Saving well with the simple pleasures of life
highlighted by the Debt Management and Counselling Agency at its Financial Literacy Symposium 2018 on Nov 15, most Malaysians are not saving enough for their twilight years.
Its survey, involving 3,500 working adults, in the first seven months of this year, revealed that most Malaysians’ financial wellbeing was at dismal levels.
I am not surprised by the findings. Many Malaysians, especially the younger generation, do not live within their means.
Some are victims of impulsive spending, which is a form of addictive behaviour due to psychological dependence.
Once addicted to such a lifestyle, it is unlikely that an impulsive spender would come to realise and accept the financial uncertainties that lie ahead of him.
Although one may not be a high income earner, one can still look forward to achieving a comfortable retirement fund, provided one is willing to adopt a less flamboyant lifestyle.
This is a lifestyle you need to maintain for a few decades until your financial goal is achieved.
Undoubtedly, you need to be committed to reach the finishing line. Being frugal does not mean you can’t spend; you spend only on what is necessary.
I persevered and managed to retire in 2011 at the age of 55. Throughout the journey before achieving what I had set out to accomplish, I encountered a myriad challenges that could have weakened my determination to accomplish my dream to retire at that age.
My earnest aim was to retire early with good health so that I could enjoy a quality life as long as possible.
I adopted a frugal lifestyle for more than 30 years. It was a lifestyle that taught me how to appreciate simplicity. I made sure I saved enough, spent time with my family and exercised regularly to keep myself healthy.
It took me a long time to grow my savings, but I managed. Occasionally, I took some exceptional risks in investing my money, but it was limited so as not to jeopardise my retirement plans.
If you save regularly, the compound effect of what you save is great.
For example, by giving up smoking, one would be able to save RM6,387 annually. Over a period of 30 years, at a compound interest rate of four per cent per annum, one would be able to accumulate RM358,215. Isn’t that an attractive sum to complement your statutory retirement fund?
By sharing my experience, I hope I can inspire more people to pursue a frugal lifestyle. You don’t need expensive pleasures to make life exciting. It is more important to constantly feel happy with simple pleasures.