Here's the most famous question everyone has:
"How much do I have to save every month, so that my financial future doesn't fall apart?"
There are all kinds of answers and tips that financial experts have given. Some suggest 20% of the monthly salary. Even 50%, there is.
No matter how much you want to save, make sure you make these 9 types of savings for a healthy and prosperous finances.
So, how much savings do you have to make?
Tube #1: Emergency savings
No one knows when we will be tested. And most of the time, money will be the main issue.
So, you must prepare yourself by having an emergency fund for an unexpected time. For example, your car breaks down suddenly, or you have to lose your job.
Who can expect all this, right? That's why this emergency fund is important.
Usually, people will make emergency fund savings for 6 months salary. Meaning, if your salary is RM2,500 a month, you have to have RM15,000 as emergency savings.
You don't have to save RM2,500 every month. You can set aside 10% to 30% of your salary (according to your ability) for this purpose. Save a little, until you reach the amount of 6 months salary.
Fund #2: Medical savings
"Remember 5 things, before 5 things."
This is the 2nd tube that you must have. The common name for this fund is medical fund, or Takaful.
Well you make this savings early. Prepare yourself when you are healthy for the time of illness later, so that you are not burdened with increasing medical costs.
You must have a protection plan with a contribution of between 5% to 10% of salary. For example, if your salary is RM2,000, the contribution is around RM150 to RM200.
Takaful companies have various types of products that provide benefits according to the customer's needs. So, make sure you study the available Takaful products first.
Fund #3: Savings for marriage
You must have heard of people making loans for marriage, right? If you look, there are many who practice this thing who will 'eat themselves' back later.
That is why it is recommended that you and your future spouse save your wedding money as early as possible. You don't have to make a loan.
If there are no candidates yet, start first. Later, when you find a suitable partner, you will have enough savings.
Let's say, you want to get married in 2 more years, and the target is to save RM20,000 to manage the cost of the ceremony and others. Start by saving RM833.33 per month for a period of 24 months.
If the actual salary is not enough to make this savings, you have to try to find other ways to add side income. The money you get, keep it in this tube.
Fund #4: Savings to buy your first home
If you're thinking of getting married, you must want to have at least one house, right?
The house prices are going crazy now. If you don't make savings early, it will be difficult for you to buy your first house.
This is important for you to do. Make sure you provide 15% of the house price for deposit costs, legal fees, and other related costs.
For example, you want to buy a house for RM250,000. Meaning, you have to provide RM37,500. How to calculate as below:
RM250,000 X 15% =
RM37,500
You can already calculate how much it costs to buy a house at another price, with the example here.
Fund #5: Savings for investment
You must want your savings to grow, right?
There are many powerful investment instruments out there. But before anything, you have to learn to save money first for this purpose, then you are eligible to invest.
It is recommended to study and start saving money first because investment (no matter what), you need money. If you don't have savings, how do you want to invest?
You can start with simple and non -high risk investments, such as ASB and Unit Trust. You can also want to invest in the stock market and real estate, but make sure you learn everything you need first.
Set savings for investment funds of 5% to 15%. I don't want to save even more. Better.
Fund #6: Savings for Hajj / Umrah
Performing Hajj is the 5th Pillar of Islam, which is required for those who are able.
But it doesn't mean if you can't afford it, except to fulfill this demand. Importantly, there is effort. Agree?
You can save money for this purpose at Tabung Haji. Want to open an account, it's cheap. You can open an account at a Tabung Haji, Bank Islam, or Bank Rakyat branch with a capital of RM2.
The deposit required for Hajj registration is RM1,300. Don't you have that much money? Do not worry. There is a way for you to register for FREE. Click here to read now.
There are many advantages that you can get when saving in Tabung Haji. In addition to you can get good dividend rates and bonuses, you can also enjoy:
Savings guaranteed 100% by the government,
Exempt from tax,
No need to worry about zakat. TH is ready,
There is no storage limit in TH. Can save as much as you like,
Savings based on Islamic sharia.
Fund #7: Savings for retirement
Usually, people will focus on the EPF for this purpose. But if it depends 100% on it, it's not good either. Why ?
According to a study by the Malaysian Employers Federation (MEF), most EPF contributors have less than RM50,000 at the age of 55, because withdrawals are allowed.
How long can that RM50,000 last? Try to calculate for yourself if the expenses after retirement, say, as much as RM800 a month.
It is not a wise move for you to put eggs in one basket alone. No matter what, you have to look for other alternatives to increase your retirement savings other than the EPF.
To set the amount of retirement savings realistically, you can set the cost of living after retirement first. From there, you can calculate how much to save each month.
There is nothing wrong with starting a little first. But it's wrong if you don't start right away.
Importantly, establish discipline in the habit of saving. It doesn't hurt if you sacrifice a little for this purpose. After all, this is 100% your responsibility.
Is this partnership beneficial? Invite to SHARE this knowledge with your friends who have just started working.
Tags
BUSINESS & MONEY
