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TABLE OF CONTENTS
Can One Job Really Pay All the Bills?
So, you have a job. Awesome!
And you may also have some dreams – maybe it’s the latest iPhone that has caught your eye, or perhaps it is the perfect vacation in Maldives. But if your wallet is playing a sad tune every month end, you might wonder if one job is enough. 🤔
Why, you ask? Let’s break it down.
Say your income after deduction (tax, EPF, etc. ) is approx RM 5,000
High rising expenses (especially in Klang Valley) leave us barely RM 800 a month to save, think about the coming wedding ceremony, kids, down payment for house, etc.
Of course, you’re thinking, “I’ll just get a raise!” – that will be great if pay hikes are handed out like ‘ang pows’ at new year. The reality, my friends, is that the average salary increase in Malaysia was about 5% in 2023. If your boss isn’t the generous type, well, there’s always the side-hustle route.
Now, grab your notes (and perhaps a snack), let’s get hustling!
Step 1: Identify Your Skills & Interests
This is your chance to transform your passion into profit. Consider your talents – we all have them, hidden or otherwise.
Are you pro at tutoring Maths?
Or by any chance you are the neighborhood’s favorite baker 🧁?
Perhaps you are a Picasso with pixels and graphic design is your thing 👩🎨!
Do not worry if you are none of that, because I used to be just like that. 🤓
Back then, I have literally zero skills to sell, but thanks to Youtube, I picked up video editing and some photo editing with Photoshop and Canva, and that allowed me to start a small side hustle with a video editing and a social media management job.
The key is – look at what you’re good at, what you enjoy, and most importantly, where there is a market!
Step 2: Do Your Homework (Market Research)
Before you dive in, you gotta know the pool’s depth. Who are your potential customers? What are the current trends? Don’t worry; this is not as scary as it sounds. A bit of online research should get you sorted. Google Trends and Department of Statistics Malaysia (DOSM) can be a gold mine of insights.
Step 3: Draft a Plan 📝
Even if it’s scribbled on a napkin, have a plan.
- What’s your goal?
- How much time can you dedicate?
- How will you find customers?
Remember, a plan is not set in stone; it’s a roadmap you can tweak as you navigate your journey.
Step 4: Choose Your Platform
Your platform is where you can shine – be sure to choose it wisely! For online tutoring, consider Fiverr and Upwork. If you’re into selling products, Lazada and Shopee could be your new best friends. And do note for that words of mouths can be your ticket to success, anything you do, remember to say it out loud 📣!
Pro tips 💡
Use social media to your advantage. Share your journey, your behind-the-scenes, and your success stories. Create a buzz. Your customers are waiting!
Bottom line? One job could be enough if it caters to your financial needs, your career goals, and that dreamy work-life balance. But it is worth considering that a side hustle can put some extra side dishes during the dinners. And who knows, you might even discover a new passion while you are at it!
If you have been hustling and have some spare cash, I suggest you utilize it with investing – one thing that I have been doing consistently myself. If you are also like me, and want to buy low cost U.S. stocks effortlessly at home, consider M+Global. This broker comes with an easy-to-use app, on top of its top tier track record, and what more this is a 100% Malaysian owned digital broker!
Word of the Week: Compound Interest
Definition: Compound Interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
It allows for a growth effect where the interest, in turn, earns interest, which can lead to significant increases in savings and investments over time.
Compound Interest is a critical concept in finance, associated with the principle of time value of money, so mind you, a dollar today is worth more than a dollar in the future!
Compound Interest = P [(1 + r/n) ^ (nt)] – P
Where:
- P is the principal amount (the initial amount of money),
- r is the annual interest rate (in decimal form),
- n is the number of times that interest is compounded per year,
- t is the time the money is invested for (in years).
Let’s consider an example where you invest RM10,000 in a fixed deposit account for a period of 5 years. The annual interest rate is 3%, and the interest is compounded annually.
Here, P = RM10,000, r = 0.03, n = 1 (as it is compounded annually), and t = 5.
The Compound Interest can be calculated as follows:Compound Interest = RM10,000
[(1 + 0.03/1) ^ (1*5)] – RM10,000 = RM1,592.74
This indicates that the investment will grow to RM11,592.74 (initial RM10,000 + RM1,592.74) at the end of 5 years due to the effect of compound interest.
BTW, I know you didn’t finished the calculation above, we are all lazy and don’t have time for that! Here is a compound interest calculator for you, feel free to skip the math.
Key Economic Dates:
- 26th July: Fed Interest Rate Decision
- 27th July: GDP Q2 First Release
- 28th July: Core PCE Price Index
- 1st August: ISM Manufacturing PMI (Jul)
What I’ve been reading:
Here are the top stories that caught my eye:
- Yellen sees improvements in US-China relations
- Starlink to bring Internet to remote areas in Malaysia; cheapest Tesla Model Y in SEA launched
- UOB’s acquisition of Citibank’s consumer banking businesses in Malaysia, Thailand, Vietnam
You’re all caught up!
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Cheers,
Ziet
