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Hari Raya Aidilfitri is a joyous celebration for all Malaysians. Visiting open houses and enjoying a good meal with friends and family is always a much-awaited highlight for many.
Although this year’s Hari Raya Aidilfitri might be labelled another Covid Raya, there’s still a chance to carry out the tradition of visiting family, albeit with tight SOPs in place.
That being said, it is also a time when our wallets feel the strain. Whether you’re planning to buy new furniture and home appliances, or make renovations and repair work, it can get a little overwhelming.
Let’s take a look at some ways you can increase your cash flow for this Raya.
1. Part-time jobs
The terms ‘part-time’ and ‘side income’ are usually related to sales jobs, online businesses or dropship sales.
However, an alternative part-time job for those seeking additional income is working in F&B outlets or becoming a physical promoter.
These jobs require good time management as one will have to fulfill a minimum number of working hours and also work according to a predetermined schedule.
If you can’t commit to a fixed schedule but still want extra income, try out the gig economy.
These jobs, such as food delivery and e-hailing services, not only offer flexible working hours, but are also constantly in demand. What’s more, the more hours you clock almost always results in increased side income.
2. Sell your unused items
While doing your pre-Raya cleaning, why not turn it into a proper spring cleaning and really clear out the clutter? You might be surprised by what unused items you find.
It is a good idea to sell your unused or rarely used clothes, bags or shoes, especially if they are still in good condition. There are many platforms you can utilise to put them up for sale, including Facebook Marketplace, Carousell and Mudah.my.
At the very least, you can earn back some of the money you spent on the items. Do remember to check the condition of the items before putting them up for sale, as it’s in bad taste to sell something that is no longer usable.
3. Home loan refinancing
Did you know that if the value of your property has increased since you first bought it, you may be able to profit from refinancing it?
Let’s say you purchased the said property at RM880,000 in 2011 with an interest rate of 4.15%. Upon checking, you find out that the property is now valued at RM1 million. You can still benefit from the RM120,000 increase in value without having to sell your property.
In this scenario, let’s assume that you have paid back RM467,000. You then decide to refinance at another bank with a lower rate.
Refinance value: RM753,000 (RM633,000 home loan balance + RM120k value increase)
New interest rate: 3.15%
Cash-out value: RM120,000
Do keep in mind that when refinancing, you are not getting free money and your debt does not decrease. Instead, you are increasing your debt, just with a different interest rate or tenure.
However, if you use your refinancing for productive purposes, this can actually be a good thing.
For example, if you use the money to renovate your house for Raya, it becomes an investment, since some renovations can increase the value of a home.
Think of it as a method of increasing your cash flow without taking out a personal loan. Refinancing your home loan is much easier as the approval rate is higher. It gets even better if you manage to obtain a lower interest rate.
Wondering about your property’s latest value? Log on to PropertyAdvisor and key in your address to receive a free estimate.
This article was written by Adlene Hanna of PropertyAdvisor.my, Malaysia’s most comprehensive source of property data, property analytics and insights.