Financial Planning (1) - Saving

I dunno how many of young malaysian save money for future? I bet 98% will spend everything and dont keep a dime in their saving account. They will only start save when they reach 30. I have experienced this. I only start saving few years ago (if i remembered it starts in 2004) with minimum saving RM50.00. Before that, before end of the month balance in saving account almost nil. Until i met an insurance agent, then i realized the need to have saving. That was the trigger point to start saving. then, i extend further by opening up Hajj Fund with Tabung Haji, almost minimum amount RM50.00. Years after years, i keep increasing my funding. It's never too late to start.

I am still student. i don't have money to save

-- nahh..Lame excuse. You got money. Money from PTPTN, money from your parent, money from working part time. Start to save some money even with RM5.00 a month. Start early and you'll never regret.

I have so many commitment. I have to pay my bill, debts, expenses

-- start to discipline yourself. Save as low as RM10-20. If you dont start now, u never will.

Rules of thumb!
Never touch your fund unless it is really really a matter of life and death. Why? Power of Compounding effect. Let's say you put your money in hajj fund (tabung haji), they will give you dividend/bonus (e.g: 5% average).

1st Year
Hajj Fund: RM1,000
Dividend: RM50
Total: RM1,050

2nd Year
Hajj Fund: RM1,050
Dividend: RM52.50
Total: RM1,102.50


Imagine, for 2 years u have gained RM102.50. The amount will keep compounding and increasingly add value to your money. u do nothing and yet RM102.50 added into your account. Let the money work for you.

This is very simple rule, journey of freeing yourself from debt.

Good Luck!