4 Easy Money Saving Tips

Keeping money is an important step that every individual needs, especially those who are already employed and have income each month. Although this money-saving activity seems very easy to do, there are still many individuals in Malaysia who have failed to own their savings.

Keeping money is an important step that every individual needs, especially those who are already employed and have income each month. Although this money-saving activity seems very easy to do, there are still many individuals in Malaysia who have failed to own their savings.

According to a study released by Bank Negara Malaysia, three out of four Malaysians found it difficult to hold savings as low as RM1,000 for emergency purposes. The statistics also involve individuals who work both private and government-employed individuals.

For individuals employed by the government, there are many facilities provided by the government, including in terms of financial facilities that actually increase their savings including ASB financing. We would like to share with you four (4) tips for government employees making savings easily.

RHB ASB financing

1. Choose a profitable savings account

Everyone will want a high profit from every savings or investment made. Therefore, savings accounts that are capable of providing high profits will encourage each individual government employee to save more. Benefits received will be a satisfaction in saving.

However, keeping alone is inadequate as the returns received are not as high as returns from investment. This is closely related to the inflation rate which causes currency and savings to fall in value each year.

In Malaysia, there are many savings accounts that you can choose and are able to make a very competitive return. Government employees are usually very fond of some accounts such as Amanah Saham Bumiputera (ASB financing), Tabung Haji and others.

2. Create an additional retirement account

Many government employees expect their full retirement plans from pensions provided by the government. However, based on statistics released, the amount of pensions is insufficient for daily expenses. This is reinforced by the increasingly rising cost of living.

Therefore, you as a government employee are advised to create an additional retirement plan to ensure that after-hours retirement is guaranteed. Among the possible retirement plans are the Private Retirement Scheme (PRS) introduced to help individuals who do not contribute to the Employees Provident Fund (EPF) as well as individuals who want to increase their EPF savings.

Through this PRS, you can also get tax relief for your individual tax purposes. In addition to PRS, you can also use other investment instruments such as unit trusts, gold and others as an additional retirement plan.

The retirement plan must be started from the beginning so that the amount issued is not too large and burdensome.

3. Control Your Debt

Like all, government employees are the easiest to make loans such as personal loans, homes, cars and others. However, if the loan is not properly regulated, you will find it harder to deposit every month.

Additionally, if you get caught up in excessive loans, you can get financial advice so the debt is not burdensome and negatively impacted like bankruptcy. Good debt management will help you to make savings easier.

Civil servants should use such advantages as profit rates from lower lending compared to private workers. This means that civil servants should be able to save more from private workers.

4. Control expenditure

t is undeniable that the higher the income of a person, the higher the expense will be. However, things often happen when people who are low-paying but spend like having a high salary.

This kind of thing makes the individual difficult to make savings because the monthly expenses are too high and uncontrollable.

An easy way to keep up with spending is to make a daily shopping schedule. Be sure to have a record of spending a month to make sure you do not spend more than it should.

Apart from that, you also need to know differentiate between needs and wants in shopping. Requirements need to be prioritized to ensure that compulsory monthly expenses can be paid and managed well. While expenses on the basis of need are made only after you make a surplus of money each month.

Conclusion

Through the 4 tips shared above, we believe that your financial management will be better and you can also make savings easily every month, especially for civil servants.

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