5 Easy Ways To Build Your Savings

|Posted by | Banking, Money Matters, Money Tips

savings account Malaysia, savingsWhether you’re looking to catch up on your life’s savings or looking for tips on how to get started, we’ve got you covered! Follow these easy ways to build up your savings and get yourself on the savings bandwagon!

If you are not yet aware (which is highly unlikely with all the headlines flooding the news), the global economy is currently experiencing some turbulent times. In January, Malaysia’s inflation rate was reported to be up by 3.5%, which is the highest inflation rate we have seen in 2 years!

That said, now is not the time to be spending recklessly and it’s the best time to budget wisely while holding on to the rest of your cash.  But don’t just hold on to your cash, keep your money where it can work for you!

Don’t know how and where to begin when it comes to savings? Follow the tips below so you can be on your way to building up your savings!

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Be Smart When Investing

If you’re just starting out, it would be wise to invest your money where it can grow passively. Why passively? Simply because it is low risk so you minimise the risk of losses. Sure, the dividends you get in return may not be as high or attractive as the other investments which may yield higher returns, however those also come with higher risks.

It’s best to skip that for now, more so in the current economic climate. It will be more prudent to practice caution, and be wise about how and where you are stashing your savings. A quick guideline would be to invest your money where it at least matches the current inflation rate, but of course it would be better to invest your money where you will get more returns than the current inflation rate.

Maintain Measurable Goals

What gets measured, gets managed. And part of starting the journey towards building up your savings includes managing your finances the right way. So before you begin saving, start tracking all of your spending. After you have sorted out your fixed expenses, make adjustments to your other expenses which you can afford to cut down or forego altogether.

Start Small

The beginning of every journey starts with a single step, so don’t get too worked up about starting big. As the saying goes, think big but start small! Ease yourself towards building up your savings with a small amount. You can begin with setting aside a manageable amount of money for savings on weekly basis. Once you’ve eased yourself into the habit of saving (and seeing the money grow), up your game and increase the amount. What’s important is for you start somewhere.

See also: How to make a million Ringgit with compound interest

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Keep Your Motivation In Sight

Ever heard of the saying, ‘out of sight means out of mind? People save money for various reasons, and it’s highly likely that you also have a specific or even a few reasons behind why you want to start saving up.  Are you saving for the down payment of a house, or to ensure you have a comfortable life when you retire? Whatever it is, keep the goal within sight by putting up a memento to remind you of what you’re striving for.

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Be Disciplined

Let’s get real, as saving money requires some form of dedication and discipline. It’s a conscious effort, if you’re serious about building up your savings, you need to cut down or better yet, eliminate unnecessary spending. For example, unless your mobile phone has stopped working completely, you do not need to upgrade it every time the latest version rolls out. There’s really no point in keeping up with the Joneses.

Think about it, having a stash of money will work more in your favour than having the latest mobile phone version or gadget. But do practice moderation, because if you are too extreme while trying to build up your savings, you might miss out on living.

Are you feeling all revved up to start building your savings? Check out some of the best savings accounts below:

Maybank2u Savers

Enjoy high interest rates and the convenience of having all your banking needs at your fingertips with this account. You can check your statements no matter where you are through the Maybank2u.com. You can also rest assured that your money will be in good hands it will be insured by PIDM. In order to open this account a minimum deposit of RM250 is required with a minimum balance of RM250 is needed. But to enjoy the interest rates, account holders will need to make sure they have a balance of RM2,000 in their account.

Interest Rates

            Savings Band  Nominal Rates (per annum) Effective Rates  (per annum)
RM2,000 – RM50,000              2.25%                   2.27%
Above RM50,000              2.45%                   2.48%

A Shariah compliant version of this savings account is also available, which is the Maybank2u Savers– i.

Hong Leong Premium Saving Account

If you’re not one who likes to be tied down, this saving account would suit you. It gives you the flexibility and choice of earning higher savings interest while giving you the option of retaining your money between 31 to 179 days. However, no interest will be paid if there are any withdrawals done in less than 15 competed days. Following the completion of 15 days and more, interest will be payable as follows:

                            Savings Period                Interest Rate (per annum)
                              31 – 90 days                                0.75%
                              91 – 150 days                                0.80%
                             151 – 179 days                                0.85%

Take note that you will need to have RM10,000 for a minimum deposit as well as maintain a balance of RM10,000 in the account.

OCBC Smart Savers

Get rewarded more when you save diligently! With a low initial deposit of RM200 and a minimum balance of RM20, you can enjoy interest rates of up to 3.05%.

Total amount deposited in account every calendar month                             Interest rates (yearly)
No withdrawals during calendar month At least 1 withdrawal made during calendar month
RM0 – RM49.99                  2.55%                  0.50%
RM50 – RM999.99                  2.90%                  0.50%
RM1,000 and above                  3.05%                  0.50%

 As you can see, this savings account will reward you for being patient while saving money. So to earn higher interest make sure you don’t make any withdrawals for the calendar month.

Whether you choose to implement one, or even all of the suggestions above, you will thank yourself later on. You will be glad of being financially stable, so be disciplined, stick to this and it will be worth it!

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Kick start your savings by making sure you are using an optimised credit card. Don’t have one yet? Compare credit cards for free on CompareHero.my and get the best deal on a credit card that helps you save more and offers perks best suited for you!

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Fara Joifin

About Fara Joifin

Fara is a Senior Content Writer at CompareHero.my. She gets excited when she scores a good deal and has an obsession with the Northern Lights.