2024 is already here and you know what that means - NEW resolutions for the New Year. In this article, we’re going to help you learn how to review your current financial situation and turn your woes into goals!
Experts have predicted that Malaysia will be able to maintain a GDP growth of between 4.5-5.5% in 2024. This means that there's a potential for your income and salaries to grow too. However, this may be dampened by the expected hike in food prices globally.
As Malaysians, having new year financial resolutions in the coming months is a great way to improve your finances. No matter where you are financially, there are ways you can secure your savings, especially for emergencies and retirement.
This includes learning more strategies on how to grow your wealth and assets passively, for better overall financial security.
Let’s aim for financial success in 2024 with these new year financial tips!
1. Save, Save, Save!
Saving up some money is a must-have on your new year financial checklist. One savings strategy you can employ is the 50-30-20 budgeting method.
The rule of thumb here is to spend 50% of your income on essentials, 30% on your wants and dedicate 20% to your savings. For example, if you’re earning RM3,000 per month, then you should be saving about RM600.
These savings can be placed in a separate savings or investment account, or even added via self-contribution to your EPF account.
We understand that with today’s inflation, it can be a struggle for you to achieve this savings goal. Therefore, you should plan and save accordingly. Remember, every Ringgit counts - even if it’s as low as RM10!
If you have been consistent with your savings, it's time to level up! Aim for a bigger savings goal for you to hit before the end of 2024. Start with aiming for 10%-20% more savings on top of what you can already afford, and build from there.
Did you know that there are many strategies to save, and one of them is to get more discounts and cashback? Compare and find credit cards with the best deals right here at CompareHero.
2. Make your FIRST Investment OR Diversify Your Portfolio.
Time for you to try something new with your savings! Investing is a great and effective way to put your money to work and build your wealth. Plus, your money will grow in value over time with the power of compounding and risk-return tradeoff.
Start with doing some research on the investment options available right here in Malaysia. Some of the easiest and most direct ones include unit trusts, Amanah Saham, fixed deposit alternatives and more.
3. Manage your Debts
We’re going to be realistic about having debts - it’s really, really hard to clear them off!
However, the next best thing you can do is to manage your debts well. Sometimes, having debt is unavoidable. For instance, you need to take up loans for your car, house, medical bills, weddings and others.
You can explore different strategies to pay off your debts. One such strategy is known as the 'snowball' method, whereby you try and tackle the loan or debt with the lowest value before moving on to the next highest one.
If you have credit card debts from a few cards, one strategy to resolve it is to consolidate your debts. Find the best balance transfer cards with us and convert your outstanding balances into one card starting from 0% interest rate.
4. Start Tracking your Finances
Add this to your financial resolutions for the new year because this is a major lifesaver! Because really, how can you ever be in control of your finances if you don’t keep track of them?
Some of the key items that you need to keep track of are your spending, savings, investments, budget list, loans/commitments and miscellaneous items.
When you keep track of your finances, you might just discover some “bad” habits you never knew existed!
For example, you come to a sudden realization that you’ve been spending way too much money on food delivery! It’s the little things that you spend on that accumulate into a big spending sum.
There are many free budgeting apps that can help you plan and keep track of your spending. Technology can definitely help you pinpoint patterns that you can correct for healthier and sturdier finances.
5. Try a Money-Saving Challenge
Money challenges are a great way for you to kick-start your savings journey! For those finding it extremely difficult to save, these challenges will be able to help you prioritize your goal!
Some money-saving challenges you can try:
The "no eating out for a month" challenge
The "no spending on non-essentials" challenge.
The "no-coffee for a month" challenge
If you have kids, you can try 3 Fun Money-Saving Challenges For Your Kids. But hey, adults can totally do this too!
As with all new year resolutions, the secret to making your financial goals sustainable is to start slow. This means setting the bar low first, before slowly building it up.
If you can't save 20% of your income in your savings account, start with 5% for the first half of the year. Increase it slowly to 7% for the second half and so on.
These financial planning tips for the new year are meant to help you establish a better foundation for yourself in terms of personal wealth.
With careful planning and discipline, you will be able to achieve more with your finances this year, for sure!