Saving money will never be outdated. Please remember this.

I wrote this article NOT as an expert yeah. Not someone working in the financial industry. Not someone selling any financial plans. Financial Health: Are we healthy? How do we measure it? I am still just a blogger yeah. 🙂

After reading this article, a reader commented, “Was this article written by the so call “guru” Charles or just relegated to some junior writer? ,who just graduated n following the text book concept if bygone times…so fxxking typical of misleading the current young generation to aspire a middle class style of life..Yooe, “guru”, you can do better than that”

My response is this. “In my blog, I am always a blogger. A “guru’ would be those who are in the industry leading one huge real estate organisation (many are my friends) or maybe someone who has bought so many properties they have forgotten how many. (many are my friends too):) I am very far away from them at the moment. Cheers.”

Today, I need to reiterate. Saving money will never be outdated. Here are 5 reasons why.

#1 – Higher saving means lower unnecessary expenses

Most people have limited funds every month. So, if they could force themselves to save an extra RM200, that’s RM200 which could have been used to buy some stuffs which they do not need or enjoying some expensive meals which they should not. People say money is evil. Actually money is not evil. it’s just that when people have a few extra RM50 notes in their wallet, they tend to finish spending it before the salary day… They did not want to waste the extra money.

#2 – Higher saving means more money for investment

Some say they do not know how to invest. Some say they do not know what to invest into. Some say investment could be risky. Well, if we did not save enough money, we could not even start talking about investment. Imagine just saving RM200 per month, that’s RM2,400 which we could invest into a dividend stock for example. Or even some investment into gold? Or even investment into a unit trust?

#3 – Higher saving means we may have enough money when we retire

Most of the time, relying on just EPF savings alone for our retirement is likely to be a regret; why did I not save more? Well, if we worked for 35 years and we saved consistently every month, even a small amount will become big when we retire. Let’s do a simple calculation okay?

RM500 (savings) x 12 months x 35 years = RM210,000. We have yet to calculate the interest earnings from just leaving the amount inside the Fixed Deposit continuously. RM210,000 is close to the amount that EPF is recommending that all members should have. In other words, if we saved, we would now have a similar amount in EPF and a similar amount saved. We can feel more relaxed versus having just EPF savings.

#4 – Savings could become deposit for a property

Many say buying a property is impossible because they do not have the 10% downpayment needed. Frankly, without savings, of course it is impossible. With some savings every month, the downpayment is not too far away yeah. Example, if we need a RM300,000 home, then we will need RM30,000. If we save just RM300 per month, we will have the necessary RM30,000 in 8 years.

This is a very conservative number because we could actually save more when our salary increases. If we save RM400 instead, it will be just 6 years. If we average RM500 as our salary grows, then it would take us just 5 years. Happy getting a property!

#5 – Savings will help during unforeseen circumstances

Unforeseen circumstances do happen. Company closed down and employees lost their job. Covid-19 lockdowns and the company could not keep all employees and needed to retrench some of them. The car broke down suddenly and some expenditure is needed to buy the required parts. There are many more unforeseen circumstances and it is important to have some savings so that we are not overly stressed due to these unforeseen circumstances.

Conclusion

There are a lot more benefits from regular savings but I will leave you with these 5 so that we know that saving money will never be outdated. Saving money may not make us become super-rich but when we save regularly, our life will be more secured and we will not fall into the financially distressed group category.

Not everyone would be happy and ready to become an entrepreneur and have the chance to become super wealthy. Not many would become a proficient investor and become rich because the person was able to earn a lot higher just from investments alone.

Many may just to rely on saving. Happy saving and there’s nothing wrong with being strong in the middle class. Many could not even pay all their credit card debts on time as you are reading this article.

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