Start Your Savings Early

Since when you started your savings habit?

Or you don't have savings habit at all?

What is the benefit of savings?

Saving provides a financial “backstop” or "backup" for life's uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher return investment tools such as bonds, mutual funds / unit trust funds and stock.

There are few simple ways to start your savings habit.

1. Save First, Spend Later

You start to save a small portion from your monthly income, example 10% to 30% from you total monthly income.

2. Spend More, Save More

This is how you save the while you spend. Example, you plan to save all the RM20 notes from your wallet, each time you see there is RM20 notes, you keep in your piggy bank. Every time you spend your big notes, if the balance you get are RM20 notes, you keep its.
You will surprise after few months, and you feel more happy when you spend more.

3. Spend First, Save Later

This is not a wise method to save money, most of us will spend all before we save the money. This is not a good habit of saving money.

4. Create Another Income Source for Savings

This is another way to have your savings. Create another new income, it could be your part time job or business that can generate you small income regularly, the best is passive income. All the income from this job or business will go into the savings account.

5. Stop Spending on Fancy Stuff

Spend smartly but not spend fancy. Many of us like to spend stuff on we like but most of the time these stuff are not necessary in our daily life. Spend smartly is the key of saving money. You will understand more when you start to execute the habit.

Where to save my monies?

At the beginning, you can save your monies in a piggy bank, then transfer the monies into personal savings account. Savings account might not generate you high yearly return but it is a good tool for you to keep your money in short term (less than 6 months)

NOTE : In personal financial planning, we always keep at least 3 to 6 months fixed expenses into our savings account or fixed deposit accounts to standby for life's uncertainties such as illness, accident or jobless which might affect our monthly income. We called this is an emergency fund.

When you have sufficient monies in your emergency fund, you may start to think about other investment tools or saving products. For cash products / investment tools, stock market, currency market, mutual funds / unit trust funds are your options.



Now, you are shifting yourself from "Savings to Investing".
You have to study and understand about what is "risk and return", the cost of investment and other investment terms.

Get at least 1 or 2 reliable and experience financial consultant or financial planner to provide you more information and details about investment. Do not make any investment decision when you are still a beginner.







Once you have sufficient savings in your accounts (6 months fixed expenses and above), you will be at least peace of mind and feel more happy in your daily life.