Make it a habit to save for rainy days

ACCORDING to the International Monetary Fund ( IMF), there will be significant inflation pressure throughout the world in 2022 with developing economies being the worst hit.

As ordinary denizens of the planet, we have to learn to adjust to the challenging economic situations by tightening up our belts. For starters, we need to heed the advice of financial planning experts, who are saying that we should not simply withdraw our savings, including our Employees Provident Fund (EPF), or invest without first studying the market thoroughly.

I couldn’t agree more with American business magnate, investor and philanthropist Warren Buffett’s advice: “Spend what is left after saving.” Essentially, the saving habit should be nurtured from young.

As we are all under the pressure of inflation, saving money regularly might be challenging for most people. Nonetheless, it is important to save a certain amount from our monthly income for unforeseen emergencies, if not future purposes.

It’s advisable to save at least 10% of our monthly income, and there are many way to keep the savings growing. It’s up to you to decide which one suits you, and keep updated of the most contemporary information. For starters, I would recommend reading the article “What Is the 10% Savings Rule?” (https://bit.ly/3R98Qu4).

At the same time, be a smart consumer. Never pamper your desires, buy the right thing at the right time, and make life as simple as possible but not to the extent of depriving yourself of the joys of life. Always remember the age-old advice, “Sediakan payung sebelum hujan (Have an umbrella ready before it rains)”. We don’t know what will happen tomorrow.

EE FUI MEI

Melaka