SAVING MONEY FOR INVESTING IS SO DIFFICULT!
Every now and then we say to ourselves “I’ve got to start saving and investing”. But then how to do this when I have so many bills to pay…? (and so many places to spend money!).
Saving and investing need a plan. A very disciplined plan, otherwise we are just making empty promises to ourselves…to the detriment of ourselves (in future). Here are some strategies that we could adopt.
- MAKE IT A GAME
Have a no spending day(s) or week(s) during a month. Once NOT SPENDING becomes a habit, saving and investing become easy.
- SAVE AND INVEST YOUR TAX REFUND
When we receive a tax refund from LHDN, don’t run off immediately to the malls or log into any shopping platforms to buy that item we have been fancying. Pause and think what the best thing is to do with this extra money.
- REVIEW YOUR RETIREMENT PLANNING
Review this at least once a year. Check your EPF account and other investment accounts meant for retirement. Do our math and ask ourselves if we would have enough when the time comes. Do we top up? Do we add more every month?
- PAY OFF HIGH INTEREST DEBT AND PAY OUR BILLS ON TIME
This is straightforward and easy to understand. Pay it off as quickly as possible, especially those credit card bills. Late payment fee or penalty can cost us a bomb in the long run. Let the compounding interest effect works to our advantage, not to the bank’s.
- IDENTIFY AREAS THAT WE COULD REDUCE SPENDING
Just ask ourselves how many times a week do we really need an expensive dinner?
- PAY OURSELVES FIRST
Consider saving and investing a certain amount every month as an “expense” like our internet or mobile subscription. Set aside a sum every month in our budget. The mistake we make all the time is to promise ourselves to save and invest when we have the money. That day will never come!
- CONSIDER OUR RAISE AND BONUSES FOR INVESTING, NOT SPENDING.
Set aside a certain percentage of our raise or bonuses for saving and investing. Don’t spend it all on a bigger house or car.
- NEVER STOP THINKING ABOUT OUR FINANCIAL FUTURE
Treat ourselves, pamper ourselves once a while. But don’t get caught in a never-ending trap of immediate gratification as compared to future gratification.
Contact me HERE to know more about saving and investing with mutual fund.
This information is adapted from an article that appeared in https://money.usnews.com/money/personal-finance