Why Low Inflation Doesn’t Mean You’re Financially Secure

Why Low Inflation Doesn’t Mean You’re Financially Secure

Is the inflation number real? What about the salary increase?

Many years ago, I share something similar to today’s article to a friend who told me that the government must be lying because inflation is low but he feels he is poorer every year. This friend’s salary from my understanding was not growing tremendously over the years. Somehow whenever he changes job, the salary increase is very little or stagnant. I cannot comment much as I do not understand his industry well enough.

However, I do know that if the role we do can be easily duplicated by someone else willing to accept a lower pay, then of course our pay will not be high since there are others who will take the role for a lesser pay. Perhaps the only way is to increase the role’s importance and be so good at it that others could not do the same? Yes, it could be productivity or it could be expertise but basic idea is to be able to do something so well that no one else could do the same. Now let’s listen to how Bank Negara Malaysia explains inflation versus income.

Article in malaymail.com. Inflation is the rate of price change over time. A low inflation rate, like the latest 1.3 per cent in October 2025 when compared against October 2024, means prices are still rising, just at a slower pace.

The cost of living, on the other hand, is the amount of money you need to maintain a certain standard of living.

So, while inflation is a major factor, it is only half the story.

The other half of the story is your income. If the prices of goods and services are rising faster than your salary, your purchasing power — how much you can actually afford — decreases.

So, even if inflation is low, if your income has not kept up with the accumulated price increases over several years, you will feel the pinch.

This pressure is felt most acutely by the B40 and M40 groups, whose incomes often lag further behind rising costs compared to the T20 group. Please do read the full article which has very good explanation: Article in malaymail.com.

How do we differentiate ourselves from majority of everyone else?

One example? I am a property investor and at the same time I could present very well and I could also write sufficiently well. Thus, I can speak in property events and I could also write a review article for the property developer after the talk. 3 in 1 then? Or just 1 out of 3?

Meanwhile, some property investors are scared of giving a presentation and could not write. Some could present very well but is not a property investor since this requires a lot of time and experience.

Some can write very well, like the writers in the media but is not an investor and since they do not have the knowledge and experience, they also could not speak too.

This a very simple example why between the one who can present and the one who is a seasoned investor and the one who could write, the only one who could technically charge a premium is the one who could do all three… right? Yes, up to a certain extent. Or maybe up to how much the rest who knows just one out of three skills are willing to learn, improve and then catch up with the one who knows all three skills; investing, speaking and writing.

The reason is because property investment can also be learned and gained by reading kopiandproperty.com for 6 months maybe. Or maybe pay for some property investment courses. Writing skills can be enhanced with the help of A.I. or maybe take up a writing course for a more structured approach. Ability to present well is harder but can be gained by joining Toastmasters. Practice makes perfect. Do ask me about the latter.

The next stage after earning a good income?

Earning – Saving – Investing and Protecting. When we are able to do these, then we have mastered personal finance. Just need to note the investing here means either having a property inside the equation or earning so much more that paying rental forever is not an issue for you at all. Else, have a home to stop paying rental for 20 years or more and paying half a million ringgit for it. Please do not even argue with me that you prefer to rent a room versus a whole unit yeah. If you prefer a room, sure, go and do it then. I prefer the whole property instead.

Do not struggle, do something about it. We can, we could and we should. Cheers.

Happy reading!Property News Malaysia? Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Else, follow me on Twitter here.