Saving money is not as easy as it looks. Federation of Malaysian Consumer Associations (FOMCA) Deputy President Mohd Yusof Abdul Rahman said a recent survey revealed that 30 to 40 percent of Malaysians do not have sufficient savings. If you are one of those who is struggling to save money, here are ways to do it the smart way:
- Participate in a money-saving challenge
Taking part in a challenge is a fun way to save money. Did you know that you can save as much as RM1378 in a year if you start with RM1 in the first week and doubling it in the ensuing weeks? You can use that money for things you have wanted to buy, like a flight ticket to a dream destination.
Saving in the bank is a low-risk type of investment. The usual savings account lets you earn around 0.25% interest per year. A high-yield saving account allows you to earn up to 0.80% per year if you made no withdrawals for months. It will encourage you to leave your funds alone while making more from it.
- Organize your finances
Tracking your expenses might mean extra work, but you will not be fully aware where your money goes unless you track it. Tracking your expenses will help you better allocate your expenses and will ensure that you get the most out of your income.
- Cut your grocery bill in half
Malaysians spend most of their salary on food. According to Finance Minister Il Johari Abdul Ghani, Malaysians spend 31.2-percent of their disposable income on food and food away from home. The cost escalation of food makes it hard to cut your grocery bills, but it is possible to save on groceries. Start by creating a meal plan. Keep a stock of goods for a week or two to avoid impulse and last-minute buys. Buying in bulk is more practical than buying items in smaller quantity.
- Learn to do things yourself
DIY comes with hidden benefits. Imagine how much money you would save by learning to do your own redecorating and painting than hiring someone else to do it. Or how you can save money on food when you cook at home instead of dining out.
There are several reasons why saving money is important. Aside from having financial security, everyone needs to save because of emergency, retirement, and the costs of education. You can also avoid getting into debt when you have enough funds on rainy days.