When & how do I start saving?
When should I start saving?
You should start saving as soon as possible, because this will allow you to save more by the time you need the money. On top of that, if you’re putting your money into a fixed deposit account, EPF or Amanah Saham Nasional, starting earlier would mean you earn more money in interest payments as well!
Want to know how this works? Read more here.
How do I start saving?
Step 1 – Set some basic savings goals
Prioritise saving for big life events first such as retirement, education, housing and also emergencies. After this you may set savings goals for other things like vacations, new gadgets, etc.
But remember, it’s important to save up for the big life events first, because not planning in advance for these could leave you in a lot of debt and stress in the future.
Step 2 – Figure out how much you can save each month
Compare your monthly income and expenses. Look at what you can reduce or cut out from your expenses to increase your savings per month. Check out our article on planning a budget to help you figure this out.
Step 3 – Set aside money for your savings
Now that you know how much you can save each month, create a new bank account for your savings and arrange to automatically transfer this amount to your special savings account each month.
For short term or emergency savings, you probably only need a regular savings account. For longer term savings, consider putting your money in a fixed deposit account, EPF or Amanah Saham Nasional to earn a higher interest which will grow your savings more. You could also consider other investment options like Exchange Traded Funds.
For more tips on where to put your savings, click here.
Step 4 – Monitor your savings and watch as you get closer to your savings goals!
Once you’ve set your savings goals and are regularly setting aside money to work towards these goals, don’t forget to review your goals every 6 to 12 months in case you need to make small changes from time to time as your situation changes.
For example, if you’re planning to get married, you may need to include a savings goal for wedding expenses. Or if you’re planning to have children, you might want to start saving for your child’s education.