Keep­ing It In Check

It’s time words like “sav­ings” and “long-term” be­came part of your daily vo­cab­u­lary.

CLEO (Malaysia) - - YOUR LIFE YOUR RULES! -

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.

1 Cook­ing

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.

2 Bud­get­ing

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.

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