Are you sure that your money is shielded from all the major disasters, including war? If not, you better stay prepared.
Even if there are no major disasters, it’s always useful to keep your finances secured so that in case of any national emergency or economic uncertainty your finances are not put at risk.
How war can effect on your finances
Let’s imagine that a war has broken out and Malaysia is stranded in a crossfire. Here’s how such a situation can have an adverse impact on your finances:
- Drop in local currency: Ringgit might hit rock bottom if a war breaks out. This can devalue your money completely.
- You lose your job: Most businesses in Malaysia will stop functioning in an event of war. You won’t have your job if there are no businesses operating.
- Complete seizure of your assets and property: In case of an emergency, there are chances of your property and finances being taken over completely and used for public interest.
Malaysia might not ever face the aforementioned scenarios ever, but it’s always useful to stay prepared in case of an emergency.
Tips on keeping your finances safe
- Safeguard your assets: Are all of your bank accounts protected under Perbadanan Insurans Deposit Malaysia (PIDM)? If you are still unsure, know that PIDM insures cash up to RM250,000 per account. In an event of war, chances are high that your liquid assets, like stocks, bonds, etc., might get devalued. Whereas, real assets, like car, house, etc., might be usurped and used for public interest.
- In such a situation, you can also invest in gold – an asset that works as hedge during economic uncertainty.
- Keep your job intact: It’s obvious that most businesses in Malaysia will shut down indefinitely if the country is affected by war. However, certain industries are not adversely affected by war. Some of such sectors include healthcare, technology, education, and Government jobs. Take up a job in any of these sectors provided you have the required skillset.
- Cut down your expenses: Avoid overspending is possible. Make sure you spend only on the absolute necessities of life. You can reduce your medical expenses if you already have a health insurance policy. Also, in such situations, having multiple offshore bank accounts might help. If one of your accounts is seized, you can always use your other account to get your life going.
- Having a solid investment portfolio or emergency funds can provide immense financial support as well.
The bottom line is you need to build a strong financial foundation to battle any sort of emergency situations. Here’s everything you need to do to have a financial backup in case of war:
- Invest in gold: know the gold rates today in malaysia
- Have a strong investment portfolio
- Have multiple offshore bank accounts
- Have a health or life insurance policy in place
- Keep emergency funds
- Establish credit overseas
- Invest in bitcoins and other digital currencies