August 06

Increase Your Net Worth by Earning a Side Income

Since you're reading this, you're probably looking for ways to increase Malaysian net worth finance by earning a side income in Malaysia. With the prolonged movement control order due to the increased number of cases, there's no knowing when the situation will improve.

While the national vaccination plan is ongoing, the pandemic has surely cost some of us our livelihood as agencies or companies try to reduce costs or spending in response to the economic setback.

And if you have a full-time job that’s not helping you to achieve the financial situation you want , don’t worry! With more start-ups being set up around the gig economy, opportunities have never been more abundant during this challenging time. But before you can achieve your desired financial situation, there are things you need to do to increase your net worth finance.

Tips to increase your net worth finance

Before we dive deeper into how you can increase your net worth finance, it's important to know that an individual's net worth finance is simply the value that is left after subtracting liabilities from assets. Put simply, net worth finance is whatever you have left after selling all your assets and paying off your debt.

In 2019, the median wealth per adult in Malaysia was around USD 8,900 and 53.4% of the adult population had their wealth valued under USD 10,000. If your current net worth finance has yet to reach this amount, you can still increase your net worth finance with the following tips.

a) Pay off your debt

The money that you owe is money that could be used to increase your net worth finance. By paying off your debt as soon as you can, you can reduce your overall debt burden. So, make sure to identify your high-interest debt and pay that off first before moving on to paying the rest of your debt.

b) Max out your retirement contribution

One of the perks of working in the Malaysian private sector is that you have the Employees’ Provident Fund (EPF) which helps to save a fraction of your salary as your retirement fund. The present contribution requires at least 11% of your monthly salary but you can contribute at a rate exceeding the statutory rates.

c) Cut your expenses by realizing expenses

Nobody likes to hear that they spend too much and need to cut back on their expenses. This may seem harsh but it's one way to increase your net worth finance. By making a note of your expenses, you will have a clear view of where your salary goes and how fast it trickles away. You will then be aware of your spending habits and identify areas for improvement.

d) Talk to a professional

Talking to a professional about the state of your finance is never easy but it’s an important step if you want to better manage your finances and increase your net worth finance. By consulting an accountant or financial advisor, you will have a better insight on managing your finances and perhaps, get the latest information on ways to earn more like an investment.

Once you’ve done some or all of the above, you’re on track to increasing your net worth finance. If you want to improve the state of your finance, you can go on to earning a Malaysia side income to increase your assets while keeping in mind your liabilities.

How to earn a side income in Malaysia?

Given the current economic condition, which is unfavourable due to the pandemic, many Malaysians resort to earning a side income to increase Malaysians net worth finance. You can too! The following are some ways you can earn a Malaysia side income.

i) Affiliate marketing

If you have a blog or strong social media following on Facebook, Instagram or even YouTube, consider doing affiliate marketing as your side gig. Because when you recommend a product or service with a unique URL (your affiliate link) on any of your social channels, you can earn some commission every time someone purchases via your link.

ii) High-yield savings account

This may not be a side gig but by investing your money into a high-yield savings account, you get to generate passive income by the year. Besides, this type of savings account builds up on your existing amount of deposit to give you anywhere between 3% and 5% in interest per annum. It’s less risky than most investment plans.

iii) Investment platform

This may not be a side gig but a tool that can help you earn some income and achieve your financial goals. Depending on your financial objective(s), various investment platforms offer plans that can cater to your needs and requirements. For instance, GeneApp offers investors the opportunity to invest in property and listed equities using the platform’s tokens.

So, there you have it; ways to increase Malaysian net worth finance by earning a side income. Considering investing with GeneApp? Find out more by contacting us at 011 6939 2180 or emailing your queries to [email protected]