If you were caught in an emergency situation where you have to fork out RM1,000, how many of you can confidently say that you can do it on the spot?
Apparently, based on a Bank Negara Malaysia (BNM) survey
last year, 75 per cent of Malaysians find it hard to do that. That's a big group of people who can't save enough money for rainy days!
In order to keep up with the current cost of living and lifestyle influences, many of us tend to live for the moment and spend for instant gratification.
However, the YOLO (you only live once) motto should not be applied when making financial decisions because this would make us more prone to accumulating huge debts, you know, like incurring more and more credit card debts which could very well end up in bankruptcy.
Besides being more rational in our spending, it is also crucial to make a conscious effort to save a portion of our income every month.
Financial coach Carol Yip told Free Malaysia Today
that the biggest challenge for Malaysians is the lack of motivation to save because this is a habit that needs to start from an early age.
So if you find that you're not disciplined enough to save money, a good way to start is by deducting a fixed amount from your salary every month and putting that money into a separate bank account.
But it should be a substantial amount set aside at the very beginning of your payday and not the tailend of your monthly income.
The ideal amount to save is at least 10 per cent of your salary every month, and you must make sure that you are diligent and disciplined enough to not touch that bank account whenever you start running out of cash because that would just defeat the whole purpose of saving.
Once again, save it for a rainy day.
We shouldn't just strive to survive from pay cheque to pay cheque to avoid getting into bigger trouble when something unfortunate happens. For example, what if your company suddenly announces staff retrenchment and you're at risk of losing your job? Or what if you're struck with a medical emergency that needs immediate attention?
Although you are nowhere near the retirement age, you should still practise long-term financial planning to ease any financial struggle in the future.
We need to stop this "low income, high spending"mindset. Let's make 2018 the year we all start saving more!