Keeping It In Check
It’s time words like “savings” and “long-term” became part of your daily vocabulary.
You’re in your mid 20s, living pay check to pay check, and RM150 qualifies as savings to you. If this is a synopsis of your current financial status, read on.
The common excuse of “not having time” to cook can be thrown out the window if you plan your meals in advance. Cooking will not only save you about RM100 a week but also help you eat healthier meals.
Splurging without a cap is one of the reasons why you’re broke by the third week of the month, can’t materialise long term goals, or even protect yourself financially if there’s an emergency. Put a budget on everything that requires you to fork out money to prevent over-spending or making purchases you can’t afford. Get virtual assistance as well from apps such as Expense Manager (Android) or Spending Tracker (iOS).
3 Understanding Financial Terms
Don’t understand big financial words? Don’t flee from them. Make an effort to learn the terms and their functions. Be sure to check out wallstreetoasis.com for a dictionary of finance terms and definition for really simple breakdowns of terms that would otherwise terrify you.
4 Two Savings Accounts
Apart from budgeting, having more than one savings account will help you out in times of trouble. To prevent you from accessing emergency funds, don’t get an ATM card for the secondary account. Also opt to auto-debit a certain amount of cash from the first account to the second on a monthly basis to save you from second-thoughts.
5 Credit Card
These shiny plastic cards are handy but they’re hazardous too. Between the years 2007 to 2013, there were 4,875 bankruptcy cases caused by credit card debts in Malaysia. Be extremely careful when you flip out the card. Can you pay off the bill without incurring debt? If the answer is no, hold off on that purchase until you’re able to afford it.