How to Boost Your Savings Rate (Beyond Just Budgeting)

 

Introduction: Budgeting is Just the Beginning

If you’ve read any personal finance advice, you’ve probably come across the word “budgeting”.

And yes, budgeting is important. But here's a truth not many talk about:

Budgeting doesn’t guarantee you’ll save money.

That’s because budgeting is planning. But savings come from action — decisions you make every day that either support or sabotage your savings rate.

So if you're already budgeting (or struggling to start), this post will show you how to go beyond the budget — with real, actionable strategies to help Malaysians boost their savings rate significantly.

First: What is Savings Rate, and Why Does It Matter?

Savings rate = (Savings ÷ Income) × 100

Let’s say:

• You earn RM5,000/month

• You save RM1,000/month
  ✅ Your savings rate = 20%

Why is it important?

Because the higher your savings rate, the:

• Faster you reach financial independence

• More buffer you build for emergencies

• Greater your investment capital

And if you want to retire early or even just survive inflation — boosting this number is key.

1. Automate Your Savings — Like It’s a Bill

The biggest mistake?
Trying to save "whatever is left" after spending.

Instead, pay yourself first:

• On payday, transfer your savings portion first

• Treat it like a bill you must pay (like rent or PTPTN)

✅ Tip:
Use auto-debit to transfer RM500 (or your target) to a separate savings or investment account.

It removes temptation and builds discipline.

2. Embrace the “No Budget” Budget — Use Fixed Percentages

If you hate tracking every sen, here’s a powerful minimalist strategy:
Use the 50/30/20 Rule (or similar variations).

• 50%: Needs (housing, food, transport, etc.)

• 30%: Wants (entertainment, shopping)

• 20%: Savings & investments

Even better? Flip it:

“Save first, spend the rest.”

Set your saving rate (e.g. 30%) and treat the rest as your spending budget.

3. Cut Invisible Spending

Here’s the truth: Most people overspend on things they don’t notice.

Examples:

• Subscription services you forgot about

• Unused gym memberships

• E-wallet auto top-ups you never monitor

• Paying minimum credit card balances and bleeding interest

✅ Action:
Review your monthly bank statement.
Find 3 items to cancel, downgrade, or eliminate.

4. Audit Your Grocery & Food Expenses

In Malaysia, food spending can easily creep up — especially with GrabFood, café hopping, and groceries that cost more post-2022 inflation.

✅ Strategy:

• Stick to a weekly grocery budget.

• Cook simple meals 3x/week.

• Make coffee at home instead of RM15 lattes daily.

Savings potential? Easily RM200–RM500/month.

5. Track Net Worth Monthly (Not Just Expenses)

Budgeting focuses on where your money goes.

But net worth tracking shows your overall financial health:

• Assets (EPF, ASB, savings, stocks, property)

• Liabilities (loans, credit cards, car loan, PTPTN)

When you track your net worth monthly, you’ll naturally become more motivated to save — because you can see your progress in real numbers.

6. Increase Income (Because There’s a Limit to Frugality)

You can only cut expenses so far.
But your income ceiling is limitless.

Ideas to earn more:

• Offer a freelance service (design, writing, translation)

• Start a low-capital online business

• Sell digital products (ebooks, guides)

• Use AI-powered side hustles 

• Upskill for a higher-paying role

✅ Remember: Every RM100 you earn and save is another boost to your savings rate.

7. Save Your Pay Raise (Don’t Inflate Lifestyle)

Get a bonus or raise?
Most people upgrade their life immediately.

Instead:

• Keep your lifestyle the same for 6–12 months

• Direct the extra income into savings or investments

✅ If you do this for 2 years, you can double your savings rate without “feeling” poorer.

8. Refinance or Reassess Your Big Bills

Are you overpaying for:

• Housing loan interest?

• Car loan interest?

• Insurance policies?

✅ Action:

• Compare refinancing options (e.g. iMoney)

• Use tools to compare insurance rates

• Consolidate debts to reduce monthly burden

Even reducing RM200/month from loans or policies increases savings potential.

9. Set Clear Short & Long-Term Goals

Saving “for the sake of saving” is boring.

Set goals like:

• RM10k emergency fund in 6 months

• Down payment for a house in 2 years

• RM100k investment portfolio by age 35

When your goal is clear, your motivation increases and so does your discipline.

10. Make Saving Fun

Saving money shouldn’t feel like punishment.

Gamify it:

• Use a 30-day no-spend challenge

• Try “RM5 rule” (every RM5 note goes to savings)

• Compete with a friend who can save more in a month

Celebrate milestones. Track visually. Reward yourself (modestly) when goals are hit.

Final Thoughts: Budgeting is the Map — Savings is the Journey

Budgeting is just the start.
To truly build wealth, you need systems, habits, and a mindset that constantly looks for ways to increase your savings rate.

Start small. Be consistent.
And remember — every ringgit saved is a seed planted for your future.

Why Credit Cards Are NOT Evil (If You Use Them the Right Way)

 

Credit Cards Are Just Tools

In Malaysia, credit cards get a bad name:

• “Hutang kad kredit banyak!”

• “Jangan pegang kad kredit, bahaya!”

But the truth is, credit cards are NOT evil — misuse is.

Used wisely, credit cards become powerful tools:

• Protecting cashflow

• Building credit history

• Earning cashback and rewards

• Tracking expenses better

Let’s dive deep into how Malaysians can master credit cards safely.

Myths About Credit Cards

✅ Myth #1: Credit Cards = Debt

Reality: Only if you spend money you don’t have.

✅ Myth #2: Debit Cards Are Always Safer

Reality: Credit cards offer better fraud protection.

✅ Myth #3: It’s Hard to Control Spending

Reality: Only if you lack discipline. Otherwise, auto-payments and setting limits work.

Benefits of Using Credit Cards (Wisely)

✅ Cashback Savings
E.g., Certain credit cards offers certain percentage of cashback on groceries and petrol.

✅ Reward Points
Points can be exchanged for vouchers, free flights, or even cashback.

✅ 0% Installment Plans
For large purchases (e.g., laptops, furniture), 6 or 12 months 0% plans can help cashflow — but only if needed wisely.

✅ Emergency Buffer
Medical bill, car breakdown? Credit cards provide immediate funds (repay immediately after).

✅ Credit Score Building
On-time repayments = better chances for car loans, home loans later.

How to Use Credit Cards Responsibly

✅ 1. Always Pay Full Amount Every Month
Never carry forward a balance. Avoid the high 15%–18% interest rates.

✅ 2. Use Credit Card Like Debit Card
If you don’t have the money, don’t spend it. Simple rule.

✅ 3. Limit to 1–2 Cards Maximum
Easier to track, harder to overspend.

✅ 4. Set Spending Limits
Use apps like Touch n' Go eWallet, MAE app, or even the bank’s app to control spending.

✅ 5. Focus on Cashback or Points That Fit Your Lifestyle

• Grocery spender? Cashback cards.

• Frequent traveler? Air miles cards.

Malaysian-Specific Good Cards (Examples)

• Public Bank Quantum Mastercard: 5% cashback on dining, online spending

• Maybank 2 Cards Gold: 5x TreatsPoints on weekend spend

• Hong Leong Wise Card: 8% cashback for selected categories

(Disclaimer: This is not a recommendation — just sharing options.)

Caution: What to Avoid

❌ Making only minimum payments
❌ Applying for too many cards at once (hurts credit score)
❌ Spending for points alone ("Oh look, free luggage if I spend RM5,000" — no thanks!)

Conclusion: Be the Master, Not the Victim

Credit cards are not your enemy.
Ignorance and impulse spending are.

Learn the rules. Use cards to your advantage. Enjoy cashback, rewards, and a strong financial reputation — without falling into debt traps.

Because the real “evil” is not understanding how money works — not the card itself.

10 Effective Strategies to Save Money on Everyday Expenses

 Introduction

Saving money isn’t just about cutting back—it’s about making smart financial choices that help stretch your ringgit further. With rising costs of living, Malaysians (and people worldwide) are constantly looking for ways to manage expenses without sacrificing quality of life. Here are 10 practical strategies to help you save money on everyday expenses, from grocery shopping to utility bills.

1. Track Your Expenses and Create a Budget

One of the biggest reasons people struggle to save money is that they don’t know where their money is going. Start by tracking every ringgit spent for a month. Categorize your expenses into:

✔️ Essentials (rent, groceries, utilities)
✔️ Wants (dining out, shopping)
✔️ Savings and investments

Once you have a clear picture, use the 50/30/20 rule as a guide:

• 50% on needs
• 30% on wants
• 20% on savings/investments

2. Use Cashback and Rewards Programs

If you use a credit card, take advantage of cashback and rewards programs. Many Malaysian banks offer cashback on groceries, petrol, and even online shopping. Popular e-wallets like Touch ‘n Go, Boost, and GrabPay also offer cashback deals and promotions.

👉 Tip: Pay off your credit card balance in full each month to avoid interest charges!

3. Plan Your Grocery Shopping

Groceries can take up a huge portion of your budget if you’re not careful. Here’s how to save money on groceries:
✔️ Plan meals for the week and create a shopping list
✔️ Compare prices between supermarkets (MyGroser, HappyFresh, and Jaya Grocer have apps for price checks)
✔️ Buy in bulk for non-perishable items
✔️ Avoid shopping when hungry—impulse purchases add up!

4. Cut Down on Utility Bills

Utility bills, especially electricity and water, can be optimized with small lifestyle changes:
✔️ Use energy-efficient appliances
✔️ Turn off lights and unplug devices when not in use
✔️ Switch to LED bulbs (they use up to 75% less energy than traditional bulbs)
✔️ Use a fan instead of air conditioning when possible

5. Reduce Transportation Costs

Instead of driving everywhere, consider:
✔️ Carpooling or using ride-sharing apps when possible
✔️ Taking public transportation (MRT, LRT, or buses) to save fuel costs
✔️ Cycling or walking for short distances

If you must drive, keep your car in good condition to improve fuel efficiency—proper tire pressure and regular maintenance can help reduce fuel consumption!

6. Cook at Home More Often

Eating out frequently can drain your budget fast. Cooking at home saves a significant amount of money, and you can even prepare meal preps to save time.

👉 Tip: Try making homemade kopi or teh tarik instead of spending RM10+ on coffee outside!

7. Negotiate Bills and Subscriptions

Many people overpay for things like internet plans, mobile data, and streaming services. Here’s how to cut down:
✔️ Call your service provider to negotiate a better deal
✔️ Consider downgrading to a cheaper plan if you don’t use all the features
✔️ Cancel unused subscriptions (Netflix, Spotify, gym memberships)

8. Buy Second-Hand or Wait for Sales

Not everything needs to be brand new! You can find quality second-hand clothes, electronics, and even furniture online. Check out:
✔️ Carousell (for second-hand gadgets, clothes, and more)
✔️ Facebook Marketplace (for great deals on furniture and household items)

Alternatively, wait for major sales like 11.11, Black Friday, and Malaysia Day Sales to get the best discounts.

9. DIY and Learn Basic Repairs

Instead of hiring someone for every minor repair, try learning some DIY skills:
✔️ Sew minor clothing tears instead of replacing them
✔️ Fix small plumbing issues (YouTube has great tutorials!)
✔️ Wash and maintain your car yourself instead of sending it to the car wash every week

A little DIY knowledge can save hundreds of ringgit every year!

10. Automate Savings and Invest Wisely

Lastly, set up an automatic transfer to your savings or investment account every month. This ensures that you save before spending.

In Malaysia, platforms like StashAway, Wahed Invest, and Rakuten Trade make it easier to invest with small amounts. Even if you start with just RM100 a month, compounding returns will help grow your money over time.

Final Thoughts
Saving money doesn’t mean giving up everything you love—it’s about making smarter financial decisions. By implementing these strategies, you’ll find that you can still enjoy life while securing a stable financial future.