KUALA LUMPUR (June 29): HSBC Bank Malaysia Bhd has advised Malaysians to be conscious of their cash flow, build their net worth and not lose sight of the importance of health in building their financial resilience.
In a statement, the bank emphasised the importance of tracking their spending pattern by planning a spending budget such as a ‘minimum spend’ month or week, make deliberate decisions on what luxuries or extras one can afford and dedicate the rest to savings or debt repayment, as well as perform financial spring cleaning.
Secondly, it encouraged the people to build their net worth by knowing their debt and making use of their assets.
“Debt can have a crippling effect in a volatile market. If you have monthly payments going out, try to optimise your debt portfolio by paying off your debt with the highest interest first.
“Generally, your assets can provide a steady income flow such as property rental or help reduce your cash outflows such as savings on home rental. Assets can provide greater flexibility, especially in times of a crisis,” it said.
Lastly, it said the people must ensure that they have adequate life insurance cover to maintain a good quality of life for their dependents or to cover liabilities in the future.