This seems to be a hot topic nowadays in Malaysia. The Prime Minister announced that, from Jul 1, the government will no longer provide subsidies to chicken breeders. It means chicken meat will rise in price in Jul. With this, all food that contain chicken will rise in price too!
Previously, the chicken was being subsidized by the government so that it remains at the price of RM 8.90 per kg. Now without the subsidy, the price could reach RM 12 per kg, which is about 35% increase in price.
There were some hot discussions about the withdrawal of fuel subsidy in June but the government had clarified that the fuel subsidy will still continue. However, the government will consider raising RON 95 price slowly to catch up with the inflation so that the burden of the government on the subsidy will be reduced.
With more and more subsidies being withdrawn or slowly withdrawn, the need for proper financial management is a must. We must start to keep some emergency funds and allocate at least 20% saving every month to cushion the impact of the inflation. If we are able to be discipline on regular money management, the impact on the rising prices will be manageable.
Let's start to allocate our income to few jars – min 20% to long term save jar, 40% to needs and 30% to wants (loan installment for house and car) and 10% for kids education.
************************************************************************
You can receive broadcast message relating to wealth creation to financial freedom through Telegram. Click here to subscribe to the telegram for the weekly newsletter and get updates on regular free classes on wealth creation topic.
No comments:
Post a Comment