RM5K per year? You got it! An easy guide to saving a budget (Malaysian style)

Let’s face it: saving money is akin to a treadmill at the gym

Everyone begins with great enthusiasm, but the motivation diminishes quicker than the last slice of durian, family gathering.

Especially here in Malaysia where the roti canai beckons you and the baju kurung you see online is impossible to ignore.

Rest assured, this year we are moving away from the superficial approach and developing a financial plan that will have you celebrating with "cha-ching!" until December.

Here’s the situation: many financial experts propose impractical savings targets that often lead to more confusion than navigating the LRT during peak hours.

Therefore, this guide encompasses all realistic and attainable goals. We are discussing RM5,230 annually, even with a net income of RM2,500.

Here’s what you will need:

Ingredients for success:

* A battle-ready calendar (consider your kitchen calendar with all the cute cats)

* A marker (since few use favorite ballpoint pens these days)

* A couple of jars or storage containers for loose change (think reusable jam jars—eco-friendly and affordable!)

* A small portion of your monthly income (the exact amount will be discussed later)

* A splash of self-love (as self-care is essential!)

* A lot of self-disciplined planning (considering the year’s provisions)

* A fridge full of patience (as there will be temptations; let’s be realistic)

Recipe:

1. Not the most enjoyable aspect:

budgeting like a professionalwe understand budgeting may seem as thrilling as watching paint dry.

However, trust us, this is the foundation of the entire operation.

Utilize a notebook or your preferred budgeting application to monitor all your expenses.

This may initially feel like an ordeal, but it will assist you in understanding the allocation of your finances and in pinpointing areas that require reduction.

Consider it similar to organizing your cheat day at your preferred mamak store - strategic planning is essential!

2. Calendar, calendar on the wall.

Don't allow your savings to decrease!

Place the calendar in a visible location where you can see it daily.

Bathroom mirror? Ideal.

Refrigerator door? Excellent!

It serves as a daily reminder of your mission to attain financial freedom.

3. A glass of joy (and savings!)

It gets better here!

The game is as follows: deposit RM2 into your chosen jars each day.

Always mark a large "X" on your calendar.

Imagine the satisfying sense of accomplishment with each tick— as if you've triumphed over the mountain of laundry you've been neglecting.

However, there will be days when you may forget or feel inclined to skip.

That's alright! Just engage in conversation (and perhaps secure your debit card - we've all experienced that) and resume your journey.

What do you estimate your savings will be by the end of the year?

RM2 x 365 days = RM730!

Pro tip:

Mitigate the urge to spend that money by transferring it to your savings account each month.

Consider it akin to placing leftovers in the refrigerator - out of sight, out of mind (and out of your wallet!).

4. The 15% portion: the monthly savings

Financial experts advocate for the 20% savings rule; however, it can often feel daunting.

Here’s the more manageable portion: 15% of your monthly net income.

It's your comfort zone, akin to the last plate of nasi lemak you intended to save for later (we all know how that turns out).

RM2500 x 15% = RM375

Maintain this for one year and achieve an impressive RM4500! Are you still proud?

Tip. Establish an automatic transfer for this amount.

Trust us, you’ll be grateful in the future.

We are all familiar with that persistent voice in our mind that suggests, "Hey, that RM375 could be spent on. . . " Ignore it!

5. Experience the struggle? Patience is a virtue!

There will be days when you may feel tempted to give up and engage in retail therapy.

It's normal! However, before proceeding, take a deep breath and have a pint of patience.

Save RM5,000 annually with this easy Malaysian guide!

Discover practical tips for budgeting, saving, and achieving financial freedom. Learn how to create a realistic savings plan, even on a low income.