Most people first aim is to reach the savings on RM 10,000 be it a corporate worker, SME worker or even a business owner. However, it has come to our concern that most people know how to earn even up to RM 10,000 a month but not even able to save RM 10,000. Why is that so, because of the 21st century our earnings is not only merely for us to survive daily life, we aim to achieve goods, assets, entertainments and so much more. However, saving RM 10,000 does sound very achievable many of you still search it up online and are finding out how to do so, let me break it down for you, a guide to saving RM 10,000 in a year.
Let’s begin with understanding the value of RM 10,000:
RM 10,000 till this date (2024) is equivalent to $ 2150 USD, 1966 Euro, $ 2900 SGD.
Thus, the value of RM 10,000 might sound a lot to Malaysians but however in the international currency point of view it is just a small number. What can RM 10,000 get us today, it can only get some entry level branded goods, or designer watches other than that it can only be used to start small businesses such as vending machines or small stalls. Don’t let this demotivate you just yet. If you are capable of saving RM 10,000 a year you will be able to save RM 100,000 in 10 years. It might be a small and slow beginning but your money will grow in value if put in the right place.
To further understand this RM 10,000 we have to know it is achievable by saving RM 27.40 a day or RM 833.33 a month. RM 10,000 might sound like a big amount but if we look into the daily and monthly rate it is rather achievable. How can we adjust our spending to save this extra RM 27.40 a day? So in simple terms we have to cut down on unnecessary items such as cutting down on bad habits, smoking, gambling, drinking and so on. And from there we would need to adjust our food spending not spending much more than what we can afford per meal. This might sound like a depressing thing and stressful thing to do but in order to save RM 10,000 we must step out of our comfort zone. Even with individuals earning as low as RM 1,500 to RM 10,000 would be able to do so but just at different pace. Someone with RM 1,500 would need to suffer much more and understand the value of money more to save. However this might sound impossible for someone saving RM 1,500 I would suggest these individuals to still try. But remember always take care of health never starve yourself and never eat food that harms your body. If you cannot achieve it in a year, try to achieve it in 2 years.
So let’s break down the ways you can save RM 10,000 in one year based on the average salary of RM 3,000.
1st Method : (EASY)
We will aim for saving 30% of our salary. 30% of RM 3,000 will be around RM 900. This is rather easy because once we are paid our salary we will just deposit RM 900 into our savings account, or high interest yield account or even a fixed deposit. All this accounts give additional interests that will increase our savings and at the same time speed up our process to save RM 10,000. From this method we can understand, logically with a normal interest rate of 3%-4% we will end up with RM 10,800 + 4% = RM 11,232. Why is this method the easiest, because we aim to save RM 900 a month even if some months we will need to use additional money we can use it because we have additional savings from other months to backup with our goal. At the end of the year we will have a saving of RM 11,232. This means that we can continue saving our RM 10,000 and have RM 1,232 to reward ourselves for our hard work.
2nd Method : (MEDIUM)
Aiming to save RM 27.40 a day, aiming to achieve exactly RM 10,000 in a year. The difference in saving daily and monthly is huge. However, daily savings can provide a much better cash flow as if there is an emergency need in money you still have money in your current account that can be used. Moving on, saving RM 27.40 a day will bring us a total of RM 10,001. There is no additional money for us to reward ourself. Unless you would like to use the RM 1 to get a sundae cone. Other than that, we can save up using the Touch n’go Method. By saving daily in Touch n’go Plus receiving more than 3.56% return. Because we are updating our savings daily we can also keep up with the daily return and you can tabulate how much are you actually getting back daily. Of course there is flexibility to this method too, if you miss to save RM 27.40 today, you can always add back to your savings tomorrow. This is also good for lazy people that do no like to track their expenses, By saving everyday you would have to view your accounts and this would indirectly lead you to have a view in your own expenses keeping up to track not over spending.
3rd Method : (HARD)
Saving when you remember, at the end of the month, saving how much you have left after using it for all your expenses. This is extremely hard to track your own savings because you cannot keep up with it and it might not be consistent. Having savings behaviour like this often tend to fail in savings because there is no control in spending and also no plans in savings. Some might say having to save RM 10,000 with this method is either bless or lucky or just someone that doesn’t spend much.
Well that’s all for our guide to saving your first RM 10,000 in 2024. This is just be the beginning of the year, start saving to your goals now! Don’t miss out on this and not achieve RM 10,000 this year. Let’s work on it together.
