As we head into the year of 2023, it’s a good time to reflect on the progress we’ve made in reaching our financial goals. Some of you may be hitting your goals as planned while others may find that their situation is not as ideal. 

Regardless, we should take this opportunity to assess and set new goals or make improvements where needed. Fortunately, there are still many ways one can build their savings such as through efficient financial tools, automated savings, and more.

Read on to find out how you can save for your goals in 2023.

Challenges In Saving

Having come fresh out of the pandemic last year, many Malaysians might be still feeling the financial impact of the global situation. Additionally, Malaysians might find saving for their goals more challenging amidst soaring inflation.

Here are some findings from the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022:

• 70% of Malaysians save less than RM500 per month.
• 55% of Malaysians spend exactly or more than what they earn each month.
• 59% of Malaysians do not know or are completely unaware of what a credit score is.
• 32% of Malaysians do not know the benefits of keeping a good credit score.
• It is found that only 55% of credit card holders pay their bills in full every month. The remaining 45% either pay only the minimum amount (18%) or whatever that they can afford that month (27%).

If you didn’t know, The RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022 is an annual survey that aims to learn about Malaysians’ financial behaviours so we can be aware of common pitfalls and find ways to improve together. 

Experian is a partner for RMFLS 2022 and it is a company that provides Malaysians with updated credit reports for an affordable price of RM19.50. Through this report, you get to know your overall credit standing, understand how lenders or the banks use it, and learn ways to raise your credit status.

How To Save Easily

With the arrival of a new year, we’re excited to set new goals but it can be demotivating when things are not going according to plan. Hence, it’s important to ensure that you’re employing practical saving tips that can help you accomplish your targets in a sustainable way.

1. Always pay yourself first 

We’ve all been there – hitting the mid-month slump and waiting for payday to come every month. Then, immediately like clockwork, we’re paying our bills, topping up on essentials, indulging in some shopping, and before we know it, a large chunk of our salary is gone. 

If that’s what you do every month, you may be missing an important step, which is to pay yourself first. This means allocating a sum of money every month for your financial future. These funds can go into your retirement nest egg or come in handy during emergencies.

2. Automated saving  

Saving for your 2023 goals doesn’t have to feel like a chore. Most importantly, you’re creating a consistent habit of saving that encourages you to continue until you reach your goals.

Thanks to digital technology, there are many financial platforms out there that allow one to set personalised goals and arrange automated savings for your goals whether it’s weekly or monthly. With automated saving, it takes the hassle out of having to withdraw money and deposit it into another account. This way, saving becomes easy and can be incorporated into your monthly routine.

3. Manage your lines of credit 

It can be difficult to focus on saving when you have mismanaged debts. There are two common methods for managing debt which are the snowball method and avalanche method.

The snowball method is where one starts off with the smallest debt and works towards clearing the bigger debts. Meanwhile, avalanche method recommends that you settle loans with the higher interest rate initially and move to the loan with the second highest interest rate until you’re done. 

Based upon these methods, you can set up a system that works for yourself. Always ensure that you pay your credit card bills in full and on time every month as well.

4. Maximise your savings by investing 

With rising inflation, we need to find ways to maintain our purchasing power. Aside from honing our skills and growing our careers, you can consider supplementing your savings with investments that could generate returns at medium to low risk such as retirement funds, fixed deposits, and robo-advisors.

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Now, Experian’s ‘New Year, New Goals’ campaign is back! Malaysians can take charge of their financial health when they buy the Experian Personal Credit Report Plus to learn about their credit standing and improve their credit score. By doing so, they will also stand a chance to win vouchers worth up to RM2,600. How to win? Just buy one Personal Credit Report Plus from 1 to 31 January 2023 and you will get a chance to win a voucher.

As highlighted, many Malaysians are finding it hard to accumulate and grow their savings, leaving them vulnerable to financial shocks. It’s high time we take charge of our financial situation, make re-evaluations, and set steps to reach our goals.

Learn more about Experian Personal Credit Report Plus here and win vouchers worth up to RM2,600.

• TAGS:
• Experian
• New Goals
• New Year
• Personal Credit Report Plus
• prizes
• RinggitPlus Malaysian Financial Literacy Survey
• RMFLS
• Saving