With the blink of an eye, we’re halfway through 2019. Remember that new year’s resolution? How many items have you checked off? It’s easy to set goals, it’s executing them that’s tough. Let’s talk about your financial progress.
Why aren't you saving money? 💸
We all know we need to save money but why doesn't it happen? The common problem seems to be hitting financial goals.
The 2018 Malaysian Financial Literacy Survey found that 59% of Malaysians don't have enough savings to last them for more than 3 months. Also 34% admitted to spending equal to or more than their monthly salary. 😲
While the statistics aren't that great, fortunately, there are a few simple steps to get you on track with saving money, even if it doesn’t feel like you have any money to save.
Let’s get started on best practices to build your savings and stay out of debt.
1. Track your expenses
The first step to saving money is to figure out how much you spend. Keep track of all your expenses — coffee, groceries, phone bills, and even cash tips.
Collect data, categorise them and total each amount. You can use an excel sheet or a mobile app to make your life easier with tracking.
2. Live on a budget
We all know how much we make in a month but often don’t know how much we spend.
Once you've an idea of what you spend in a month, it gets easy to organise the recorded expenses into a workable budget.
That way you can set spending limits and avoid blowing your budget. It’s good to factor in expenses that occur regularly such as insurance subscription renewal or car maintenance.
3. Decide on your priorities
Competing goals are often the cause in split priorities — from a finance standpoint, that severely impacts your focus to save money.
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals — it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Don’t trade in your retirement savings for a newer iPhone! Prioritise strategically — for example, if you know you’re set on buying a home, start putting away money for that deposit. In fact, start now.
4. Make your savings automatic
Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account.
Splitting your direct deposit and setting up automated transfers are simple ways to save money since you don’t have to think about it. The great thing is that it reduces your temptation to spend the money instead.
5. Educate yourself
It’s crucial to have as much information in hand before you make big decisions. Lucky for you, we've plenty of valuable content you can read up and get familiar real quick. Whether you want to learn how to build your travel fund, keep your money safe or get financially fit, we've got your back!
One way to stay ahead of the curve is to get yourself on board with BigPay . We've the tools to help you get financially fit and savvy!
It’s the stepping stone to better financial literacy and making good progress for the rest of your 2019.