You just landed your first real job. After paying rent, buying groceries, and treating yourself, something unexpected happens: money sits in your account at month’s end.

What should you do with it?

Growing wealth does not mean waiting for a bigger salary. It means starting small, choosing wisely, and beginning today.

Save Before You Invest

People confuse saving and investing, but they work differently.

Saving keeps money safe and accessible for emergencies and short-term needs. 

Investing puts money to work for long-term growth. Your money might go up or down, and you cannot grab it instantly. But over years, investing beats saving because returns outpace inflation.

The rule is simple: save first, invest second. Without savings, emergencies force you to sell investments at a loss.

Your Emergency Fund Comes First

An emergency fund covers unexpected problems like car repairs, medical bills, or job loss without touching investments. You need three to six months of expenses saved. Start with RM1,000, then build from there.

Cash management accounts like StashAway Simple or Versa Save work better than fixed deposits. They earn around 2.4% to 2.5% yearly and let you withdraw within three to four working days. No minimum balance needed.

How Much Should You Invest?

The average starting salary in Klang is roughly RM3,417 monthly before deductions. After EPF, SOCSO, and EIS, you take home around RM3,000.

Living costs for one person range from RM1,400 to RM2,500 monthly. Rent eats the biggest chunk. Keeping rent around RM700 through sharing saves substantially.

The 50/20/30 rule splits your income: 45% to 50% covers needs, 20% to 30% goes to savings and investments, 20% to 30% funds wants.

Aim to invest at least RM600 monthly. Once your emergency fund is complete, channel that full amount into investments.

Where Beginners Should Put Money

ASNB funds are government-run and open to all Malaysians. Fixed price funds like ASM let you start with RM10, charge zero fees, and historically return 5.10% to 5.26% yearly.

Robo-advisors like StashAway, myTHEO, and Wahed invest globally through ETFs. Some need zero minimum deposits. They charge just 0.15% to 0.8% yearly and automatically adjust based on your risk comfort.

Why Fees Matter

Unit trusts cost 1.75% to 5% upfront plus yearly fees. Investing RM1,000 with a 5% fee means losing RM50 immediately. ETFs follow market indices passively, so fees stay much lower.

Choose zero-fee options like ASNB or low-fee robo-advisors. A good setup uses ASNB as your local anchor and robo-advisors for global growth.

EPF, PRS, and Tax Savings

Your EPF is mandatory. You contribute 11%, your employer adds 12% to 13%. EPF guarantees at least 2.5% returns and typically delivers 5% to 6.3% yearly.

EPF alone does not cover rising living costs. Experts recommend investing another 15% to 30% of income elsewhere. Keep EPF growing automatically whilst investing extra money in foreign ETFs.

PRS is optional retirement savings offering tax benefits. Contributing to PRS grants an extra RM3,000 tax relief yearly, separate from the RM4,000 EPF relief. You save up to RM840 in taxes. The benefit runs until 2030.

Put in RM250 monthly to capture full tax savings, then invest remaining money in accessible global ETFs.

Avoiding Common Mistakes

Waiting costs dearly. Money grows through compounding—the earlier you start, the more time works for you.

Trying to predict market highs and lows rarely succeeds. Invest regularly instead of chasing trendy stocks.

Putting everything in one investment magnifies losses. Spread money across types, industries, and geographies.

Small fees compound into tens of thousands lost over 30 years. Always check before committing.

Automate Your Success

Dollar Cost Averaging invests fixed amounts monthly regardless of prices. When prices are high, you buy less. When low, you buy more.

Robo-advisors automate monthly investments. Set it once, and it runs itself. During market drops, they rebalance automatically and keep you focused on long-term goals.

Stay the Course

Set up automatic investments and trust your plan during market swings. Check investments once or twice yearly. Increase contributions when your salary rises.

Sticking to your plan month after month builds real wealth.

Start today with whatever you can invest monthly, automate it, and let time work.

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• TAGS:
• How-To
• Investment
• PRS
• Tax Savings