept of “price doesn’t equal value.”
The knowledge of how to invest or manage our money doesn’t come naturally, it takes time, even merely to build a solid foundation about money.
Start with handing them the cash to pay for an item. The act of exchanging money and change, even if it’s not their own, will help them understand nothing comes free in this world. It might seem absurd to us adults, but children don’t know that yet.
4. Give them real money to manage
From the book Raising Money-Wise Kids, Judith Briles pushes parents to give their children hands-on experience with money. That means providing them with a certain amount of allowance and actively coaching them on how to manage it. Or, it could even be giving small and menial tasks to your children in return for some money.
But regardless, allowing your kids to use the currency we are using gives them the opportunity to learn about the consequences of their choices. Also, give them some room to make mistakes, help them understand the things they could do with their money such as saving or investing it. More importantly, help them understand what it means to be without the money.
Build their financial muscles.
5. Be a good role model
Children mainly learn through mimicking. And being surrounded by their families means that they’ll constantly be observing the parents’ actions.
Lead by example. Don’t do it and tell your kids not to do it, because then they’ll do the same and tell their kids the same thing.
Practice good habits. For yourself, and for your children. Show them the struggles of the family’s finances. Show them the hard work that goes into making money. Show them your budgeting plans. And finally, show them how they can do it too.
Related: 5 Ways To Control Your Family Budget
We all know the real world is tough. So instead of buying your kids the things you never had when we were younger, teach them the lessons you were never taught.
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Top 5 Personal Finance Podcasts in Malaysia
- By CompareHero.my
- June 17, 2021
Personal finance can be a confusing topic, especially with the number of business jargons. But listening to an expert talk about all things finance while giving you guidance can make your journey to financial literacy much easier to navigate. These talks are more commonly known as a podcast.
Recently podcasts have grown at an exponential rate. Spotify even reported that podcast consumption across the board has nearly doubled since the pandemic forced us indoors. One topic that carried this statistic is around personal finance. Whether you’re looking for more technical advice in the stock markets or how to better manage your properties, there will be an option for you.
But on the Internet today, there are hundreds, if not thousands, of finance-related podcasts there. So we did the work and helped you narrow it down to the top 5 personal finance podcasts in Malaysia.
1. BFM 89.9
A little fun fact about BFM is that they are an independent radio station that was established to cover all business topics. Including the stock market, corporate personalities, news headlines, and the economy of the country. They have such an established brand in Malaysia, so much so that you can expect to hear some of the best people in their industries on air.
Because BFM has so many programmes, here are the top 3 that are related to money and personal finance:
Breakfast Grille
Kick start your day with BFM’s controversial podcast. The Breakfast Grille is where you’ll get the no-filter commentary and catch a glimpse of the minds of business leaders, policymakers, and directors. Way to get your mind fired up for the rest of the day, huh?
Ringgit and Sense
This is the go-to for most Malaysians. Ringgit and Sense educate the public about personal risk profiles, retirement planning, realistic investment horizons, loan knowledge, and insurance altogether. This show also gives you some alternative investment methods and ideas as to how to manage your money.
Market Watch
As you can tell, Market Watch is everything about the stock markets. It’s the programme where they talk about the latest investment insights and market analysis from both local and foreign markets.
If you’re on a busy schedule and don’t have the time to check in with your investments often, this is a great way for you to keep yourself updated with market conditions. It’s extremely helpful and informative to any investor or businessperson in Malaysia.
2. The HUSTLR
Run by Jeremy Ong, the HUSTLR podcast pivots on everything about the entrepreneurial journey. Jeremy is a business owner and a founder of several online businesses, giving him the credibility to talk about this subject.
Jeremy started this podcast along with his business partner Sim Li with the initiative to help other Malaysians build their own businesses and adapt to the digital tide. Occasionally, they will also have other entrepreneurs discuss topics on personal finance, dropshipping, starting a business, digital marketing, and other business-related topics.
The essence of this podcast is that it will give you an idea as to how a business goes from a startup into one that is considered a market leader.
3. Iherng Podcast
The real estate section of investing is quite another world of its own. It’s much more than just buying and selling. There are the little intricacies that happen in between that might affect a buyer or a seller’s decision. Even more, is the amount of cost that could be raked up if you aren’t aware of other alternatives.
The Iherng Podcast is especially targeted at those who are looking to buy their first homes in Malaysia. This podcast discusses every related to real estate from how to get a loan approved to how to look for tenants when you decide to rent your property. If you’re looking for answers to a rather uncommon question, this is the podcast for you.
4. MyPF
Hosted by Catherine, she calls herself Cat, MyPF describes finance as the most significant driver in our lives. MyPF has since become a leading award-winning financial education platform to help everyday Joe(s) and Jane(s) grow their own finances.
In addition to podcasts, MyPF also helps Malaysians connect with licensed financial planners and offer a diverse range of tools as a solution for your financial issues. The list doesn’t end, they also organise events in different communities. But one thing that is constant among all that they do is their vision to increase financial awareness.
5. Brown Guy Talk Finance
Brown Guy Talk Finance came from a licensed financial planner based in Malaysia. He goes by the name of Yuvarajan Periyan. His mission when starting this podcast is quite simple — Educate clients and develop financial literacy to achieve their personal goals.
It may sound quite similar to other podcasts but this Yuvarajan really places the focus on the younger generation. With this in mind, you can expect all the business jargons to be eradicated into Layman terms everybody understands. Speaking in terms of statistics, Yuvarajan aims to disrupt the reported 84% of financially illiterate millennials.
This podcast is perfect especially for those who want to feel like they’re talking to a friend.
