Making savings a ‘forced’ habit

I read from a comment in Facebook about an investor whose mother told him that savings is a must. Buy what you need and not what you want. Before you buy, step back and think whether you really need it. One thing I have never done is to follow the technology. I do love latest LED TV but if my current LCD TV works okay, I will not be buying anything new anytime soon. In terms of technological products, can you do without it? Do you even need to be the first batch of buyers? Typically first group of buyers tend to pay higher though they get to brag about it. I know, people may smile when they see my ‘old’ TV but it is ok. I can still watch as much football as they could.
However, I do not think I am able to think objectively all the time. Thus, I do one extra thing which limited my spending. I bought a few savings cum insurance plans. Those where you either save on monthly or half yearly or yearly and after a period of say 20 years, you get some returns plus during that period, you get some form of insurance coverage. If you look at the return, it baffles you why people still buy. However, I am buying and of course I put the beneficiary as my wife. Every month, my credit card will be debited and thus I ‘forced’ myself to save that amount automatically. It is not a habit but the effect is the same.
Thus if you cannot make it a habit, be savvy about it. Force yourself to do it automatically. It does not need to be a savings plan. Can even be automatic debit for a low risk unit trust. After 20 years, you will be glad you did it even if the return may have been low. For this kind of investment, don’t evaluate it like a property investment. Think of it as money you lost today and found many years later. I trust that you would still be delighted if you suddenly found a rm100 note under your car seat and then only you remembered why it was there many years ago. Cheers.
written on 9 Jan 2014
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  1. Need a new TV? Get a house done with fully furnished and load an old TV and then rent it out. 🙂
    I liked your words ‘forced’ myself for saving.

    1. haha…. how true asali.

  2. Crystal Teh avatar
    Crystal Teh

    My opinion, when the product such as TV, smart phone, as long as still can use, what for change on it. I notice young generation (refer to age 18-25), surprising that iPhone 5 launch, change it. After 1 year, iPhone 5s launch, change to iPhone 5s. Same to Samsung fans (users). My question, just the camera megapixel better a little bit, speed fast a little bit, what for change on it? The existing phone can whatapps, online, photo shooting and etc. Which mean function same, just something better “a bit” only. Same to TV. If keep changing, when 3D TV launch, change to 3D. Later on 4D launch, change to 4D again 😛 We shall change those product when it spoil, haha, this is way i practice 😛 We shall spend the money on thing that we think is valuable 🙂

    1. nice. super like. people like u r like me. known as stingy oops ……

  3. Hi
    It is about the temptation and depend on how you can control yourself from buying a lot of what you want, it is not easy in the beginning, the fact is, it is a type of habit and also mindset issue.
    Nowadays, i came across a lot of younger generation just starting working, earn about RM 3- 4 k per month, luxury car like import is their mandatory choice, local car is not in their list. besides, i also was told by my friend who work for a MNC company, his young colleagues just joined the company could afford 500k – 600k apartment in bayan baru, maybe they may come from rich family, personally, i would rather to buy what i am afford and slowly upgraded it if i am afford to do so instead of committing the high loan for luxuxy in the first step, i always think that step by step is the safer drive approach and lead you to strong fundamental with steady for long trip.
    With the current recession economic, none of company can guarantee your job is permanent, it is very high risk in committing such of huge loan. we really need to think twice.
    Recently, i had also heard a lot of MNC are cutting down resouces by reducing cost. for those still unaware, please rethink your risk and save for the rain. my 2cents

    1. MNCs would retrench as soon as there is a slowdown. There would be no warning. This is especially those whose salary are considered very high in the market.
      Ang, my first apartment purchase, jointly with my wife was just RM123K. It was to us a very nice purchase already. 🙂 Agree with you totally.
      I have never owned IPhones or Samsung Galaxys before. Just could not bear to pay so much and have to use many years to get back the worth. Have been using CSL for many years. Not the best but definitely not the worst. However, my next one may just be a Nokia or HTC. There are options for under RM1,000 which are quite respectable. We shall see. Cheers.

  4. Hi Chialih,
    Thanks for your reply, i am totally agree with you, only those financial conscious are always hold until the last, and focus what is necessary and high priority in life, it is only way and criteria to be financial independent or freedom, there is no short cut to be success,
    Addicting on the expensive gadget is not only wasting a lot of money but the precious of time is spent would be the most losing factor as everyone can only live once, so, time will not wait and treat everyone in fairness, the most important thing is, how do we utilize the limited time/resource to shine the journel of life and free from debt and live happily without worring too much in monetary. ^_^ instead life should be enjoyable. my 2cents

    1. it’s never easy to be objective. Let’s just live to the fullest and not try to live it as if we are living it for others. 🙂

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