With the prospect of retirement, your children’s education, and your emergency fund, saving for your future is a very important task. Many Malaysians find themselves falling short on savings when they truly need it, preferring to think about savings 5-10 years down the line – which can be too late!
The best way to secure your financial future is to start saving sooner rather than later, so it’s essential that you start by setting financial goals you want to eventually achieve.
Don’t worry if you don’t have a specific financial goal in mind, though – you can always follow the general rule of thumb of budgeting, and save 20% of your income. This means that if you’re earning RM3000 a month, you should save RM600; if you earn RM10,000 a month, you should save RM2000; and if you earn RM25,000 a month, you should save RM5000.
But how do you actually start saving? We’ve listed out 3 simple ways to kickstart your savings journey and achieve financial success!
1. Decide on what’s important to you
If you find that you’re spending too much, you’re probably spending on things that will give you temporary happiness. This could be cinema tickets, clothing sales, or eating out every few days.
When planning your budget, you should always aim on having enough to spend on things you actually care about, and to do this, you need to identify what’s important to you.
Do you love to dine out more than you like to shop? Are you passionate about high-tech gadgets? Does your gym membership motivate you more than exercising in your home?
Once you know what you actually want to spend your money on, you can focus on cutting down on other expenses that are not as important to you. You’ll find yourself feeling happier about your indulgences whilst also saving money!
2. Find alternatives for your essential costs
Sometimes, you might find you’re spending more than you actually need on essential costs, like electricity rates or groceries. With a little more research, you might find lots of affordable alternatives that will help you save!
For example, you might be able to find lower telco rates by switching providers, or find cheaper prices for your groceries at a local grocery store compared to a big supermarket.
You should also think about expenses that you need but don’t fully utilise, like your mobile data plan. Do you really need that unlimited monthly data plan, or is 6GB enough for you? Reducing your monthly charges can help you progress more quickly towards your financial goals!
3. Set deadlines for your savings goals
Without a time limit, you might not be as motivated to achieve your goals as quickly. Setting a deadline will also help you manage your finances more efficiently, as you’d be able to plan how much you should be saving every week for you to reach your goal.
Deciding on your deadline or target is completely up to you. For example, you could choose to put away your savings on payday or set a date every month to move your savings to a different bank. Whatever works for you, creating a routine will help you make saving a habit rather than a chore.
Always remember that starting to save can be a difficult process which often depends on your individual financial situation. A person who earns RM3000 a month might find putting aside RM600 more difficult than someone with a higher salary.
You should save according to your own comfort, at your own convenience. At HelloGold, we give you the option of saving in gold from as low as RM1. Save according to your affordability, whenever and wherever you want.