Hello Grasshoppa,
As we are approaching the end of 2021, most of us will be having our new year financial resolution or even reviewing our yearly expenses. This is important for many of us as it will help us understand better our personal finance & spending habits. If saving more money is part of your new year resolution, do you have a plan on how you can get there?
Is saving RM10,000 a difficult thing to do or it is easier than what you think it is? Let’s do simple math to calculate how much to save per day to achieve RM10,000 in a year. RM10,000 divided by 365 days is RM27.40 (round up figure). If you round up that figure to RM30, you are able to save RM10,950 in 365 days. That sounds easy but is RM30 per day saving too much for you? With the current average spending, RM30 is equivalent to a cup of Starbucks plus an average meal in a restaurant. Or it can be also a meal if you dine in a cafe. If you think that RM30 saving per day is hard to achieve, you can look into your daily meal expenses or other expenses to see how can you reduce that amount as save it as part of your savings. Perhaps you may consider opting for a cheaper meal or reducing your coffee expenses to save more.
There are other ways that you can look into saving RM10,000 in a year by saving it on monthly basis instead of daily. If you are able to save RM833.33 per month, you are able to save RM10,000 or if you round up to RM850 per month, you are able to save RM10,200. Also depending on your salary range, it will indicate what is the amount that you are able to save. If you are earning RM4000 & above, saving RM10,000 for a year should be easy provided if you have low commitment & controlled spending. If you earn RM8000 a month but you are not able to control your expenses with high commitment, most probably you will end up with low or zero savings.
As mentioned above, 2 simple ways to save RM10,000 a year would be by saving RM27.40 per day or saving RM850 per month. What if these 2 amounts are beyond your budget to save or you are able to save more? You can start by looking at the total amount that you plan to save & use a simple formula to calculate by dividing it by 365 days or 12 months. From there, you are able to determine what is the right figure for you to save. In one of my earlier posts, I have shared a simple way where you can save money from your daily or monthly expenses. I find that method to be the most effective for me & you should try it too.
Since I started working, I hear people around me advise me to save money when I got my salary before I spend it. I honestly have never understood that part of it until I got myself into a huge debt & took the effort to educate myself on personal finance to get out of my debt. Financial literacy is important for everyone & this is also part of the reason why I started this blog so I can reach out to many people as possible. Since it is already year-end, you can prepare yourself by planning on how much you plan to save for 2022 & using that simple formula to plan your daily or monthly saving amount.
OSS!
You can also check out my latest YouTube video on Why I Sold My Mutual Fund To Invest With StashAway Instead:
