5 Reasons Why You Should Save Money

5 Reasons Why You Should Save Money
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“Girls, this dress is on sale!”

"50% off!”

“Buy 1 free 1! Buy now while the promotion lasts”

Do you recognise these marketing techniques? Can you resist the temptation? or, have you already been lured by this marketing strategy multiple times?  

We admit this kind of marketing strategy is actually very effective. Who would want to turn down bargains or promotional items, right?

This makes the habit of saving money very important, and it requires self-control and knowing the difference between needs and wants. Only buy what you truly need, or else you'll end up wasting money believing promotions will save you more money in the long run.

Well, there are countless reasons why you should save your money. To help you understand its importance, here are the top five (5) compelling reasons to save rather than spend lavishly.

 

1. For peace of mind

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When you have savings, you create a safety net that can provide financial security in case of unexpected expenses or emergencies. Saving money can help alleviate worries and concerns related to various situations, including:

“What if I fall sick?” 
“What will happen if my loved one falls sick? Will I be able to afford their medical expenses?”

That is why having savings and setting aside a portion of your money towards health-related savings is a good idea. By having savings, you can enjoy a sense of financial security, which greatly contributes to peace of mind. Knowing that you have extra funds available for emergencies can significantly reduce mental stress in the long term.


2. To achieve your goals and dreams

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Don't we all dream of having extra money to pursue our passions and goals without the constant worry of overspending or limited resources? 

Whether it's saving up for a dream wedding, going on a pilgrimage like Hajj (for Muslims), or pursuing any other life goal, having sufficient savings is invaluable. It grants you financial independence and empowers you to live the lifestyle you desire, as long as it aligns with your financial means. Ultimately, you can live a comfortable life without relying on credit cards or loans, which helps you avoid debt and the accompanying financial stress.


3. To achieve work-life flexibility

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Do you dream of leaving your 9 to 5 job to pursue a more flexible career path such as starting your own business company or becoming a social media influencer? It’s a thrilling and courageous choice as it can potentially change the course of your future.

So, such a change requires a strong financial foundation as a safety net in case things don't go as planned. Savings serve as a solid financial backup, empowering you to pursue your dream with confidence, knowing that you have the necessary financial support to navigate the initial stages of your new venture. With savings in place, you have the peace of mind and stability to embrace opportunities, take risks, and turn your aspirations into reality.


4. To provide a better future for your family

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The desire to provide the best for your family, especially your children, is a powerful motivator to start saving. As a responsible parent, surely you want to ensure their needs are met. By building a strong financial foundation, you can invest in your children's education, secure their well-being through life and medical insurance, or even start a family business that can benefit them in the long run.


5. To secure your retirement future

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By saving early and consistently, you can fund your desired retirement lifestyle and ensure financial stability during your golden years. With the current life expectancy in Malaysia reaching 75 years old, it is crucial to plan your retirement finances ahead of time.

To retire with a monthly income of at least RM2,000 for 20 years, you should save a minimum of RM600,000 by the age of 55. Starting your savings journey early allows you to take advantage of the power of compounding and gives your savings more time to grow. So, that’s why you should start saving now to ensure a comfortable and fulfilling retirement.

Fun fact: Did you know that in addition to the mandatory monthly contributions to your EPF account, you have the flexibility to top up voluntary contributions through the KWSP i-Akaun mobile application using the Voluntary Contribution feature?

Interestingly, you can start saving with as little as RM10, up to a maximum of RM100,000 per year.

Remember, every small step you take today towards saving can make a significant difference in the years to come. So, why not explore the Voluntary Contribution feature and start saving for the future? 


Top-Up My Savings Now!

Saving money is indeed essential for achieving financial stability and peace of mind. It's a wise decision to set aside some of your income towards emergency funds, healthcare needs, goal realisation, family support and retirement planning. By adopting a smart and consistent saving habit, you can even witness the growth of savings through annual dividend or other investment opportunities. It’s important to understand that even small contributions can make a significant impact, so there’s no better time than now to embark on your saving journey.

Start small, save consistently, and watch your savings grow over time.