Being poor in this country is no fun.
Banks reject their loans and credit card applications. Society judges them for getting married and having children (“cannot afford, don’t la!”). They’re priced out of accommodation near public transportation and have to spend more on transportation (the irony!!).
Systemic inequality is such a frustrating problem because the solutions are simple (but not easy). For example, the most vulnerable urban poor families can benefit a lot from just RM900 per month. Minimum wage should be higher, but the negotiations take so long that by the time it is implemented, the cost of living is already higher.
While all these happen, we are told to improve our financial literacy.
We don’t need financial literacy?
October 2020 was Financial Literacy Month, and along with all the initiatives organised by FEN or Financial Education Network, came this discussion: do we need financial literacy? As one joyful writer from Malay Mail puts it, financial education initiatives are so tone-deaf, when what the people truly need is more income and stronger support networks.
Firstly, I acknowledge the anger. No question about it, it *is* frustrating to be told to save money despite high cost of living.
Secondly, why are we being binary? It’s not either-or, it’s both, we need both financial education AND higher wages + fix the systemic issues.
Thirdly, sure I admit a lot of financial advice out there is not relevant. There’s no secret here – the world doesn’t revolve around one person exclusively, so just pick the ones that do work for your situation and move on.
But at the same time, and this pains me to say it, as someone who has been in the personal finance space for a while: society actually hates realistic financial advice for the poor.
Why do you hate financial advice catered to the poor?
In the same way that women sometimes undermine and hinder the success of other women (hello Christy Ng, I still remember when you said long maternity leave will deter employers from hiring women in top positions), there is a lot of mutual ill-will among the B40 (and struggling M40) group.
Perfect example: when Azizul Azli Ahmad shared a sample budget breakdown for RM1500 salary, I saw SO MANY PEOPLE rudely commenting how he’s an enabler for low wages, and WHY DON’T EMPLOYERS PAY MORE INSTEAD.
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#TabungBajet BILA GAJI KECIL 1. Bajet ini untuk gaji kita yang kecil, kita masih ada pilihan untuk merancang hidup. 2. Bajet ini untuk keluarga kecil yang hanya ada satu anak paling maksimum dan tinggal diluar bandar. 3. Bajet setiap keluarga adalah berbeza bergantung keperluan keluarga kita, ia tak akan sama dengan mana mana keluarga lain. 4. Sebaiknya jangan ada hutang kerana jika ada hutang akan menekan bajet kita. Bahaya jika anda belum mampu menabung dan mula ada hutang. 5. Bagi gaji bawah RM3000 ushakan jangan beli kereta baru dulu jika ada impian beli rumah. Dapat kereta terpakai pun jadilah, jika tidak kita makin susah nak beli rumah. 6. Susah macam manapun tetaplah ada simpanan setiap bulan. Kita tak tahu bila kita akan susah lagi. Jangan merungut sebab bila kita susah orang belum tentu akan bantu kita. 7. Jika belum mampu mengirim yang ke orang tua, bincang baik baik dengan mereka. jangan diamkan sahaja. Tetapi jika kita percayakan keberkatan dan doa ibubapa. Ia tak akan putuskan rezeki kita. Jangan juga tak beri sumbangan buat ibubapa tetapi kereta luar negara. Sumbangan sihat buat ibubapa adalah lebih dari 5% gaji kita. (Kadar zakat adalah 2.5%, jangan bagi sumbangan kurang dari itu nanti ibubapa kita hanya dapat setaraf penerima zakat sahaja) 8. Jangan juga taksub dengan matematik dalam perancangan kewangan. Percayalah dengan KEBERKATAN . Semakin kita banyak memberi buat keluarga kita dengan baik dan ikhlas, akan ada rezeki luar biasa menanti kita nantinya. Tiada bajet yang sempurna buat sebuah keluarga, yang ada adalah keberkatan bagi setiap rezeki yang kita dapat dan kongsikan dengan keluarga. Salam hujung minggu semua, Kita jaga keluarga kita bukannya ahli politik yang sedang gilakan kuasa. Azizul Azli Ahmad #Kongsikan agar sekecil manapun gaji kita, hidup biarlah merancang dengan baik. jika kita kekal merungut, kita akan susah hidupnyanya nanti. #Belajar cipta pendapatan tambahan jangan bergantung pada gaji kecil sahaja.
You’re all correct in pointing those out, but you know that RM1500 monthly salary (and sometimes even less) is the reality for MANY people, right? They have NEVER seen budget breakdown tailored for them – much of the reference materials out there are for people who earn a minimum of RM2k and above salaries.
And now, finally, there is budget breakdown which the sub-RM2k income earners can use as reference. With this and a lot of temporary sacrifices, they can save up RM1000 in as fast as 10 months.
With that money they can use to start a small home-based business or upgrade skills to get better-paying jobs. With that money they can break from the paycheck-to-paycheck cycle and strengthen their financial net. This is exactly the solution, and the first step towards achieving financial freedom in Malaysia
IS THAT NOT WHAT YOU WANT FOR THE POOR? Tell me, because I’m perplexed by the hate received on this post, among B40 and M40 people themselves. That’s stupid!, some said, how is it possible to live like that! Impossible!
We KNOW how resistant Malaysian Employers’ Federation is to increase the minimum wage.
We KNOW how good-paying jobs (or heck, jobs) are hard to come by.
We KNOW how Malaysians are underpaid. Malaysian companies keep 65% of the profits to themselves and distribute only 35% back to employees in wages. In advanced nations, the wage-to-GDP ratio is nearer to 50:50.
We KNOW how members of the current government aren’t exactly championing to reduce wealth inequality.
Yet netizens still give that big of a backlash to this person who correctly pointed out that personal short-term sacrifice is needed, for the sake of their future? Then what’s the alternative? To give up?
Direct the hate elsewhere, this isn’t helping. At least Azizul Azli Ahmad recognises the low-income earners – the most overlooked and invisible category – and offers a way to break free from the cycle.
Enable and celebrate progress, even small ones
In an ideal world, we don’t have this problem. It’s unfair, because no one chooses to be poor. But it is what it is.
So, can we please create spaces where financially-struggling people can see that their efforts and money journeys – no matter how small – aren’t hopeless? Can we offer some encouragement so they don’t lose hope to continue on?
Instead of saying, ‘Eleh can save RM10 only per month, for what’, say ‘Congratulations, you made progress this month!’
Instead of saying, ‘How can find RM350 house for rent anymore, impossible’, say ‘how wonderful for landlady/lords who provide that rate, let’s pray for them’.
Instead of saying, ‘Ew I don’t want to marry poor man, life so hard’ (I see what you write ladies), say ‘I am not afraid of the hard work needed to help my loving, supportive spouse in hard times’.
I do believe that the more welcoming this space is, both online and offline, the more people will feel that the effort they put into conscious money management is more tolerable. It’s hard, yes, but it doesn’t mean it should be all-out miserable.
And of course, if you are in decision-making positions, then you can enable people in other ways:
- Fix the policies and improve the system.
- Be the employer who provides living wage, not just to employees but also cleaners and janitors.
- Organise personal finance talks and money management lessons.
- Buy from small and home-based businesses where possible.
Systemic issues are not something that one person can solve, but collectively we can do a lot.
Thank you for reading this far, and for being supportive of upwards mobility. Let’s be open to creating positive spaces for financial wins, even small ones. It matters more than you know.