5 Types of Savings Everyone Needs

As working adults, we often forget why we began working in the first place. With the increasing cost of living, our savings accounts have never been more critical. With all that’s going on, we ought to remember to treat ourselves every now and then — but how can we do that and still save money simultaneously? 

Based on a survey*, conducted by RinggitPlus (2021), 21% of respondents live paycheck to paycheck, and 31% had savings totaling less than RM500. That means that in the event of an emergency, more than 50% of them won't even have RM1,000.

Like the Malay idiom says, “sediakan payung sebelum hujan”, we need to be prepared for anything that comes along the way before the worst happens. With that in mind, here are 5 examples of savings everyone needs to prepare for. 

The amount of money you'll need to cover a large expense, such as paying for a wedding, a down payment on your first home, or a car loan, might be overwhelming. Calculating how much you will need to save each month to reach your goal is an excellent place to start.

Say, for instance, that you want to have RM10,000 saved up to cover some of the wedding costs and that you want to get married in 18 months. RM556 per month results from dividing RM10,000 by 18 months. That surely sounds like a substantial sum of money, and in a sense, it is.

Regardless of the product, setting aside a bit of money for it every month will ensure that your cash flow is not disrupted when you make the purchase. 

Something most people overlook is the little things that come with substantial price tags. For instance, car insurance, or assessment tax for houses. These might be yearly expenses, but it definitely leaves a huge dent in our pockets. So, why wait for the bills to come before you start saving?

Start a savings account dedicated to these expenses to ensure a smooth cash flow when those bills start rolling in.

Ready to start saving? Applying for a savings account is easy with CIMB Bank! Click here to learn more.

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.

Source:

*https://themalaysianreserve.com/2021/10/14/more-malaysians-unable-to-save-millennials-worse-affected/