Managing finances in today’s world can be challenging, especially with rising costs of living, the appeal of lifestyle upgrades, and financial obligations. For millennials in Malaysia, finding effective ways to save money is essential to meet both short-term needs and long-term goals like buying a home, traveling, or building a retirement fund. Here are five practical and realistic tips to help millennials maximize their savings.
1. Embrace Digital Banking for Better Savings Rates
Digital banks and e-wallets offer competitive interest rates, often higher than traditional savings accounts. Many digital banks, such as BigPay and MAE by Maybank, also provide additional perks like no-fee transfers, cashback, and rewards points. Some of these accounts offer interest rates up to 4%, which can help your savings grow faster.
- How to Start: Compare digital banking options to find one with the best savings rate and features that match your lifestyle. Some digital banks even have goal-setting features to help you automate savings for specific purposes.
Pro Tip: Keep an eye out for promotions and cashback deals that can help you save money on daily transactions.
2. Track Spending with Budgeting Apps
Budgeting apps like Expensify, Spendee, or Wally can make it easy to monitor expenses, identify spending patterns, and make informed adjustments. These apps categorize your expenses, helping you spot areas where you might be overspending. By setting monthly budgets and goals, you can see where your money goes and make better choices.
- How to Start: Download a budgeting app, link your accounts (if applicable), and start tracking all transactions. Set monthly limits for each category, like dining out or shopping, and review your spending habits every month.
Pro Tip: Allocate a portion of your income to “wants” but prioritize “needs” first to avoid unnecessary overspending.
3. Save on Groceries with Cashback and Discount Apps
Apps like GrabPay, ShopBack, and Fave offer cashback on grocery purchases and other essentials. By using these apps, you can save a significant amount each month, especially when purchasing daily necessities. Additionally, checking supermarket deals or using loyalty programs can add to your savings.
- How to Start: Sign up for cashback apps and make sure to check them before making any purchases. Look for online supermarket offers and try to stock up on items during sales.
Pro Tip: Buy in bulk for items you frequently use, especially when they’re on discount, and avoid shopping on an empty stomach to curb impulse purchases.
4. Take Advantage of Side Hustles and Passive Income Streams
With the gig economy booming, side hustles like freelance writing, online tutoring, or selling products on e-commerce platforms like Shopee or Lazada have become popular. Passive income options like StashAway or Raiz let you start investing with minimal amounts, helping your money grow over time.
- How to Start: Identify a side hustle that matches your skills and interests. For passive income, explore investment apps with low minimum balances and a risk level that fits your comfort zone.
Pro Tip: Start small and gradually reinvest any earnings from side hustles or investments back into your goals to maximize growth.
5. Plan for Short-Term and Long-Term Financial Goals
Having clear financial goals helps you stay motivated and on track. Whether it’s saving for a vacation, a home, or retirement, setting achievable milestones can make it easier to allocate funds each month. You can automate transfers to a separate account dedicated to each goal, ensuring that you consistently work toward them.
- How to Start: Write down your financial goals and set a realistic timeline for each. Calculate how much you need to save each month, and consider automating contributions.
Pro Tip: Regularly review your progress and adjust your savings plan based on any changes in income or expenses.
Small Steps Add Up
Saving money as a millennial in Malaysia might seem challenging, but with the right tools and strategies, you can steadily build a solid financial foundation. Start by making small changes to your spending habits, use technology to your advantage, and stay focused on your financial goals. Over time, these small efforts can add up, bringing you closer to a secure financial future.
