We are all for saving money but there are the smart ways to save money… and the not so smart way. Of course, the best way would be to make an appointment with a financial advisor to talk about your finances. Think you’re too young for this? Not at all! Especially if you’ve started work, there’s no better time than now to speak to someone who knows all about money and can help you work towards your financial goals.
Until you make that appointment, look out for these money-saving tips you should totally ignore.
#1 Save it in the bank
The first thing that comes to mind when saving money is to put it in the bank. Yes to a certain extent but why not be better at this? Maybe you can put your money in an account that earns more interest than your regular savings or put it in an account where you can’t easily withdraw from (otherwise there’s really no point saving if you keep dipping into it!). There are also several investment-link accounts you can opt for or maybe even think of investing a percentage of your monthly savings. Check out StashAway, a wealth management platform that lets you invest your money whether it is RM1,000 or RM10,000.
#2 Skip your latte
You’ve probably seen this many times – skip your morning coffee and you’ve saved RM800 for the year! But let’s be honest, is RM800 really that much of a saving? Yes latte is pricey but the amount you save won’t make a huge difference in your savings. So give yourself a treat and do this instead: Make it a point to save a bigger amount every month to make it worthwhile and significant.
#3 Save 10% of your income for retirement
Hate to break the news – that’s not going to be enough with inflation. Also, a lot of people will find it hard to even make that 10% with a starting salary. But by the time you get to a point where 10% is comfortable, it may be too late. What to do? Work out a more detailed plan on what the percentage is that is comfortable for you. Start with that first. When you earn more, aim to increase that percentage.
#4 You need a lot of money to invest
Repeat after us: Every little bit counts. In order to get to that “a lot” status, you need to start small, save up, and then invest! Just because you don’t earn a lot doesn’t mean you can’t invest. There are many investment options for whatever budget. Speak to a professional to find out what’s right for you.
#5 You need a budget
Yes but how many of us really keep to that budget? Unless you’re extremely disciplined, budgets don’t come in handy. And some months, you find yourself with that unexpected expenses – then what? What you need to do is track your expenses so you actually know how much you spend. If you spend crazily a lot, that figure will definitely make you stop. The more you track, the better you are able to control your spending.
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