ACCORDING to the Credit Counselling and Debt Management Agency (AKPK) study on money and mental well-being during the pandemic, the most vulnerable group that suffered the highest stress were those with the least savings.

As the Malaysian economy is beginning to recover and reopen, it is a good time for Malaysians to re-examine their finances and learn from their experiences during the pandemic to strengthen their financial footing post-pandemic.

Whether we had enough money for essentials, or struggled to make ends meet, Covid-19 has undoubtedly changed the way many Malaysians, earned, spent and saved their money.

Many important lessons were learnt during the pandemic. So that this crisis does not go to waste, we need to learn from our experiences and incorporate the new positive habits into our daily lives.

For example, during the Covid crisis, many adults limited their grocery trips, selected more affordable outlets and were more cautious of their spending.

During the crisis, many people eliminated impulse spending. One habit that consumers can adopt is to continue to be more prudent in their expenditures; to make a list of items to purchase, to purchase at the best prices and to be cautious.

In this regard, one of the worst spending habits that consumers developed during the pandemic was clicking and buying stuff online.

The convenience, the choices and the pricing made this habit too attractive. You push one button and stuff ends up on your doorstep few days later.

Thus, there is a need to be more cautious and mindful in making online purchases. Before you push the button, always ask yourself: do you really need it?

If buying becomes addictive, you might even want to consider removing the shopping apps from your phone.

A critical lesson that we learnt during the crises was the importance of an emergency saving fund. Although the amount of money suggested – three to six months – may be the same as pre-Covid, the seriousness of keeping an emergency funds has definitely changed.

As indicated in the AKPK study, the group that faced the highest stress was that with the lowest savings.

Although, each consumer may be facing different and challenging circumstances, and thus may have different capacity to save, the most important thing is to save something and to save consistently.

For now, consumers are fully aware that not having enough savings during this crisis has had a devastating negative impact on their families.

Another key lesson from the pandemic is that we need to control our debts. During the pandemic, there were some moratoriums that enabled consumers to delay their bank payments.

However, getting debt under control should be one of the first things that we focus on as life returns to normal.

Every consumer should list out all the debts including the total amount owed, the interest rate and the minimum payments and choose a method of payment that best motivates you.

Third, re-examine your budget. During the pandemic many consumers may have reduced their budget to buy essentials.

Now is the time to re-evaluate your budget and put your goals back to work. You might even add new short- and long-term goals.

The focus is to keep a sharp eye on your savings, expenditure, debts and your short- and long-term goals.

An important area of budgeting would be putting money aside or taking medical insurance to address your healthcare needs.

It is also a good time to revisit your retirement savings. Many consumers rely solely on their EPF accounts.

Clearly, for many the savings are not sufficient and one has to look at other options to ensure that there is enough savings to live a quality and dignified life after retirement.

Many consumers during the crises had to make critical positive changes to their behaviour that were positive in terms of the expenditure and financial management.

Thus, so as not to waste this crisis, we should not return to our old bad habits but incorporate these positive financial behaviours into our daily lives. – September 24, 2021.

* Paul Selva Raj is secretary-general of the Federation of Malaysian Consumers Associations.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.