How would you like to see an extra RM20,000 or more in your account by December 2020? This New Year, aim to save more, spend less and maybe get rid of a debt or two.
Here are some tips that you can use to grow your wealth this 2020.
Set higher #financialgoals in 2020
This 2020, why not dream big and set better #financialgoals? If you are not sure where to start, you can always begin your plan using these 3 easy steps:
Set your target: Start the year with an achievable savings target in mind, but make sure that the number is at least 5 figures (RM10,000 or more) and higher than what you have saved in 2019.
Plan an effective budget: Now that you have a target in mind, it is time to plan a budget. Let’s say you’re aiming for RM20,000 in your account by December 2020. You can use this to work out how much to save each month (around RM1,666 per month in this case) and how much you have left to spend.
Track your budget: For most of us, following through is the toughest part of a budget. One simple remedy is to use an app. You can try apps like Wally and Goodbudget, or even apps specially-developed by banks such as our own Be$MART.
Follow the wise words of Warren Buffet
“Do not save what is left after spending; instead spend what is left after saving,” said Warren Buffet.
This year, eliminate the urge to spend by setting up an automatic transfer to your savings account every month. Don’t have a separate savings account to park your money? Now is the time to set one up. This way, you will guarantee to save money each month – and in 12 months’ time, you will reach your goal of becoming richer in 2020!
Aim to start investing this 2020
Once you have achieved your target #financialgoals for 2020, why not invest and make it grow even more? Take some time this year to research your options and strategies. Once you’re ready, you can make your investment decisions on your own, open an investment account through a robo-advisor, or consult an investment management service.
New Year, no debt
If you’ve got loans to pay and credit card debt to clear, you’re not alone. Loans and instalments can help manage expensive purchases, but the added-up interest can be detrimental to your finances. Try to avoid taking on any more additional debt this year – settle your monthly credit card bill in full, make your loan payments on time, and – for purchases that aren’t urgent – pay off ongoing instalments before you start new ones.
These are just some ways you can build good money habits. Try to find what suits you and have a great financial year!
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.